Cascades released its financial results for the third quarter of 2025, posting stronger-than-expected performance driven by higher volumes, disciplined operations, and favourable market trends for selling prices and input costs.
The company reported sales of $1.238 billion, up from $1.187 billion in Q2 2025 and $1.201 billion a year earlier. Operating income more than doubled to $73 million, compared with $36 million in both the previous quarter and the same period in 2024.
Adjusted EBITDA reached $159 million, up 14% year-over-year, representing a margin of 12.8%. Net earnings per common share improved to $0.29, compared with a net loss of $0.03 in Q2 2025.
Stronger Profitability Across Segments
The performance was supported by improved profitability in the packaging sector and higher volumes in tissue papers, combined with lower raw material costs.
The packaging segment recorded sales of $797 million and an operating income of $73 million, reflecting strong execution and cost discipline.
In tissue papers, sales reached $412 million, with operating income of $30 million, confirming a sustained recovery trend.
At the Bear Island mill in Virginia, production volumes increased by 24%, reaching 90% of the mill’s targeted production curve — a key milestone in its ramp-up process.
Reduced Debt and Stable Outlook
As of September 30, 2025, Cascades reported net debt of $2.023 billion, down $81 million from the previous quarter. The net debt-to-adjusted EBITDA ratio improved from 3.8x to 3.6x.
“Our consolidated third-quarter results exceeded our expectations,” said Hugues Simon, President and Chief Executive Officer.
“This strong performance reflects higher volumes, solid operational execution, and the benefits of ongoing profitability initiatives. We remain confident in our strategic direction and our ability to further strengthen our financial position.”
For the fourth quarter, the company anticipates stable consolidated results, with softer demand expected in packaging in December and continued sequential improvement in tissue, supported by lower maintenance and fibre costs.
Founded in 1964, Cascades is a North American leader in the manufacturing of packaging, hygiene, and recovery products made primarily from recycled fibres. The company employs approximately 9,300 people across 65 operating units located in Canada and the United States. Its shares trade on the Toronto Stock Exchange (TSX: CAS).
