KINGSEY FALLS, QC, Aug. 7, 2025 - Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period ended June 30, 2025.
Q2 2025 Highlights
- Sales of $1,187 million (compared with $1,154 million in Q1 2025 and $1,180 million in Q2 2024);
- Operating income of $36 million (compared with $50 million in Q1 2025 and $34 million in Q2 2024);
- Net loss per common share of ($0.03) (compared with net earnings per common share of $0.07 in Q1 2025 and net earnings per common share of $0.01 in Q2 2024);
- Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A)1) of $137 million (compared with $125 million in Q1 2025 and $112 million in Q2 2024);
- Adjusted net earnings per common share1 of $0.19 (compared with $0.13 in Q1 2025 and $0.08 in Q2 2024);
- Net debt1 of $2,104 million as of June 30, 2025 (compared with $2,216 million as of March 31, 2025). Net debt to EBITDA (A) ratio1 of 3.8x, down from 4.2x as of March 31, 2025;
- Total capital expenditures, net of disposals of $26 million, totaled $18 million in Q2 2025, compared to $36 million in Q1 2025 and $23 million in Q2 2024. The Corporation's 2025 forecasted capital expenditures before disposals will be approximately $150 million.
Hugues Simon, President and CEO, commented: "Second quarter performance was in line with our forecasts. On a consolidated basis, sequential improvement was underpinned by stronger volumes and selling prices, and lower transportation and energy costs. Packaging results were driven by the implementation of selling price increases and stable shipments. As expected, these were partially offset by higher operational costs per unit attributable to lower operating rates. Operational metrics at Bear Island improved sequentially, with production levels up 8%. This trend has continued into July. Our tissue segment generated stable results sequentially as benefits from improved pricing, sales volume and mix were offset by higher operational costs due to planned shutdowns and maintenance activities. These initiatives were scheduled to improve line efficiencies, support the execution of our retail tissue realignment strategy, and manage inventory in the Away-from-Home tissue market. The Corporation's net debt levels decreased by $112 million sequentially, and leverage contracted to 3.8x from 4.2x at the end of the first quarter. Net of disposals, capital expenditures totaled $18 million in the quarter, and $54 million year-to-date. We now expect full year 2025 levels to be in the range of $150 million, before disposals, down from $175 million previously."
Discussing near-term outlook, Mr. Simon commented, "We are anticipating third quarter performance to be slightly higher sequentially. We remain cautious in packaging, where results are expected to be largely stable as benefits from continued favourable pricing and raw material trends are forecasted to be offset by constrained demand levels. We expect a stronger tissue performance in the third quarter, driven by volume growth and largely stable raw material costs and selling prices. Continued uncertainty in the macro-economic environment may impact future demand levels across North America and our outlook."
