Cascades Reports Fourth Quarter and Full Year 2025 Results

KINGSEY FALLS, Québec, February 26, 2026 — Cascades Inc. (TSX: CAS) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2025, highlighting improved profitability, stronger operational performance, and continued balance sheet strengthening.

Fourth Quarter 2025 Results

For the fourth quarter of 2025, Cascades generated sales of $1,197 million. While revenues were slightly lower year-over-year due to softer volumes in certain packaging activities, profitability improved compared to the same period last year.

Adjusted EBITDA totaled $155 million, representing a 6% increase from Q4 2024. The improvement was driven primarily by better pricing, a favorable product mix, and disciplined cost management initiatives, which helped offset higher transportation and energy costs.

The Company recorded net earnings of $37 million, or $0.37 per common share, compared to a net loss in the prior-year period. On an adjusted basis, net earnings reached $40 million, or $0.40 per share.

Full Year 2025 Performance

For the full fiscal year 2025, sales reached $4,776 million, an increase compared to $4,701 million in 2024. The improvement reflects pricing initiatives and operational optimization efforts across business segments.

Adjusted EBITDA for the year totaled $576 million, up from $501 million in 2024, demonstrating improved operating leverage and margin recovery. Operating income reached $235 million.

Net earnings for the year amounted to $70 million, or $0.70 per share, reversing the net loss recorded in 2024. On an adjusted basis, earnings per share were $1.10.

The Company continued to strengthen its financial position, ending the year with net debt of $1,896 million and improving its leverage ratio to 3.3x net debt to EBITDA.

Capital Investments and Asset Optimization

Capital expenditures totaled approximately $152 million in 2025, including $42 million in the fourth quarter. For 2026, Cascades expects capital investments to be approximately $175 million before proceeds from asset disposals.

The Company also advanced its asset monetization strategy, exceeding its targeted proceeds from the sale of non-core and redundant assets ahead of schedule.

No specific new paper mill or major paper production project was announced in this earnings release.

Segment Highlights

The Packaging Products segment delivered solid performance despite typical seasonal volume softness and cost pressures. Pricing discipline and operational improvements supported profitability.

The Tissue segment experienced operational challenges during the year, including inefficiencies and an unplanned power outage. Corrective measures have been implemented, and management reported early signs of improvement heading into 2026.

Dividend

Cascades declared a quarterly dividend of $0.12 per common share, payable on March 26, 2026, to shareholders of record as of March 12, 2026.

Outlook

Looking ahead, the Company anticipates a sequential decline in performance in the first quarter of 2026 due to seasonal factors and cost pressures. However, results are expected to remain higher year-over-year, marking continued operational progress.

Management remains focused on disciplined capital allocation, operational efficiency, and further strengthening of the balance sheet while navigating evolving market conditions.