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Cascades Reports Q1 2026 Results

PAPER INDUSTRY NEWS

Jino John

5/7/20261 min read

Cascades Inc. (TSX: CAS) today announced its unaudited financial results for the three-month period ended March 31, 2026.

Q1 2026 Highlights

  • Sales totaled $1.125 billion, compared with $1.154 billion in Q1 2025

  • Operating income increased to $81 million, up from $50 million last year

  • Net earnings per common share were $0.38, compared with $0.07 in Q1 2025

  • Adjusted EBITDA reached $118 million

  • Net debt remained stable at $1.901 billion, with leverage unchanged at 3.3x

  • Capital expenditures totaled $28 million

  • Asset sale proceeds reached $91 million during the quarter, with total proceeds of $149 million since the start of the 2025–2026 period

Management Commentary

Hugues Simon, President and CEO of Cascades, stated:

“First quarter results came in below our initial forecast, reflecting both external and operational factors. Weather-related disruptions across the U.S., volatility in transportation and fuel costs, and softer consumer spending weighed on performance during the quarter.”

Simon added that the company expects second quarter results to be “modestly lower sequentially” as consumer demand and cost pressures remain challenging. However, Cascades expects pricing initiatives and operational improvement programs to support profitability recovery in the second half of 2026.

Segment Performance

Packaging Products

  • Sales: $715 million

  • EBITDA (A): $103 million

Tissue Papers

  • Sales: $380 million

  • EBITDA (A): $33 million

Financial Position

As of March 31, 2026:

  • Cash and cash equivalents totaled $85 million

  • Total assets stood at $4.742 billion

  • Total equity reached $1.793 billion

Dividend

The Board of Directors declared a quarterly dividend of $0.12 per common share, payable on June 4, 2026, to shareholders of record as of May 21, 2026.

Outlook

Cascades continues to focus on:

  • Cost reduction initiatives

  • Logistics optimization

  • Productivity improvements

  • Strategic pricing actions

  • Non-core asset sales

The company expects these initiatives to help restore annualized adjusted EBITDA to approximately $600 million during the second half of 2026.