Cascades Reports Third-Quarter 2026 Results, With Sales Rising 2% to C$1.267 Billion

Cascades Inc. (TSX: CAS), a manufacturer of packaging, hygiene and recovery solutions, reported third-quarter 2026 sales of C$1.267 billion, up 2% from C$1.238 billion in the corresponding period of 2025. Operating income increased to C$78 million from C$73 million a year earlier.

For the three months ended September 30, 2026, the company recorded net earnings of C$30 million, or C$0.30 per common share, compared with C$29 million, or C$0.29 per share, in the third quarter of 2025.

Adjusted EBITDA reached C$162 million, compared with C$159 million in the same period last year. Adjusted net earnings were C$34 million, or C$0.33 per common share, compared with C$39 million, or C$0.38 per share, in the third quarter of 2025.

Packaging and Tissue Segment Performance

The Packaging Products segment generated sales of C$807 million during the quarter, compared with C$797 million in the third quarter of 2025. Operating income for the segment was C$64 million, down from C$73 million a year earlier.

The Tissue Papers segment reported sales of C$415 million, compared with C$412 million in the prior-year quarter. Operating income increased to C$32 million from C$30 million.

Cascades said higher raw material and transportation costs, along with approximately C$4 million in tariff-related impacts, affected its Packaging segment. These pressures offset the benefits of operational and pricing improvement initiatives.

In Tissue, previously announced selling price increases largely offset inflationary pressures and lower volumes in the Away-from-Home business. Productivity improvements and cost-reduction initiatives also supported profitability.

Capital Expenditure and Debt

Cascades reported capital expenditures of C$47 million for the third quarter, compared with C$40 million in the second quarter of 2026 and C$30 million in the third quarter of 2025. The company's forecast for 2026 capital expenditures remains between C$150 million and C$175 million, before disposals.

Net debt stood at C$1.863 billion as of September 30, 2026, compared with C$1.879 billion at June 30, 2026. The net debt-to-adjusted EBITDA ratio improved to 3.2 times from 3.3 times.

The company generated C$11 million in asset sale proceeds during the quarter, bringing total proceeds for 2025–2026 to C$165 million. Its target of C$230 million is now expected to be achieved in early 2027.

Fourth-Quarter Outlook

Cascades expects consolidated fourth-quarter results to be slightly lower sequentially, citing continued uncertainty in the economic environment, tariff-related impacts and pressure from raw material and transportation costs.

The company expects price increases, profitability improvement initiatives and operational optimization efforts to help mitigate these pressures.

"Our third quarter results were in line with our expectations despite significant headwinds from ongoing tariff-related disruptions, cost inflation and continued uncertainty in the economic environment," said Hugues Simon, President and CEO of Cascades.

The company's priorities include disciplined capital management, improved productivity across its asset network, customer portfolio optimization and initiatives aimed at strengthening its long-term operational resilience.