The company’s adjusted EBITDA reached $140 million for the quarter, an increase from $137 million in the second quarter of 2025. CEO Hugues Simon attributed the solid results to higher production volumes in the packaging segment and successful cost-reduction initiatives across the paper mill network. Despite unfavorable exchange rate movements, the firm managed to decrease net debt to $1.88 billion while maintaining a stable leverage ratio of 3.3x.
In section Releases
Cascades Beats Q2 Expectations Amid U.S. Tariff Uncertainty
Cascades Inc. reported second-quarter sales of $1.22 billion, surpassing performance expectations as stronger packaging demand and improved operational efficiency offset the shadow of looming U.S. trade barriers. The Quebec-based firm posted net earnings of $21 million, signaling a rebound from the net loss recorded in the same period last year.
Looking toward the second half of 2026, Cascades is bracing for potential headwinds following the U.S. administration’s July announcement of 50% tariffs on specific imported tissue and packaging goods. While management is currently assessing the impact, they remain optimistic about the firm's earnings trajectory. The company now expects its annual run-rate adjusted EBITDA to exceed $600 million, supported by recently implemented price increases in its core business segments and ongoing efforts to divest non-core assets to reach a $230 million proceeds target by early 2027.
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