Cascades reports second quarter 2025 results

Cascades Inc. released its unaudited financial results for the second quarter of 2025, reporting sales of $1.187 billion, compared with $1.154 billion in the first quarter and $1.180 billion in the same period of 2024. Operating income reached $36 million, while the company recorded a net loss of $0.03 per common share. Adjusted EBITDA stood at $137 million, up from $125 million in Q1 2025 and $112 million in Q2 2024.

Net debt totaled $2.104 billion as of June 30, down from $2.216 billion at the end of March, with the net debt-to-adjusted EBITDA ratio improving to 3.8x from 4.2x. Capital expenditures, net of disposals, were $18 million in the quarter, and the company now expects full-year 2025 levels to be approximately $150 million, down from the previous forecast of $175 million.

“Second quarter performance was in line with our forecasts,” said President and CEO Hugues Simon. “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.”

 

Simon noted that Bear Island’s operational metrics improved sequentially, with production up 8%, and that the tissue segment remained stable despite higher operational costs from planned shutdowns and maintenance activities. These actions were part of the company’s retail tissue realignment strategy and inventory management in the Away-from-Home market.

Looking ahead, Simon stated: “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.”