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Cascades announced that it is targeting an additional US$100 million in asset sales by 2026 as part of its portfolio optimization and financial strengthening strategy.
During its fourth-quarter earnings call, President and CEO Hugues Simon stated that overall performance met company expectations, although sales were impacted by lower seasonal demand. Box shipments increased 1.5%, outperforming the industry’s 2.4% decline.
The tissue segment delivered results below expectations, partly due to an unexpected power outage at a North Carolina facility, which generated approximately US$6 million in additional operating costs and required production volumes to be shifted to other plants.
On the financial front, Cascades reduced its debt by US$127 million in the fourth quarter and US$200 million for the year, lowering its leverage ratio from 3.6x to 3.3x.
In early February, the company announced the sale of its Richmond, British Columbia corrugated packaging plant to Crown Paper Group, along with the closure of three facilities as it exited the honeycomb and partitions business segments. The US$69 million in proceeds were allocated to debt repayment, helping the company reach its US$120 million target in non-core asset sales ahead of mid-2026.
Regarding market conditions, the company highlighted ongoing containerboard price volatility and confirmed it will proceed with previously announced price increases. On U.S. tariffs, Simon described the environment as “constantly evolving” and noted that Cascades will continue adjusting its operations in response to economic and geopolitical developments.
For 2026, Cascades expects adjusted EBITDA to exceed US$600 million and capital expenditures of approximately US$175 million, amid what management anticipates will remain a complex operating environment.
