Cascades posts US$27M profit in Q4 of FY25

CANADA – Cascades has returned to profitability in the fourth quarter of 2025, posting net earnings of C$37 million (US$27 million), compared to a net loss of C$13 million (US$9.52m) in the same period a year earlier.

Adjusted EBITDA rose to C$155 million (US$113.46m), up from C$146 million (US$106.87m) in Q4 2024, while operating income climbed sharply to C$76 million (US$55.63m) from C$16 million (US$11.71m) in the prior-year quarter.

Net earnings per common share reached C$0.37, reversing from a loss of C$0.13 per share in Q4 2024.

Quarterly sales stood at C$1.19 billion (US$871.07m), slightly below the C$1.21 billion (US$819.83m) reported in the previous quarter, reflecting softer volumes despite pricing gains.

Since January 2025, Cascades has operated under two streamlined segments: Packaging Products and Tissue Papers, following organizational changes initiated last year that combined containerboard and specialty products into a single unit.

The company said higher selling prices and a favourable sales mix generated a combined C$50 million (US$36.60m) benefit in the quarter.

However, this was offset by a C$62 million (US$45.38m) impact from lower volumes, primarily in the packaging products segment.

Packaging Products sales declined 3% year-on-year to C$757 million (US$554.12m), compared with C$782 million (US$572.42m) in Q4 2024.

Tissue Papers sales slipped marginally to C$407 million (US$297.92m) from C$394 million (US$288.41m) in the same period last year.

For the full fiscal year 2025, Cascades reported net earnings of C$70 million (US$51.24m), reversing a C$31 million (US$22.69m) loss in 2024.

Annual sales increased to C$4.8 billion (US$3.51bn) from C$4.7 billion (US$3.44bn), while operating income more than doubled to C$235 million (US$172.02m) from C$95 million (US$69.54m).

Net earnings per common share stood at C$0.70 for 2025, compared with a loss of C$0.31 per share the previous year.

The company also strengthened its balance sheet. Net debt fell to C$1.9 billion (US$1.39bn) as of 31 December 2025, down from C$2.09 billion (US$1.53bn) at the end of 2024.

The net debt-to-EBITDA ratio improved to 3.3× from 4.2× year-on-year, reflecting stronger earnings and debt reduction efforts.

President and CEO Hugues Simon said fourth-quarter performance met sequential expectations, citing lower production costs, favourable raw material pricing, and solid production levels at the Bear Island containerboard mill as key contributors.

Looking ahead, Simon expects first-quarter results to decline sequentially due to seasonality but remain higher year-on-year for the sixth consecutive quarter.

He added that the company anticipates 2026 performance will surpass 2025, despite ongoing macroeconomic uncertainty.

In related developments, Cascades last month agreed to sell its corrugated packaging facility in Richmond, British Columbia, to Crown Paper Group for C$65.5 million (US$47.95m), as part of its continued portfolio optimization strategy.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE