Cascades reports 21% rise in Q1 FY25 EBITDA despite volume decline

CANADA — Cascades Inc. has posted strong financial results for the first quarter of 2025, reporting a 21% year-over-year increase in EBITDA despite ongoing challenges from lower volumes and higher operating costs.

In its unaudited Q1 2025 results, the Corporation recorded sales of C$1.15bn (US$827.63m), up C$45 million (US$32.27m) from the same period in 2024.

The increase was mainly attributed to net benefits of C$47 million (US$33.71m) from higher selling prices and C$45 million (US$32.27m) from favorable foreign exchange movements.

These gains were partially offset by a C$48 million (US$34.42m) decline due to lower volumes.

EBITDA for the quarter totaled C$125 million (US$89.65m), compared to C$103 million (US$73.87m) a year earlier.

The improvement was largely driven by better pricing, particularly in the packaging products segment, and a stronger U.S. dollar.

These gains were tempered by C$10 million (US$7.17m) in higher production and energy costs and a C$15 million (US$10.76m) hit from lower sales volumes.

Cascades reported net earnings of C$7 million (US$5.02m) or C$0.07 per common share in Q1 2025, a marked turnaround from a net loss of C$20 million (US$14.34m) or C$0.20 per share in the same period last year.

On an adjusted basis, earnings reached C$13 million (US$9.32m), or C$0.13 per share, compared to a near break-even performance in Q1 2024.

President and CEO Hugues Simon acknowledged the headwinds faced during the quarter, “Our Q1 performance was impacted by lower volumes across our businesses as uncertainty over tariffs dampened both consumer and business sentiment from mid-February onward.

“Additionally, higher seasonal energy expenses, lower production levels, and increased transportation costs weighed on profitability. However, favourable selling prices, raw material costs, and the depreciation of the Canadian dollar supported our overall performance.”

Looking ahead, Simon expressed optimism for the second quarter, “We anticipate improved results in Q2, particularly in packaging, as the benefits of recent price increases take effect.

“Tissue segment performance is also expected to strengthen due to volume recovery, positive retail trends, and growth in Away-from-Home sales. These improvements should help offset the impact of rising raw material costs.”

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