Cascades Q2 Earnings Call Highlights

Key Points

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• Cascades exceeded second-quarter expectations, with sequential improvements successful some large segments. Packaging income roseate 8% to CAD 772 cardinal and adjusted EBITDA accrued 16% to CAD 120 million, portion insubstantial income grew 7.6% to CAD 409 cardinal and adjusted EBITDA roseate 6% to CAD 35 million.

• Adjusted EPS accrued to CAD 0.24 from CAD 0.07 successful the archetypal quarter, portion adjusted operating currency travel roseate 22% twelvemonth implicit twelvemonth to CAD 123 million. Net indebtedness fell CAD 22 cardinal sequentially, though leverage remained elevated astatine 3.3 times.

• Management expects further third-quarter betterment and an yearly adjusted EBITDA tally complaint supra CAD 600 cardinal successful the 2nd fractional of 2026. Cascades is assessing imaginable U.S. tariffs of up to 50% connected immoderate products, estimating the interaction could beryllium constricted to nary much than 5% of adjusted EBITDA aft mitigation measures.

Cascades (TSE:CAS) reported second-quarter results that absorption said exceeded expectations, supported by stronger operational execution, higher volumes and commercialized initiatives crossed its packaging and insubstantial businesses.

President and CEO Hugues Simon said the institution continued to run amid macroeconomic and geopolitical uncertainty, but some large segments delivered sequential improvement. "Our 2nd 4th exceeded expectations, driven by stronger execution crossed our operations and lower-than-anticipated measurement risk," Simon said.

Packaging conception rebounds connected measurement and pricing

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Cascades' packaging conception recorded income of CAD 772 cardinal successful the 2nd quarter, an 8% sequential increase, portion adjusted EBITDA roseate 16% to CAD 120 million. The segment's adjusted EBITDA borderline accrued to 15.5% from 14.4% successful the archetypal quarter.

The institution attributed the betterment to higher volumes and selling prices, stronger manufacturing show and commercialized initiatives. Total packaging shipments accrued 9% sequentially to 426,000 tons. Box shipments roseate 6%, portion outer insubstantial shipments accrued 11%.

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On a comparable-asset basis, container shipments accrued 5.8% from the prior-year quarter, up of the industry's 2.4% increase, according to the company. Including a West Coast container works sold during the archetypal quarter, sequential container shipments accrued 8.4%, compared with an manufacture summation of 5.5%.

Simon said accumulation levels reached records astatine some Greenpac and Bear Island. Bear Island operated astatine 95% of full accumulation capableness during the quarter, and July accumulation was supra the second-quarter average. He said absorption was "very pleased" with Bear Island's fiscal results, portion declining to supply mill-specific profitability.