Cascades reported stronger-than-expected Q2 earnings, driven by 16% adjusted EBITDA growth in packaging and improved tissue performance.
Cascades posted second-quarter results above expectations, with packaging sales rising 8% to CAD 772 million and adjusted EBITDA up 16% to CAD 120 million. Tissue sales grew 7.6% to CAD 409 million, while adjusted EBITDA increased 6% to CAD 35 million.
Adjusted EPS climbed to CAD 0.24 from CAD 0.07 in Q1, and operating cash flow rose 22% year over year to CAD 123 million. Net debt declined CAD 22 million sequentially, though leverage remained at 3.3 times.
Management forecast further Q3 improvement and an annual adjusted EBITDA run rate above CAD 600 million by the second half of 2026. The company is evaluating potential U.S. tariffs, estimating a limited impact of no more than 5% on adjusted EBITDA.