Cascades (TSE:CAS) Releases Earnings Results

Cascades (TSE:CAS) announced its quarterly earnings results on Thursday. The company reported C$0.24 earnings per share (EPS) for the quarter, FiscalAI reports. Cascades had a net margin of 2.15% and a return on equity of 5.95%. The company had revenue of C$1.22 billion for the quarter.

Here are the key takeaways from Cascades’ conference call:

• Q2 results exceeded expectations, with packaging and tissue both improving sequentially on stronger volumes, better execution, and earlier profitability initiatives. Packaging Adjusted EBITDA rose 16% sequentially to CAD 120 million, while tissue EBITDA increased 6% to CAD 35 million.
• Packaging volumes and margins showed resilience, with shipments up 9% sequentially and EBITDA margin recovering to 15.5%. Bear Island operated at 95% of capacity and achieved record production, while comparable box shipments increased 5.8% year over year, ahead of industry growth.
• Management expects consolidated results to improve sequentially in Q3 and now anticipates an annualized Adjusted EBITDA run rate above CAD 600 million in the second half of 2026. New packaging price increases of CAD 110 per ton for linerboard and white paper and CAD 140 per ton for medium are expected to begin benefiting results in Q4.
• Newly announced U.S. tariffs could affect certain tissue and packaging exports, with management estimating a potential net impact of up to 5% of Adjusted EBITDA run rate after mitigation. The company also noted possible secondary effects from weaker demand among customers exposed to the tariffs.
• Adjusted operating cash flow increased 22% year over year to CAD 123 million, but leverage remained elevated at 3.3x. Cascades extended the timeline for its CAD 230 million asset-monetization target to early 2027, citing market conditions and a desire to preserve asset value.

Cascades Stock Performance

Shares of CAS stock opened at C$15.50 on Friday. The company has a quick ratio of 0.86, a current ratio of 1.53 and a debt-to-equity ratio of 113.03. The company has a 50 day moving average price of C$11.98 and a 200-day moving average price of C$11.85. Cascades has a 52 week low of C$8.95 and a 52 week high of C$15.64. The firm has a market capitalization of C$1.57 billion, a PE ratio of 15.50, a P/E/G ratio of 0.56 and a beta of 1.04.

Cascades Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Thursday, August 20th. Cascades’s dividend payout ratio (DPR) is presently 48.00%.

Insider Transactions at Cascades

In related news, insider Laurent Lemaire bought 23,302 shares of the business’s stock in a transaction on Wednesday, May 13th. The stock was acquired at an average price of C$10.52 per share, with a total value of C$245,137.04. Following the transaction, the insider owned 7,837,637 shares in the company, valued at approximately C$82,451,941.24. This trade represents a 0.30% increase in their position. Corporate insiders own 23.78% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Desjardins dropped their price target on Cascades from C$15.00 to C$13.00 and set a “hold” rating on the stock in a research report on Monday, April 13th. National Bank Financial dropped their price objective on shares of Cascades from C$14.00 to C$13.00 and set a “sector perform” rating on the stock in a research note on Friday, May 8th. Royal Bank Of Canada decreased their target price on shares of Cascades from C$15.00 to C$14.00 and set an “outperform” rating for the company in a research note on Friday, May 8th. Scotiabank cut their price target on Cascades from C$16.75 to C$14.50 and set an “outperform” rating on the stock in a research note on Monday, April 13th. Finally, Canadian Imperial Bank of Commerce upgraded Cascades from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of C$13.93.

About Cascades

Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs approximately 9,000 talented people across a network of 60 production units in North America. With its participative management, half a century of experience in recycling, and ongoing efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet.