Overview

* Cascades Q3 2025 sales beat analyst expectations, driven by higher selling prices

* Adjusted EPS for Q3 2025 exceeds analyst estimates, reflecting improved operational performance

* Company reduced net debt by C$81 mln sequentially, improving financial leverage

Outlook

* Cascades expects Q4 performance to be stable sequentially on a consolidated basis

* Company forecasts lower Q4 results for packaging due to expected volume decrease

* Tissue segment expected to maintain positive momentum in Q4 due to lower costs

Result Drivers

* PACKAGING VOLUME - Increased production at Bear Island and redistribution of tonnage from Niagara Falls mill boosted packaging segment

* RAW MATERIAL COSTS - Lower raw material costs contributed positively to EBITDA, mainly in packaging segment

* TISSUE VOLUME - Improved volumes in tissue business contributed to strong quarterly performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat C$1.24 C$1.18

bln bln (3

Analysts

)

Q3 Beat C$0.38 C$0.30

Adjusted (5

EPS Analysts

)

Q3 EPS C$0.29

Q3 C$159

Adjusted mln

EBITDA

Q3 Capex C$30 mln

Q3 C$73 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the paper packaging peer group is "buy"

* Wall Street's median 12-month price target for Cascades Inc ( CADNF ) is C$12.00, about 7.9% above its November 5 closing price of C$11.05

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)