07:39 AM EST, 02/26/2026 (MT Newswires) -- Cascades (CAS.TO) on Thursday reported fourth-quarter adjusted net earnings per common share which beat analysts' estimates.

The company reported fourth quarter adjusted net earnings of C$40 million, or $0.40 per common share, compared to net earnings of $25 million, or $0.25 per common share, in the same period of 2024. The consensus estimates compiled by FactSet for Non GAAP EPS was $0.37 per share.

The company posted fourth-quarter net earnings of $37 million, or $0.37 per common share, compared to a net loss of $13 million, or $0.13 per common share, in the same period of 2024.

The company's fourth-quarter sales was around $1.20 billion, compared with around $1.21 billion in Q4 2024. The consensus estimates compiled by FactSet for sales was about $1.21 billion.

"Our fourth quarter consolidated performance met sequential forecasts," said Hugues Simon, President and Chief Executive Officer. "Packaging results were within expectations, with benefits from lower production costs, favourable raw material pricing and continued solid production levels at Bear Island mitigating the expected lower seasonal sales volumes. Results of our tissue business fell short of targeted levels. Simply put, our tissue operations did not meet efficiency and logistics execution objectives in the quarter. These effects were compounded by an unplanned power outage at one of our facilities that further impacted production levels, supply chain efficiency and added incremental operating costs of approximately $6 million in the period. The countermeasures we have already put in place to address these issues are generating positive traction. Overall, we successfully decreased net debt by $127 million sequentially, which results in leverage decreasing to 3.3x from 3.6x at the end of the third quarter."

The company also said that its board of directors declared a quarterly dividend of $0.12 per common share to be paid on March 26, 2026 to shareholders of record at the close of business on March 12, 2026. The dividend is unchanged from the prior quarter.

On near-term outlook, Simon said that the company expects first quarter performance to "decline sequentially, but to remain higher year over year for the sixth consecutive quarter."

"In packaging, the forecasted sequential decline is attributable to usual seasonality in demand levels and higher transportation and energy costs due to weather-related impacts in the US in early 2026," added the CEO. "We are similarly expecting softer results in tissue sequentially. In addition to usual seasonality and costs related to severe weather, results in this segment will be impacted by residual production and logistics costs following the power outage at one of our facilities. Our leverage ratio is expected to continue to improve in the coming quarters."