Overview

* Cascades Q2 sales of C$1.187 bln missed analyst expectations

* Adjusted EPS meets expectations at C$0.19 per share

* Co reports net loss of C$0.03 per share due to impairment charges

Outlook

* Cascades expects Q3 performance to be slightly higher sequentially

* Company anticipates stable packaging results despite constrained demand

* Cascades sees stronger tissue performance in Q3 driven by volume growth

* Company revises 2025 capital expenditures to C$150 mln, vs C$175 mln expected previously

Result Drivers

* VOLUME AND PRICING - Stronger volumes and higher selling prices contributed to improved revenue, according to CEO Hugues Simon

* COST MANAGEMENT - Lower transportation and energy costs supported earnings, despite higher operational costs per unit

* TISSUE SEGMENT - Stable results in tissue segment as improved pricing and sales were offset by higher costs due to planned maintenance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss C$1.19 C$1.19

bln bln (4

Analysts

)

Q2 Meet C$0.19 C$0.19

Adjusted (6

EPS Analysts

)

Q2 EPS -C$0.03

Q2 C$137

Adjusted mln

EBITDA

Q2 Capex C$26 mln

Q2 C$36 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "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$10.00, about 9.8% above its August 6 closing price of C$9.02

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(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.)