Cascades has reported third quarter (Q3) 2026 sales of $1.2bn, 2% higher than the corresponding period of 2025, supported by higher average selling prices and favourable currency movements.
Net earnings for the period increased to $30m from $29m in the prior-year quarter.
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Operating income advanced to $78m, climbing from $73m in the same quarter of 2025.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) reached $162m, a 2% or $3m rise from $159m in Q3 2025.
This uplift was supported by higher average selling prices and corporate cost reduction initiatives, though partially counterbalanced by increased expenses for raw materials, energy, and transportation.
Sales growth during the quarter reflected a $42m contribution from higher average selling prices, alongside a $24m benefit from a favourable sales mix and a $13m gain from foreign exchange rate movements.
These gains were partially curtailed by a $50m contraction linked to lower volumes, mainly within the tissue papers segment, as well as the effects of earlier asset dispositions and site closures in the packaging products unit.
At the divisional level, packaging products posted a 1% sales increase to $807m. Turnover in tissue papers was virtually unchanged at $415m.
Specific pre-tax items affecting operating income and net earnings included an $8m gain on the sale of real estate from a Canadian recovery facility shuttered in 2025.
This was offset by a $7m equipment impairment tied to a product line discontinuation and a recovery facility in Canada.
Separately, the group announced the planned retirement of vice-president and chief financial officer Allan Hogg in the second half of 2027.
Hogg has spent 36 years with the organisation, including 16 years as chief financial officer.
Cascades President and CEO Hugues Simon said: “Our third quarter results were in line with our expectations despite significant headwinds from ongoing tariff-related disruptions, cost inflation and continued uncertainty in the economic environment.
“Our packaging segment faced headwinds from higher raw material and transportation costs, combined with tariff impacts of approximately $4m, which more than offset the benefits of our operational and pricing improvement initiatives.”
Discussing near-term outlook, Simon added: “Looking ahead, we remain prudent regarding demand and inflationary costs, given the uncertain macroeconomic environment and the continued impact of tariffs on customer purchasing patterns.
“With market conditions remaining challenging, we expect consolidated fourth-quarter results to be slightly lower sequentially, and anticipate continued pressure from raw material costs, transportation expenses and tariff-related impacts.”
