Packaging Gateway

Cascades returns to profit in Q2 as sales rise

The packaging company’s sales reached C$1.2bn in the quarter, versus C$1.1bn a year earlier.

Cascades has reported net earnings of C$21m ($14.9m) in the second quarter (Q2) of 2026, compared with a net loss of C$3m in the same quarter of 2025.

The packaging company’s sales reached C$1.2bn in the quarter, versus C$1.1bn in Q2 2025.

Its operating profit increased by 61% to C$58m.

Quarterly adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] came to C$140m, up C$3m, or 2%, from C$137m in the corresponding period last year.

The company said the increase reflected stronger volumes, improved average selling prices and savings measures across its businesses.

Those factors were partly offset by higher raw material and freight expenses.

Net debt was C$1.8bn as of 30 June 2026, down from C$1.9bn at 31 March 2026.

Capital spending totalled C$40m in Q2 2026, compared with C$28m in the first quarter of 2026 and C$44m in Q2 2025.

The company said projected 2026 capital expenditure before disposals remains in a range of C$150m to C$175m.

Asset sale proceeds were C$5m in the quarter, taking the total for the 2025-2026 period to C$154m.

Cascades said its C$230m target is now expected to be met in early 2027.

For Q2 2026, segment revenue was C$772m in packaging products, up 1% year on year, and c$409m in tissue papers, up 7.7%.

Cascades president and CEO Hugues Simon said: "Our Q2 results exceeded expectations, driven by a stronger performance in Packaging, reflecting continued solid production and demand levels across our paper mill network, meaningful progress in onboarding new customers and a more favourable economic environment than initially anticipated. Packaging volumes tracked ahead of our forecasted assumptions, contributing to stronger profitability in the quarter.

On near-term guidance, Simon noted: "On 20 July 2026, the US administration announced new tariffs on a number of products imported into the US and we are conducting an assessment of the potential impact on our operations. Based on information currently available, certain tissue and packaging products exported to the US could be subject to the announced 50% tariffs.”