Cascades Inc. reported adjusted EBITDA of $155 million for the Q4 ended December 31, 2025, a 6% increase from $146 million in the same period last year, driven by higher selling prices and lower raw material costs.
Net earnings for the quarter were $37 million, or $0.37 per share, compared to a net loss of $13 million, or $0.13 per share, in the Q4 2024. Adjusted net earnings per share were $0.40, up from $0.25 a year earlier.
Sales decreased by 1% to $1,197 million, reflecting a $62 million impact from lower volumes, primarily in the packaging segment, which was partially offset by $25 million in higher selling prices and a favourable sales mix.
The packaging products segment's performance was stable compared to last year, with benefits from higher selling prices and lower raw material costs offset by lower volumes due to seasonal demand. The tissue papers segment's results were also stable year-over-year but fell short of internal targets due to an unplanned power outage at one facility, which added approximately $6 million in incremental operating costs and impacted production and supply chain efficiency.
The corporation reduced its net debt by $127 million sequentially to $1,896 million as of December 31, 2025, improving its net debt to adjusted EBITDA ratio to 3.3 times from 3.6 times at the end of the Q3. Total capital expenditures for the year were $152 million.
Cascades expects Q1 2026 performance to decline sequentially due to normal seasonality, higher transportation and energy costs from weather-related impacts in the U.S., and residual costs from the power outage in the tissue segment. However, performance is expected to remain higher year-over-year for the sixth consecutive quarter. The company expects its leverage ratio to continue improving and forecasts 2026 performance to surpass 2025, despite ongoing macroeconomic uncertainty. Forecasted capital expenditures for 2026 are approximately $175 million.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions.
