Cascades Inc. expects Q1 2026 consolidated adjusted EBITDA to be in the range of $115 million to $120 million, down from a previously disclosed range of $130 million to $142 million, due to weather disruptions in the U.S. and heightened volatility in transportation and fuel surcharges.
The revised outlook reflects lower results for the packaging segment and tissue segment results slightly below the earlier communicated range. Recent geopolitical events negatively affected consumer confidence and spending, resulting in lower packaging volumes. Performance was further impacted by execution inefficiencies in the second half of the quarter.
The company remains committed to its longer-term objective of generating $100 million of profitability improvements by the end of 2026 through ongoing cost reduction, logistics and productivity efficiency initiatives. The company is implementing announced price increases in its containerboard and uncoated recycled board business segments. Price increases have also been announced for some tissue product categories, and additional pricing strategies are being evaluated to mitigate external headwinds.
Cascades is on track to realize an additional $100 million in proceeds from the sale of non-core and redundant assets in 2026. The company reiterates its longer-term outlook and strategy, including achieving its leverage objective of 2.5x to 3.0x by year-end 2026.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions.
