Cascades (TSE:CAS) Releases Quarterly Earnings Results

Cascades (TSE:CAS) announced its quarterly earnings results on Thursday. The company reported C$0.24 earnings per share for the quarter, FiscalAI reports. The firm had revenue of C$1.22 billion during the quarter. Cascades had a return on equity of 5.95% and a net margin of 2.15%.

Here are the key takeaways from Cascades’ conference call:

• Q2 results exceeded expectations, with packaging and tissue both improving sequentially on stronger volumes, better execution, and earlier profitability initiatives. Packaging Adjusted EBITDA rose 16% sequentially to CAD 120 million, while tissue EBITDA increased 6% to CAD 35 million.
• Packaging volumes and margins showed resilience, with shipments up 9% sequentially and EBITDA margin recovering to 15.5%. Bear Island operated at 95% of capacity and achieved record production, while comparable box shipments increased 5.8% year over year, ahead of industry growth.
• Management expects consolidated results to improve sequentially in Q3 and now anticipates an annualized Adjusted EBITDA run rate above CAD 600 million in the second half of 2026. New packaging price increases of CAD 110 per ton for linerboard and white paper and CAD 140 per ton for medium are expected to begin benefiting results in Q4.
• Newly announced U.S. tariffs could affect certain tissue and packaging exports, with management estimating a potential net impact of up to 5% of Adjusted EBITDA run rate after mitigation. The company also noted possible secondary effects from weaker demand among customers exposed to the tariffs.
• Adjusted operating cash flow increased 22% year over year to CAD 123 million, but leverage remained elevated at 3.3x. Cascades extended the timeline for its CAD 230 million asset-monetization target to early 2027, citing market conditions and a desire to preserve asset value.

Cascades Stock Performance

Shares of TSE:CAS opened at C$17.02 on Friday. The company has a debt-to-equity ratio of 113.03, a current ratio of 1.53 and a quick ratio of 0.86. Cascades has a 1 year low of C$9.35 and a 1 year high of C$17.04. The firm has a market capitalization of C$1.72 billion, a PE ratio of 17.02, a P/E/G ratio of 0.56 and a beta of 1.04. The business’s 50 day moving average price is C$12.10 and its 200-day moving average price is C$11.89.

Cascades Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, September 3rd will be paid a $0.12 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.8%. Cascades’s payout ratio is currently 48.00%.

Insider Buying and Selling

In other news, insider Laurent Lemaire acquired 23,302 shares of the firm’s stock in a transaction on Wednesday, May 13th. The shares were bought at an average price of C$10.52 per share, for a total transaction of C$245,137.04. Following the acquisition, the insider owned 7,837,637 shares of the company’s stock, valued at approximately C$82,451,941.24. This trade represents a 0.30% increase in their position. Corporate insiders own 23.78% of the company’s stock.

Analysts Set New Price Targets

Several analysts have commented on CAS shares. Royal Bank Of Canada dropped their price objective on Cascades from C$15.00 to C$14.00 and set an “outperform” rating on the stock in a report on Friday, May 8th. Scotiabank decreased their target price on Cascades from C$16.75 to C$14.50 and set an “outperform” rating on the stock in a research report on Monday, April 13th. TD lifted their price target on shares of Cascades from C$13.00 to C$15.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. National Bank Financial reduced their price objective on shares of Cascades from C$14.00 to C$13.00 and set a “sector perform” rating for the company in a research report on Friday, May 8th. Finally, Desjardins decreased their price objective on shares of Cascades from C$15.00 to C$13.00 and set a “hold” rating on the stock in a report on Monday, April 13th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of C$13.93.

About Cascades

Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs approximately 9,000 talented people across a network of 60 production units in North America. With its participative management, half a century of experience in recycling, and ongoing efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet.