Canada's Cascades Q2 results beat on packaging demand

Cascades

06/08/2026 11:22

Overview
Canada packaging and tissue maker's Q2 sales rose and beat analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company cites higher packaging demand, selling prices, and cost cuts for improved results

Outlook
Cascades expects annual run-rate adj EBITDA to exceed C$600 mln in H2 2026, excluding tariffs
Company says new 50% U.S. tariffs could affect some exports but expects impact to be manageable
Cascades expects recent C$50/ton Packaging price increase to support earnings in coming quarters

Result Drivers
PACKAGING DEMAND - Co said stronger production and demand levels in Packaging, along with onboarding new customers, contributed to improved results
SELLING PRICES AND SALES MIX - Higher average selling prices and a favorable sales mix boosted sales, though partially offset by lower volumes from business closures and dispositions
COST REDUCTION INITIATIVES - Ongoing cost reduction and operational improvements increased productivity and efficiency, supporting results in both Packaging and Tissue segments

Company press release: ID:nPn8N31Wna

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
C$1.22 bln
C$1.19 bln (4 Analysts)
Q2 Adjusted EPS
Beat
C$0.24
C$0.07 (5 Analysts)
Q2 EPS
 
C$0.21
 
Q2 Adjusted EBITDA
 
C$140 mln
 
Q2 Capex
 
C$40 mln
 
Q2 Operating Income
 
C$58 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the paper packaging peer group is "buy"
Wall Street's median 12-month price target for Cascades Inc. is C$14.50, about 1.6% above its August 5 closing price of C$14.27
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 4 - Graphic Packaging Q2 adjusted EPS beats estimates, lowers outlook
Aug 5 - Stronger real dents pulpmaker Klabin's earnings despite resilient demand
Aug 6 - Finland's Metsa Board Q2 revenue falls

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)