Canada's Cascades Q3 profit misses estimates on higher costs

Cascades

05/11/2026 11:32

Overview
Canada packaging and tissue maker's Q3 sales met analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company faced tariff disruptions, cost inflation and uneven demand, especially in Packaging

Outlook
Cascades expects Q4 results to be slightly lower sequentially due to continued market challenges
Company anticipates ongoing pressure from raw material, transportation and tariff-related costs in Q4
Cascades forecasts 2026 capital expenditures before disposals of C$150 mln to C$175 mln

Result Drivers
PACKAGING COST PRESSURES - Co said higher raw material, transportation costs and tariffs weighed on Packaging segment results, with uneven demand in some end markets
TISSUE PRICING & COST ACTIONS - Co said higher selling prices and cost reduction initiatives in Tissue offset inflation and lower Away-from-Home volumes
CORPORATE COST CUTS - Co said cost reduction initiatives and improved Recovery and Recycling operations supported corporate results

Company press release: ID:nPn6ltfsLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Meet
C$1.27 bln
C$1.27 bln (4 Analysts)
Q3 Adjusted EPS
Miss
C$0.33
C$0.36 (5 Analysts)
Q3 EPS
 
C$0.30
 
Q3 Adjusted EBITDA
 
C$162 mln
 
Q3 Capex
 
C$47 mln
 
Q3 Operating Income
 
C$78 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$20.25, about 11.9% above its November 4 closing price of C$18.10
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Nov 3 - Aluminum packaging maker Ball Q3 revenue beats on higher packaging volumes
Nov 3 - Graphic Packaging Q3 sales, adjusted EPS slightly beat estimates
Nov 3 - Rayonier Advanced Materials Q3 sales and EBITDA miss estimates on tariffs, impairments

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.)