Cascades (TSE:CAS) Posts Earnings Results

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

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 Price Performance

Cascades stock traded up C$1.23 during trading on Thursday, reaching C$15.50. The company had a trading volume of 1,972,443 shares, compared to its average volume of 251,125. The firm has a market capitalization of C$1.57 billion, a PE ratio of 15.50, a price-to-earnings-growth ratio of 0.56 and a beta of 1.04. The firm’s 50-day simple moving average is C$11.89 and its 200 day simple moving average is C$11.84. The company has a debt-to-equity ratio of 113.03, a quick ratio of 0.86 and a current ratio of 1.53. Cascades has a 1-year low of C$8.95 and a 1-year high of C$15.64.

Cascades Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.12 per share. The ex-dividend date is Thursday, August 20th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 3.1%. Cascades’s dividend payout ratio (DPR) is 48.00%.

Analyst Upgrades and Downgrades

CAS has been the subject of several research analyst reports. Royal Bank Of Canada dropped their target price on shares of Cascades from C$15.00 to C$14.00 and set an “outperform” rating for the company in a research report on Friday, May 8th. Canadian Imperial Bank of Commerce upgraded Cascades from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 21st. Scotiabank decreased their price objective on shares of 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. Desjardins dropped their target price on shares of Cascades from C$15.00 to C$13.00 and set a “hold” rating for the company in a report on Monday, April 13th. Finally, TD lifted their target price on Cascades from C$13.00 to C$15.00 and gave the stock a “buy” rating in a report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of C$13.93.

Insider Buying and Selling at Cascades

In other news, insider Laurent Lemaire purchased 23,302 shares of Cascades stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average price of C$10.52 per share, with a total value of C$245,137.04. Following the transaction, the insider owned 7,837,637 shares in the company, valued at C$82,451,941.24. This represents a 0.30% increase in their ownership of the stock. 23.78% of the stock is currently owned by company insiders.

Cascades Company Profile

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.