Cascades (CADNF) Q2 2026 Earnings Report

The call conveyed a generally positive operational and financial trajectory driven by sequential improvements in both Packaging and Tissue, record production at multiple mills, meaningful sequential increases in sales, EBITDA and cash flow, progress on profitability programs and asset monetization, and clear price actions planned to support margins. Offsetting factors include ongoing raw material and transportation cost inflation, a modest year-over-year EBITDA decline in Tissue, specific financial losses, unchanged leverage at 3.3x, and potential downside from newly announced U.S. tariffs (assessment underway, estimated up to 5% of adjusted EBITDA run rate). On balance, reported operational momentum, improving cash generation, and management’s mitigation and pricing actions outweigh the headwinds discussed.

The company guided to sequential improvement in Q3 (Packaging EBITDA cited in Q&A at $135–$140 million), expects its annual run‑rate adjusted EBITDA to exceed $600 million in the second half of 2026, and said recently announced price increases of $110/ton on linerboard/white grades and $140/ton on medium (effective Sept. 8) should begin to help results in Q4; management warned the U.S. administration’s 50% tariff announcement could affect some exports but, after mitigation, would not exceed 5% of the adjusted EBITDA run rate. Financial posture guidance included unchanged 2026 CapEx of $150–$175 million, continued asset‑monetization toward a $230 million target (already $163 million realized, $105 million proceeds YTD including a $9 million Lachine sale), modest Q2 net debt reduction of $22 million, unchanged leverage at 3.3x, available liquidity of $737 million, and Q2 adjusted operating cash flow of $123 million (up 22% year‑over‑year).