Cascades Beats Q2 Expectations Amid U.S. Tariff Uncertainty

The company’s adjusted EBITDA reached $140 million for the quarter, an increase from $137 million in the second quarter of 2025. CEO Hugues Simon attributed the solid results to higher production volumes in the packaging segment and successful cost-reduction initiatives across the paper mill network. Despite unfavorable exchange rate movements, the firm managed to decrease net debt to $1.88 billion while maintaining a stable leverage ratio of 3.3x.

Looking toward the second half of 2026, Cascades is bracing for potential headwinds following the U.S. administration’s July announcement of 50% tariffs on specific imported tissue and packaging goods. While management is currently assessing the impact, they remain optimistic about the firm's earnings trajectory. The company now expects its annual run-rate adjusted EBITDA to exceed $600 million, supported by recently implemented price increases in its core business segments and ongoing efforts to divest non-core assets to reach a $230 million proceeds target by early 2027.