Cascades (TSE:CAS) Announces Quarterly Earnings Results

Cascades (TSE:CAS) issued its quarterly earnings data on Thursday. The company reported C$0.07 earnings per share (EPS) for the quarter, FiscalAI reports. Cascades had a return on equity of 5.95% and a net margin of 2.15%.The firm had revenue of C$1.13 billion during the quarter.

Here are the key takeaways from Cascades’ conference call:

• Q1 results were in line with the revised outlook but below prior guidance due to severe weather, geopolitical events, weak consumer confidence and execution inefficiencies that lowered volumes and raised costs.
• Operational improvements are gaining traction — Bear Island ran at ~92% capacity the first four months with a record April, Greenpac exceeded design output (~106%), and a prior tissue plant improved production 17% in Q1 (23% in April), supporting future margin recovery.
• Segment profitability was pressured: packaging adjusted EBITDA fell 22% sequentially to CAD 103M and tissue EBITDA declined 21% to CAD 33M, while adjusted EPS was CAD 0.07, driven by higher logistics, chemical and energy costs.
• Balance-sheet progress: Cascades realized CAD 91M of asset-sale proceeds in the quarter (CAD 149M over five quarters) and is on track to reach its CAD 230M disposal target by end‑Q3, using proceeds to reduce debt and preserve liquidity.
• Outlook: management expects Q2 to be slightly weaker with continued cost headwinds but targets a back‑half CAD 600M adjusted EBITDA run rate based on implemented pricing and operational initiatives, while acknowledging leverage may remain above target through year‑end.

Cascades Stock Up 0.8%

Shares of Cascades stock opened at C$10.78 on Friday. The company has a quick ratio of 0.86, a current ratio of 1.53 and a debt-to-equity ratio of 113.03. Cascades has a 12 month low of C$8.30 and a 12 month high of C$14.20. The business has a fifty day simple moving average of C$11.29 and a 200 day simple moving average of C$12.13. The stock has a market cap of C$1.09 billion, a PE ratio of 15.62, a price-to-earnings-growth ratio of 0.56 and a beta of 1.07.

Cascades Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Thursday, June 4th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $0.48 dividend on an annualized basis and a dividend yield of 4.5%. Cascades’s payout ratio is 69.57%.

Trending Headlines about Cascades

Here are the key news stories impacting Cascades this week:

• Positive Sentiment: TD kept a Buy rating on Cascades while trimming its target to C$13.00, which still implies meaningful upside from the current share price. BayStreet.CA
• Positive Sentiment: Royal Bank of Canada also lowered its target but maintained an Outperform rating, signaling continued confidence in the stock’s recovery potential. Tickerreport.com
• Positive Sentiment: Cascades reported quarterly EPS of C$0.07 on revenue of about C$1.12 billion, giving investors a fresh earnings update and reinforcing that the company remains profitable despite a slim margin profile. Earnings Report
• Neutral Sentiment: The company declared a quarterly dividend of C$0.12 per share, which should support income-focused investors but is not a major growth catalyst. Press Release
• Negative Sentiment: National Bank Financial lowered its target to C$13.00 and maintained only a Sector Perform view, suggesting the stock may have limited near-term upside despite the recent bounce. BayStreet.CA
• Negative Sentiment: Analysts at several firms cut price targets, which may reflect caution around margins, earnings momentum, or the pace of recovery. Analyst Ratings

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on CAS shares. TD Securities cut their price objective on Cascades from C$16.00 to C$15.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Royal Bank Of Canada cut their price objective on Cascades from C$15.00 to C$14.00 and set an “outperform” rating for the company in a research report on Friday. Desjardins cut their price objective on Cascades from C$15.00 to C$13.00 and set a “hold” rating for the company in a research report on Monday, April 13th. National Bank Financial cut their price objective on Cascades from C$14.00 to C$13.00 and set a “sector perform” rating for the company in a research report on Friday. Finally, TD lowered their target price on Cascades from C$14.00 to C$13.00 and set a “buy” rating for the company in a research note on Friday. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Cascades has an average rating of “Moderate Buy” and an average target price of C$13.64.

About Cascades

Cascades Inc, along with its subsidiaries, produces, converts and markets packaging and tissue products composed mainly of recycled fibres. The company is organized into four main business segments: Containerboard, Boxboard Europe, Specialty Products (which constitutes packaging products), and Tissue Papers. The business activity of the company functions in Canada, the United States, Italy, and other countries. Its customer base includes food processing companies, the maintenance industry, accommodations, and housing industry, micro-businesses, and boutiques.