KINGSEY FALLS, QC (News release) -- Cascades Inc. reports its unaudited financial results for the three-month period ended March 31, 2025.

Q1 2025 Highlights

Sales of $1,154 million (compared with $1,211 million in Q4 2024 and $1,109 million in Q1 2024);
Operating income of $50 million (compared with $16 million in Q4 2024 and $9 million in Q1 2024);
Net earnings per common share of $0.07 (compared with a net loss per common share of ($0.13) in Q4 2024 and a net loss per common share of ($0.20) in Q1 2024);
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A)¹) of $125 million (compared with $146 million in Q4 2024 and $103 million in Q1 2024);
Adjusted net earnings per common share¹ of $0.13 (compared with adjusted net earnings per common share¹ of $0.25 in Q4 2024 and adjusted net loss per common share¹ $0.00 in Q1 2024);
Net debt¹ of $2,216 million as of March 31, 2025 (compared with $2,096 million as of December 31, 2024). Net debt to EBITDA (A) ratio¹ of 4.2x, unchanged from December 31, 2024;
Total capital expenditures, net of disposals, totaled $36 million in Q1 2025, compared to $29 million in Q4 2024 and $41 million in Q1 2024. The Corporation's 2025 forecasted capital expenditures before disposals will be approximately $175 million.

Hugues Simon, President and CEO, commented: "Our first quarter performance was driven by lower volumes across our businesses as uncertainty regarding tariffs led to a deterioration in consumer and business sentiment beginning in mid-February, resulting in lower sales and profitability levels sequentially. Results were similarly impacted by usual higher seasonal energy costs, increased operational costs due to lower production, and higher transportation costs. Offsetting these factors were favourable average selling prices and raw material costs across our businesses. Broadly, the depreciation of the Canadian dollar benefited quarterly results."

Discussing near-term outlook, Mr. Simon commented, "We are expecting stronger second quarter results. The sequential improvement in packaging will reflect benefits from the implementation of previously announced price increases. We expect improved tissue performance to be driven by volume growth, with positive retail tissue trends and a pick up in Away-from-Home, along with pricing initiatives, the benefits of which are expected to mitigate higher raw material costs. Broadly, continued uncertainty in the macro-economic environment may impact future demand levels across North America and our outlook."