Cascades Inc
F:CS6
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Cascades Inc
F:CS6
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Ence Energia y Celulosa SA
MAD:ENC
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Cascades Inc
Cascades Inc makes packaging and tissue products from recycled fibers and other paper materials. It sells corrugated cardboard boxes, packaging for shipping and food, and tissue products such as paper towels, napkins, and bathroom tissue. The company also helps collect, recycle, and turn used paper into new fiber-based products. Its main customers are businesses that need packaging for products they ship or sell, along with retail and institutional buyers that purchase tissue goods. Cascades earns most of its money by selling these products to manufacturers, distributors, food companies, retailers, and other organizations that need a steady supply of paper-based materials. What makes Cascades different is its place in the recycling-based packaging chain. Instead of relying only on virgin raw materials, it focuses on recovered paper and fiber, which ties its business closely to waste collection, recycling, and the demand for lower-impact packaging. That gives it a practical role as both a product maker and a recycler in the paper and packaging industry.
Cascades Inc makes packaging and tissue products from recycled fibers and other paper materials. It sells corrugated cardboard boxes, packaging for shipping and food, and tissue products such as paper towels, napkins, and bathroom tissue. The company also helps collect, recycle, and turn used paper into new fiber-based products.
Its main customers are businesses that need packaging for products they ship or sell, along with retail and institutional buyers that purchase tissue goods. Cascades earns most of its money by selling these products to manufacturers, distributors, food companies, retailers, and other organizations that need a steady supply of paper-based materials.
What makes Cascades different is its place in the recycling-based packaging chain. Instead of relying only on virgin raw materials, it focuses on recovered paper and fiber, which ties its business closely to waste collection, recycling, and the demand for lower-impact packaging. That gives it a practical role as both a product maker and a recycler in the paper and packaging industry.
Q1 in line: Cascades said first-quarter results were in line with its revised outlook, but below the expectations it had previously set, as weather disruptions, geopolitical events, weaker consumer confidence and execution issues hurt volumes and raised costs.
Packaging pressure: Packaging sales and EBITDA fell sequentially and year over year, with lower volumes, higher logistics, chemical and energy costs, and maintenance downtime weighing on results.
Tissue mixed: Tissue faced normal seasonal weakness in Q1, but year-over-year sales grew 4% on stronger retail and away-from-home shipments; EBITDA fell because operating costs, especially transportation and fuel, were higher.
Q2 cautious: Management expects second-quarter consolidated results to be slightly lower sequentially and said Q2 will be a period of margin pressure before improving in the second half.
Pricing actions: Cascades is rolling out a net $50 price increase and additional pricing in May effective in June, and expects these actions to help reset margins in the back half of the year.
Balance sheet: The company realized $91 million from asset sales in the quarter, kept leverage at 3.3x, and reiterated its $230 million asset-sale target by the end of Q3 2026, slightly ahead of schedule.
Run-rate goal: Management stood behind its target of a $600 million annualized adjusted EBITDA run rate in the second half, while acknowledging that the 2.5x to 3x leverage target may be difficult to reach by year-end given first-half conditions.
