Cascades Inc. · TSX:CAS
Cascades — Q3 2025 Earnings Presentation
35 slides from Cascades's earnings presentation, Nov 6, 2025
Slide 1: Q3 2025 Financial Results
Q3 2025 FINANCIAL RESULTS November 6, 2025
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING STATEMENT Certain statements in this presentation, including statements regarding future results and performance, are forward-looking statements within the meaning of securities legislation based on current expectations. The accuracy of such statements is subject to a numb
Slide 3: Q3 2025 Key Takeaways
Q3 2025 KEY TAKEAWAYS PACKAGING: • Bear Island achieved 90% of its targeted ramp up curve and 88% of its total rated capacity in Q3 • Operations successfully positioned to capture stronger than expected volumes • Closure and redistribution of tonnage from Niagara Falls mill completed ahead of schedu
Slide 4: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS (In millions of CAN$, except per common share amounts, where noted) Q3 2025 Q2 2025 Q3 2024 LTM2 Financial Results Sales 1,238 1,187 1,201 4,790 Operating income 73 36 36 175 Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1 159 137 14
Slide 5: Overview of Consolidated Profitability Drivers
OVERVIEW OF CONSOLIDATED PROFITABILITY DRIVERS Consolidated EBITDA (A)1 Variation Quarter-over-Quarter Year-over-Year Year-to-date (in millions of Canadian dollars) Q3 2025 vs Q2 2025 Q3 2025 vs Q3 2024 2025 vs 2024 Average selling prices $12 million $43 million $140 million Operating costs $2 milli
Slide 6: Recycled Fibre Costs - Index List Prices
RECYCLED FIBRE COSTS - INDEX LIST PRICES ($ US/s.t.) Current (Oct-25) OCC: 300 275 • Stable demand through July and August; a positive shift 250 observed in late September as Q4 approached, 225 200 supportive of favourable near-term market conditions 175 • July OCC index prices decreased $5 in Midwe
Slide 7: Virgin Pulp Costs - Index List Prices
VIRGIN PULP COSTS - INDEX LIST PRICES Current ($ US/metric ton) (Oct-25) VIRGIN PULP: 1,800 • The removal of import tariffs on major pulp grades 1,620 brought much needed relief for the market - notably 1,600 for BEK imports from Brazil, which had been subject 1,400 1,225 to a punitive 50% tariff 1,
Slide 8: Packaging Products: Q3 2025 Sequential Performance
PACKAGING PRODUCTS: Q3 2025 SEQUENTIAL PERFORMANCE SALES ($M) 4% HIGHLIGHTS 12 797 24 • Stronger shipments for both corrugated and 763 (2) specialty products supported by seasonal demand • N.A. Box Shipments Cascades Industry 2 Q2 2025 Volume Selling F/X Q3 2025 2.2% 0.9% Sales price CAN$ Sales • Be
Slide 9: Packaging Products: Q3 2025 Year-Over-Year Performance
PACKAGING PRODUCTS: Q3 2025 YEAR-OVER-YEAR PERFORMANCE SALES ($M) 3% HIGHLIGHTS 40 5 • Lower volume reflects previous plant closures, 797 strong 2024 demand levels and softer demand due 773 (21) to macro-economic uncertainty • N.A. Box Shipments Cascades Industry 2 Q3 2024 Selling F/X Volume Q3 2025
Slide 10: Packaging Products - Sales Trends
PACKAGING PRODUCTS - SALES TRENDS Product As a % of Volume (s.t.) Volume (s.t.) Volume (s.t.) category Q3 2025 Sales QoQ YoY Trend Q4/Q3 Corrugated 56% Paper rolls 27% Other 17% As a % of Volume (s.t.) Volume (s.t.) Volume (s.t.) Market Q3 2025 Sales QoQ YoY Trend Q4/Q3 Industrial & Manufacturing 14
Slide 11: Tissue Papers: Q3 2025 Sequential Performance
TISSUE PAPERS: Q3 2025 SEQUENTIAL PERFORMANCE SALES ($M) 5% 21 1 412 HIGHLIGHTS 392 (2) • Higher volumes: shipments +6% in short tons (AfH tissue +6%, Retail tissue +6%) Q2 2025 Volume Mix F/X Q3 2025 • Slightly higher average selling price Sales CAN$ Sales • Operating costs were slightly favourable
Slide 12: Tissue Papers: Q3 2025 Year-Over-Year Performance
TISSUE PAPERS: Q3 2025 YEAR-OVER-YEAR PERFORMANCE SALES ($M) 6% HIGHLIGHTS 18 3 2 412 390 (1) • Higher volumes: shipments +5% in short tons (AfH tissue +1%, Retail tissue +7%) • Higher average selling price related to price Q3 2024 Volume Selling F/X Mix Q3 2025 increases but partially offset by the
Slide 13: Tissue Papers - Sales Trends
TISSUE PAPERS - SALES TRENDS Product As a % of Q3 2025 Volume (s.t.) Volume (s.t.) Volume (s.t.) category Q3 2025 Sales Volume (s.t.) QoQ YoY Trend Q4/Q3 Parent rolls 2% 6,500 2% 14% Away-from-Home 36% 48,900 6% 1% Consumer 62% 71,900 6% 7% Products Total 100% 127,300 6% 5% 13
Slide 14: Q3 2025 EBITDA to Operating Income Reconciliation
Q3 2025 EBITDA (A)1 TO OPERATING INCOME RECONCILIATION (M CAN$) 200 159 4 150 (6) (10) 100 73 50 (74) 0 1 EBITDA (A) Unrealized gain Restructuring Other Depr. & Operating income on financial costs loss Amort. instruments Corporate, Recovery and Packaging Tissue Recycling (M CAN$) Products Papers act
Slide 15: Net Earnings - As Reported vs. Adjusted
NET EARNINGS - AS REPORTED vs ADJUSTED1 NET EARNINGS NET EARNINGS PER COMMON SHARE2 (In millions of Canadian dollars, except per common share amounts) Q3 2025 Q3 2025 As reported 29 $0.29 Specific items: Restructuring costs 6 $0.05 Other loss 10 $0.07 Unrealized gain on financial instruments (4) ($0
Slide 16: Quarterly Year-Over-Year Adjusted EPS Variance
QUARTERLY YEAR-OVER-YEAR ADJUSTED EPS VARIANCE1,2 0.50 0.13 0.01 0.40 0.38 (0.03) 0.30 0.29 0.26 0.27 (0.09) $ cents 0.20 0.10 0.01 0.00 EPS reported Specific Adjusted EPS EBITDA (A) 2 Income tax variance Depreciation Adjusted EPS Specific EPS reported Q3 2024 items Q3 2024 2 & Q3 2025 2 items Q3 20
Slide 17: Quarterly Sequential Adjusted EPS Variance
QUARTERLY SEQUENTIAL ADJUSTED EPS VARIANCE1,2 0.50 0.01 0.01 0.04 0.38 0.40 0.16 (0.01) (0.02) 0.29 0.30 (0.09) $ cents 0.22 0.19 0.20 0.10 0.00 (0.03) -0.10 2 EPS reported Specific Adjusted EPS EBITDA (A) Income Share of Non- Depreciation Financing Adjusted EPS Specific EPS reported 2 Q2 2025 items
Slide 18: Cash Flow Overview
CASH FLOW OVERVIEW 2023 2024 2025 (In millions of CAN$, except per common share amounts) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 YTD4 LTM5 Cash flow from operations 89 117 100 91 397 32 78 76 109 295 45 92 116 253 362 Specific items1 1 5 6 12 24 14 17 10 20 61 17 9 21 47 67 Adjusted cash flow fro
Slide 19: New Capital Investments
NEW CAPITAL INVESTMENTS (in millions of Canadian dollars, excluding new leases, disposal of assets and accounts payable variation) 532 36 41 330 26 289 50 32 213 35 2025 Forecast: 455 22 148 ~ $140 M1 140 85 30 254 91 222 44 7 28 106 74 56 2020 2021 2022 2023 2024 Q3 2025 YTD 2025F Packaging Product
Slide 20: Net Debt Reconciliation - Q3 2025
NET DEBT1 RECONCILIATION - Q3 2025 (M CAN$) 2,104 2,100 42 2,023 2,000 30 (116) 15 4 9 1,900 (65) Net debt as of Cash flow Changes in non- Investments Right-of-use Dividends paid & Payments for F/X CAN$ Net debt as of June 30, 2025 from oper. cash and other assets acquisitions change in capital prop
Slide 21: Consolidated Financial Ratios & Debt Maturities
CONSOLIDATED FINANCIAL RATIOS & DEBT MATURITIES Net Debt / EBITDA (A)1,3 Interest Coverage Ratio2,3 5.2x 6.7x 4.2x 5.8x 6.0x 3.8x 3.6x 3.5x 3.5x 3.4x 3.6x 4.6x 4.3x 4.6x 4.9x 4.5x 3.3x 4.1x 3.6x 2.5x 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Slide 22: Outlook: Q4 2025 EBITDA Trend vs. Q3 2025
OUTLOOK: Q4 2025 EBITDA (A)1 TREND vs. Q3 2025 • Favourable raw material cost trends and average PACKAGING (10%) - 0% selling prices • Seasonally softer volumes (-5%) • Slightly seasonally lower volumes (AfH) TISSUE +12% - +20% • Lower raw material & maintenance costs • Stable overall costs, but hig
Slide 23: Strategic Priority Areas: 2025 - 2026
STRATEGIC PRIORITY AREAS: 2025 - 2026 STRENGTHEN OUR CULTURE OF EXCELLENCE TO DRIVE $100 M OF ANNUAL RUN- 1 RATE BASELINE PROFITABILITY IMPROVEMENTS BY YEAR-END 2026 • Productivity led margin improvements: the right product for the right customer on the right equipment to drive productivity and prof
Slide 24: Growing Traction on Strategic Priorities
GROWING TRACTION ON STRATEGIC PRIORITIES Targeting >$200 M of profitability improvements, focused on 10 strategic areas, to offset potential inflationary, market and economic headwinds COMPLETED / IN PROGRESS FOCUSED ON • Closed Niagara Falls mill, redistributed tonnage ahead of schedule • Imbedding
Slide 25: Appendix
APPENDIX 25
Slide 26: Summary of Quarterly Financial Results and KPIs
SUMMARY OF QUARTERLY FINANCIAL RESULTS and KPIs 2023 2024 2025 (In millions of CAN$, except per common share amounts, where noted) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 YTD3 LTM4 Financial Results Sales 1,134 1,168 1,198 1,138 4,638 1,109 1,180 1,201 1,211 4,701 1,154 1,187 1,238 3,579 4,790 Op
Slide 27: Summary of Quarterly KPIs
SUMMARY OF QUARTERLY KPIs 2023 2024 2025 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 YTD4 LTM5 Key Performance Indicators Total shipments (in ’000 short tons (s.t.))1 Packaging Products 412 427 458 428 1,725 441 444 450 442 1,777 421 424 434 1,279 1,721 Tissue Papers 124 134 134 121 513 115 122 122 1
Slide 28: Year-Over-Year Sales Reconciliation
YEAR-OVER-YEAR SALES RECONCILIATION +3% (M CAN$) 1,300 43 7 1,238 1,201 (1) 1,200 (12) 1,100 1,000 Sales Selling Volume Sales (M CAN$) Q3 2024 price F/X CAN$ Mix and other items Q3 2025 Packaging Products 773 40 5 — (21) 797 Tissue Papers 390 3 2 (1) 18 412 Corporate, Recovery and Recycling activiti
Slide 29: Year-Over-Year EBITDA Reconciliation
YEAR-OVER-YEAR EBITDA (A)1 RECONCILIATION + Higher selling prices + Higher volume - Reversal of prior year provisions + Lower raw material costs + Lower raw material costs - Lower volume + Higher selling prices - Higher production costs and higher - Higher production costs and higher transportation
Slide 30: Sequential Sales Reconciliation
SEQUENTIAL SALES RECONCILIATION (M CAN$) +4% 1,300 42 12 1 1,238 1,200 1,187 (4) 1,100 1,000 Sales Volume Selling Sales (M CAN$) Q2 2025 and other items price Mix F/X CAN$ Q3 2025 Packaging Products 763 24 12 — (2) 797 Tissue Papers 392 21 — 1 (2) 412 Corporate, Recovery and Recycling activities & E
Slide 31: Sequential EBITDA Reconciliation
SEQUENTIAL EBITDA (A)1 RECONCILIATION Higher operating spreads (selling prices less + Higher volume + - Reversal of prior year provisions raw material costs) + Lower production costs partly offset by + Higher volume higher transportation costs - Higher Lower production costs partly offset by raw raw
Slide 32: Cost of Sales, Selling and Administrative Expenses
COST OF SALES, SELLING AND ADMINISTRATIVE EXPENSES (In millions of Canadian dollars) Q3 2025 Q2 2025 Q3 2024 Cost of sales Raw materials 452 418 448 Wages and benefits 193 205 190 Energy 54 54 51 Delivery 134 121 132 Other 162 172 154 Depreciation and amortization 74 72 70 1,069 1,042 1,045 Selling
Slide 33: Selected Reference Prices
SELECTED REFERENCE PRICES Current Current Containerboard - Selected Products (US$/s.t.) Specialty Products - Selected Products (Oct-25) (US$/s.t.) (Oct-25) 1,200 1,000 1,100 1,110 900 945 1,000 800 835 900 800 700 700 600 600 May-21 Nov-23 Feb-21 Aug-23 Nov-20 May-23 Aug-20 Feb-23 Aug-25 Nov-22 May-
Slide 34: Selected Reference Prices and Fibre Costs
SELECTED REFERENCE PRICES AND FIBRE COSTS Q3 2025 vs Q3 2025 vs. 2023 2024 2025 Q3 2024 Q2 2025 These indexes should only be used as an indicator of trends and they may be different than our actual selling prices or purchasing costs. Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 (units) (%) (units) (%)
Slide 35: For More Information
For more information: www.cascades.com/investors Jennifer Aitken, MBA Director, Investor Relations 514-282-2697 / investor@cascades.com