Cascades Inc. · TSX:CAS
Cascades — Q2 2026 Earnings Presentation
34 slides from Cascades's earnings presentation, Aug 6, 2026
Slide 1: Q2 2026 Financial Results
Q2 2026 FINANCIAL RESULTS August 6, 2026
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: Q2 2026 Key Takeaways
Q2 2026 KEY TAKEAWAYS PACKAGING: • Record quarterly production at Bear Island and Greenpac • Pricing realization of the March/April announced prices increases • Strong demand for paper rolls and solid demand for converted products as we onboarded new customers • Sequential higher transportation cost
Slide 4: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS (In millions of CAN$, except per common share amounts, where noted) Q2 2026 Q1 2026 Q2 2025 LTM2 Financial Results Sales 1,219 1,125 1,187 4,779 Operating income 58 81 36 288 Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1 140 118 13
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) Q2 2026 vs Q1 2026 Q2 2026 vs Q2 2025 2026 vs 2025 Average selling prices $7 million $13 million $30 million Operating costs ($2 millio
Slide 6: Recycled Fibre Costs - Index List Prices
RECYCLED FIBRE COSTS - INDEX LIST PRICES Current ($ US/s.t.) 300 OCC: (July-26) 275 • Pricing continues to move up while remaining below 2025 level. 250 • Generation of OCC is below previous year trend, current 225 economic uncertainty has an impact on consumer spending. 200 175 • Mix paper is becom
Slide 7: Virgin Pulp Costs - Index List Prices
VIRGIN PULP COSTS - INDEX LIST PRICES ($ US/metric ton) Current NBSK: (July-26) ▪ Prices remained relatively stable in Q2 2026, supported by limited 1,800 supply growth and steady demand. 1,570 ▪ Production capacity reductions have occurred globally. 1,600 ▪ High freight costs to Asia and increased
Slide 8: Packaging Products: Q2 2026 Sequential Performance
PACKAGING PRODUCTS: Q2 2026 SEQUENTIAL PERFORMANCE SALES ($M) 8% HIGHLIGHTS 9 5 772 44 (1) • Higher paper rolls shipments driven by improved 715 performance at Greenpac and Bear Island facilities, representing an increase of 8.6% in total shipments (in short tons) Q1 2026 Volume, Selling F/X Mix Q2
Slide 9: Packaging Products: Q2 2026 Year-Over-Year Performance
PACKAGING PRODUCTS: Q2 2026 YEAR-OVER-YEAR PERFORMANCE SALES ($M) 1% HIGHLIGHTS 8 11 772 • Volume increase reflects slightly higher paper roll 763 shipments that was offset by lower corrugated product (10) shipments reflecting the sale of a box plant in British Columbia Q2 2025 Selling Mix Volume, Q
Slide 10: Packaging Products - Sales Trends
PACKAGING PRODUCTS - SALES TRENDS Product As a % of Volume (s.t.) Volume (s.t.) Volume (s.t.) category Q2 2026 Sales QoQ YoY Trend Q3/Q2 Corrugated 54% Paper rolls 29% Other 17% As a % of Volume (s.t.) Volume (s.t.) Volume (s.t.) Market Q2 2026 Sales QoQ YoY Trend Q3/Q2 Industrial & Manufacturing 12
Slide 11: Tissue Papers: Q2 2026 Sequential Performance
TISSUE PAPERS: Q2 2026 SEQUENTIAL PERFORMANCE SALES ($M) 8% 3 409 HIGHLIGHTS 28 (2) • Higher volumes: shipments +7%. Converted products +7% in short tons (AfH tissue +16%, 380 Retail tissue +2%) mainly driven by usual seasonality for AfH market Q1 2026 Volume F/X Selling Q2 2026 • Lower average sell
Slide 12: Tissue Papers: Q2 2026 Year-Over-Year Performance
TISSUE PAPERS: Q2 2026 YEAR-OVER-YEAR PERFORMANCE SALES ($M) 4% 2 409 HIGHLIGHTS 13 2 392 • Higher volumes: shipments +1% in short tons. Converted products +6% (AfH tissue +7%, Retail tissue +6%) • Higher average selling prices related to higher Q2 2025 Mix Volume Selling Q2 2026 proportion of conve
Slide 13: Tissue Papers - Sales Trends
TISSUE PAPERS - SALES TRENDS Product As a % of Q2 2026 Volume (s.t.) Volume (s.t.) Volume (s.t.) category Q2 2026 Sales Volume (s.t.) QoQ YoY Trend Q3/Q2 Away-from-Home 37% 49,300 16% 7% Consumer 63% 71,900 2% 6% Products Total 100% 121,200 7% 6% 13
Slide 14: Q2 2026 EBITDA to Operating Income Reconciliation
Q2 2026 EBITDA (A)1 TO OPERATING INCOME RECONCILIATION (M CAN$) 200 150 140 3 (2) (6) 100 58 50 (77) 0 1 EBITDA (A) Other Restructuring Loss Depr. & Operating income gain costs on financial Amort. instruments Corporate, Recovery and Packaging Tissue Recycling (M CAN$) Products Papers activities Tota
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) Q2 2026 Q2 2026 As reported 21 $0.21 Specific items: Restructuring costs 2 $0.01 Other gain (3) ($0.02) Loss on financial instruments 6 $0.04 Tax eff
Slide 16: Quarterly Year-Over-Year Adjusted EPS Variance
QUARTERLY YEAR-OVER-YEAR ADJUSTED EPS VARIANCE1,2 0.40 0.02 0.01 0.30 0.03 0.04 (0.01) 0.24 0.21 0.22 0.19 (0.04) 0.20 (0.03) $ cents 0.10 0.00 (0.03) -0.10 EPS reported Specific Adjusted EPS 2 Income tax Financing EBITDA (A) 2 Share of Non- Depreciation Adjusted EPS 2 Specific EPS reported Q2 2025
Slide 17: Quarterly Sequential Adjusted EPS Variance
QUARTERLY SEQUENTIAL ADJUSTED EPS VARIANCE1,2 0.40 0.38 0.30 0.01 0.02 0.03 (0.01) 0.24 0.16 (0.04) 0.21 $ cents 0.20 (0.03) 0.10 0.07 (0.31) 0.00 2 2 2 EPS reported Specific Adjusted EPS EBITDA (A) Income Financing Share of Non- Depreciation Adjusted EPS Specific EPS reported Q1 2026 items Q1 2026
Slide 18: Cash Flow Overview
CASH FLOW OVERVIEW 2024 2025 2026 (In millions of CAN$, except per common share amounts) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 YTD5 LTM6 Cash flow from operations 32 78 76 109 295 45 92 116 150 403 56 119 175 441 Specific items1 14 17 10 20 61 17 9 21 15 62 3 4 7 43 Adjusted cash flow from operati
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 2026 Forecast: 50 32 213 range of $150 M to 455 35 22 $175 M1 148 137 85 30 254 11 222 44 67 43 106 83 19 74 41 2020 2021 2022 2023 2024 2025 Q2 202
Slide 20: Net Debt Reconciliation - Q2 2026
NET DEBT1 RECONCILIATION - Q2 2026 (M CAN$) 2,000 1,901 1,900 40 1,879 36 14 1,800 3 12 (119) (3) (3) (2) 1,700 Net debt as of Cash flow Investments Proceeds from Proceeds from Changes in non- Right-of-use Dividends paid F/X CAN$ Payments for Net debt as of March 31, 2026 from oper. and other dispos
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 3.6x 3.5x 3.5x 3.4x 4.3x 4.6x 4.9x 4.5x 4.3x 4.6x 3.3x 3.3x 3.3x 3.6x 2.5x 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 22: Q3 2026 Outlook
Q3 2026 OUTLOOK FORECASTED COMMENTARY EBITDA (A)1 RANGE • Seasonal higher volume outlook • Higher logistics and recycled fibre costs PACKAGING $135 M - $140 M • Full impact of March/April price increases • Gradual implementation of June announced price increase • Higher seasonal volume • Higher logi
Slide 23: Strategic Priority Areas: 2025 - 2026
STRATEGIC PRIORITY AREAS: 2025 - 2026 OBJECTIVE PROGRESS • Bear Island mill at 95% of its capacity in the second quarter. Greenpac productivity 1 GENERATE $100 M OF BASELINE ANNUAL PROFITABILITY improvement continues IMPROVEMENTS BY YEAR-END 2026 • Pryor, OK tissue converting facility Q2 production
Slide 24: Appendix
APPENDIX 24
Slide 25: Summary of Quarterly Financial Results and KPIs
SUMMARY OF QUARTERLY FINANCIAL RESULTS and KPIs 2024 2025 2026 (In millions of CAN$, except per common share amounts, where noted) Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 YTD3 LTM4 Financial Results Sales 1,109 1,180 1,201 1,211 4,701 1,154 1,187 1,238 1,197 4,776 1,125 1,219 2,344 4,779 Operating i
Slide 26: Summary of Quarterly KPIs
SUMMARY OF QUARTERLY KPIs 2024 2025 2026 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 YTD4 LTM5 Key Performance Indicators Total shipments (in ’000 short tons (s.t.))1 Packaging Products 441 444 450 442 1,777 421 424 434 403 1,682 392 426 818 1,655 Tissue Papers 115 122 122 121 480 110 120 128 122 480 11
Slide 27: Year-Over-Year Sales Reconciliation
YEAR-OVER-YEAR SALES RECONCILIATION +3% (M CAN$) 1,300 21 13 1,219 1,200 1,187 (2) 1,100 1,000 Volume, Sales Selling business disposal Sales (M CAN$) Q2 2025 Mix price & closures Q2 2026 Packaging Products 763 8 11 (10) 772 Tissue Papers 392 13 2 2 409 Corporate, Recovery and Recycling activities &
Slide 28: Year-Over-Year EBITDA Reconciliation
YEAR-OVER-YEAR EBITDA (A)1 RECONCILIATION + Higher volume + Higher volume + Higher selling prices + Higher selling prices + Decrease in operating costs - Higher raw material costs + Lower raw material costs - Lower production costs offset by - Higher production, transportation and - Less favourable
Slide 29: Sequential Sales Reconciliation
SEQUENTIAL SALES RECONCILIATION (M CAN$) +8% 1,400 80 8 7 1,219 1,200 1,125 (1) 1,000 Volume, Sales business disposal Selling Sales (M CAN$) Q1 2026 & closures F/X CAN$ price Mix Q2 2026 Packaging Products 715 44 5 9 (1) 772 Tissue Papers 380 28 3 (2) — 409 Corporate, Recovery and Recycling activiti
Slide 30: Sequential EBITDA Reconciliation
SEQUENTIAL EBITDA (A)1 RECONCILIATION + Higher volume + Higher volume + Higher selling prices - Lower selling prices Lower energy costs more than offset by - Higher raw material costs - higher production and transportation costs - Lower energy costs offset by higher - Higher raw material costs + Dec
Slide 31: Cost of Sales, Selling and Administrative Expenses
COST OF SALES, SELLING AND ADMINISTRATIVE EXPENSES (In millions of Canadian dollars) Q2 2026 Q1 2026 Q2 2025 Cost of sales Raw materials 430 372 418 Wages and benefits 196 196 205 Energy 55 63 54 Delivery 157 138 121 Other 166 165 172 Depreciation and amortization 77 71 72 1,081 1,005 1,042 Selling
Slide 32: Selected Reference Prices
SELECTED REFERENCE PRICES Current Current Containerboard - Selected Products (US$/s.t.) Specialty Products - Selected Products (July-26) (US$/s.t.) (July-26) 1,200 1,000 1,100 1,170 900 1,045 1,000 800 935 900 700 800 600 700 Feb-22 Aug-24 Nov-21 May-24 Aug-21 Feb-24 May-21 Nov-23 May-26 Aug-23 Feb-
Slide 33: Selected Reference Prices and Fibre Costs
SELECTED REFERENCE PRICES AND FIBRE COSTS Q2 2026 vs Q2 2026 vs. 2024 2025 2026 Q2 2025 Q1 2026 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 (units) (%) (units) (%) Se
Slide 34: For More Information
For more information: Investor Relations www.cascades.com/investors 514-282-2697 / investor@cascades.com