Cascades (TSE:CAS) Announces Earnings Results

Cascades (TSE:CAS) released its earnings results on Thursday. The company reported C$0.07 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$1.13 billion for the quarter. Cascades had a return on equity of 4.11% and a net margin of 1.47%.

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 Trading Down 2.4%

Shares of TSE CAS opened at C$10.69 on Friday. Cascades has a one year low of C$8.30 and a one year high of C$14.20. The firm has a market capitalization of C$1.08 billion, a PE ratio of 15.49, a PEG ratio of 0.56 and a beta of 1.07. The company has a current ratio of 1.43, a quick ratio of 0.86 and a debt-to-equity ratio of 112.96. The business has a 50-day moving average price of C$11.29 and a two-hundred day moving average price of C$12.13.

Cascades Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on CAS. Royal Bank Of Canada lowered their target price on Cascades from C$16.00 to C$15.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. TD Securities dropped their price target on Cascades from C$16.00 to C$15.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. TD dropped their price target on Cascades from C$15.00 to C$14.00 and set a “buy” rating on the stock in a research note on Thursday, April 16th. Desjardins dropped their price target on Cascades from C$15.00 to C$13.00 and set a “hold” rating on the stock in a research note on Monday, April 13th. Finally, National Bank Financial dropped their price target on Cascades from C$15.00 to C$14.00 and set a “sector perform” rating on the stock in a research note on Monday, April 13th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, Cascades presently has a consensus rating of “Moderate Buy” and an average price target of C$14.07.

Cascades Company Profile

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.