Canada's Cascades Q3 profit misses estimates on higher costs 

Overview

• Canada packaging and tissue maker's Q3 sales met analyst expectations

• Adjusted EPS for Q3 missed analyst expectations

• Company faced tariff disruptions, cost inflation and uneven demand, especially in Packaging

Outlook

• Cascades expects Q4 results to be slightly lower sequentially due to continued market challenges

• Company anticipates ongoing pressure from raw material, transportation and tariff-related costs in Q4

• Cascades forecasts 2026 capital expenditures before disposals of C$150 mln to C$175 mln

Result Drivers

• PACKAGING COST PRESSURES - Co said higher raw material, transportation costs and tariffs weighed on Packaging segment results, with uneven demand in some end markets

• TISSUE PRICING & COST ACTIONS - Co said higher selling prices and cost reduction initiatives in Tissue offset inflation and lower Away-from-Home volumes

• CORPORATE COST CUTS - Co said cost reduction initiatives and improved Recovery and Recycling operations supported corporate results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the paper packaging peer group is "buy"

• Wall Street's median 12-month price target for Cascades Inc. is C$20.25, about 11.9% above its November 4 closing price of C$18.10

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 3 - Aluminum packaging maker Ball Q3 revenue beats on higher packaging volumes

• Nov 3 - Graphic Packaging Q3 sales, adjusted EPS slightly beat estimates

• Nov 3 - Rayonier Advanced Materials Q3 sales and EBITDA miss estimates on tariffs, impairments

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)