CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Canada's Cascades Q3 profit misses estimates on higher costs 

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Meet

C$1.27 bln

C$1.27 bln (4 Analysts)

Q3 Adjusted EPS

Miss

C$0.33

C$0.36 (5 Analysts)

Q3 EPS

C$0.30

Q3 Adjusted EBITDA

C$162 mln

Q3 Capex

C$47 mln

Q3 Operating Income

C$78 mln


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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.