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All financial information in Canadian dollars.

• Overview: Canadian fiber specialist Cascades reported that second-quarter sales in its packaging business were stable, as shipments were steady and it benefited from its price increases and lower raw material costs. Cascades also noted that slightly higher shipments for corrugated products reflected seasonality and softer Q1 levels. Still, overall company results, which also include tissue sales, were dampened by weaker volumes. CEO Hugues Simon said on an earnings call Thursday that Q2 performance was in line with the company’s expectations, as it continues to see “cautiousness” in demand, given trade policy and tariff uncertainty globally.
• Bear Island operations: Cascades’ operation at Bear Island, Virginia, which started up in 2023, is currently profitable, Simon confirmed to analysts. Following issues last year, production levels were up 8% from Q1 to 82,000 tons. “This trend has continued into July,” when production averaged 1,100 tons per day, reflecting approximately 91% of the facility’s targeted ramp-up, the company reported. “We are forecasting a stronger second half of 2025 and are confident that we'll continue to close the gap.” It’s been mostly running OCC, where pricing has been steady. The site has flexibility to incorporate more mixed paper in the future, Simon said.
• Accelerated Niagara Falls closure: The company announced in July it would close a corrugated medium manufacturing facility in Niagara Falls, New York, as part of packaging business optimization plans, affecting 123 employees. Cascades originally said production would end by Sept. 3. On Thursday’s earnings call, Simon said that improved momentum at Bear Island contributed to Cascades’ decision to cease production at Niagara Falls early, on Aug. 11. The Niagara Falls closure resulted in a $23 million impairment charge.
• Outlook: Executives acknowledged ongoing economic uncertainty and how that could scramble demand in North America. “We are anticipating third quarter performance to be slightly higher sequentially,” per Cascades’ release. “We remain cautious in packaging, where results are expected to be largely stable as benefits from continued favorable pricing and raw material trends are forecasted to be offset by constrained demand levels.” Cascades now forecasts that 2025 capital expenditures will total $150 million, down from an earlier projection of $175 million. The company is targeting $100 million in annual run rate profitability improvement by the end of 2026.