KINGSEY FALLS, QC, Jan. 29, 2026 /PRNewswire/ - Cascades Inc. (TSX: CAS) announces that it has entered into an agreement with Crown Paper Group ("Crown") for the sale of its corrugated packaging plant located in Richmond, British Columbia, for a total value of $65.5 million, including the real estate assets and subject to working capital adjustments and the assumption of certain liabilities. The transaction is expected to be completed in the coming days, subject to customary closing conditions and adjustme ...

Financial Performance - Q4 net sales reached $2.36 billion, reflecting a 10.1% increase year over year [1] - Full-year net sales totaled $8.99 billion, up 7.2% year over year [1] - Q4 net income was $101.8 million, down 54% year over year [1] - Full-year net income stood at $774.1 million, a decrease of 3.9% year over year [1] Business Conditions - The CEO described business conditions in 2025 as "challenging," but noted some positive aspects in performance [1] - Box shipments from PCA's legacy system were the second-highest ever for Q4, following a record in 2024 [1] - Overall corrugated shipments for 2025 remained flat compared to 2024, with improved trends noted in January [1] Acquired Assets - Q4 marked the first full quarter of integrating Greif's assets, revealing some weaknesses [1] - PCA has made significant progress in integrating and improving the acquired Greif assets, with operational efficiency improving by an estimated 15% at the Massillon and Riverville mills [1] Industry Demand - The North American containerboard industry faced a tough 2025, resulting in a 10% production capacity loss [1] - PCA believes the sector is showing signs of improvement, with a more positive sentiment among customers [1] Pricing and Production - PCA anticipates minor benefits from a $70 per ton containerboard price increase starting in March, with more significant benefits expected in Q2 and beyond [1] - The company plans to align machine operations with demand and will not have excess board for the open market [1] Operational Challenges - PCA is assessing the impact of a recent winter storm that caused plant shutdowns, particularly in Tennessee, Texas, and the Gulf Coast region [1] - Despite some operations continuing, shipments were suspended during the storm [1] Future Investments - PCA is investing in making three mills "energy independent" over the next two and a half years, which will help mitigate future electricity cost increases [1] - The investment plan includes installing gas turbines at the Riverville and Jackson mills, with a third mill also planned [2] Outlook - Machine shutdowns and restructuring at the Wallula mill are expected to be completed by mid-February, with cost improvements anticipated in Q2 [2] - PCA is optimistic about ending 2026 with higher year-over-year demand and expects growth in corrugated volume from both legacy and acquired plants [2]

Group 1: Containerboard Production and Capacity - Containerboard production decreased by 3.1% in Q3 2024 compared to Q3 2023, and it was down 3% for the first nine months of 2025 compared to the same period last year [2] - Production capacity for containerboard declined by 1.7% from Q2 2025, with an overall drop of approximately 10% in 2025 to date, described as "historic" by analysts [2] - Domestic new supply in Q3 was essentially flat compared to Q1, indicating an improvement from a weak Q2 where production dropped by 5% year over year [2] Group 2: Operating Rates and Inventories - Operating rates for all four major containerboard grades saw a boost in Q2 due to capacity declines, remaining flat year over year, with expectations to climb from approximately 90% in 2023 and 2024 to about 95% early next year [3] - North American paper mills' Q3 inventories peaked in August at nearly 462,000 short tons, an increase from 433,000 short tons in May, marking the highest inventory level in 15 months, although September saw an 8% decrease [4] Group 3: Box Shipments - There was a 1.4% year-over-year decline in box shipments, consistent with trends discussed by executives in recent earnings calls [5] - Despite some improvement noted in September, overall quarterly shipments ended down, with Packaging Corporation of America's corrugated shipments per day declining by 2.7% year over year in Q3, Smurfit Westrock's daily shipments dropping by 8.7%, and International Paper's down by 1.7% [6] - International Paper adjusted its overall shipment expectations for 2025 to a decline of 1% to 1.5%, instead of the previously anticipated increase [6]

Core Viewpoint - The class-action lawsuit against major containerboard manufacturers alleges price-fixing and market manipulation, claiming a coordinated effort to inflate prices by approximately 30% since late 2020 [2][3][4]. Group 1: Lawsuit Details - The lawsuit was initiated by Artuso Pastry Foods Corp. in July 2025, naming eight major containerboard manufacturers as defendants [1]. - Graphic Packaging International was voluntarily dismissed from the case on 25 September 2025, leaving seven defendants accused of conspiring to raise prices [2][5]. - The plaintiffs allege that the defendants engaged in coordinated price increases through seven hikes from November 2020 to the present, despite weak demand [3]. Group 2: Antitrust Allegations - The lawsuit claims that the actions of the defendants constitute a violation of U.S. antitrust laws, suggesting they operated as a "cartel" to manipulate market prices [4]. - Over 85% of the U.S. containerboard market is reportedly controlled by a small number of companies, which may facilitate collusive behavior [4]. Group 3: Industry Response and Legal Proceedings - Most defendants have not publicly commented on the litigation, but Georgia-Pacific has denied the claims, asserting they are without merit [5]. - The case is set to proceed against the remaining companies, with a status update required by 17 December 2025 [6]. - Plaintiffs are seeking treble damages, which could lead to settlements or increased scrutiny of pricing practices in the sector [6]. Group 4: Market Implications - The ongoing litigation has significant implications for the broader containerboard market, potentially affecting pricing and market stability [7].