Core Insights - Cascades reported a mixed performance in Q4 2025, with packaging sales declining 5% sequentially but box shipments increasing by 1.5%, outperforming the industry decline of 2.4% [1][4] Financial Performance - For the full year 2025, Cascades achieved sales of CAD 4.8 billion and adjusted EBITDA of CAD 576 million, reflecting a 15% increase from the previous year, attributed to stronger packaging performance [2] - Consolidated adjusted EBITDA for Q4 was CAD 155 million, up 9% year-over-year, with overall margins improving to 12.9%, driven by a 17.4% margin in packaging [3][7] - Fourth-quarter earnings were CAD 0.37 per share, compared to a net loss of CAD 0.13 per share a year earlier, and adjusted earnings were CAD 0.40 per share, up from CAD 0.25 last year [15] Segment Performance - Packaging adjusted EBITDA declined 3% sequentially to CAD 132 million, with lower volumes and selling prices partially offset by reduced operating and raw material costs [8] - Tissue segment results were pressured by an electrical outage at the Wagram, NC plant, leading to a 9% sequential decline in adjusted EBITDA to CAD 42 million [10][11] Operational Developments - The company experienced operational disruptions in the tissue segment due to a major electrical outage, which affected output and increased logistics costs [10][11] - Management highlighted operational progress at the Bear Island facility, achieving 88% of total production capacity during the quarter [8][13] Balance Sheet and Cash Flow - Net debt decreased by CAD 127 million in Q4 and CAD 200 million for the year, with leverage easing to 3.3x after asset sales [6][17] - Adjusted cash flow from operations rose to CAD 165 million, up from CAD 129 million in the year-ago quarter [16] Future Outlook - For Q1 2026, the company expects sequential declines in consolidated results due to seasonality but anticipates year-over-year improvements [19] - Management aims for adjusted EBITDA above CAD 600 million in 2026, with plans for an additional CAD 100 million in asset divestments [21][22]