Earnings release
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PRESS RELEASE Cascades Inc. 404 Marie-Victorin Blvd. Kingsey Falls, Québec J0A 1B0 Canada www.cascades.com Telephone: 819-363-5100 Cascades Reports Results for the Third Quarter of 2025 Kingsey Falls, Québec, November 6, 2025 - Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period ended September 30, 2025. Q3 2025 Highlights • Sales of $1,238 million (compared with $1,187 million in Q2 2025 and $1,201 million in Q3 2024); • Operating income of $73 million (compared with $36 million in Q2 2025 and $36 million in Q3 2024); • Net earnings per common share of $0.29 (compared with a net loss per common share of ($0.03) in Q 2 2025 and net earnings per common share of $0.01 in Q3 2024); • Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A) 1) of $159 million (compared with $137 million in Q2 2025 and $140 million in Q3 2024); • Adjusted net earnings per common share1 of $0.38 (compared with $0.19 in Q2 2025 and $0.27 in Q3 2024); • Net debt1 of $2,023 million as of September 30, 2025 (compared with $2,104 million as of June 30, 2025). Net debt to EBITDA (A) ratio 1 of 3.6x, down from 3.8x as of June 30, 2025; • The Company now expects to achieve $120 million from the monetization of redundant assets by mid-2026, up from $80 million previously. Including the $31 million of proceeds from the sale of its Flexible Packaging activities on October 8, 2025, a total of $57 million of this objective has been achieved. Proceeds from these sales are expected to go toward debt reduction; • Total capital expenditures, net of disposals, of $30 million in Q3 2025, compared to $18 million in Q2 2025 and $34 million in Q3 2024. The Corporation’s 2025 forecasted capital expenditures before disposals will be approximately $140 million. Hugues Simon, President and CEO, commented: “Third quarter consolidated results exceeded our sequential forecast. This was driven by stronger v olume, good operational execution, benefits from ongoing profitability initiatives, and favourable raw material and selling price trends. Our packaging business, in particular, had a stronger than expected quarter. This reflected continued positive volume momentum during the quarter, a well executed closure and redistribution of tonnage from the Niagara Falls mill, and a 24% increase in volumes produced at Bear Island, the latter of which achieved 90% of its targeted production ramp up curve in the quarter. As expected, our tissue business similarly had a strong quarter, driven by improvements in volume. At the corporate level , net debt decreased by $81 million sequentially, and leverage fell to 3.6x from 3.8x at the end of the second quarter.” Discussing near-term outlook, Mr. Simon commented, “We are expecting fourth quarter performance to be stable sequentially on a consolidated basis. Notwithstanding favourable raw material and selling price trends and a continuation of good demand levels in October, we remain cautious in packaging. To this end, we are forecasting lower sequential results for this business, driven by our current expectation that volume will decrease in seasonally softer December. For tissue, we expect the momentum of sequentially stronger results to continue in the fourth quarter, driven by lower maintenance and favourable raw material costs. Looking further ahead, we are focused on achieving our strategic objectives. Despite the ongoing uncertainty in the current economic environment, we are making good progress across many of these initiatives. We are confident that the fundamentals for our Company are strong, and are steadfast in our commitment to continue to improve the financial profile, level of operational and commercial excellence and growth momentum of our Company.” 1 Some information represents non-IFRS Accounting Standards Financial measures, other financial measures or non-IFRS Accounting Standards ratios which are not standardized under IFRS Accounting Standards and therefore might not be comparable to similar financial measures disclosed by other corporations. Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation.
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Financial Summary Selected consolidated information (in millions of Canadian dollars, except amounts per common share) (unaudited) Q3 2025 Q2 2025 Q3 2024 Sales 1,238 1,187 1,201 As Reported Operating income 73 36 36 Net earnings (loss) 29 (3) 1 per common share (basic) $0.29 ($0.03) $0.01 Adjusted1 Earnings before interest, taxes, depreciation and amortization (EBITDA (A)) 159 137 140 Net earnings 39 19 27 per common share (basic) $0.38 $0.19 $0.27 Margin (EBITDA (A) / Sales) 12.8% 11.5% 11.7% Net debt1 2,023 2,104 2,039 Net debt / EBITDA (A) ratio1 3.6x 3.8x 4.3x Segmented sales (in millions of Canadian dollars) (unaudited) Q3 2025 Q2 2025 Q3 2024 Packaging Products 797 763 773 Tissue Papers 412 392 390 Inter-segment sales, Corporate, Recovery and Recycling activities 29 32 38 Sales 1,238 1,187 1,201 Segmented operating income (loss) (in millions of Canadian dollars) (unaudited) Q3 2025 Q2 2025 Q3 2024 Packaging Products 73 46 41 Tissue Papers 30 25 24 Corporate, Recovery and Recycling activities (30) (35) (29) Operating income 73 36 36 Segmented EBITDA (A)1 (in millions of Canadian dollars) (unaudited) Q3 2025 Q2 2025 Q3 2024 Packaging Products 136 119 117 Tissue Papers 46 38 43 Corporate, Recovery and Recycling activities (23) (20) (20) EBITDA (A)1 159 137 140 1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation.
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Analysis of results for the three-month period ended September 30, 2025 (compared to the same period last year) The Corporation’s third quarter sales of $1,238 million increased by $37 million compared with the same period last year. This increase was driven by consolidated net benefits of $43 million from higher selling prices and $7 million from a more favourable foreign exchange. These were partially offset by $12 million from lower volumes mainly in the Packaging Products segment. The third quarter EBITDA (A) 1 totaled $159 million, an increase of $19 million, or 14%, from the $140 million generated in the same period last year. This increase was driven by net benefits of $43 million from higher selling prices and by lower raw material costs o f $19 million, mainly in the Packaging Products segment. These were partially offset by net impacts of $38 million from higher production and energy costs and $5 million from lower volumes mainly in the Packaging Products segment. The main specific items, before income taxes, that impacted our third quarter of 2025 operating income and/or net earnings were: • $10 million for an additional environmental provision related to the closure of a plant in Canada in 2024 (operating income and net earnings); • $6 million of restructuring costs related to a plant closure in the United States and corporate organizational changes (operating income and net earnings); • $4 million unrealized gain on financial instruments (operating income and net earnings). For the three-month period ended September 30, 2025 , the Corporation posted net earnings of $ 29 million, or $0.29 per common share, compared to net earnings of $ 1 million, or $0.01 per common share, in the same period of 2024. On an adjusted basis 1, the Corporation posted net earnings of $39 million in the third quarter of 2025, or $0.38 per common share, compared to net earnings of $27 million, or $0.27 per common share, in the same period of 2024. 1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation. Dividend on common shares and normal course issuer bid The Board of Directors of Cascades declared a quarterly dividend of $0.12 per common share to be paid on December 4, 2025 to shareholders of record at the close of business on November 20, 2025. This dividend is an “eligible dividend” as per the Income Tax Act (R.C.S. (1985), Canada). During the third quarter of 2025, Cascades purchased no common shares for cancellation. 2025 Third Quarter Results Conference Call Details Management will discuss the 2025 third quarter financial results during a conference call today at 9:00 a.m. ET. The call can be accessed by dialing 1-800-990-4777 (international 1-289-819-1299). The conference call, including the investor presentation, will be broadcast live on the Cascades website (www.cascades.com) under the “Investors” section. A replay of the call will be available on the Cascades website and may also be accessed by phone until December 6, 2025 by dialing 1-888-660-6345 (international 1-289-819-1450), access code 72641 #. Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 9,300 women and men across a network of 65 operating facilities, including 17 Recovery and Recycling facilities which are part of Corporate Activities and joint ventures managed by the Corporation, in North America. Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. Cascades’ shares trade on the Toronto Stock Exchange under the ticker symbol CAS. Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Corporation’s products, increases in raw material costs, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors.
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CONSOLIDATED BALANCE SHEETS (in millions of Canadian dollars) (unaudited) September 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents 73 27 Accounts receivable 502 469 Current income tax assets 12 4 Inventories 648 685 Current portion of financial assets 7 1 1,242 1,186 Long-term assets Investments in associates and joint ventures 81 97 Property, plant and equipment 2,674 2,847 Intangible assets with finite useful life 33 41 Financial assets 5 — Other assets 110 105 Deferred income tax assets 225 220 Goodwill and other intangible assets with indefinite useful life 495 504 4,865 5,000 Liabilities and Equity Current liabilities Bank loans and advances 1 10 Trade and other payables 701 748 Current income tax liabilities 4 2 Current portion of unsecured senior notes — 175 Current portion of long-term debt 68 67 Current portion of provisions for charges 18 42 Current portion of financial liabilities and other liabilities 22 43 814 1,087 Long-term liabilities Long-term debt 2,027 1,871 Provisions for charges 59 58 Financial liabilities 10 — Other liabilities 74 80 Deferred income tax liabilities 142 133 3,126 3,229 Equity Capital stock 618 616 Contributed surplus 17 16 Retained earnings 1,020 1,019 Accumulated other comprehensive income 52 73 Equity attributable to Shareholders 1,707 1,724 Non-controlling interests 32 47 Total equity 1,739 1,771 4,865 5,000
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CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) For the 3-month periods ended September 30, For the 9-month periods ended September 30, (in millions of Canadian dollars, except per common share amounts and number of common shares) (unaudited) 2025 2024 2025 2024 Sales 1,238 1,201 3,579 3,490 Supply chain and logistic 744 736 2,125 2,126 Wages and employee benefits expenses 269 267 824 809 Depreciation and amortization 74 70 215 206 Maintenance and repair 62 58 193 180 Other operational costs 4 — 16 20 Impairment charges — 7 24 9 Other loss (gain) 10 24 15 27 Restructuring costs 6 5 12 38 Unrealized gain on derivative financial instruments (4) (2) (4) (4) Operating income 73 36 159 79 Financing expense 35 36 104 108 Share of results of associates and joint ventures (5) (5) (11) (14) Earnings (loss) before income taxes 43 5 66 (15) Provision for (recovery of) income taxes 8 (1) 16 (8) Net earnings (loss) including non-controlling interests for the period 35 6 50 (7) Net earnings attributable to non-controlling interests 6 5 17 11 Net earnings (loss) attributable to Shareholders for the period 29 1 33 (18) Net earnings (loss) per common share Basic $0.29 $0.01 $0.33 ($0.18) Diluted $0.29 $0.01 $0.33 ($0.18) Weighted average basic number of common shares outstanding 101,257,276 100,988,040 101,135,376 100,824,800 Weighted average number of diluted common shares 101,338,740 101,042,159 101,309,725 101,042,799 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the 3-month periods ended September 30, For the 9-month periods ended September 30, (in millions of Canadian dollars) (unaudited) 2025 2024 2025 2024 Net earnings (loss) including non-controlling interests for the period 35 6 50 (7) Other comprehensive income (loss) Items that may be reclassified subsequently to earnings Translation adjustments Change in foreign currency translation of foreign subsidiaries 24 (14) (80) 24 Change in foreign currency translation related to net investment hedging activities (13) 6 61 (9) Cash flow hedges Change in fair value of commodity derivative financial instruments (1) 1 (1) 1 Recovery of (provision for) income taxes 2 (1) (3) 1 12 (8) (23) 17 Items that are not released to earnings Actuarial gain (loss) on employee future benefits 6 (4) 5 7 Recovery of (provision for) income taxes (1) 1 (1) (2) 5 (3) 4 5 Other comprehensive income (loss) 17 (11) (19) 22 Comprehensive income (loss) including non-controlling interests for the period 52 (5) 31 15 Comprehensive income attributable to non-controlling interests for the period 6 5 15 12 Comprehensive income (loss) attributable to Shareholders for the period 46 (10) 16 3
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CONSOLIDATED STATEMENTS OF EQUITY For the 9-month period ended September 30, 2025 (in millions of Canadian dollars) (unaudited) CAPITAL STOCK CONTRIBUTED SURPLUS RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE INCOME TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS NON- CONTROLLING INTERESTS TOTAL EQUITY Balance - Beginning of period 616 16 1,019 73 1,724 47 1,771 Comprehensive income (loss) Net earnings — — 33 — 33 17 50 Other comprehensive income (loss) — — 4 (21) (17) (2) (19) — — 37 (21) 16 15 31 Dividends — — (36) — (36) (30) (66) Stock options expense — 1 — — 1 — 1 Issuance of common shares upon exercise of stock options 2 — — — 2 — 2 Balance - End of period 618 17 1,020 52 1,707 32 1,739 For the 9-month period ended September 30, 2024 (in millions of Canadian dollars) (unaudited) CAPITAL STOCK CONTRIBUTED SURPLUS RETAINED EARNINGS ACCUMULATED OTHER COMPREHENSIVE INCOME TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS NON- CONTROLLING INTERESTS TOTAL EQUITY Balance - Beginning of period 613 15 1,096 15 1,739 42 1,781 Comprehensive income (loss) Net earnings (loss) — — (18) — (18) 11 (7) Other comprehensive income — — 5 16 21 1 22 — — (13) 16 3 12 15 Dividends — — (36) — (36) (12) (48) Stock options expense — 2 — — 2 — 2 Issuance of common shares upon exercise of stock options 3 (1) — — 2 — 2 Acquisition of non-controlling interests — — (2) — (2) — (2) Balance - End of period 616 16 1,045 31 1,708 42 1,750
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CONSOLIDATED STATEMENTS OF CASH FLOWS For the 3-month periods ended September 30, For the 9-month periods ended September 30, (in millions of Canadian dollars) (unaudited) 2025 2024 2025 2024 Operating activities Net earnings (loss) attributable to Shareholders for the period 29 1 33 (18) Adjustments for: Financing expense 35 36 104 108 Depreciation and amortization 74 70 215 206 Impairment charges — 7 24 9 Other loss (gain) 10 24 15 27 Restructuring costs 6 5 12 38 Unrealized gain on derivative financial instruments (4) (2) (4) (4) Provision for (recovery of) income taxes 8 (1) 16 (8) Share of results of associates and joint ventures (5) (5) (11) (14) Net earnings attributable to non-controlling interests 6 5 17 11 Net financing expense paid (33) (48) (107) (113) Net income taxes paid (2) (1) (9) (4) Dividends received 19 — 26 9 Payments, net of provisions, for charges and other liabilities (27) (15) (78) (61) 116 76 253 186 Changes in non-cash working capital components 65 26 (57) (68) 181 102 196 118 Investing activities Payments for property, plant and equipment (30) (35) (110) (116) Proceeds from disposals of property, plant and equipment — 1 26 18 Change in intangible and other assets (1) — — (20) (31) (34) (84) (118) Financing activities Bank loans and advances (2) 4 (9) 7 Change in credit facilities (38) (22) (146) 63 Change in credit facilities without recourse to the Corporation (28) (6) 93 12 Issuance of unsecured senior notes, net of related expenses — — 541 — Repurchase of unsecured senior notes — — (456) — Increase in delayed draw unsecured term loan credit facility — — 36 — Payments of other long-term debt, including lease obligations (2025 - $59 million for the 9-month period ($20 million for the 3-month period); 2024 - $50 million for the 9- month period ($15 million for the 3-month period)) (21) (17) (61) (54) Issuance of common shares upon exercise of stock options — — 2 2 Dividends paid to non-controlling interests (3) (4) (30) (12) Acquisition of non-controlling interests — — — (3) Dividends paid to the Corporation’s Shareholders (12) (12) (36) (36) (104) (57) (66) (21) Net change in cash and cash equivalents during the period 46 11 46 (21) Currency translation on cash and cash equivalents 1 — — 1 Cash and cash equivalents - Beginning of the period 26 23 27 54 Cash and cash equivalents - End of the period 73 34 73 34
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SEGMENTED INFORMATION In the fourth quarter of 2024, the Corporation announced organizational changes designed to support its strategic growth. These changes involve the combination of the Containerboard and Specialty Products activities into a single operational unit. Since January 2025, the Corporation’s operations are managed in two segments: Packaging Products and Tissue Papers. The comparative figures have been restated to conform with the current year’s presentation. The accounting policies of the reportable segments are the same as the Corporation’s accounting policies described in the most recent Audited Consolidated Financial Statements for the year ended December 31, 2024. The Corporation’s operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The Chief Executive Officer has authority for resource allocation and management of the Corporation’s performance and is therefore the CODM. The CODM assesses the performance of each reportable segment based on sales and earnings before interest, taxes, depreciation and amortization, adjusted to exclude specific items (EBITDA (A)). The CODM considers EBITDA (A) to be the best performance measure of the Corporation’s activities. Sales for each segment are prepared on the same basis as those of the Corporation. Inter-segment operations are recorded on the same basis as sales to third parties, which are at fair market value. EBITDA (A) does not have a standardized meaning under IFRS Accounting Standards; accordingly, it may not be comparable to similarly named measures used by other companies. Investors should not view EBITDA (A) as an alternative measure to, for example, net earnings, or as a measure of operating results, which are IFRS Accounting Standards measures. Sales by business segment are shown in the following table: SALES For the 3-month periods ended September 30 (in millions of Canadian dollars) (unaudited) 2025 2024 Total Inter-segment External Total Inter-segment External Packaging Products 797 (13) 784 773 (12) 761 Tissue Papers 412 — 412 390 — 390 Corporate, Recovery and Recycling activities 69 (27) 42 90 (40) 50 1,278 (40) 1,238 1,253 (52) 1,201 SALES For the 9-month periods ended September 30 (in millions of Canadian dollars) (unaudited) 2025 2024 Total Inter-segment External Total Inter-segment External Packaging Products 2,322 (37) 2,285 2,227 (37) 2,190 Tissue Papers 1,168 — 1,168 1,154 (1) 1,153 Corporate, Recovery and Recycling activities 215 (89) 126 261 (114) 147 3,705 (126) 3,579 3,642 (152) 3,490 EBITDA (A) by business segment is reconciled to IFRS Accounting Standards measure, namely operating income (loss), and is shown in the following table: For the 3-month period ended September 30, 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Recovery and Recycling activities Consolidated Operating income (loss) 73 30 (30) 73 Depreciation and amortization 48 16 10 74 Other loss 10 — — 10 Restructuring costs 5 — 1 6 Unrealized gain on derivative financial instruments — — (4) (4) EBITDA (A) 136 46 (23) 159 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 619 345 49 1,013
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For the 3-month period ended September 30, 2024 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Recovery and Recycling activities Consolidated Operating income (loss) 41 24 (29) 36 Depreciation and amortization 44 16 10 70 Impairment charges 4 3 — 7 Other loss 24 — — 24 Restructuring costs 5 — — 5 Unrealized gain on derivative financial instruments (1) — (1) (2) EBITDA (A) 117 43 (20) 140 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 621 325 57 1,003 For the 9-month period ended September 30, 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Recovery and Recycling activities Consolidated Operating income (loss) 179 79 (99) 159 Depreciation and amortization 143 43 29 215 Impairment charges 23 — 1 24 Other loss (gain) 16 (1) — 15 Restructuring costs 6 — 6 12 Unrealized gain on derivative financial instruments (3) — (1) (4) EBITDA (A) 364 121 (64) 421 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 1,816 980 153 2,949 For the 9-month period ended September 30, 2024 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Recovery and Recycling activities Consolidated Operating income (loss) 87 93 (101) 79 Depreciation and amortization 131 42 33 206 Impairment charges 6 3 — 9 Other loss 27 — — 27 Restructuring costs 28 9 1 38 Unrealized gain on derivative financial instruments (1) — (3) (4) EBITDA (A) 278 147 (70) 355 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 1,827 942 166 2,935
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Payments for property, plant and equipment by business segment are shown in the following table: PAYMENTS FOR PROPERTY, PLANT AND EQUIPMENT For the 3-month periods ended September 30, For the 9-month periods ended September 30, (in millions of Canadian dollars) (unaudited) 2025 2024 2025 2024 Packaging Products 25 31 92 108 Tissue Papers 9 12 31 32 Corporate, Recovery and Recycling activities 4 10 11 29 Total acquisitions 38 53 134 169 Right-of-use assets acquisitions (non-cash) (9) (19) (43) (73) 29 34 91 96 Acquisitions for property, plant and equipment included in “Trade and other payables” Beginning of the period 14 26 32 45 End of the period (13) (25) (13) (25) Payments for property, plant and equipment 30 35 110 116 Proceeds from disposals of property, plant and equipment — (1) (26) (18) Payments for property, plant and equipment net of proceeds from disposals 30 34 84 98
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SUPPLEMENTAL INFORMATION ON NON-IFRS ACCOUNTING STANDARDS MEASURES AND OTHER FINANCIAL MEASURES SPECIFIC ITEMS The Corporation incurs some specific items that adversely or positively affect its operating results. We believe it is useful for readers to be aware of these items as they provide additional information to measure performance, compare the Corporation’s results between periods, and assess operating results and liquidity, notwithstanding these specific items. Management believes these specific items are not necessarily reflective of the Corporation’s underlying business operations in measuring and comparing its performance and analyzing future trends. Our definition of specific items may differ from that of other corporations and some of these items may arise in the future and may reduce the Corporation’s available cash. They include, but are not limited to, charges for (reversals of) impairment of assets, restructuring gains or costs, loss on refinancing and repurchase of long-term debt, some deferred tax asset provisions or reversals, premiums paid on repurchase of long-term debt, gains or losses on the acquisition or sale of a business unit, gains or losses on the share of results of associates and joint ventures, unrealized gains or losses on derivative financial instruments that do not qualify for hedge accounting, unrealized gains or losses on interest rate hedge instruments and option fair value revaluation, foreign exchange gains or losses on long-term debt and financial instruments, fair value revaluation gains or losses on investments, specific items of discontinued operations and other significant items of an unusual, non-cash or non-recurring nature. RECONCILIATION AND USES OF NON-IFRS ACCOUNTING STANDARDS MEASURES AND OTHER FINANCIAL MEASURES To provide more information for evaluating the Corporation’s performance, the financial information included in this analysis contains certain data that are not performance measures under IFRS Accounting Standards (“non-IFRS Accounting Standards measures”), which are also calculated on an adjusted basis to exclude specific items. We believe that providing certain key performance and capital measures, as well as non-IFRS Accounting Standards measures, is useful to both Management and investors, as they provide additional information to measure the performance and financial position of the Corporation. This also increases the transparency and clarity of the financial information. The following non-IFRS Accounting Standards measures and other financial measures are used in our financial disclosures: Non-IFRS Accounting Standards measures • Adjusted earnings before interest, taxes, depreciation and amortization or EBITDA (A): represents the operating income (as published in the Consolidated Statements of Earnings (Loss) of the Consolidated Financial Statements) before depreciation and amortization excluding specific items. Measure used to assess recurring operating performance and the contribution of each segment on a comparable basis. • Adjusted net earnings: Measure used to assess the Corporation’s consolidated financial performance on a comparable basis. • Adjusted cash flow: Measure used to assess the Corporation’s capacity to generate cash flows to meet financial obligations and/or discretionary items such as share repurchases, dividend increases and strategic investments. • Free cash flow: Measure used to calculate the excess cash the Corporation generates by subtracting capital expenditures (excluding strategic projects) from the EBITDA (A). • Working capital: Measure used to assess the short-term liquidity of the Corporation. Other financial measures • Total debt: Measure used to calculate all the Corporation’s debt, including long-term debt and bank loans. Often put in relation to equity to calculate the debt-to-equity ratio. • Net debt: Measure used to calculate the Corporation’s total debt less cash and cash equivalents. Often put in relation to EBITDA (A) to calculate the net debt to EBITDA (A) ratio. Non-IFRS Accounting Standards ratios • Net debt to EBITDA (A) ratio: Ratio used to assess the Corporation’s ability to pay its debt and evaluate financial leverage. • EBITDA (A) margin: Ratio used to assess operating performance and the contribution of each segment on a comparable basis calculated as a percentage of sales. • Adjusted net earnings per common share: Ratio used to assess the Corporation’s consolidated financial performance on a comparable basis. • Ratio of net debt / (total equity and net debt): Ratio used to evaluate the Corporation’s financial leverage and the risk to Shareholders. • Working capital as a percentage of sales: Ratio used to assess the Corporation’s operating liquidity performance. • Adjusted cash flow per common share: Ratio used to assess the Corporation’s financial flexibility.
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• Free cash flow ratio: Ratio used to measure the liquidity and efficiency of how much more cash the Corporation generates than it uses to run the business by subtracting capital expenditures (excluding strategic projects) from the EBITDA (A) calculated as a percentage of sales. Non-IFRS Accounting Standards measures and other financial measures are mainly derived from the consolidated financial statements, but do not have the meanings prescribed by IFRS Accounting Standards. These measures have limitations as an analytical tool and should not be considered on their own or as a substitute for an analysis of our results as reported under IFRS Accounting Standards. In addition, our definitions of non-IFRS Accounting Standards measures and other financial measures may differ from those of other corporations. Any such modification or reformulation may be significant. In the fourth quarter of 2024, the Corporation announced organizational changes designed to support its strategic growth. These changes involve the combination of the Containerboard and Specialty Products activities into a single operational unit. Since January 2025, the Corporation’s operations are managed in two segments: Packaging Products and Tissue Papers. The comparative figures have been restated to conform with the current year’s presentation. The CODM assesses the performance of each reportable segment based on sales and earnings before interest, taxes, depreciation and amortization, adjusted to exclude specific items (EBITDA (A) 1). The CODM considers EBITDA (A) 1 to be the best performance measure of the Corporation’s activities. EBITDA (A)1 by business segment is reconciled to IFRS Accounting Standards measure, namely operating income (loss), and is shown in the following table: Q3 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Recovery and Recycling activities Consolidated Operating income (loss) 73 30 (30) 73 Depreciation and amortization 48 16 10 74 Other loss 10 — — 10 Restructuring costs 5 — 1 6 Unrealized gain on derivative financial instruments — — (4) (4) EBITDA (A)1 136 46 (23) 159 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 619 345 49 1,013 Q2 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Recovery and Recycling activities Consolidated Operating income (loss) 46 25 (35) 36 Depreciation and amortization 49 14 9 72 Impairment charges 23 — — 23 Other loss (gain) 2 (1) — 1 Restructuring costs — — 1 1 Unrealized loss (gain) on derivative financial instruments (1) — 5 4 EBITDA (A)1 119 38 (20) 137 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 594 331 52 977 1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation.
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Q3 2024 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Recovery and Recycling activities Consolidated Operating income (loss) 41 24 (29) 36 Depreciation and amortization 44 16 10 70 Impairment charges 4 3 — 7 Other loss 24 — — 24 Restructuring costs 5 — — 5 Unrealized gain on derivative financial instruments (1) — (1) (2) EBITDA (A)1 117 43 (20) 140 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 621 325 57 1,003 The following table reconciles net earnings (loss) and net earnings (loss) per common share, as reported, with adjusted net earnings 1 and adjusted net earnings per common share1: (in millions of Canadian dollars, except per common share amounts and number of common shares) (unaudited) NET EARNINGS (LOSS) NET EARNINGS (LOSS) PER COMMON SHARE2 Q3 2025 Q2 2025 Q3 2024 Q3 2025 Q2 2025 Q3 2024 As reported 29 (3) 1 $0.29 ($0.03) $0.01 Specific items: Impairment charges — 23 7 — $0.17 $0.06 Other loss 10 1 24 $0.07 $0.01 $0.18 Restructuring costs 6 1 5 $0.05 — $0.03 Unrealized loss (gain) on derivative financial instruments (4) 4 (2) ($0.03) $0.03 ($0.01) Loss on repurchase of long-term debt — 1 — — $0.01 — Unrealized loss on interest rate hedge instrument — — 2 — — $0.01 Foreign exchange gain on long-term debt and financial instruments — — (1) — — ($0.01) Tax effect on specific items, other tax adjustments and attributable to non-controlling interest2 (2) (8) (9) — — — 10 22 26 $0.09 $0.22 $0.26 Adjusted1 39 19 27 $0.38 $0.19 $0.27 Weighted average basic number of common shares outstanding 101,257,276 101,152,145 100,988,040 The following table reconciles cash flow from operating activities with EBITDA (A)1: (in millions of Canadian dollars) (unaudited) Q3 2025 Q2 2025 Q3 2024 Cash flow from operating activities 181 67 102 Changes in non-cash working capital components (65) 25 (26) Net income taxes paid 2 5 1 Net financing expense paid 33 25 48 Payments, net of provisions, for charges and other liabilities, net of dividends received 8 15 15 EBITDA (A)1 159 137 140 1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation. 2 Specific amounts per common share are calculated on an after-tax basis and are net of the portion attributable to non-controlling interests. Per share amounts in line item ’’Tax effect on specific items, other tax adjustments and attributable to non-controlling interests’’ only include the effect of tax adjustments. Please refer to the “Provision for (recovery of) income taxes” section for more details.
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The following table reconciles cash flow from operating activities with cash flow from operating activities (excluding changes in non-cash working capital components) and adjusted cash flow from operating activities 1. It also reconciles adjusted cash flow from operating activities 1 to adjusted cash flow generated1, which is also calculated on a per common share basis: (in millions of Canadian dollars, except per common share amounts or otherwise noted) (unaudited) Q3 2025 Q2 2025 Q3 2024 Cash flow from operating activities 181 67 102 Changes in non-cash working capital components (65) 25 (26) Cash flow from operating activities (excluding changes in non-cash working capital components) 116 92 76 Restructuring costs paid 21 9 10 Adjusted cash flow from operating activities1 137 101 86 Payments for property, plant and equipment (30) (44) (35) Change in intangible and other assets (1) — — Lease obligation payments (20) (21) (15) Proceeds from disposals of property, plant and equipment — 26 1 86 62 37 Dividends paid to non-controlling interests (3) (24) (4) Dividends paid to the Corporation’s Shareholders and to non-controlling interests (12) (12) (12) Adjusted cash flow generated1 71 26 21 Adjusted cash flow generated per common share1 (in Canadian dollars) $0.70 $0.26 $0.21 Weighted average basic number of common shares outstanding 101,257,276 101,152,145 100,988,040 The following table reconciles total debt 1 and net debt 1 with the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1: (in millions of Canadian dollars) (unaudited) September 30, 2025 June 30, 2025 September 30, 2024 Long-term debt 2,027 2,057 1,828 Current portion of unsecured senior notes — — 175 Current portion of long-term debt 68 70 63 Bank loans and advances 1 3 7 Total debt1 2,096 2,130 2,073 Less: Cash and cash equivalents (73) (26) (34) Net debt1 as reported 2,023 2,104 2,039 Last twelve months EBITDA (A)1 567 548 477 Net debt / EBITDA (A) ratio1 3.6x 3.8x 4.3x 1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation. Media Investors Hugo D’Amours Jennifer Aitken, MBA Vice-President, Communications, Public Affairs and Sustainable Development Director, Investor Relations Cascades Inc. Cascades Inc. 819-363-5164 514-282-2697 hugo_damours@cascades.com jennifer_aitken@cascades.com Source Allan Hogg Vice-President and Chief Financial Officer Cascades Inc.