CAS: Highlights from the RBC Canadian Industrials Conference

研报英文原文证据摘录

CAS: Highlights from the RBC Canadian Industrials Conference

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

Matthew McKellar, CFA (Analyst)

Amit Prasad, CFA (Associate)

May 19, 2026

Cascades Inc.

Highlights from the RBC Canadian Industrials Conference

TSX: CAS | CAD 10.44 | Outperform | Price Target CAD 14.00

Sentiment: Neutral

We hosted Hugues Simon, Chief Executive Officer, on day one of the RBC Canadian Industrials Conference. We rate Cascades'

shares Outperform.

Containerboard rolls tightening as a key value driver. Hugues noted box demand is soft given macro headwinds (particularly tariff-

related impacts on the auto and steel sectors concentrated in Eastern Canada), but containerboard rolls are tight following >8%

of industry capacity being rationalized in 2025. Mr. Simon also noted that European roll imports into the U.S. now face tariffs,

restricting supply. Hugues reiterated the value-over-volume strategy at Cascades, and pointed to the company closing its Niagara

facility in 2025 and reducing hours at select box plants. The latest announced containerboard price increase is not included in

the company's H2/26 guidance for a $600MM Adjusted EBITDA run rate, although Mr. Simon believes Cascades can achieve the

run rate with the combination of profitability and operational improvements along with agile price adjustments to offset elevated

costs.

Profitability improvements remain in the spotlight. Hugues highlighted executing on the company's $100MM profitability

improvement program (recall, ~$30MM was realized in 2025) as a key element of the company's near-term priorities. Mr. Simon

pointed to a shift to emphasizing cost improvements at Bear Island (with the mill having improved from a high-70s to low-90s