Cascades Reports Results for the Fourth Quarter and Full Year 2025

Cascades Inc. (TSX: CAS) reports its unaudited financial results for the three-month period and fiscal year ended December 31, 2025.

Q4 2025 Highlights

— Sales of $1,197 million (compared with $1,238 million in Q3 2025 and $1,211 million in Q4 2024);

— Operating income of $76 million (compared with $73 million in Q3 2025 and $16 million in Q4 2024);

— Net earnings per common share of $0.37 (compared with net earnings per common share of $0.29 in Q3 2025 and a net loss per common share of ($0.13) in Q4 2024);

— Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A)1) of $155 million (compared with $159 million in Q3 2025 and $146 million in Q4 2024);

— Adjusted net earnings per common share1 of $0.40 (compared with $0.38 in Q3 2025 and $0.25 in Q4 2024);

2025 Annual Highlights

— Sales of $4,776 million (compared with $4,701 million in 2024);

— Operating income of $235 million (compared with $95 million in 2024);

— Net earnings per common share of $0.70 (compared with a net loss per common share of ($0.31) in 2024);

— Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A)1) of $576 million (compared with $501 million in 2024);

— Adjusted net earnings per common share1 of $1.10 (compared with $0.60 in 2024);

— Net debt1 of $1,896 million as of December 31, 2025 (compared with $2,096 million as of December 31, 2024). Net debt to EBITDA (A) ratio1 of 3.3x, down from 4.2x as of December 31, 2024;

— Following the asset sales completed in 2025 and early 2026, the Corporation has surpassed its disclosed target of generating $120 million of proceeds from the monetization of redundant assets by mid-2026;

— Total capital expenditures of $42 million in Q4 2025 and $152 million in 2025. The Corporation's 2026 forecasted capital expenditures before disposals will be approximately $175 million.

— Several strategic actions were implemented during the year and are beginning to generate tangible results, both operationally and financially.

Hugues Simon, President and CEO, commented: “Our fourth quarter consolidated performance met sequential forecasts. Packaging results were within expectations, with benefits from lower production costs, favourable raw material pricing and continued solid production levels at Bear Island mitigating the expected lower seasonal sales volumes. Results of our tissue business fell short of targeted levels. Simply put, our tissue operations did not meet efficiency and logistics execution objectives in the quarter. These effects were compounded by an unplanned power outage at one of our facilities that further impacted production levels, supply chain efficiency and added incremental operating costs of approximately $6 million in the period. The countermeasures we have already put in place to address these issues are generating positive traction. Overall, we successfully decreased net debt by $127 million sequentially, which results in leverage decreasing to 3.3x from 3.6x at the end of the third quarter.”

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.

Discussing near-term outlook, Mr. Simon commented, “We expect first?quarter performance to decline sequentially, but to remain higher year?over?year for the sixth consecutive quarter. In packaging, the forecasted sequential decline is attributable to usual seasonality in demand levels and higher transportation and energy costs due to weather-related impacts in the US in early 2026. We are similarly expecting softer results in tissue sequentially. In addition to usual seasonality and costs related to severe weather, results in this segment will be impacted by residual production and logistics costs following the power outage at one of our facilities. Our leverage ratio is expected to continue to improve in the coming quarters.

Looking further ahead, we are confident in our ability to achieve our strategic objectives, and we expect our 2026 performance to surpass 2025, despite ongoing macro?economic uncertainty. We made good progress across many of our initiatives over the past year. In addition to achieving our objective of generating $120 million of proceeds from asset sales ahead of schedule, we have generated approximately $30 million of profitability improvements. 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.”

Financial Summary

Selected consolidated information

(in millions of Canadian dollars, except amounts per common share) (unaudited) 2025 2024 Q4 2025 Q3 2025 Q4 2024 Sales 4,776 4,701 1,197 1,238 1,211 As Reported Operating income 235 95 76 73 16 Net earnings (loss) 70 (31) 37 29 (13) per common share (basic) $0.70 ($0.31) $0.37 $0.29 ($0.13) Adjusted(1) Earnings before interest, taxes, depreciation and amortization (EBITDA (A)) 576 501 155 159 146 Net earnings 111 60 40 39 25 per common share (basic) $1.10 $0.60 $0.40 $0.38 $0.25 Margin (EBITDA (A) / Sales) 12.1 % 10.7 % 12.9 % 12.8 % 12.1 % Net debt (1) 1,896 2,096 1,896 2,023 2,096 Net debt / EBITDA (A) ratio (1) 3.3x 4.2x 3.3x 3.6x 4.2x

Segmented sales

(in millions of Canadian dollars) (unaudited) 2025 2024 Q4 2025 Q3 2025 Q4 2024 Packaging Products 3,079 3,009 757 797 782 Tissue Papers 1,575 1,548 407 412 394 Inter-segment sales, Corporate, Recovery and Recycling activities 122 144 33 29 35 Sales 4,776 4,701 1,197 1,238 1,211

Segmented operating income (loss)

(in millions of Canadian dollars) (unaudited) 2025 2024 Q4 2025 Q3 2025 Q4 2024 Packaging Products 269 145 90 73 58 Tissue Papers 93 97 14 30 4 Corporate, Recovery and Recycling activities (127) (147) (28) (30) (46) Operating income 235 95 76 73 16

Segmented EBITDA (A)1

(in millions of Canadian dollars) (unaudited) 2025 2024 Q4 2025 Q3 2025 Q4 2024 Packaging Products 496 410 132 136 132 Tissue Papers 163 192 42 46 45 Corporate, Recovery and Recycling activities (83) (101) (19) (23) (31) EBITDA (A)(1) 576 501 155 159 146

1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation.

Analysis of results for the three-month period ended December 31, 2025 (compared to the same period last year)

The Corporation's fourth quarter sales of $1,197 million decreased by $14 million compared with the same period last year. This decrease reflects consolidated net benefits of $25 million from higher selling prices and a favourable sales mix of $25 million. However, these factors were more than offset by a $62 million impact from lower volumes, mainly in the Packaging Products segment.

The fourth quarter EBITDA (A)1 totaled $155 million, an increase of $9 million, or 6%, from the $146 million generated in the same period last year. This increase was driven by lower corporate costs following an unfavourable exchange rate variance on working capital and treasury items, and higher health insurance costs for US employees in the prior year period. Performance of our Packaging Products and Tissue Papers segments were stable compared to last year. Benefits from higher selling prices and lower raw material costs were offset by impacts from higher production and energy costs and lower volumes mainly in the Packaging Products segment.

The main specific items, before income taxes, that impacted our fourth quarter of 2025 operating income and/or net earnings were:

— $23 million of impairment on a building and equipment related to a closed facilities in Canada and in the United States (operating income and net earnings);

— $2 million of a net realizable value adjustment on inventories related to certain discontinued centralized services following the ongoing streamlining and optimization of operations (operating income and net earnings);

— $21 million gain related to the sale of Flexible Packaging plant activities (operating income and net earnings);

— $4 million of restructuring costs related to a plant closure in the United States and corporate organizational changes (operating income and net earnings);

— $1 million gain on financial instruments (operating income and net earnings).

For the three-month period ended December 31, 2025, the Corporation posted net earnings of $37 million, or $0.37 per common share, compared to a net loss of $(13) million, or ($0.13) per common share, in the same period of 2024. On an adjusted basis1, the Corporation posted net earnings of $40 million in the fourth quarter of 2025, or $0.40 per common share, compared to net earnings of $25 million, or $0.25 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 March 26, 2026 to shareholders of record at the close of business on March 12, 2026. This dividend is an “eligible dividend” as per the Income Tax Act (R.C.S. (1985), Canada). During the fourth quarter of 2025, Cascades purchased no common shares for cancellation.

2025 Fourth Quarter Results Conference Call Details

Management will discuss the 2025 fourth 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 March 26, 2026 by dialing 1-888-660-6345 (international 1-646-517-4150), access code 58005 #.

Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 9,200 women and men across a network of 64 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.

CONSOLIDATED BALANCE SHEETS

(in millions of Canadian dollars) (unaudited) December 31, December 31, 2025 2024 Assets Current assets Cash and cash equivalents 48 27 Accounts receivable 426 469 Current income tax assets 12 4 Inventories 661 685 Current portion of financial assets 4 1 1,151 1,186 Long-term assets Investments in associates and joint ventures 66 97 Property, plant and equipment 2,649 2,847 Intangible assets with finite useful life 30 41 Financial assets 5 Other assets 107 105 Deferred income tax assets 174 168 Goodwill and other intangible assets with indefinite useful life 491 504 4,673 4,948 Liabilities and Equity Current liabilities Bank loans and advances 10 Trade and other payables 697 748 Current income tax liabilities 4 2 Current portion of unsecured senior notes 175 Current portion of long-term debt 70 67 Current portion of provisions for charges 8 42 Current portion of financial liabilities and other liabilities 28 43 807 1,087 Long-term liabilities Long-term debt 1,874 1,871 Provisions for charges 58 58 Financial liabilities 8 Other liabilities 74 80 Deferred income tax liabilities 97 81 2,918 3,177 Equity Capital stock 619 616 Contributed surplus 17 16 Retained earnings 1,042 1,019 Accumulated other comprehensive income 43 73 Equity attributable to Shareholders 1,721 1,724 Non-controlling interests 34 47 Total equity 1,755 1,771 4,673 4,948

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

For the 3-month periods ended December 31, For the years ended December 31, (in millions of Canadian dollars, except per common share amounts and number of common shares) (unaudited) 2025 2024 2025 2024 Sales 1,197 1,211 4,776 4,701 Supply chain and logistic 702 721 2,827 2,847 Wages and employee benefits expenses 273 277 1,097 1,086 Depreciation and amortization 72 76 287 282 Maintenance and repair 68 64 261 244 Other operational costs (1) 3 15 23 Impairment charges 25 55 49 64 Other loss (gain) (21) (8) (6) 19 Restructuring costs 4 8 16 46 Gain on derivative financial instruments (1) (1) (5) (5) Operating income 76 16 235 95 Financing expenses 32 34 136 142 Share of results of associates and joint ventures (5) (5) (16) (19) Earnings (loss) before income taxes 49 (13) 115 (28) Provision for (recovery of) income taxes 6 (6) 22 (14) Net earnings (loss) including non-controlling interests for the period 43 (7) 93 (14) Net earnings attributable to non-controlling interests 6 6 23 17 Net earnings (loss) attributable to Shareholders for the period 37 (13) 70 (31) Net earnings (loss) per common share Basic $0.37 ($0.13) $0.70 ($0.31) Diluted $0.36 ($0.13) $0.69 ($0.31) Weighted average basic number of common shares outstanding 101,261,141 100,988,040 101,167,075 100,865,833 Weighted average number of diluted common shares 101,787,746 101,349,476 101,430,212 101,119,887

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the 3-month periods ended December 31, For the years ended December 31, (in millions of Canadian dollars) (unaudited) 2025 2024 2025 2024 Net earnings (loss) including non-controlling interests for the period 43 (7) 93 (14) Other comprehensive income (loss) Items that may be reclassified subsequently to earnings Translation adjustments Change in foreign currency translation of foreign subsidiaries (16) 74 (96) 98 Change in foreign currency translation related to net investment hedging activities 8 (34) 69 (43) Cash flow hedges Change in fair value of commodity derivative financial instruments (1) 1 Recovery of (provision for) income taxes (1) 4 (4) 5 (9) 44 (32) 61 Items that are not released to earnings Actuarial gain (loss) on employee future benefits (3) (1) 2 6 Recovery of (provision for) income taxes 1 (2) (2) (1) 2 4 Other comprehensive income (loss) (11) 43 (30) 65 Comprehensive income including non-controlling interests for the period 32 36 63 51 Comprehensive income attributable to non-controlling interests for the period 6 8 21 20 Comprehensive income attributable to Shareholders for the period 26 28 42 31

CONSOLIDATED STATEMENTS OF EQUITY

For the year ended December 31, 2025 (in millions of Canadian dollars) (unaudited) CAPITAL STOCK CONTRIBUTED SURPLUS RETAINED EARNINGS ACCUMULATED TOTAL EQUITY ATTRIBUTABLE TO NON-CONTROLLING SHAREHOLDERS INTERESTS TOTAL EQUITY OTHER COMPREHENSIVE INCOME Balance – Beginning of year 616 16 1,019 73 1,724 47 1,771 Comprehensive income (loss) Net earnings 70 70 23 93 Other comprehensive income (loss) 2 (30) (28) (2) (30) 72 (30) 42 21 63 Dividends (49) (49) (34) (83) Stock options expense 2 2 2 Issuance of common shares upon exercise of stock options 3 (1) 2 2 Balance – End of year 619 17 1,042 43 1,721 34 1,755 For the year ended December 31, 2024 (in millions of Canadian dollars) (unaudited) CAPITAL STOCK CONTRIBUTED SURPLUS RETAINED EARNINGS ACCUMULATED TOTAL EQUITY ATTRIBUTABLE TO NON-CONTROLLING SHAREHOLDERS INTERESTS TOTAL EQUITY OTHER COMPREHENSIVE INCOME Balance – Beginning of year 613 15 1,096 15 1,739 42 1,781 Comprehensive income (loss) Net earnings (loss) (31) (31) 17 (14) Other comprehensive income 4 58 62 3 65 (27) 58 31 20 51 Dividends (48) (48) (15) (63) Stock options expense 2 2 2 Issuance of common shares upon exercise of stock options 3 (1) 2 2 Acquisitions of non-controlling interests (2) (2) (2) Balance – End of year 616 16 1,019 73 1,724 47 1,771

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the 3-month periods ended December 31, For the years ended December 31, (in millions of Canadian dollars) (unaudited) 2025 2024 2025 2024 Operating activities Net earnings (loss) attributable to Shareholders for the period 37 (13) 70 (31) Adjustments for: Financing expenses 32 34 136 142 Depreciation and amortization 72 76 287 282 Impairment charges 25 55 49 64 Other loss (gain) (21) (8) (6) 19 Restructuring costs 4 8 16 46 Gain on derivative financial instruments (1) (1) (5) (5) Provision for (recovery of) income taxes 6 (6) 22 (14) Share of results of associates and joint ventures (5) (5) (16) (19) Net earnings attributable to non-controlling interests 6 6 23 17 Net financing expenses paid (16) (22) (123) (135) Net income taxes paid (1) (10) (4) Dividends received 21 8 47 17 Payments, net of provisions, for charges and other liabilities (9) (23) (87) (84) 150 109 403 295 Changes in non-cash working capital components 33 45 (24) (23) 183 154 379 272 Investing activities Payments for property, plant and equipment (42) (45) (152) (161) Proceeds from disposals of property, plant and equipment 1 16 27 34 Change in intangible and other assets (3) (23) Proceeds from business disposal 31 31 (10) (32) (94) (150) Financing activities Bank loans and advances (1) 3 (10) 10 Change in credit facilities (141) (67) (251) (4) Change in credit facilities without recourse to the Corporation (19) (28) 74 (16) Issuance of unsecured senior notes, net of related expenses 541 Repurchase of unsecured senior notes (456) Payments of other long-term debt, including lease obligations (2025 – $78 million ($19 million for 3-month period); 2024 – $67 million ($17 million for 3-month period)) (19) (21) (80) (75) Issuance of common shares upon exercise of stock options 2 2 Dividends paid to non-controlling interests (4) (3) (34) (15) Acquisition of non-controlling interests (3) Dividends paid to the Corporation's Shareholders (13) (12) (49) (48) (197) (128) (263) (149) Net change in cash and cash equivalents during the period (24) (6) 22 (27) Currency translation on cash and cash equivalents (1) (1) (1) Cash and cash equivalents – Beginning of the period 73 34 27 54 Cash and cash equivalents – End of the period 48 27 48 27

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 have been managed in two segments: Packaging Products and Tissue Papers. The comparative figures have been aligned 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 Note 2.

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 December 31 2025 2024(in millions of Canadian dollars) (unaudited) Total Inter- External Total Inter- segment segment External Packaging Products 757 (7) 750 782 (14) 768 Tissue Papers 407 407 394 394 Corporate, Recovery and Recycling activities 67 (27) 40 84 (35) 49 1,231 (34) 1,197 1,260 (49) 1,211 SALES For the years ended December 31 2025 2024(in millions of Canadian dollars) (unaudited) Total Inter- External Total Inter- segment segment External Packaging Products 3,079 (44) 3,035 3,009 (51) 2,958 Tissue Papers 1,575 1,575 1,548 (1) 1,547 Corporate, Recovery and Recycling activities 282 (116) 166 345 (149) 196 4,936 (160) 4,776 4,902 (201) 4,701

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 December 31, 2025 (in millions of Canadian dollars) (unaudited) Packaging Tissue Papers Corporate, Consolidated Products Recovery and Recycling activities Operating income (loss) 90 14 (28) 76 Depreciation and amortization 49 16 7 72 Impairment charges 11 12 2 25 Other gain (21) (21) Restructuring costs 3 1 4 Gain on derivative financial instruments (1) (1) EBITDA (A) 132 42 (19) 155 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 579 342 54 975 For the 3-month period ended December 31, 2024 (in millions of Canadian dollars) (unaudited) Packaging Tissue Papers Corporate, Consolidated Products Recovery and Recycling activities Operating income (loss) 58 4 (46) 16 Depreciation and amortization 48 14 14 76 Impairment charges 32 23 55 Other gain (7) (1) (8) Restructuring costs 2 4 2 8 Gain on derivative financial instruments (1) (1) EBITDA (A) 132 45 (31) 146 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 609 325 64 998 For the year ended December 31, 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Consolidated Recovery and Recycling activities Operating income (loss) 269 93 (127) 235 Depreciation and amortization 192 59 36 287 Impairment charges 34 12 3 49 Other gain (5) (1) (6) Restructuring costs 9 7 16 Gain on derivative financial instruments (3) (2) (5) EBITDA (A) 496 163 (83) 576 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 2,395 1,322 207 3,924 For the year ended December 31, 2024 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Consolidated Recovery and Recycling activities Operating income (loss) 145 97 (147) 95 Depreciation and amortization 179 56 47 282 Impairment charges 38 26 64 Other loss (gain) 20 (1) 19 Restructuring costs 30 13 3 46 Gain on derivative financial instruments (2) (3) (5) EBITDA (A) 410 192 (101) 501 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 2,436 1,267 230 3,933

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 December 31, For the years ended December 31, (in millions of Canadian dollars) (unaudited) 2025 2024 2025 2024 Packaging Products 82 59 174 167 Tissue Papers 16 22 47 54 Corporate, Recovery and Recycling activities 5 20 16 49 Total acquisitions 103 101 237 270 Right-of-use assets acquisitions and provisions (non-cash) (57) (49) (100) (122) 46 52 137 148 Acquisitions for property, plant and equipment included in “Trade and other payables” Beginning of the period 13 25 32 45 End of the period (17) (32) (17) (32) Payments for property, plant and equipment 42 45 152 161 Proceeds from disposals of property, plant and equipment (1) (16) (27) (34) Payments for property, plant and equipment net of proceeds from disposals 41 29 125 127

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 and realized 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.

— 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.

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 the IFRS Accounting Standards measure, namely operating income (loss), and is shown in the following table:

Q4 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Consolidated Recovery and Recycling activities Operating income (loss) 90 14 (28) 76 Depreciation and amortization 49 16 7 72 Impairment charges 11 12 2 25 Other gain (21) (21) Restructuring costs 3 1 4 Gain on derivative financial instruments – (1) (1) EBITDA (A)(1) 132 42 (19) 155 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 579 342 54 975 Q3 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Consolidated Recovery and Recycling activities Operating income (loss) 73 30 (30) 73 Depreciation and amortization 48 16 10 74 Other loss 10 10 Restructuring costs 5 1 6 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 1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation. Q4 2024 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Consolidated Recovery and Recycling activities Operating income (loss) 58 4 (46) 16 Depreciation and amortization 48 14 14 76 Impairment charges 32 23 55 Other gain (7) (1) (8) Restructuring costs 2 4 2 8 Gain on derivative financial instruments (1) (1) EBITDA (A)(1) 132 45 (31) 146 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 609 325 64 998 2025 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Consolidated Recovery and Recycling activities Operating income (loss) 269 93 (127) 235 Depreciation and amortization 192 59 36 287 Impairment charges 34 12 3 49 Other gain (5) (1) (6) Restructuring costs 9 7 16 Gain on derivative financial instruments (3) (2) (5) EBITDA (A)(1) 496 163 (83) 576 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 2,395 1,322 207 3,924 2024 (in millions of Canadian dollars) (unaudited) Packaging Products Tissue Papers Corporate, Consolidated Recovery and Recycling activities Operating income (loss) 145 97 (147) 95 Depreciation and amortization 179 56 47 282 Impairment charges 38 26 64 Other loss (gain) 20 (1) 19 Restructuring costs 30 13 3 46 Gain on derivative financial instruments (2) (3) (5) EBITDA (A)(1) 410 192 (101) 501 Supply chain and logistic and Wage and employee benefits expenses included in operating income (loss) 2,436 1,267 230 3,933 1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation.

The following table reconciles net earnings (loss) and net earnings (loss) per common share, as reported, with adjusted net earnings1 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 SHARE (2) 2025 2024 Q4 2025 Q3 2025 Q4 2024 2025 2024 Q4 2025 Q3 2025 Q4 2024 As reported 70 (31) 37 29 (13) $0.70 ($0.31) $0.37 $0.29 ($0.13) Specific items: Impairment charges 49 64 25 55 $0.37 $0.48 $0.19 $0.41 Other loss (gain) (6) 19 (21) 10 (8) ($0.07) $0.13 ($0.18) $0.07 ($0.07) Restructuring costs 16 46 4 6 8 $0.12 $0.34 $0.03 $0.05 $0.06 Gain on derivative financial instruments (5) (5) (1) (4) (1) ($0.04) ($0.04) ($0.01) ($0.03) ($0.01) Loss on repurchase of long-term debt 1 $0.01 Unrealized gain on interest rate hedge instrument (1) (2) ($0.01) ($0.02) Foreign exchange loss on long-term debt and financial instruments 1 1 $0.01 $0.01 Tax effect on specific items, other tax adjustments and attributable to non-controlling interest(2) (14) (33) (4) (2) (15) $0.01 41 91 3 10 38 $0.40 $0.91 $0.03 $0.09 $0.38 Adjusted (1) 111 60 40 39 25 $1.10 $0.60 $0.40 $0.38 $0.25 Weighted average basic number of common shares outstanding 101,167,075 100,865,833 101,261,141 101,257,276 100,988,040

The following table reconciles cash flow from operating activities with EBITDA (A)1:

(in millions of Canadian dollars) (unaudited) 2025 2024 Q4 2025 Q3 2025 Q4 2024 Cash flow from operating activities 379 272 183 181 154 Changes in non-cash working capital components 24 23 (33) (65) (45) Net income taxes paid 10 4 1 2 Net financing expenses paid 123 135 16 33 22 Payments, net of provisions, for charges and other liabilities, net of dividends received 40 67 (12) 8 15 EBITDA (A)(1) 576 501 155 159 146

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.

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 activities1. It also reconciles adjusted cash flow from operating activities1 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) 2025 2024 Q4 2025 Q3 2025 Q4 2024 Cash flow from operating activities 379 272 183 181 154 Changes in non-cash working capital components 24 23 (33) (65) (45) Cash flow from operating activities (excluding changes in non-cash working capital components) 403 295 150 116 109 Restructuring costs paid 62 61 15 21 20 Adjusted cash flow from operating activities (1) 465 356 165 137 129 Payments for property, plant and equipment (152) (161) (42) (30) (45) Change in intangible and other assets (23) (1) (3) Lease obligation payments (78) (67) (19) (20) (17) Proceeds from disposals of property, plant and equipment 27 34 1 16 262 139 105 86 80 Dividends paid to non-controlling interests (34) (15) (4) (3) (3) Dividends paid to the Corporation's Shareholders and to non-controlling interests (49) (48) (13) (12) (12) Adjusted cash flow generated (1) 179 76 88 71 65 Adjusted cash flow generated per common share (1) $1.77 $0.75 $0.87 $0.70 $0.64 (in Canadian dollars) Weighted average basic number of common shares outstanding 101,167,075 100,865,833 101,261,141 101,257,276 100,988,040

The following table reconciles total debt1 and net debt1 with the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA (A))1:

(in millions of Canadian dollars) (unaudited) December 31, September 30, December 31, 2025 2025 2024 Long-term debt 1,874 2,027 1,871 Current portion of unsecured senior notes 175 Current portion of long-term debt 70 68 67 Bank loans and advances 1 10 Total debt (1) 1,944 2,096 2,123 Less: Cash and cash equivalents (48) (73) (27) Net debt(1) as reported 1,896 2,023 2,096 Last twelve months EBITDA (A)(1) 576 567 501 Net debt /EBITDA (A) ratio (1) 3.3x 3.6x 4.2x

1 Please refer to the “Supplemental Information on Non-IFRS Accounting Standards Measures and Other Financial Measures” section for a complete reconciliation.

View original content:https://www.prnewswire.com/news-releases/cascades-reports-results-for-the-fourth-quarter-and-full-year-2025-302697568.html

SOURCE Cascades Inc.

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