Adjusted earnings were C$0.33 a share, below the C$0.39 average estimate from analysts polled by FactSet. Sales rose 2.3% year over year to C$1.27 billion, slightly below analysts’ C$1.29 billion forecast. Tissue paper sales increased 0.7% to C$415 million, and packaging products sales rose 1.3% to C$807 million.

Chief Executive Hugues Simon said packaging faced higher raw-material and transportation costs, as well as about C$4 million in tariff impacts. Those pressures more than offset operational and pricing improvements. Packaging volumes were generally in line with company assumptions, though demand remained uneven in some end markets, he said.

Tissue results exceeded expectations, Simon said, as price increases largely countered inflation and lower volumes in Cascades’ “away-from-home” business. The company generated C$11 million from asset sales during the quarter, bringing proceeds to C$165 million for 2025 and 2026. It remains on track to reach C$230 million by early 2027.

Simon said market conditions remain challenging and fourth-quarter results are expected to be slightly lower than in the third quarter, with raw-material costs, transportation expenses and tariff impacts continuing to weigh. Further price increases and restructuring efforts are expected to help offset those pressures.