Cascades Inc.

We are also updating the expected delivery timing of our objectives from the end of the third quarter to early 2027. Although interest in the assets remains healthy, prevailing market conditions and the terms available for certain transactions have not aligned with our value expectations. In July 2026, we extended the maturities of the GreenPak and Cascades credit facilities by one year to 2029 and 2030 respectively. We also extended the maturity of our $260 million U.S. dollar term loan originally maturing in December 2027 to July 2031. These transactions were completed on the same financial terms. Financial ratios and information regarding maturities are detailed on slide 21. Additional information and analysis can be found on slide 25 through 33 of the presentation. With that, I will turn the call back to Hugues for a few closing remarks before we open the line for questions. Hugues?

Thank you, Allan. Provide our outlook for Q3 on slide 22. Including the potential impact of the announced tariffs, we expect sequential improvement in our consolidated results. This is driven by seasonally higher volume and ongoing selling price increase initiatives in both packaging and tissue. Supported by our ongoing profitability improvement program, we now expect annual run rate adjusted EBITDA to exceed 600 million during the second half of 2026. The implementation of previously announced selling price increases in both packaging and tissue is progressing as planned. In packaging, demand for paper rolls remain very strong. Earlier this week, we announced additional price increases of $110 per ton on liner board and white paper grades, and $140 per ton on medium. These new prices will become effective on September 8th. We expect to begin seeing a positive impact from these increases in the fourth quarter of 2026. On July 20th, the U.S. administration announced new tariffs on a number of products imported into the United States. We are conducting an assessment of the potential impact on our operations. Based on information currently available, certain tissue and packaging products exported to the United States could be subject to the announced 50% tariff. While this represents a notable development, we believe the potential impact is manageable. Assuming the tariff remains in effect as announced, and considering the benefits of our current mitigation plans, the financial impact will not represent more than 5% of our adjusted EBITDA run rate. In addition to the direct effect of this announcement, some customers whose products are subject to these tariffs may experience weaker demand or reduced production levels, which could affect volumes in certain segments. Based on current assessment and communication actions underway, we remain confident in our ability to successfully manage these challenges. This confidence reflects the significant work completed over the past several quarters to make CASCAD a more resilient and agile organization. As we indicated last quarter, our focus has been on navigating near-term market pressures while advancing the initiative that will strengthen our performance over time. During the quarter, we continue to make progress in improving operational and commercial execution and enhancing customer service levels. Our profitability improvement initiative continues to deliver results following the $30 million of benefits realized in 2025 We estimate that a further $25 million has been captured thus far in 2026. Our asset monetization objective is also progressing well, with $163 million realized against our $230 million target. Although some transactions are taking longer than anticipated, this reflects our disciplined approach to ensuring we maximize value from these asset sales. We continue to prioritize debt reduction to reinforce financial flexibility and position Cascades for future growth. With that, we'll now open the line for questions. Operator?

Merci. Si vous désirez poser une question, veuillez s'il vous plaît composer l'étoile suivie du 1 sur votre clavier téléphonique. Et si vous voulez retirer votre question, composez étoile suivie du 2. Thank you. If you would like to ask a question, simply press star then number one on your telephone keypad. And if you would like to withdraw from the queue, please press star followed by two. And if you have a question, please, again, if you have a question, please press star then one on your telephone keypad. One moment please while we compile the Q&A roster. And your first question will be from Hamed Abdallah at National Bank of Canada. Please go ahead.