Clearwater Paper Reports Second Quarter 2026 Results
SECOND QUARTER HIGHLIGHTS
-
Net sales of
$375 million $392 million 8% -
Net loss of
$21 million $1.33 $3 million $0.17 -
Negative Adjusted EBITDA from continuing operations of
$8 million $40 million Lewiston, Idaho planned major maintenance outage -
Completed
Lewiston, Idaho planned major maintenance outage on time and on target at a total direct cost of$22 million -
Restructured Cypress Bend,
Arkansas facility, resulting in a reduction of approximately20% of roles and expected annual savings of$8 $12 million -
Reduced net debt in the quarter by
$59 million $50 million
“We executed well during the second quarter, successfully completing the
OVERALL RESULTS
For the second quarter of 2026, Clearwater Paper reported net sales of
For the six months of 2026, Clearwater Paper reported net sales of
Sales volumes and prices:
-
Sales volumes were 328,722 tons in the second quarter of 2026, an increase of
8% compared to 304,713 tons in the second quarter of 2025. Sales volumes were 631,640 tons in the first six months of 2026, an increase of6% compared to 594,200 tons in the first six months of 2025. -
Paperboard average net selling price decreased
9% to$1,077 $1,182 8% to$1,089 $1,185
COMPANY OUTLOOK
“We are seeing early signs of improvement in SBS industry conditions, with volume growth, lower imports, and increased operating rates. While RISI has recently reflected an increase in SBS pricing, it remains below levels necessary to generate acceptable returns. We continue to focus on actions within our control, including cost reduction, operational execution, and implementation of previously announced price increases. We believe that these actions will support an improvement in our financial results in the long run,” concluded Kitch.
WEBCAST INFORMATION
Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Time on July 28, 2026. A live webcast and accompanying supplemental information will be available on the company's website at www.clearwaterpaper.com. A replay of the conference call will be available on the website beginning at 5:00 p.m. Pacific Time the same day.
ABOUT CLEARWATER PAPER CORPORATION
Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters. Headquartered in
USE OF NON-GAAP MEASURES
In this press release, the company presents certain non-GAAP financial information for the second quarter and first six months of 2026 and 2025, including adjusted net income (loss) from continuing operations and Adjusted EBITDA from continuing operations. Because these amounts are not in accordance with GAAP, reconciliations to net income (loss) from continuing operations and Adjusted EBITDA from continuing operations as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP metrics because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses Adjusted EBITDA from continuing operations: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to Adjusted EBITDA from continuing operations to measure the company's compliance with certain covenants. Non-GAAP measures may differ from similarly titled measures of other companies.
FORWARD-LOOKING STATEMENTS
This press release contains certain “forward-looking” statements within the meaning of Section 27A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the company’s expectations about the outlook for the next quarter, industry supply and demand conditions, pricing trends, market recovery timing, operating performance, cost reduction initiatives, restructuring outcomes, insurance recoveries, operational execution, import conditions, market share, and the company’s ability to execute its strategy and strengthen customer relationships amid current market conditions. The company’s actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this press release. Factors that could cause or contribute to such material differences in actual results include, but are not limited to: our inability to realize the expected benefits of the
Clearwater Paper Corporation |
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Quarter Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
(In millions, except per-share data) |
2026 |
2025 |
|
2026 |
2025 |
|||||||||||
Net sales |
$ |
374.8 |
|
$ |
391.8 |
|
|
$ |
735.1 |
|
$ |
770.0 |
|
|||
Costs and expenses: |
|
|
|
|
|
|||||||||||
Cost of sales |
|
385.2 |
|
|
348.8 |
|
|
|
746.4 |
|
|
690.3 |
|
|||
Selling, general and administrative expenses |
|
21.1 |
|
|
26.1 |
|
|
|
41.7 |
|
|
55.0 |
|
|||
Other operating charges, net 1 |
|
(7.5 |
) |
|
7.1 |
|
|
|
(18.7 |
) |
|
18.9 |
|
|||
Total operating costs and expenses |
|
398.7 |
|
|
382.1 |
|
|
|
769.4 |
|
|
764.2 |
|
|||
Income (loss) from continuing operations |
|
(23.9 |
) |
|
9.8 |
|
|
|
(34.3 |
) |
|
5.8 |
|
|||
Interest expense, net |
|
(5.1 |
) |
|
(3.9 |
) |
|
|
(10.0 |
) |
|
(7.3 |
) |
|||
Other non-operating expense |
|
(1.1 |
) |
|
(0.3 |
) |
|
|
(2.3 |
) |
|
(0.6 |
) |
|||
Total non-operating expense |
|
(6.2 |
) |
|
(4.2 |
) |
|
|
(12.3 |
) |
|
(7.9 |
) |
|||
Income (loss) from continuing operations before income taxes |
|
(30.1 |
) |
|
5.5 |
|
|
|
(46.6 |
) |
|
(2.1 |
) |
|||
Income tax provision (benefit) |
|
(8.6 |
) |
|
1.9 |
|
|
|
(12.3 |
) |
|
0.1 |
|
|||
Income (loss) from continuing operations |
|
(21.5 |
) |
|
3.6 |
|
|
|
(34.3 |
) |
|
(2.3 |
) |
|||
Loss from discontinued operations, net of tax |
|
— |
|
|
(0.9 |
) |
|
|
— |
|
|
(1.3 |
) |
|||
Net income (loss) |
$ |
(21.5 |
) |
$ |
2.7 |
|
|
$ |
(34.3 |
) |
$ |
(3.6 |
) |
|||
|
|
|
|
|
|
|||||||||||
Net income (loss) per common share (basic and diluted): |
|
|
|
|
||||||||||||
Income (loss) per share from continuing operations - basic |
$ |
(1.33 |
) |
$ |
0.22 |
|
|
$ |
(2.13 |
) |
$ |
(0.14 |
) |
|||
Loss per share from discontinued operations -basic |
|
— |
|
|
(0.06 |
) |
|
|
— |
|
|
(0.08 |
) |
|||
Net income (loss) per share - basic |
$ |
(1.33 |
) |
$ |
0.17 |
|
|
$ |
(2.13 |
) |
$ |
(0.22 |
) |
|||
|
|
|
|
|
|
|||||||||||
Income (loss) per share from continuing operations - diluted |
$ |
(1.33 |
) |
$ |
0.22 |
|
|
$ |
(2.13 |
) |
$ |
(0.14 |
) |
|||
Loss per share from discontinued operations - diluted |
|
— |
|
|
(0.06 |
) |
|
|
— |
|
|
(0.08 |
) |
|||
Net income (loss) per share - diluted |
$ |
(1.33 |
) |
$ |
0.17 |
|
|
$ |
(2.13 |
) |
$ |
(0.22 |
) |
|||
|
|
|
|
|
|
|||||||||||
Average shares outstanding (in thousands): |
|
|
|
|||||||||||||
Basic |
|
16,126 |
|
|
16,220 |
|
|
|
16,090 |
|
|
16,297 |
|
|||
Diluted |
|
16,126 |
|
|
16,241 |
|
|
|
16,090 |
|
|
16,297 |
|
|||
1 |
Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 11 within Clearwater Paper's Form 10-Q filed with the SEC for the period ended June 30, 2026 for the detailed breakout of this amount. |
|
Clearwater Paper Corporation |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
(In millions) |
June 30, 2026 |
December 31, 2025 |
||||||
Assets |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
95.4 |
|
$ |
30.7 |
|
||
Receivables, net |
|
162.9 |
|
|
195.3 |
|
||
Inventories, net |
|
260.8 |
|
|
281.7 |
|
||
Other current assets |
|
13.0 |
|
|
18.3 |
|
||
Total current assets |
|
532.0 |
|
|
526.0 |
|
||
Property, plant and equipment |
|
2,397.7 |
|
|
2,377.9 |
|
||
Accumulated depreciation and amortization |
|
(1,419.0 |
) |
|
(1,376.1 |
) |
||
Property, plant and equipment, net |
|
978.7 |
|
|
1,001.8 |
|
||
Other assets, net |
|
60.6 |
|
|
60.4 |
|
||
Total assets |
$ |
1,571.4 |
|
$ |
1,588.3 |
|
||
|
|
|
||||||
Liabilities and stockholders' equity |
|
|
||||||
Current liabilities: |
|
|
||||||
Current portion of long-term debt |
$ |
0.6 |
|
$ |
0.6 |
|
||
Accounts payable and accrued liabilities |
|
231.6 |
|
|
215.6 |
|
||
Total current liabilities |
|
232.3 |
|
|
216.2 |
|
||
Long-term debt |
|
360.5 |
|
|
345.5 |
|
||
Liability for pension and other postretirement employee benefits |
|
48.4 |
|
|
49.5 |
|
||
Deferred tax liabilities |
|
56.9 |
|
|
68.2 |
|
||
Other long-term obligations |
|
79.2 |
|
|
83.7 |
|
||
Total liabilities |
|
777.3 |
|
|
763.0 |
|
||
|
|
|
||||||
Stockholders' equity: |
|
|
||||||
Common stock |
|
— |
|
|
— |
|
||
Additional paid-in capital |
|
7.3 |
|
|
8.3 |
|
||
Treasury stock, at cost |
|
(11.8 |
) |
|
(14.8 |
) |
||
Retained earnings |
|
828.0 |
|
|
862.3 |
|
||
Accumulated other comprehensive loss, net of tax |
|
(29.3 |
) |
|
(30.5 |
) |
||
Total stockholders' equity |
|
794.1 |
|
|
825.3 |
|
||
Total liabilities and stockholders' equity |
$ |
1,571.4 |
|
$ |
1,588.3 |
|
||
Clearwater Paper Corporation |
||||||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
Quarter Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
(In millions) |
2026 |
2025 |
|
2026 |
2025 |
|||||||||||
Operating activities |
|
|
|
|
|
|||||||||||
Net income (loss) |
$ |
(21.5 |
) |
$ |
2.7 |
|
|
$ |
(34.3 |
) |
$ |
(3.6 |
) |
|||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: |
|
|
|
|
|
|||||||||||
Depreciation and amortization |
|
23.2 |
|
|
23.0 |
|
|
|
46.6 |
|
|
45.0 |
|
|||
Equity-based compensation expense |
|
1.7 |
|
|
2.5 |
|
|
|
2.4 |
|
|
3.5 |
|
|||
Deferred taxes |
|
(8.1 |
) |
|
1.7 |
|
|
|
(11.6 |
) |
|
(0.6 |
) |
|||
Defined benefit pension and other postretirement employee benefits |
|
0.3 |
|
|
(0.1 |
) |
|
|
0.8 |
|
|
(0.2 |
) |
|||
Amortization of deferred debt costs |
|
0.5 |
|
|
0.6 |
|
|
|
1.1 |
|
|
1.1 |
|
|||
Loss on sale or impairment associated with assets |
|
— |
|
|
3.0 |
|
|
|
— |
|
|
3.1 |
|
|||
Changes in operating assets and liabilities: |
|
|
|
|
|
|||||||||||
Decrease in accounts receivable |
|
27.4 |
|
|
11.5 |
|
|
|
24.8 |
|
|
22.6 |
|
|||
(Increase) decrease in inventories |
|
7.0 |
|
|
(26.2 |
) |
|
|
19.4 |
|
|
(25.3 |
) |
|||
Decrease in other current assets |
|
5.0 |
|
|
4.0 |
|
|
|
4.9 |
|
|
4.2 |
|
|||
Increase (decrease) in accounts payable and accrued liabilities |
|
33.2 |
|
|
(52.4 |
) |
|
|
17.6 |
|
|
(76.4 |
) |
|||
Other, net |
|
0.3 |
|
|
1.6 |
|
|
|
(2.1 |
) |
|
(0.1 |
) |
|||
Net cash flows provided by (used in) operating activities |
|
69.0 |
|
|
(28.2 |
) |
|
|
69.5 |
|
|
(26.7 |
) |
|||
Investing activities |
|
|
|
|
|
|||||||||||
Additions to property, plant and equipment, net |
|
(9.6 |
) |
|
(22.9 |
) |
|
|
(18.7 |
) |
|
(55.6 |
) |
|||
Net cash flows used in investing activities |
|
(9.6 |
) |
|
(22.9 |
) |
|
|
(18.7 |
) |
|
(55.6 |
) |
|||
Financing activities |
|
|
|
|
|
|||||||||||
Borrowings on long-term debt |
|
— |
|
|
65.0 |
|
|
|
15.0 |
|
|
65.0 |
|
|||
Repayments of long-term debt |
|
(0.1 |
) |
|
(18.2 |
) |
|
|
(0.2 |
) |
|
(18.3 |
) |
|||
Repurchases of common stock |
|
(0.1 |
) |
|
(4.2 |
) |
|
|
(0.1 |
) |
|
(15.1 |
) |
|||
Other, net |
|
(0.2 |
) |
|
11.1 |
|
|
|
(0.8 |
) |
|
17.8 |
|
|||
Net cash flows (used in) provided by financing activities |
|
(0.4 |
) |
|
53.7 |
|
|
|
13.9 |
|
|
49.3 |
|
|||
|
|
|
|
|
|
|||||||||||
Increase (decrease) in cash and cash equivalents |
|
58.9 |
|
|
2.6 |
|
|
|
64.6 |
|
|
(33.0 |
) |
|||
Cash and cash equivalents at beginning of period |
|
36.5 |
|
|
44.0 |
|
|
|
30.7 |
|
|
79.6 |
|
|||
Cash and cash equivalents at end of period |
$ |
95.4 |
|
$ |
46.7 |
|
|
$ |
95.4 |
|
$ |
46.7 |
|
|||
Clearwater Paper Corporation |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||
Adjusted EBITDA |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
||||||||||||||
|
Quarter Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
(In millions) |
2026 |
2025 |
2026 |
2025 |
||||||||||||
Net income (loss) |
$ |
(21.5 |
) |
$ |
2.7 |
|
$ |
(34.3 |
) |
$ |
(3.6 |
) |
||||
Add (deduct): |
|
|
|
|
||||||||||||
Less: loss from discontinued operations, net of tax |
|
— |
|
|
(0.9 |
) |
|
— |
|
|
(1.3 |
) |
||||
Income (loss) from continuing operations |
|
(21.5 |
) |
|
3.6 |
|
|
(34.3 |
) |
|
(2.3 |
) |
||||
Income tax provision (benefit) |
|
(8.6 |
) |
|
1.9 |
|
|
(12.3 |
) |
|
0.1 |
|
||||
Interest expense, net |
|
5.1 |
|
|
3.9 |
|
|
10.0 |
|
|
7.3 |
|
||||
Depreciation and amortization |
|
23.2 |
|
|
23.0 |
|
|
46.6 |
|
|
45.0 |
|
||||
Other operating charges, net 1 |
|
(7.5 |
) |
|
7.1 |
|
|
(18.7 |
) |
|
18.9 |
|
||||
Other non-operating expense |
|
1.1 |
|
|
0.3 |
|
|
2.3 |
|
|
0.6 |
|
||||
Adjusted EBITDA from continuing operations |
$ |
(8.2 |
) |
$ |
39.9 |
|
$ |
(6.4 |
) |
$ |
69.6 |
|
||||
1 |
Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 11 within Clearwater Paper's Form 10-Q filed with the SEC for the period ended June 30, 2026 for the detailed breakout of this amount. |
|
Clearwater Paper Corporation |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Quarter Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
(In millions, except per share data) |
2026 |
2025 |
2026 |
2025 |
||||||||||||
Adjusted income (loss) from continuing operations: |
|
|
|
|
||||||||||||
Net income (loss) |
$ |
(21.5 |
) |
$ |
2.7 |
|
$ |
(34.3 |
) |
$ |
(3.6 |
) |
||||
Add (deduct): |
|
|
|
|
||||||||||||
Less: loss from discontinued operations, net of tax |
|
— |
|
|
(0.9 |
) |
|
— |
|
|
(1.3 |
) |
||||
Income (loss) from continuing operations |
|
(21.5 |
) |
|
3.6 |
|
|
(34.3 |
) |
|
(2.3 |
) |
||||
Add back: |
|
|
|
|
||||||||||||
Income tax provision (benefit) |
|
(8.6 |
) |
|
1.9 |
|
|
(12.3 |
) |
|
0.1 |
|
||||
Other operating charges, net |
|
(7.5 |
) |
|
7.1 |
|
|
(18.7 |
) |
|
18.9 |
|
||||
Adjusted income (loss) from continuing operations before tax |
|
(37.6 |
) |
|
12.7 |
|
|
(65.2 |
) |
|
16.8 |
|
||||
Normalized income tax (benefit) provision1 |
|
(9.4 |
) |
|
3.2 |
|
|
(16.3 |
) |
|
4.2 |
|
||||
Adjusted income (loss) from continuing operations |
$ |
(28.2 |
) |
$ |
9.5 |
|
$ |
(48.9 |
) |
$ |
12.6 |
|
||||
Weighted average diluted shares (thousands) |
|
16,126 |
|
|
16,241 |
|
|
16,090 |
|
|
16,297 |
|
||||
Adjusted income (loss) from continuing operations per diluted share |
$ |
(1.75 |
) |
$ |
0.58 |
|
$ |
(3.04 |
) |
$ |
0.77 |
|
||||
1 |
Calculated at |
|
Calculation of net debt: |
June 30, 2026 |
|
March 31, 2026 |
|
December 31, 2025 |
|||||||
Current portion long-term debt |
$ |
0.6 |
|
|
$ |
0.6 |
|
|
$ |
0.6 |
|
|
Long-term debt |
|
360.5 |
|
|
|
360.5 |
|
|
|
345.5 |
|
|
Add back: |
|
|
|
|
|
|||||||
Unamortized deferred debt costs |
|
(1.1 |
) |
|
|
(1.2 |
) |
|
|
(1.3 |
) |
|
Less: |
|
|
|
|
|
|||||||
Cash and cash equivalents |
|
95.4 |
|
|
|
36.5 |
|
|
|
30.7 |
|
|
Net debt |
$ |
266.8 |
|
|
$ |
325.8 |
|
|
$ |
316.7 |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260728832956/en/
Clearwater Paper Corporation
Investors contact:
investorinfo@clearwaterpaper.com
509-344-5906
News media:
Virginia Aulin, Senior Vice President, Human Resources and Public Affairs
509-344-5967
Virginia.aulin@clearwaterpaper.com
Source: Clearwater Paper Corporation