Clearwater Paper Reports Third Quarter 2025 Results
THIRD QUARTER HIGHLIGHTS
-
Net sales of
$399 million 1% from the third quarter of 2024 primarily due to a3% increase in shipment volumes, partially offset by lower pricing -
Net loss of
$53 million $3.30 $6 million $0.35 $45 million -
Adjusted net loss from continuing operations of
$8 million $0.51 $11 million $0.64 -
Adjusted EBITDA from continuing operations of
$18 million $21 million -
Successfully completed the planned major maintenance outage at our
Lewiston, Idaho mill at a direct cost of approximately$24 million -
Continued to capture benefits from fixed cost reduction actions; on track to deliver nearly
$50 million $30 $40 million
“We delivered a strong third quarter that was on the upper end of our expected adjusted EBITDA range, driven by higher shipments, improved production, and continued execution of our fixed cost reduction efforts,” said Arsen Kitch, president and chief executive officer. “Our Lewiston team also did an outstanding job completing the major maintenance outage as planned.”
OVERALL RESULTS
For the third quarter of 2025, Clearwater Paper reported net sales of
For the first nine months of 2025, Clearwater Paper reported net sales of
Sales volumes and prices:
-
Sales volumes were 324,198 tons in the third quarter of 2025, an increase of
3% compared to 314,320 tons in the third quarter of 2024. Sales volumes were 918,399 tons in the nine months of 2025, an increase of19% compared to 774,207 tons in the first nine months of 2024. -
Paperboard average net selling price decreased
3% to$1,160 $1,192 4% to 1,176 per ton for the first nine months of 2025, compared to$1,223
COMPANY OUTLOOK
“SBS continues to be in an oversupplied position, which we believe is also impacting the broader consumer paperboard market. While we remain optimistic about a recovery, we are focused on what is within our control, namely reducing our fixed costs and maintaining our market share. We believe that our high quality assets are well positioned to generate significant cash flows and strong returns on capital 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 October 28, 2025. A live webcast and accompanying supplemental information will be available on the company's website. 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 third quarter and first nine months of 2025 and 2024, 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.
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: our outlook for the next quarter, our ability to continue realizing additional savings from our fixed cost reduction efforts and retain our market share, our focus on operational execution amid challenging SBS industry conditions and our emphasis on maintaining strategic actions and customer relationships to navigate the industry down cycle. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. 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: there may be unexpected costs, charges or expenses resulting from the tissue business sale transaction; achievement of anticipated financial results and other benefits of the tissue business sale transaction; potential risks associated with operating without the tissue business, including less diversification in products offered; changes in the company’s capital structure; risks relating to the achievement of anticipated financial results and other benefits of the
Clearwater Paper Corporation |
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
(In millions, except per-share data) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|||
Net sales |
$ |
399.0 |
|
$ |
393.3 |
|
|
$ |
1,169.0 |
|
$ |
996.5 |
|
|||
Costs and expenses: |
|
|
|
|
|
|||||||||||
Cost of sales |
|
380.3 |
|
|
363.2 |
|
|
|
1,070.6 |
|
|
935.1 |
|
|||
Selling, general and administrative expenses |
|
24.7 |
|
|
31.6 |
|
|
|
79.7 |
|
|
90.0 |
|
|||
Other operating charges, net 1 |
|
1.5 |
|
|
(0.3 |
) |
|
|
20.4 |
|
|
20.3 |
|
|||
Goodwill impairment |
|
48.0 |
|
|
— |
|
|
|
48.0 |
|
|
— |
|
|||
Total operating costs and expenses |
|
454.4 |
|
|
394.5 |
|
|
|
1,218.7 |
|
|
1,045.4 |
|
|||
Loss from continuing operations |
|
(55.4 |
) |
|
(1.2 |
) |
|
|
(49.6 |
) |
|
(48.9 |
) |
|||
Interest expense, net |
|
(4.7 |
) |
|
(13.1 |
) |
|
|
(12.0 |
) |
|
(24.0 |
) |
|||
Other non-operating income (expense) |
|
(0.3 |
) |
|
0.3 |
|
|
|
(0.9 |
) |
|
1.0 |
|
|||
Total non-operating expense |
|
(5.0 |
) |
|
(12.8 |
) |
|
|
(12.9 |
) |
|
(22.9 |
) |
|||
Loss from continuing operations before income taxes |
|
(60.4 |
) |
|
(14.0 |
) |
|
|
(62.6 |
) |
|
(71.8 |
) |
|||
Income tax benefit |
|
(6.5 |
) |
|
(3.3 |
) |
|
|
(6.3 |
) |
|
(17.4 |
) |
|||
Loss from continuing operations |
|
(53.9 |
) |
|
(10.7 |
) |
|
|
(56.2 |
) |
|
(54.4 |
) |
|||
Income (loss) from discontinued operations, net of tax |
|
0.6 |
|
|
16.6 |
|
|
|
(0.7 |
) |
|
51.6 |
|
|||
Net income (loss) |
$ |
(53.3 |
) |
$ |
5.8 |
|
|
$ |
(56.9 |
) |
$ |
(2.8 |
) |
|||
|
|
|
|
|
|
|||||||||||
Net income (loss) per common share (basic and diluted): |
|
|
|
|
||||||||||||
Loss per share from continuing operations |
$ |
(3.34 |
) |
$ |
(0.64 |
) |
|
$ |
(3.47 |
) |
$ |
(3.27 |
) |
|||
Income (loss) per share from discontinued operations |
|
0.04 |
|
|
1.00 |
|
|
|
(0.04 |
) |
|
3.10 |
|
|||
Net income (loss) per share |
$ |
(3.30 |
) |
$ |
0.35 |
|
|
$ |
(3.51 |
) |
$ |
(0.17 |
) |
|||
|
|
|
|
|
|
|||||||||||
Average shares outstanding (in thousands): |
|
|
|
|||||||||||||
Basic and diluted |
|
16,142 |
|
|
16,620 |
|
|
|
16,213 |
|
|
16,629 |
|
|||
1 Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 13 within Clearwater Paper's Form 10-Q filed with the SEC for the period ended September 30, 2025 for the detailed breakout of this amount.
|
Clearwater Paper Corporation |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
(In millions) |
September 30, 2025 |
December 31, 2024 |
||||||
Assets |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
34.4 |
|
$ |
79.6 |
|
||
Receivables, net |
|
161.7 |
|
|
188.7 |
|
||
Inventories, net |
|
283.2 |
|
|
258.0 |
|
||
Other current assets |
|
8.7 |
|
|
19.1 |
|
||
Total current assets |
|
487.9 |
|
|
545.4 |
|
||
Property, plant and equipment |
|
2,379.5 |
|
|
2,328.4 |
|
||
Accumulated depreciation and amortization |
|
(1,363.6 |
) |
|
(1,305.4 |
) |
||
Property, plant and equipment, net |
|
1,015.9 |
|
|
1,023.1 |
|
||
Goodwill and intangible assets, net |
|
2.7 |
|
|
52.9 |
|
||
Other assets, net |
|
54.9 |
|
|
57.9 |
|
||
Total assets |
$ |
1,561.4 |
|
$ |
1,679.2 |
|
||
|
|
|
||||||
Liabilities and stockholders' equity |
|
|
||||||
Current liabilities: |
|
|
||||||
Current portion of long-term debt |
$ |
0.6 |
|
$ |
0.6 |
|
||
Accounts payable and accrued liabilities |
|
231.7 |
|
|
319.7 |
|
||
Total current liabilities |
|
232.4 |
|
|
320.4 |
|
||
Long-term debt |
|
335.5 |
|
|
281.6 |
|
||
Liability for pension and other postretirement employee benefits |
|
51.6 |
|
|
52.5 |
|
||
Deferred tax liabilities |
|
80.9 |
|
|
89.7 |
|
||
Other long-term obligations |
|
78.2 |
|
|
80.5 |
|
||
Total liabilities |
|
778.5 |
|
|
824.7 |
|
||
|
|
|
||||||
Stockholders' equity: |
|
|
||||||
Common stock |
|
— |
|
|
— |
|
||
Additional paid-in capital |
|
8.2 |
|
|
11.5 |
|
||
Treasury stock, at cost |
|
(14.8 |
) |
|
(3.3 |
) |
||
Retained earnings |
|
823.9 |
|
|
880.8 |
|
||
Accumulated other comprehensive loss, net of tax |
|
(34.3 |
) |
|
(34.5 |
) |
||
Total stockholders' equity |
|
783.0 |
|
|
854.6 |
|
||
Total liabilities and stockholders' equity |
$ |
1,561.4 |
|
$ |
1,679.2 |
|||
Clearwater Paper Corporation |
||||||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
(In millions) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|||
Operating activities |
|
|
|
|
|
|||||||||||
Net income (loss) |
$ |
(53.3 |
) |
$ |
5.8 |
|
|
$ |
(56.9 |
) |
$ |
(2.8 |
) |
|||
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: |
|
|
|
|
|
|||||||||||
Goodwill impairment |
|
48.0 |
|
|
— |
|
|
|
48.0 |
|
|
— |
|
|||
Depreciation and amortization |
|
23.8 |
|
|
24.2 |
|
|
|
68.7 |
|
|
78.3 |
|
|||
Equity-based compensation expense |
|
0.6 |
|
|
(0.9 |
) |
|
|
4.1 |
|
|
7.2 |
|
|||
Deferred taxes |
|
(6.4 |
) |
|
(4.9 |
) |
|
|
(7.0 |
) |
|
(10.0 |
) |
|||
Defined benefit pension and other postretirement employee benefits |
|
— |
|
|
(1.5 |
) |
|
|
(0.3 |
) |
|
(3.2 |
) |
|||
Gain on business divestiture |
|
(1.1 |
) |
|
— |
|
|
|
(1.1 |
) |
|
— |
|
|||
Amortization of deferred debt costs |
|
0.6 |
|
|
0.9 |
|
|
|
1.7 |
|
|
2.0 |
|
|||
Loss on sale or impairment associated with assets |
|
2.0 |
|
|
0.7 |
|
|
|
5.1 |
|
|
1.6 |
|
|||
Changes in operating assets and liabilities: |
|
|
|
|
|
|||||||||||
(Increase) decrease in accounts receivable |
|
4.2 |
|
|
(4.6 |
) |
|
|
26.8 |
|
|
(62.3 |
) |
|||
Increase in inventories |
|
— |
|
|
(6.6 |
) |
|
|
(25.3 |
) |
|
(5.6 |
) |
|||
Decrease in other current assets |
|
5.7 |
|
|
3.4 |
|
|
|
9.9 |
|
|
3.4 |
|
|||
Increase (decrease) in accounts payable and accrued liabilities |
|
11.4 |
|
|
(0.1 |
) |
|
|
(65.0 |
) |
|
89.8 |
|
|||
Other, net |
|
(1.3 |
) |
|
(0.4 |
) |
|
|
(1.4 |
) |
|
(1.9 |
) |
|||
Net cash flows provided by operating activities |
|
33.9 |
|
|
16.1 |
|
|
|
7.3 |
|
|
96.5 |
|
|||
Investing activities |
|
|
|
|
|
|||||||||||
Additions to property, plant and equipment, net |
|
(18.3 |
) |
|
(47.0 |
) |
|
|
(73.9 |
) |
|
(83.6 |
) |
|||
Acquisition of business |
|
— |
|
|
— |
|
|
|
— |
|
|
(708.2 |
) |
|||
Adjustment to proceeds from business divestiture |
|
(12.1 |
) |
|
— |
|
|
|
(12.1 |
) |
|
— |
|
|||
Net cash flows used in investing activities |
|
(30.4 |
) |
|
(47.0 |
) |
|
|
(86.0 |
) |
|
(791.8 |
) |
|||
Financing activities |
|
|
|
|
|
|||||||||||
Borrowings on long-term debt |
|
7.0 |
|
|
30.0 |
|
|
|
72.0 |
|
|
753.5 |
|
|||
Repayments of long-term debt |
|
(0.2 |
) |
|
(0.4 |
) |
|
|
(18.5 |
) |
|
(50.9 |
) |
|||
Taxes paid related to net share settlement of equity awards |
|
|
|
|
|
|||||||||||
Repurchases of common stock |
|
(2.1 |
) |
|
(2.5 |
) |
|
|
(17.2 |
) |
|
(6.0 |
) |
|||
Payments of debt issuance costs |
|
— |
|
|
(0.4 |
) |
|
|
— |
|
|
(4.9 |
) |
|||
Other, net |
|
(20.6 |
) |
|
0.1 |
|
|
|
(2.8 |
) |
|
(2.7 |
) |
|||
Net cash flows (used in) provided by financing activities |
|
(15.9 |
) |
|
26.8 |
|
|
|
33.5 |
|
|
688.9 |
|
|||
|
|
|
|
|
|
|||||||||||
Decrease in cash and cash equivalents |
|
(12.3 |
) |
|
(4.1 |
) |
|
|
(45.2 |
) |
|
(6.5 |
) |
|||
Cash and cash equivalents at beginning of period |
|
46.7 |
|
|
39.6 |
|
|
|
79.6 |
|
|
42.0 |
|
|||
Cash and cash equivalents at end of period |
$ |
34.4 |
|
$ |
35.5 |
|
|
$ |
34.4 |
|
$ |
35.5 |
|
|||
Clearwater Paper Corporation |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||
Adjusted EBITDA |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|||||||||||||
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
(In millions) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|||
Net income (loss) |
$ |
(53.3 |
) |
$ |
5.8 |
|
|
$ |
(56.9 |
) |
$ |
(2.8 |
) |
|||
Add (deduct): |
|
|
|
|
|
|||||||||||
Less: income (loss) from discontinued operations, net of tax |
|
0.6 |
|
|
16.6 |
|
|
|
(0.7 |
) |
|
51.6 |
|
|||
Loss from continuing operations |
|
(53.9 |
) |
|
(10.7 |
) |
|
|
(56.2 |
) |
|
(54.4 |
) |
|||
Income tax benefit |
|
(6.5 |
) |
|
(3.3 |
) |
|
|
(6.3 |
) |
|
(17.4 |
) |
|||
Interest expense, net |
|
4.7 |
|
|
13.1 |
|
|
|
12.0 |
|
|
24.0 |
|
|||
Goodwill impairment |
|
48.0 |
|
|
— |
|
|
|
48.0 |
|
|
— |
|
|||
Depreciation and amortization |
|
23.8 |
|
|
22.4 |
|
|
|
68.7 |
|
|
48.3 |
|
|||
Inventory revaluation on acquired business |
|
— |
|
|
— |
|
|
|
— |
|
|
6.8 |
|
|||
Other operating charges, net 1 |
|
1.5 |
|
|
(0.3 |
) |
|
|
20.4 |
|
|
20.3 |
|
|||
Other non-operating expense (income) |
|
0.3 |
|
|
(0.3 |
) |
|
|
0.9 |
|
|
(1.0 |
) |
|||
Adjusted EBITDA from continuing operations |
$ |
17.8 |
|
$ |
20.9 |
|
|
$ |
87.4 |
|
$ |
26.6 |
|
|||
1 Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 13 within Clearwater Paper's Form 10-Q filed with the SEC for the period ended September 30, 2025 for the detailed breakout of this amount. |
Clearwater Paper Corporation |
||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
(In millions, except per share data) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|||
Adjusted income (loss) from continuing operations: |
|
|
|
|
|
|||||||||||
Net income (loss) |
$ |
(53.3 |
) |
$ |
5.8 |
|
|
$ |
(56.9 |
) |
$ |
(2.8 |
) |
|||
Add (deduct): |
|
|
|
|
|
|||||||||||
Less: income (loss) from discontinued operations, net of tax |
|
0.6 |
|
|
16.6 |
|
|
|
(0.7 |
) |
|
51.6 |
|
|||
Loss from continuing operations |
|
(53.9 |
) |
|
(10.7 |
) |
|
|
(56.2 |
) |
|
(54.4 |
) |
|||
Add back: |
|
|
|
|
|
|||||||||||
Income tax benefit |
|
(6.5 |
) |
|
(3.3 |
) |
|
|
(6.3 |
) |
|
(17.4 |
) |
|||
Goodwill impairment |
|
48.0 |
|
|
— |
|
|
|
48.0 |
|
|
— |
|
|||
Other operating charges, net |
|
1.5 |
|
|
(0.3 |
) |
|
|
20.4 |
|
|
20.3 |
|
|||
Adjusted income (loss) from continuing operations before tax |
|
(11.0 |
) |
|
(14.3 |
) |
|
|
5.8 |
|
|
(51.5 |
) |
|||
Normalized income tax provision1 |
|
(2.7 |
) |
|
(3.6 |
) |
|
|
1.4 |
|
|
(12.9 |
) |
|||
Adjusted income (loss) from continuing operations |
$ |
(8.2 |
) |
$ |
(10.7 |
) |
|
$ |
4.3 |
|
$ |
(38.6 |
) |
|||
|
|
|
|
|
|
|||||||||||
Weighted average diluted shares (thousands) |
|
16,142 |
|
|
16,620 |
|
|
|
16,213 |
|
|
16,629 |
|
|||
|
|
|
|
|
|
|||||||||||
Adjusted income (loss) from continuing operations per diluted share |
$ |
(0.51 |
) |
$ |
(0.64 |
) |
|
$ |
0.27 |
|
$ |
(2.32 |
) |
|||
1 Calculated at |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251028376384/en/
Clearwater Paper Corporation
Investors contact:
Sloan Bohlen
Solebury Strategic Communications
509-344-5906
investorinfo@clearwaterpaper.com
News media:
Virginia Aulin, Vice President, Public Affairs
509-344-5967
Virginia.aulin@clearwaterpaper.com
Source: Clearwater Paper Corporation
