Clearwater Paper Reports Third Quarter 2026 Results
Nine-month operating cash flow rose to $100.1 million, while Augusta mill disruptions continued into October.
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THIRD QUARTER HIGHLIGHTS
-
Net sales of
$385 million $399 million -
Net loss of
$2 million $0.10 $53 million $3.30 -
Adjusted EBITDA from continuing operations of
$24 million $18 million Lewiston, Idaho planned major maintenance outage, partly offset by lower market pricing -
Average selling price improved by
$34 - Executed refinancing of all debt, meaningfully extending maturities
-
Received
$17.5 million -
Reduced net debt by
$56 million
"We delivered strong commercial execution during the quarter, with average selling prices increasing versus the second quarter. We successfully implemented our first announced price increase and continue to make meaningful progress on implementing the second increase," said Arsen Kitch, president and chief executive officer. "Our volumes and costs were negatively affected by a significant operational disruption at our
OVERALL RESULTS
For the third quarter of 2026, Clearwater Paper reported net sales of
For the nine months of 2026, Clearwater Paper reported net sales of
Sales volumes and prices:
-
Sales volumes were 322,265 tons in the third quarter of 2026, a decrease of
1% compared to 324,198 tons in the third quarter of 2025. Sales volumes were 953,906 tons in the first nine months of 2026, an increase of4% compared to 918,399 tons in the first nine months of 2025. -
Paperboard average net selling price decreased
4% to$1,111 $1,160 7% to$1,096 $1,176
COMPANY OUTLOOK
“We are optimistic about a continued recovery in SBS industry conditions, even as we face cost headwinds in transportation and chemicals. RISI is forecasting improved pricing later this quarter and into next year, which should help us recover some of the cost increases that we’ve faced and put us on the path towards our cross-cycle Adjusted EBITDA margins and cash flows,” 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 26, 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 third quarter and first nine months of 2026 and 2025, including adjusted net income (loss) from continuing operations, Adjusted EBITDA from continuing operations and Net debt. 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 uses 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 the 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, operational execution, the company’s ability to execute its strategy amid current market conditions, as well as statements regarding the company’s progress in implementing its announced price increases; the recovery of the company’s
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 September 30, |
|
Nine Months Ended September 30, |
||||||||||
(In millions, except per-share data) |
|
2026 |
|
|
2025 |
|
|
|
2026 |
|
|
2025 |
|
Net sales |
$ |
384.9 |
|
$ |
399.0 |
|
|
$ |
1,120.0 |
|
$ |
1,169.0 |
|
Costs and expenses: |
|
|
|
|
|
||||||||
Cost of sales |
|
363.7 |
|
|
380.3 |
|
|
|
1,110.1 |
|
|
1,070.6 |
|
Selling, general and administrative expenses |
|
20.1 |
|
|
24.7 |
|
|
|
61.8 |
|
|
79.7 |
|
Other operating charges, net 1 |
|
(1.4 |
) |
|
1.5 |
|
|
|
(20.1 |
) |
|
20.4 |
|
Goodwill impairment |
|
— |
|
|
48.0 |
|
|
|
— |
|
|
48.0 |
|
Total operating costs and expenses |
|
382.4 |
|
|
454.4 |
|
|
|
1,151.8 |
|
|
1,218.7 |
|
Income (loss) from continuing operations |
|
2.5 |
|
|
(55.4 |
) |
|
|
(31.8 |
) |
|
(49.6 |
) |
Interest expense, net |
|
(4.8 |
) |
|
(4.7 |
) |
|
|
(14.8 |
) |
|
(12.0 |
) |
Early debt extinguishment |
|
(1.1 |
) |
|
— |
|
|
|
(1.1 |
) |
|
— |
|
Other non-operating expense |
|
(1.1 |
) |
|
(0.3 |
) |
|
|
(3.4 |
) |
|
(0.9 |
) |
Total non-operating expense |
|
(7.0 |
) |
|
(5.0 |
) |
|
|
(19.3 |
) |
|
(12.9 |
) |
Loss from continuing operations before income taxes |
|
(4.5 |
) |
|
(60.4 |
) |
|
|
(51.1 |
) |
|
(62.6 |
) |
Income tax benefit |
|
(2.9 |
) |
|
(6.5 |
) |
|
|
(15.2 |
) |
|
(6.3 |
) |
Loss from continuing operations |
|
(1.6 |
) |
|
(53.9 |
) |
|
|
(35.9 |
) |
|
(56.2 |
) |
Income (loss) from discontinued operations, net of tax |
|
— |
|
|
0.6 |
|
|
|
— |
|
|
(0.7 |
) |
Net loss |
$ |
(1.6 |
) |
$ |
(53.3 |
) |
|
$ |
(35.9 |
) |
$ |
(56.9 |
) |
|
|
|
|
|
|
||||||||
Net loss per common share (basic and diluted): |
|
|
|
|
|||||||||
Loss per share from continuing operations - basic |
$ |
(0.10 |
) |
$ |
(3.34 |
) |
|
$ |
(2.23 |
) |
$ |
(3.47 |
) |
Income (loss) per share from discontinued operations - basic |
|
— |
|
|
0.04 |
|
|
|
— |
|
|
(0.04 |
) |
Net loss per share |
$ |
(0.10 |
) |
$ |
(3.30 |
) |
|
$ |
(2.23 |
) |
$ |
(3.51 |
) |
|
|
|
|
|
|
||||||||
Average shares outstanding (in thousands): |
|
|
|
||||||||||
Basic and diluted |
|
16,134 |
|
|
16,142 |
|
|
|
16,105 |
|
|
16,213 |
|
1 Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 12 within Clearwater Paper's Form 10-Q filed with the SEC for the period ended September 30, 2026 for the detailed breakout of this amount. |
Clearwater Paper Corporation |
||||||
Condensed Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
|
|
|
||||
(In millions) |
September 30, 2026 |
December 31, 2025 |
||||
Assets |
|
|
||||
Current assets: |
|
|
||||
Cash and cash equivalents |
$ |
35.7 |
|
$ |
30.7 |
|
Restricted cash for redemption of debt |
|
276.7 |
|
|
— |
|
Receivables, net |
|
162.8 |
|
|
195.3 |
|
Inventories, net |
|
249.8 |
|
|
281.7 |
|
Other current assets |
|
21.4 |
|
|
18.3 |
|
Total current assets |
|
746.4 |
|
|
526.0 |
|
Property, plant and equipment |
|
2,407.8 |
|
|
2,377.9 |
|
Accumulated depreciation and amortization |
|
(1,439.1 |
) |
|
(1,376.1 |
) |
Property, plant and equipment, net |
|
968.7 |
|
|
1,001.8 |
|
Other assets, net |
|
61.1 |
|
|
60.4 |
|
Total assets |
$ |
1,776.2 |
|
$ |
1,588.3 |
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|
||||
Current liabilities: |
|
|
||||
Current portion of long-term debt |
$ |
274.7 |
|
$ |
0.6 |
|
Accounts payable and accrued liabilities |
|
231.9 |
|
|
215.6 |
|
Total current liabilities |
|
506.6 |
|
|
216.2 |
|
Long-term debt |
|
292.7 |
|
|
345.5 |
|
Liability for pension and other post-retirement employee benefits |
|
45.4 |
|
|
49.5 |
|
Deferred tax liabilities |
|
54.1 |
|
|
68.2 |
|
Other long-term obligations |
|
83.2 |
|
|
83.7 |
|
Total liabilities |
|
982.0 |
|
|
763.0 |
|
|
|
|
||||
Stockholders' equity: |
|
|
||||
Common stock |
|
— |
|
|
— |
|
Additional paid-in capital |
|
8.0 |
|
|
8.3 |
|
Treasury stock, at cost |
|
(11.4 |
) |
|
(14.8 |
) |
Retained earnings |
|
826.3 |
|
|
862.3 |
|
Accumulated other comprehensive loss, net of tax |
|
(28.8 |
) |
|
(30.5 |
) |
Total stockholders' equity |
|
794.2 |
|
|
825.3 |
|
Total liabilities and stockholders' equity |
$ |
1,776.2 |
|
$ |
1,588.3 |
|
Clearwater Paper Corporation |
|||||||||||||
Consolidated Statements of Cash Flows |
|||||||||||||
(Unaudited) |
|||||||||||||
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||
(In millions) |
|
2026 |
|
|
2025 |
|
|
|
2026 |
|
|
2025 |
|
Operating activities |
|
|
|
|
|
||||||||
Net loss |
$ |
(1.6 |
) |
$ |
(53.3 |
) |
|
$ |
(35.9 |
) |
$ |
(56.9 |
) |
Adjustments to reconcile net loss to net cash flows provided by operating activities: |
|
|
|
|
|
||||||||
Goodwill impairment |
|
— |
|
|
48.0 |
|
|
|
— |
|
|
48.0 |
|
Depreciation and amortization |
|
23.3 |
|
|
23.8 |
|
|
|
69.9 |
|
|
68.7 |
|
Equity-based compensation expense |
|
2.6 |
|
|
0.6 |
|
|
|
5.0 |
|
|
4.1 |
|
Deferred taxes |
|
(3.0 |
) |
|
(6.4 |
) |
|
|
(14.6 |
) |
|
(7.0 |
) |
Defined benefit pension and other postretirement employee benefits |
|
(2.0 |
) |
|
— |
|
|
|
(1.2 |
) |
|
(0.3 |
) |
Gain on business divestiture |
|
— |
|
|
(1.1 |
) |
|
|
— |
|
|
(1.1 |
) |
Amortization of deferred debt costs and debt extinguishment |
|
1.5 |
|
|
0.6 |
|
|
|
2.5 |
|
|
1.7 |
|
Loss on sale or impairment associated with assets |
|
1.9 |
|
|
2.0 |
|
|
|
1.9 |
|
|
5.1 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
||||||||
Decrease in accounts receivable |
|
(0.2 |
) |
|
4.2 |
|
|
|
24.5 |
|
|
26.8 |
|
(Increase) decrease in inventories |
|
11.3 |
|
|
— |
|
|
|
30.6 |
|
|
(25.3 |
) |
Decrease in other current assets |
|
(2.1 |
) |
|
5.7 |
|
|
|
2.9 |
|
|
9.9 |
|
Increase (decrease) in accounts payable and accrued liabilities |
|
(1.6 |
) |
|
11.4 |
|
|
|
16.1 |
|
|
(65.0 |
) |
Other, net |
|
0.5 |
|
|
(1.3 |
) |
|
|
(1.5 |
) |
|
(1.4 |
) |
Net cash flows provided by operating activities |
|
30.6 |
|
|
33.9 |
|
|
|
100.1 |
|
|
7.3 |
|
Investing activities |
|
|
|
|
|
||||||||
Additions to property, plant and equipment, net |
|
(14.7 |
) |
|
(18.3 |
) |
|
|
(33.4 |
) |
|
(73.9 |
) |
Adjustment to proceeds from business divestiture |
|
— |
|
|
(12.1 |
) |
|
|
— |
|
|
(12.1 |
) |
Net cash flows used in investing activities |
|
(14.7 |
) |
|
(30.4 |
) |
|
|
(33.4 |
) |
|
(86.0 |
) |
Financing activities |
|
|
|
|
|
||||||||
Borrowings on long-term debt |
|
290.0 |
|
|
7.0 |
|
|
|
305.0 |
|
|
72.0 |
|
Repayments of long-term debt |
|
(79.1 |
) |
|
(0.2 |
) |
|
|
(79.4 |
) |
|
(18.5 |
) |
Repurchases of common stock |
|
— |
|
|
(2.1 |
) |
|
|
(0.1 |
) |
|
(17.2 |
) |
Other, net |
|
(2.5 |
) |
|
(20.6 |
) |
|
|
(3.2 |
) |
|
(2.9 |
) |
Net cash flows (used in) provided by financing activities |
|
208.4 |
|
|
(15.9 |
) |
|
|
222.3 |
|
|
33.5 |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
224.3 |
|
|
(12.3 |
) |
|
|
288.9 |
|
|
(45.2 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
95.4 |
|
|
46.7 |
|
|
|
30.7 |
|
|
79.6 |
|
Cash, cash equivalents and restricted cash at end of period |
319.6 |
|
$ |
34.4 |
|
$ |
319.6 |
|
$ |
34.4 |
|
||
Clearwater Paper Corporation |
|||||||||||||
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||
Adjusted EBITDA |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
||||||||||
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||
(In millions) |
|
2026 |
|
|
2025 |
|
|
|
2026 |
|
|
2025 |
|
Net loss |
$ |
(1.6 |
) |
$ |
(53.3 |
) |
|
$ |
(35.9 |
) |
$ |
(56.9 |
) |
Add (deduct): |
|
|
|
|
|
||||||||
Less: income (loss) from discontinued operations, net of tax |
|
— |
|
|
0.6 |
|
|
|
— |
|
|
(0.7 |
) |
Loss from continuing operations |
|
(1.6 |
) |
|
(53.9 |
) |
|
|
(35.9 |
) |
|
(56.2 |
) |
Income tax benefit |
|
(2.9 |
) |
|
(6.5 |
) |
|
|
(15.2 |
) |
|
(6.3 |
) |
Interest expense, net |
|
4.8 |
|
|
4.7 |
|
|
|
14.8 |
|
|
12.0 |
|
Goodwill impairment |
|
— |
|
|
48.0 |
|
|
|
— |
|
|
48.0 |
|
Depreciation and amortization |
|
23.3 |
|
|
23.8 |
|
|
|
69.9 |
|
|
68.7 |
|
Other operating charges, net 1 |
|
(1.4 |
) |
|
1.5 |
|
|
|
(20.1 |
) |
|
20.4 |
|
Early debt extinguishment |
|
1.1 |
|
|
— |
|
|
|
1.1 |
|
|
— |
|
Other non-operating expense |
|
1.1 |
|
|
0.3 |
|
|
|
3.4 |
|
|
0.9 |
|
Adjusted EBITDA from continuing operations |
$ |
24.4 |
|
$ |
17.8 |
|
|
$ |
18.0 |
|
$ |
87.4 |
|
1 Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 12 within Clearwater Paper's Form 10-Q filed with the SEC for the period ended September 30, 2026 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) |
|
2026 |
|
|
2025 |
|
|
|
2026 |
|
|
2025 |
|
Adjusted income (loss) from continuing operations: |
|
|
|
|
|
||||||||
Net loss |
$ |
(1.6 |
) |
$ |
(53.3 |
) |
|
$ |
(35.9 |
) |
$ |
(56.9 |
) |
Add (deduct): |
|
|
|
|
|
||||||||
Less: income (loss) from discontinued operations, net of tax |
|
— |
|
|
0.6 |
|
|
|
— |
|
|
(0.7 |
) |
Loss from continuing operations |
|
(1.6 |
) |
|
(53.9 |
) |
|
|
(35.9 |
) |
|
(56.2 |
) |
Add back: |
|
|
|
|
|
||||||||
Income tax benefit |
|
(2.9 |
) |
|
(6.5 |
) |
|
|
(15.2 |
) |
|
(6.3 |
) |
Goodwill impairment |
|
— |
|
|
48.0 |
|
|
|
— |
|
|
48.0 |
|
Early debt extinguishment |
|
1.1 |
|
|
— |
|
|
|
1.1 |
|
|
— |
|
Other operating charges, net |
|
(1.4 |
) |
|
1.5 |
|
|
|
(20.1 |
) |
|
20.4 |
|
Adjusted income (loss) from continuing operations before tax |
|
(4.9 |
) |
|
(11.0 |
) |
|
|
(70.1 |
) |
|
5.8 |
|
Normalized income tax provision (benefit)1 |
|
(1.2 |
) |
|
(2.7 |
) |
|
|
(17.5 |
) |
|
1.4 |
|
Adjusted income (loss) from continuing operations |
$ |
(3.7 |
) |
$ |
(8.2 |
) |
|
$ |
(52.6 |
) |
$ |
4.3 |
|
|
|
|
|
|
|
||||||||
Weighted average diluted shares (thousands) |
|
16,134 |
|
|
16,142 |
|
|
|
16,105 |
|
|
16,213 |
|
Adjusted income (loss) from continuing operations per diluted share |
$ |
(0.23 |
) |
$ |
(0.51 |
) |
|
$ |
(3.27 |
) |
$ |
0.27 |
|
1 Calculated at |
Calculation of net debt: |
September 30, 2026 |
|
June 30, 2026 |
|
March 31, 2026 |
|
December 31, 2025 |
||||||||
Current portion long-term debt |
$ |
274.7 |
|
|
$ |
0.6 |
|
|
$ |
0.6 |
|
|
$ |
0.6 |
|
Long-term debt |
|
292.7 |
|
|
|
360.5 |
|
|
|
360.5 |
|
|
|
345.5 |
|
Add back: |
|
|
|
|
|
|
|
||||||||
Unamortized deferred debt costs |
|
(5.7 |
) |
|
|
(1.1 |
) |
|
|
(1.2 |
) |
|
|
(1.3 |
) |
Less: |
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
|
35.7 |
|
|
|
95.4 |
|
|
|
36.5 |
|
|
|
30.7 |
|
Restricted cash for bond redemption |
|
276.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net debt |
$ |
260.7 |
|
|
$ |
266.8 |
|
|
$ |
325.8 |
|
|
$ |
316.7 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20261026688756/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