Clearwater Paper (NYSE: CLW) posts 2025 loss as Adjusted EBITDA triples
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Clearwater Paper reported 2025 net sales of $1.6 billion, up 12% from 2024, driven by a 14% increase in paperboard volumes, mainly from running the Augusta mill for a full year. Despite this, it recorded a $53 million net loss from continuing operations, or -$3.28 per diluted share, largely due to a $48 million non-cash goodwill impairment.
Adjusted EBITDA from continuing operations rose sharply to $107.2 million from $36.0 million, helped by over $50 million in fixed-cost reductions, including $16 million of SG&A savings, and lower input costs, partially offset by weaker pricing. In Q4 2025, net sales were $386.4 million, essentially flat year over year, while Adjusted EBITDA improved to $19.8 million from $9.5 million.
The company highlighted severe early-2026 weather at its Augusta and Cypress Bend facilities, estimating around a $20 million hit to Adjusted EBITDA, and guided to roughly breakeven Adjusted EBITDA in Q1 2026. For 2026, it assumes revenue of $1.4–$1.5 billion, capacity utilization in the mid-80% range, major maintenance costs of $45–$50 million, and capital expenditures of $65–$75 million, while targeting working capital improvements and maintaining a net leverage ratio near 2.5x.
Positive
- None.
Negative
- None.
Insights
Results show strong EBITDA recovery but pricing and weather pressure profitability.
Clearwater Paper delivered a substantial operational turnaround in 2025, with Adjusted EBITDA from continuing operations climbing to
However, the business remains challenged at the bottom line, posting a continuing-operations net loss of
For
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 18, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(509 ) 344-5900
(Registrant’s telephone number, including area code)
Not Applicable
(Former name of former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchanged on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 18, 2026 , Clearwater Paper Corporation (the “Company”) announced its results of operations for the fourth quarter and year ending December 31, 2025. A copy of the press release containing this announcement is furnished as Exhibit 99.1 hereto. In addition, a copy of the Company’s Fourth Quarter 2025 Earnings Release Materials is furnished as Exhibit 99.2 hereto.
In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), the following are disclosed in the attached Adjusted EBITDA from continuing operations, which is defined as earnings before interest expense, taxes, depreciation and amortization, other operating credits and charges, net and other non-operating items from continuing operations. Adjusted net income (loss) from continuing operations is calculated by excluding from net income, goodwill impairment charges, other operating credits and charges, net, and adjusts for a normalized tax rate. Adjusted EBITDA from continuing operations and adjusted net income (loss) from continuing operations are not a substitute for the GAAP measure of net income or other GAAP measures of operating performance.
The Company discloses Adjusted EBITDA in the attached because it is used as an important supplemental measure of its performance and believes that similarly-titled measures are frequently used by securities analysts, investors and other interested persons in the evaluation of companies in its industry, some of which present similarly-titled measures when reporting their results. The Company uses Adjusted EBITDA to evaluate its performance as compared to other companies in its industry that have different financing and capital structures and/or tax rates. It should be noted that companies calculate similarly-titled measures differently and, therefore, as presented by the Company may not be comparable to similarly-titled measures reported by other companies. In addition, Adjusted EBITDA has material limitations as a performance measure because it excludes interest expense, income tax expense and depreciation and amortization which are necessary to operate the Company's business or which the Company otherwise incurred or experienced in connection with the operation of its business.
The Company believes that adjusted net income (loss) from continuing operations, which excludes goodwill impairment charges and other operating credits and charges, net, adjusted for a normalized tax rate is a useful measure for evaluating our ability to generate earnings and that providing this measure will allow investors to more readily compare the earnings referred to in the press release to the Company's earnings for past and future periods. The Company believes that this measure is particularly useful where the amounts of the excluded items are not consistent between the periods presented. It should be noted that other companies may present similarly-titled measures differently and, therefore, as presented by the Company may not be comparable to similarly-titled measures reported by other companies. In addition, adjusted net income has material limitations as a performance measure because it excludes items that are actually incurred or experienced in connection with the operations of the Company's business.
Item 9.01. Financial Statements and Exhibits
(d) Exhibit Index
| Exhibit | Description | ||||
| 99.1 | Press release issued by Clearwater Paper Corporation regarding the quarter and full year ended December 31, 2025 financial results. | ||||
| 99.2 | Supplemental financial information for the quarter and full year ended December 31, 2025. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 18, 2026
CLEARWATER PAPER CORPORATION
| By: | /s/ Rebecca A. Barckley | ||||
| Rebecca A. Barckley, Vice President, Corporate Controller | |||||
| (Principal Accounting Officer) | |||||
Exhibit 99.1
Clearwater Paper Reports Fourth Quarter and Year End 2025 Results
SPOKANE, Wash.--(BUSINESS WIRE)-- February 18, 2026 -- Clearwater Paper Corporation (NYSE:CLW), a premier independent supplier of bleached paperboard to North American converters today reported financial results for the fourth quarter and year ended December 31, 2025.
2025 FULL YEAR HIGHLIGHTS
•Net sales of $1.6 billion, up 12% compared to 2024, with volumes up 14%, primarily from operating the Augusta facility for the full year
•Net loss from continuing operations of $53 million, or $3.28 per diluted share, primarily driven by a $48 million non-cash goodwill impairment, partly offset by insurance proceeds
•Adjusted EBITDA improved to $107 million from $36 million in 2024, driven by over $50 million in fixed‑cost reductions, including $16 million in SG&A savings that lowered SG&A costs from 8.4% to 6.5% of net sales
•Significant improvement in execution of planned major maintenance outages, with all three completed on target at a total direct cost of approximately $50 million
•Successfully completed integration of the Augusta mill and separation of the tissue business, both completed ahead of schedule and below targeted costs
•Repurchased approximately $17 million of shares, with $79 million remaining of the authorization approved in November of 2024
“We delivered significant year over year Adjusted EBITDA improvement in an oversupplied market by focusing on the variables within our control, namely reducing costs and improving operating performance,” said Arsen Kitch, president and chief executive officer. “Our team did a great job defending our market position and strengthening relationships with strategic customers.”
OVERALL FOURTH QUARTER AND FULL YEAR RESULTS
Net sales were $386 million for the fourth quarter of 2025, flat compared to fourth quarter 2024 net sales of $387 million. Net income for the fourth quarter of 2025 was $38 million, or $2.39 per diluted share compared to $199 million for the fourth quarter of 2024, or $11.91 per diluted per share which included a $307 million of gain on sale of the tissue division ($218 million after tax). Adjusted EBITDA from continuing operations was $20 million in the fourth quarter of 2025, compared to $9 million in the fourth quarter of 2024. The increase in Adjusted EBITDA was driven by higher sales volumes, our planned cost reduction activities, lower input costs and insurance proceeds, partially offset by lower pricing.
Net sales were $1.6 billion for 2025, an increase of 12% compared to 2024 net sales of $1.4 billion. Net loss for 2025 was $19 million, or a loss of $1.15 per diluted share, compared to net income of $196 million for 2024, or $11.70 per diluted share. Adjusted EBITDA from continuing operations was $107 million for 2025 compared to $36 million for 2024. The increase in Adjusted EBITDA from continuing operations was driven by our planned cost reduction activities and lower input costs, partially offset by lower pricing.
Sales Volumes and Prices:
• Sales volumes were 317,715 tons in the fourth quarter of 2025, an increase of 4% compared to 306,692 tons in the fourth quarter of 2024. Sales volumes were 1,236,114 tons for the year ended 2025, an increase of 14% compared to 1,080,898 tons for the year ended 2024.
• Paperboard average net selling price decreased 3% to $1,139 per ton for the fourth quarter of 2025, compared to $1,177 per ton in the fourth quarter of 2024. Paperboard average net selling price decreased 4% to $1,167 per ton for the year ended 2025, compared to $1,210 per ton for the year ended 2024.
COMPANY OUTLOOK
In early 2026, the company experienced production disruptions and higher operating costs due to severe weather affecting its Augusta and Cypress Bend facilities. To date, these events have resulted in an estimated $20 million reduction in Adjusted EBITDA.
“Current industry oversupply and the resulting operating rates are leading to margins that cannot sustain long term investments in our industry’s capital intensive assets. We believe that a combination of demand growth, lower imports, and changes in domestic supply will lead to a recovery in the medium term and put us on a path towards cross-cycle margin levels 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 February 18, 2026. 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 Spokane, Washington, our team produces high-quality paperboard that provides sustainable packaging solutions for consumer goods and food service applications. For additional information, please visit our website at www.clearwaterpaper.com.
USE OF NON-GAAP MEASURES
In this press release, the company presents certain non-GAAP financial information for the quarters and years ended 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. 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 industry supply and demand conditions, pricing trends, market recovery timing, operating performance, cost reduction initiatives, operational execution, capital allocation priorities, liquidity, maintenance and capital expenditure levels, share repurchases, 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 Augusta, Georgia paperboard manufacturing facility acquisition, including anticipated financial results, due to integration challenges or other factors; unexpected costs, charges or expenses resulting from the sale of our consumer products division (tissue business) and the related restructuring initiatives; competitive pricing pressures for our products arising from capacity additions, demand reduction and market conditions; the loss of, changes in prices for, or reduction in, orders from significant customers; changes in customer preferences, industry consolidation and vertical integration; changes in the cost and availability of wood
fiber, pulp, energy, chemicals, packaging and transportation services; cyclical industry conditions and broader U.S. and global economic conditions; manufacturing or operating disruptions; labor disruptions; reliance on a limited number of suppliers and service providers; cyber-security risks; environmental liabilities and litigation, including PFAS-related claims involving our Augusta facility; our ability to execute our growth, expansion and operational efficiency initiatives and capital projects; changes in expenses, required contributions or withdrawal costs associated with our pension plans; our ability to attract and retain qualified personnel; our ability to service our debt obligations and comply with debt covenants; changes in banking relationships or credit ratings; and changes in laws, regulations or industry standards affecting our business, as well as other risks discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements based on new developments or changes in the company’s expectations after the date of this press release.
| Clearwater Paper Corporation | |||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| (In millions, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net sales | $ | 386.4 | $ | 387.1 | $ | 1,555.4 | $ | 1,383.6 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of sales | 369.2 | 372.4 | 1,439.8 | 1,307.5 | |||||||||||||||||||
| Selling, general and administrative expenses | 21.1 | 26.7 | 100.8 | 116.7 | |||||||||||||||||||
| Other operating charges, net | (11.5) | 3.7 | 8.9 | 24.0 | |||||||||||||||||||
| Goodwill impairment | — | — | 48.0 | — | |||||||||||||||||||
| Total operating costs and expenses | 378.8 | 402.8 | 1,597.5 | 1,448.1 | |||||||||||||||||||
| Operating income (loss) | 7.5 | (15.7) | (42.1) | (64.5) | |||||||||||||||||||
| Interest expense, net | (4.8) | (5.3) | (16.8) | (29.2) | |||||||||||||||||||
| Debt retirement costs | — | (9.1) | — | (9.1) | |||||||||||||||||||
| Other non-operating expense (income) | (0.3) | 0.7 | (1.2) | 1.8 | |||||||||||||||||||
| Total non-operating expense | (5.1) | (13.6) | (18.0) | (36.6) | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 2.4 | (29.3) | (60.1) | (101.1) | |||||||||||||||||||
| Income tax benefit | (0.8) | (9.7) | (7.1) | (27.1) | |||||||||||||||||||
| Income (loss) from continuing operations | 3.2 | (19.6) | (53.0) | (74.0) | |||||||||||||||||||
| Income (loss) from discontinued operations | (0.6) | 4.4 | (3.5) | 73.3 | |||||||||||||||||||
| Gain on sale of discontinued operations | 0.5 | 307.2 | 1.5 | 307.2 | |||||||||||||||||||
| Income tax provision (benefit) | (35.2) | 92.8 | (36.4) | 110.2 | |||||||||||||||||||
| Income from discontinued operations | 35.1 | 218.8 | 34.4 | 270.3 | |||||||||||||||||||
| Net income (loss) | $ | 38.3 | $ | 199.1 | $ | (18.6) | $ | 196.3 | |||||||||||||||
| Net income (loss) per common share (basic and diluted): | |||||||||||||||||||||||
| Income (loss) per share from continuing operations | $ | 0.20 | $ | (1.17) | $ | (3.28) | $ | (4.41) | |||||||||||||||
| Income per share from discontinued operations | 2.19 | 13.08 | 2.13 | 16.11 | |||||||||||||||||||
| Net income (loss) per share - basic and diluted | 2.39 | 11.91 | (1.15) | 11.70 | |||||||||||||||||||
| Average shares outstanding (in thousands): | |||||||||||||||||||||||
| Basic | 16,038 | 16,724 | 16,169 | 16,781 | |||||||||||||||||||
| Diluted | 16,067 | 16,724 | 16,169 | 16,781 | |||||||||||||||||||
| Clearwater Paper Corporation | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| (In millions) | December 31, 2025 | December 31, 2024 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 30.7 | $ | 79.6 | ||||
| Receivables, net | 195.3 | 188.7 | ||||||
| Inventories, net | 281.7 | 258.0 | ||||||
| Other current assets | 18.3 | 19.1 | ||||||
| Total current assets | 526.0 | 545.4 | ||||||
| Property, plant and equipment | 2,377.9 | 2,328.4 | ||||||
| Accumulated depreciation and amortization | (1,376.1) | (1,305.4) | ||||||
| Property, plant and equipment, net | 1,001.8 | 1,023.1 | ||||||
| Goodwill and intangible assets, net | 2.1 | 52.9 | ||||||
| Other assets, net | 58.3 | 57.9 | ||||||
| Total Assets | $ | 1,588.3 | $ | 1,679.2 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 0.6 | $ | 0.6 | ||||
| Accounts payable and accrued liabilities | 215.6 | 319.7 | ||||||
| Total current liabilities | 216.2 | 320.4 | ||||||
| Long-term debt | 345.5 | 281.6 | ||||||
| Liability for pension and other postretirement employee benefits | 49.5 | 52.5 | ||||||
| Deferred tax liabilities | 68.2 | 89.7 | ||||||
| Other long-term obligations | 83.7 | 80.5 | ||||||
| Total Liabilities | 763.0 | 824.7 | ||||||
| Common stock | — | — | ||||||
| Additional paid-in capital | 8.3 | 11.5 | ||||||
| Treasury stock | (14.8) | (3.3) | ||||||
| Retained earnings | 862.3 | 880.8 | ||||||
| Accumulated other comprehensive loss, net of tax | (30.5) | (34.5) | ||||||
| Total Stockholders' Equity | 825.3 | 854.6 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 1,588.3 | $ | 1,679.2 | ||||
| Clearwater Paper Corporation | |||||||||||||||||||||||
| Consolidated Statements of Cash Flows | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Operating Activities | |||||||||||||||||||||||
| Net income (loss) | $ | 38.3 | $ | 199.1 | $ | (18.6) | $ | 196.3 | |||||||||||||||
| Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | |||||||||||||||||||||||
| Goodwill impairment | — | — | 48.0 | — | |||||||||||||||||||
| Depreciation and amortization | 23.7 | 21.5 | 92.4 | 99.8 | |||||||||||||||||||
| Equity-based compensation expense | (0.3) | (1.6) | 3.8 | 5.6 | |||||||||||||||||||
| Deferred taxes | (15.6) | 49.0 | (22.5) | 39.0 | |||||||||||||||||||
| Defined benefit pension and other postretirement employee benefits | 0.3 | (1.0) | 0.1 | (4.2) | |||||||||||||||||||
| Gain on business divestiture | (0.4) | (307.2) | (1.5) | (307.2) | |||||||||||||||||||
| Amortization of deferred debt costs and debt retirement | 0.5 | 9.8 | 2.2 | 11.8 | |||||||||||||||||||
| Loss on sale or impairment associated with assets | 2.9 | 0.3 | 7.9 | 1.9 | |||||||||||||||||||
| Changes in operating assets and liabilities, net of acquisition and divestiture: | |||||||||||||||||||||||
| (Increase) decrease in accounts receivable | (29.0) | 4.2 | (2.2) | (87.2) | |||||||||||||||||||
| (Increase) decrease in inventories | 1.9 | 18.0 | (23.5) | 12.4 | |||||||||||||||||||
| (Increase) decrease in other current assets | (8.5) | (6.0) | 1.4 | (2.5) | |||||||||||||||||||
| Increase (decrease) in accounts payable and accrued liabilities | (10.3) | (19.6) | (75.3) | 98.9 | |||||||||||||||||||
| Other, net | 1.5 | (1.1) | 0.1 | (3.0) | |||||||||||||||||||
| Net cash flows provided by (used in) operating activities | 5.0 | (34.7) | 12.3 | 61.4 | |||||||||||||||||||
| Investing Activities | |||||||||||||||||||||||
| Additions to property, plant and equipment, net | (14.9) | (33.0) | (88.8) | (116.6) | |||||||||||||||||||
| Acquisition of business | — | (0.4) | — | (708.2) | |||||||||||||||||||
| Proceeds from business divestiture | 0.4 | 992.5 | (11.6) | 992.5 | |||||||||||||||||||
| Net cash flows provided by (used in) investing activities | (14.4) | 959.1 | (100.4) | 167.7 | |||||||||||||||||||
| Financing Activities | |||||||||||||||||||||||
| Borrowings on long-term debt | 10.0 | — | 82.0 | 753.4 | |||||||||||||||||||
| Repayments of long-term debt | (0.2) | (880.2) | (18.6) | (931.1) | |||||||||||||||||||
| Taxes paid related to net share settlement of equity awards | — | — | (2.3) | (4.1) | |||||||||||||||||||
| Repurchases of common stock | — | (3.9) | (17.2) | (10.0) | |||||||||||||||||||
| Payments for debt issuance costs | — | (0.7) | — | (5.6) | |||||||||||||||||||
| Other, net | (4.0) | 4.6 | (4.6) | 5.9 | |||||||||||||||||||
| Net cash flows provided by (used in) financing activities | 5.8 | (880.3) | 39.3 | (191.4) | |||||||||||||||||||
| Increase (decrease) in cash and cash equivalents | (3.7) | 44.1 | (48.9) | 37.7 | |||||||||||||||||||
| Cash and cash equivalents at beginning of period | 34.4 | 35.5 | 79.6 | 42.0 | |||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 30.7 | $ | 79.6 | $ | 30.7 | $ | 79.6 | |||||||||||||||
| Clearwater Paper Corporation | |||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net income (loss) | $ | 38.3 | $ | 199.1 | $ | (18.6) | $ | 196.3 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Less: Income from discontinued operations, net of tax | 35.1 | 218.8 | 34.4 | 270.3 | |||||||||||||||||||
| Income (loss) from continuing operations | 3.2 | (19.6) | (53.0) | (74.0) | |||||||||||||||||||
| Income tax benefit | (0.8) | (9.7) | (7.1) | (27.1) | |||||||||||||||||||
| Goodwill impairment | — | — | 48.0 | — | |||||||||||||||||||
| Interest expense, net | 4.8 | 5.3 | 16.8 | 29.2 | |||||||||||||||||||
| Depreciation and amortization expense | 23.7 | 21.5 | 92.4 | 69.8 | |||||||||||||||||||
| Inventory revaluation on acquired business | — | — | — | 6.8 | |||||||||||||||||||
Other operating charges, net1 | (11.5) | 3.7 | 8.9 | 24.0 | |||||||||||||||||||
| Other non-operating expense (income) | 0.3 | (0.7) | 1.2 | (1.8) | |||||||||||||||||||
| Debt retirement costs | — | 9.1 | — | 9.1 | |||||||||||||||||||
| Adjusted EBITDA from continuing operations | $ | 19.8 | $ | 9.5 | $ | 107.2 | $ | 36.0 | |||||||||||||||
1 Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 10 within Clearwater Paper's Form 10-K filed with the SEC for the year ended December 31, 2025 for the detailed breakout of the annual amount.
| Clearwater Paper Corporation | |||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
| Adjusted Net Income (Loss) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| (In millions, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net income (loss) | $ | 38.3 | $ | 199.1 | $ | (18.6) | $ | 196.3 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Less: Income from discontinued operations, net of tax | 35.1 | 218.8 | 34.4 | 270.3 | |||||||||||||||||||
| Income (loss) from continuing operations | 3.2 | (19.6) | (53.0) | (74.0) | |||||||||||||||||||
| Add back: | |||||||||||||||||||||||
| Income tax benefit | (0.8) | (9.7) | (7.1) | (27.1) | |||||||||||||||||||
| Goodwill impairment | — | — | 48.0 | — | |||||||||||||||||||
| Debt retirement costs | — | 9.1 | — | 9.1 | |||||||||||||||||||
| Other operating charges, net | (11.5) | 3.7 | 8.9 | 24.0 | |||||||||||||||||||
| Adjusted loss before tax | (9.1) | (16.5) | (3.3) | (68.0) | |||||||||||||||||||
| Normalized income tax benefit | (2.3) | (4.1) | (0.8) | (17.0) | |||||||||||||||||||
| Adjusted net loss from continuing operations | $ | (6.8) | $ | (12.4) | $ | (2.5) | $ | (51.0) | |||||||||||||||
| Adjusted net loss from continuing operations per share, diluted | $ | (0.42) | $ | (0.74) | $ | (0.15) | $ | (3.04) | |||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||
| Calculation of net debt: | |||||||||||||||||||||||
| Current portion of long-term debt | $ | 0.6 | $ | 0.6 | $ | 0.6 | |||||||||||||||||
| Long-term debt | 345.5 | 335.5 | 281.6 | ||||||||||||||||||||
| Add back: | |||||||||||||||||||||||
| Unamortized deferred debt costs | 1.3 | 1.5 | 1.8 | ||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Cash and cash equivalents | 30.7 | 34.4 | 79.6 | ||||||||||||||||||||
| Net debt | $ | 316.7 | $ | 303.2 | $ | 204.4 | |||||||||||||||||
Clearwater Paper Corporation
Investors contact:
Sloan Bohlen
Solebury Strategic Communications
509-344-5906
investorinfo@clearwaterpaper.com
News media:
Virginia Aulin, Senior Vice President, Human Resources and Public Affairs
509-344-5967
Virginia.Aulin@clearwaterpaper.com
Fourth Quarter Earnings Release Materials February 18, 2026 ARSEN KITCH President, Chief Executive Officer and Director SHERRI BAKER Senior Vice President and Chief Financial Officer
2 Forward Looking Statements Cautionary Statement Regarding Forward Looking Statements This presentation of supplemental information contains, in addition to historical information, 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 as to: our expectations regarding additional savings from our fixed cost reduction initiatives; the Company’s strategic positioning to capitalize on the paperboard industry’s cyclical nature and deliver strong returns; product demand and industry trends; assumptions for Q1 2026 and full year 2026, including operational factors, capital, input costs, lower pricing and inflation; our capital allocation priorities; our strategy, including achieving target leverage ratio and maintaining liquidity; our focus on free cash flow generation through operational efficiencies and demand; our plans to explore avenues for strategic growth opportunities, particularly to expand our own product offerings and broaden such offerings to North American customers; continued investments into our assets to strengthen our competitive advantages and maintain our long-term performance; expectations regarding the paperboard market; targeted working capital improvements; and our financial flexibility and liquidity; and repurchases under the existing share buyback authorization. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this presentation. Important factors that could cause or contribute to such differences include the risks and uncertainties described from time to time in the Company's public filings with the Securities and Exchange Commission, including but not limited to the following: our inability to realize the expected benefits of the Augusta, Georgia paperboard manufacturing facility acquisition, including anticipated financial results, due to integration challenges or other factors; unexpected costs, charges or expenses resulting from the sale of our consumer products division (tissue business) and the related restructuring initiatives; competitive pricing pressures for our products arising from capacity additions, demand reduction and market conditions; the loss of, changes in prices for, or reduction in, orders from significant customers; changes in customer preferences, industry consolidation and vertical integration; changes in the cost and availability of wood fiber, pulp, energy, chemicals, packaging and transportation services; cyclical industry conditions and broader U.S. and global economic conditions; manufacturing or operating disruptions; labor disruptions; reliance on a limited number of suppliers and service providers; cyber-security risks; environmental liabilities and litigation, including PFAS-related claims involving our Augusta facility; our ability to execute our growth, expansion and operational efficiency initiatives and capital projects; changes in expenses, required contributions or withdrawal costs associated with our pension plans; our ability to attract and retain qualified personnel; our ability to service our debt obligations and comply with debt covenants; changes in banking relationships or credit ratings; and changes in laws, regulations or industry standards affecting our business. Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward-looking statements or to retract future revisions of management's views based on events or circumstances occurring after the date of this presentation. Non-GAAP Financial Measures This presentation includes certain financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA from continuing operations. The Company’s management believes that the presentation of these financial measures provides useful information to investors because these measures are regularly used by management in assessing the Company’s performance. These financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered substitutes for or superior to GAAP results. In addition, these non-GAAP financial measures may not be comparable to similarly-titled measures utilized by other companies, since such other companies may not calculate such measure in the same manner as we do. A reconciliation of Adjusted EBITDA to the most relevant GAAP measure is available in the appendix of this presentation.
3 Clearwater is Well Positioned to Deliver Strong Returns Across the Cycle >16% Cycle peak (>95% utilization, 50-60% FCF conversion) Average across cycle (90-95% utilization, 40-50% FCF conversion) ~13 to 14% Downcycle (<85% utilization, 0-20% FCF conversion) <10% TARGETING STRONG CASH FLOW GENERATION ACROSS THE CYCLE Paperboard industry is cyclical, driven by supply and demand balance Currently in downcycle as new capacity is added ahead of demand recovery Across the cycle Adjusted EBITDA margins target of 13% to 14% Delivering a 40-50% Adjusted EBITDA to free cash flow conversion rate1, or $100M+ per year Reduced fixed cost structure by over ~$50M in 2025 Continued investment in assets to enhance competitiveness Exploring growth opportunities to expand product offering through internal investments or external options Strong balance sheet to sustain the business and create strategic options across the cycle Clearwater is focused on value creation across the cycle 1. Cash flow from operating activities adjusted for other operating charges less capital, divided by Adjusted EBITDA ADJUSTED EBITDA TARGET MARGINS
4 Exploring Options to Expand Our Product Offering Post consumer recycled content Developed and in market Provide options for converter customers to service sustainability driven Consumer Packaged Goods (CPG) and Quick Service Restaurants (QSR) customers Compostable plate BPI certified at two locations Enable our plate converter customers to meet demands of leading domestic retailers Lightweight folding carton Developing and expected in market H1 2026 Offer alternatives to Folding Boxboard (FBB) imports with superior performance Poly-free coatings / barriers Continuing to develop options in addition to current offering Meet current and future needs of sustainability driven cup converters looking for a poly-free offering Unbleached paperboard grade (CUK) Technical feasibility and market opportunity complete; investment decision on hold Enable independent converters to better compete with large integrated incumbents Recycled paperboard grade (CRB) Open to evaluating external options Provide a more complete paperboard offering to existing Solid Bleached Sulfate (SBS) customers Initiative Status Objective
5 INDUSTRY TRENDS 1. Based on data from AF&PA. 2. Based on data reported by RISI Fastmarkets, other industry sources, and Company estimates. EXPECTING MODEST DEMAND GROWTH IN 2026 SBS industry shipments were flat in 2025 vs. 2024, outperformed CUK and CRB that were down 4.1% 1 Demand growth of ~1%2 projected for 2026 SBS price per square foot is now below CUK and CRB levels Some customers looking at substitution between substrates INDUSTRY IMPACTED BY SBS CAPACITY ADDITIONS; RISI PROJECTING IMPROVEMENT IN 2026 Industry operating rates1 at 83% Q4’25 vs. 87% Q3’25 500K of new N.A. industry capacity added in 2025, total SBS capacity now at 5.7M tons2 Balanced market will have utilization rates between 90 and 95%2 RISI forecasting 180K ton net capacity reduction in 2026 and an increase in 2026 operating rates to 90% BLEACHED PAPERBOARD NET EXPORTS ARE EXPECTED TO IMPROVE IN 2026 Imports forecasted to decrease by ~8%2 in 2026 vs. 2025 Exports forecasted to increase by ~5%2 in 2026 vs. 2025 Tariffs and other trade actions could impact viability of imports European imports of FBB are down 12%2 YTD November 2025 vs. prior year
6 +4% increase in Q4’25 vs. Q4’24, -2% vs. Q3’25 Maintaining share in a competitive environment, industry shipments were flat vs. prior year -3% decrease in Q4’25 average pricing vs. Q4’24 Further pricing decreases reported by RISI in Q4’25 pressuring industry margins Q4 2025 Financial Summary NET SALES FROM CONTINUING OPERATIONS $386M NET INCOME FROM CONTINUING OPERATIONS $3M* PARTIALLY OFFSET BY MARKET DRIVEN PRICING ADJUSTED EBITDA FROM CONTINUING OPERATIONS $20M ADJUSTED EBITDA MARGIN FROM CONTINUING OPERATIONS 5.1% ADJUSTED EBITDA ABOVE MID-POINT OF $13M TO $23M RANGE Volume growth offset by lower market pricing Augusta, GA major maintenance outage successfully completed at a direct cost of $17M Improved cost structure, driven by fixed cost reduction initiatives Lower SG&A costs Benefit from $6M insurance reimbursement YEAR OVER YEAR GROWTH IN SALES VOLUMES See Appendix for Non-GAAP reconciliations * Includes $17M in insurance proceeds (tax adjusted)
7 Q4’25 VS Q4’24 Adjusted EBITDA Results from Continuing Operations ($ in millions) $9.5 $16.9 $4.9 $19.8 -$12.7 $1.2 Q4'24 Adj. EBITDA Price/Mix Volume Costs/Other SGA Q4'25 Adj. EBITDA Lower paperboard market pricing and mix changes Cost reduction initiatives, insurance recovery and lower major maintenance outage costs Lower expenses primarily driven by cost reduction initiativesHigher sales volumes and lower production
8 +14% increase in 2025 vs. 2024 Maintaining share in a competitive environment; volume growth driven primarily by Augusta acquisition -4% decrease in 2025 average pricing vs. 2024 Biggest impact in commodity food service grades FY 2025 Financial Summary NET SALES FROM CONTINUING OPERATIONS $1.6B NET LOSS FROM CONTINUING OPERATIONS $53M* PARTIALLY OFFSET BY MARKET DRIVEN PRICING ADJUSTED EBITDA FROM CONTINUING OPERATIONS $107M ADJUSTED EBITDA MARGIN FROM CONTINUING OPERATIONS 6.9% ADJUSTED EBITDA SIGNIFICANTLY HIGHER THAN PRIOR YEAR $71M year over year improvement Higher volumes, improved cost structure, lower SG&A costs, partially offset by lower market pricing COMBINED WITH A STRONG BALANCE SHEET Net leverage ratio at 2.5x** Available liquidity of $439 million Repurchased $21M of shares since new $100M authorization in November of 2024 GROWTH IN PAPERBOARD SALES VOLUMES See Appendix for Non-GAAP reconciliations * Includes a non-cash goodwill impairment of $45M and $17M in insurance proceeds (both tax adjusted) ** As calculated in accordance with CLW banking agreements
9 2025 VS 2024 Adjusted EBITDA Results from Continuing Operations ($ in millions) $36.0 $54.3 $15.4 $107.2 -$31.8 $33.3 2024 Adj. EBITDA Price/Mix Volume Costs/Other SGA 2025 Adj. EBITDA Lower paperboard market pricing Higher sales volumes Lower cost from fixed cost reduction initiatives Lower expenses primarily driven by cost reduction initiatives
10 Outlook and Assumptions for Q1 and 2026 Q1 2026: Roughly breakeven Adjusted EBITDA1 $15-20M impact from severe weather in Southeast U.S. impacting production and costs Flat to slightly lower paperboard shipments vs. Q4 $10-12M impact from $100/ton price reduction reported by RISI in Q4’25 $11-13M lower maintenance expenses vs. Q4 with no major maintenance outages planned Maintaining benefits from fixed cost reduction efforts, other input costs stable FY 2026 Assumptions Revenue of $1.4 to 1.5B, with capacity utilization rate in the mid 80% range ~$70M carryover impact from 2025 market driven pricing, including recent RISI changes from Q4 Excludes any impact from our recently announced price increase or the latest RISI forecasts on pricing and operating rate improvements Direct major maintenance outages costs of $45-50M, similar to 2025 Productivity and cost reduction efforts offsetting 2-3% of input cost inflation Targeted working capital improvements of $20M, primarily in inventory Capital expenditures of $65-75M 1. As there is uncertainty in connection with calculating the adjustments necessary to prepare reconciliations from Adjusted EBITDA to the comparable GAAP financial measure, the Company is unable to reconcile the Adjusted EBITDA projections without unreasonable efforts. Therefore, no reconciliation is being provided at this time. These items could result in significant adjustments from the most comparable GAAP measure.
11 Optimized Capital Allocation Approach Supports Value Creation $70-80M EXPECTED NORMALIZED ANNUAL MAINTENANCE CAPEX, EXCLUDING LARGE REPLACEMENT PROJECTS 1-2x TARGET LEVERAGE RATIO AT CROSS CYCLE Investing to maintain the long-term performance of our assets Evaluating capital investments to diversify product portfolio Opportunistic M&A or other external options to support strategic priorities Return capital to shareholders through share buybacks Utilizing free cash flow (FCF) to deleverage our balance sheet
12 Optimistic About Long-Term Value Creation Sharp focus on improving and growing our paperboard business • De-levered balance sheet with proceeds from tissue sale • Focus on growing our position as a premier independent paperboard packaging supplier to North American converters Well invested asset base to support future growth • High quality paperboard assets well positioned across the U.S. to efficiently service North American converters • Strong legacy of prioritizing sustainability • Focused on expanding product portfolio through internal investment and external options Focused on optimizing business to deliver free cash flows • Driving improvement in operational performance • Consistently investing to maintain competitiveness of our assets • Strategically deploy capital to create long-term shareholder value
13 Appendix
14 Q3’25 VS Q4’25 Adjusted EBITDA Results from Continuing Operations ($ in millions) $17.8 $14.3 $3.6 $19.8 -$7.4 -$8.5 Q3'25 Adj. EBITDA Price/Mix Volume Costs/Other SGA Q4'25 Adj. EBITDA Lower paperboard sales and production Lower annual outage- related maintenance costs and insurance recovery Cost reduction activities Lower market pricing and changes in mix
15 Key Metrics Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Food service $ 165.3 $ 182.0 $ 173.9 $ 664.6 $ 540.4 Folding carton 140.0 143.0 143.5 578.9 580.2 Sheeting & distribution 33.9 37.9 36.9 150.4 160.1 Pulp and other 47.2 36.1 32.8 161.5 102.9 Net sales 386.4 399.0 $ 387.1 1,555.4 $ 1,383.6 Input cost (raw materials & energy) $ 169.5 $ 173.5 $ 176.4 $ 688.5 $ 615.0 Labor and overhead 130.5 142.1 137.7 517.7 482.2 Supply chain costs (principally freight) 37.3 40.6 38.7 153.3 140.1 Depreciation 22.7 22.8 20.6 88.3 65.9 Other 9.2 1.2 (0.9) (8.1) 4.4 Cost of sales $ 369.2 $ 380.3 $ 372.4 $ 1,439.8 $ 1,307.5 Paperboard sale volumes 317,715 324,198 306,692 1,236,114 1,080,898 Paperboard production volumes 308,660 319,615 314,318 1,241,997 1,093,929 Net sales price per ton $ 1,139 $ 1,160 $ 1,177 $ 1,167 $ 1,210 Quarter Ended Year Ended
16 Financial Performance ($ IN MILLIONS, UNAUDITED) Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Net sales $ 386.4 $ 399.0 $ 387.1 $ 1,555.4 $ 1,383.6 Costs and expenses: Cost of sales 369.2 380.3 372.4 1,439.8 1,307.5 Selling, general and administrative expenses 21.1 24.7 26.7 100.8 116.7 Other operating charges, net (11.5) 1.5 3.7 8.9 24.0 Goodwill impairment - 48.0 - 48.0 - Total operating costs and expenses 378.8 454.5 402.8 1,597.5 1,448.1 Total income (loss) from operations 7.5 (55.4) (15.7) (42.1) (64.5) Total non-operating expense (5.1) (5.0) (13.6) (18.0) (36.6) Income (loss) from operations before income taxes 2.4 (60.4) (29.3) (60.1) (101.1) Income tax provision (benefit) (0.8) (6.5) (9.7) (7.1) (27.1) Income (loss) from continuing operations 3.2 (53.9) (19.6) (53.0) (74.0) Income from discontinued operations, net of tax 35.1 0.6 218.8 34.4 270.3 Net income $ 38.3 $ (53.3) $ 199.1 $ (18.6) $ 196.3 Quarter Ended Year Ended
17 Reconciliation of Adjusted EBITDA ($ IN MILLIONS, UNAUDITED) Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Net income (loss) $ 38.3 $ (53.3) $ 199.1 $ (18.6) $ 196.3 Add (deduct): Less: Income from discontinued operations, net of tax 35.1 0.6 218.8 34.4 270.3 Income from continuing operations 3.2 (53.9) (19.6) (53.0) (74.0) Income tax provision (benefit) (0.8) (6.5) (9.7) (7.1) (27.1) Interest expense, net 4.8 4.7 5.3 16.8 29.2 Depreciation and amortization expense 23.7 23.8 21.5 92.4 69.8 Inventory revaluation on acquired business - - - - 6.8 Goodwill impairment - 48.0 - 48.0 - Other operating charges, net (11.5) 1.5 3.7 8.9 24.0 Other non-operating expense (income) 0.3 0.3 8.4 1.2 7.3 Adjusted EBITDA from continuing operations 19.8 17.8 9.5 107.2 36.0 Adjusted EBITDA Margin 5.1% 4.5% 2.5% 6.9% 2.6% Quarter Ended Year Ended
18 Reconciliation of Adjusted Net Income ($ IN MILLIONS, UNAUDITED) Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Net income (loss) $ 38.3 $ (53.3) $ 199.1 $ (18.6) $ 196.3 Add (deduct): Less: Income (loss) from discontinued operations, net of tax 35.1 0.6 218.8 34.4 270.3 Income (loss) from continuing operations 3.2 (53.9) (19.6) (53.0) (74.0) Add back: Income tax benefit (0.8) (6.5) (9.7) (7.1) (27.1) Goodwill impairment - 48.0 - 48.0 - Debt retirement costs - - 9.1 - 9.1 Other operating charges, net (11.5) 1.5 3.7 8.9 24.0 Adjusted income (loss) before tax (9.1) (11.0) (16.5) (3.3) (68.0) Normalized income provision (benefit) (2.3) (2.7) (4.1) (0.8) (17.0) Adjusted net income (loss) from continuing operations (6.8) (8.2) (12.4) (2.5) (51.0) Adjusted income (loss) from continuing operations, per diluted share (0.42)$ (0.51)$ (0.74)$ (0.15)$ (3.04)$ Quarter Ended Year Ended
FAQ
How did Clearwater Paper (CLW) perform financially in 2025?
Clearwater Paper reported 2025 net sales of $1.6 billion, up 12% from 2024, with volumes rising 14%. Despite this growth, it posted a $53 million net loss from continuing operations, mainly due to a $48 million non-cash goodwill impairment and weaker paperboard pricing.
What was Clearwater Paper’s (CLW) 2025 Adjusted EBITDA and margin?
In 2025, Clearwater Paper’s Adjusted EBITDA from continuing operations rose to $107.2 million from $36.0 million in 2024, reflecting cost reductions and lower input costs. The Adjusted EBITDA margin improved to 6.9%, up from 2.6% the prior year despite lower average selling prices.
How did Clearwater Paper (CLW) perform in Q4 2025 versus Q4 2024?
For Q4 2025, Clearwater Paper generated net sales of $386.4 million, essentially flat versus $387.1 million in Q4 2024. Net income was $38.3 million, or $2.39 per diluted share, and Adjusted EBITDA from continuing operations increased to $19.8 million from $9.5 million.
What guidance did Clearwater Paper (CLW) provide for Q1 2026 and full-year 2026?
Management expects Q1 2026 to deliver roughly breakeven Adjusted EBITDA, with a $15–$20 million hit from severe weather. For 2026, it assumes revenue of $1.4–$1.5 billion, capacity utilization in the mid-80% range, and capital expenditures of $65–$75 million.
How is Clearwater Paper’s (CLW) balance sheet positioned after 2025?
At December 31, 2025, Clearwater Paper reported $30.7 million in cash and $346.1 million of total debt including current portion. Net debt was $316.7 million, and the company cited a net leverage ratio of about 2.5x, with available liquidity of $439 million.
What cost reduction and capital allocation actions did Clearwater Paper (CLW) take in 2025?
In 2025, Clearwater Paper achieved over $50 million of fixed-cost reductions, including $16 million of SG&A savings that lowered SG&A to 6.5% of net sales. It also repurchased about $21 million of shares under a $100 million authorization approved in November 2024.
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