Clearwater Paper (NYSE: CLW) swings to Q2 loss, cuts net debt
Rhea-AI Filing Summary
Clearwater Paper Corporation reported softer Q2 2026 results, with net sales of $374.8 million versus $391.8 million in Q2 2025 as lower pricing more than offset an 8% increase in sales volumes to 328,722 tons. The company recorded a net loss from continuing operations of $21.5 million, or $(1.33) per diluted share, compared with income of $3.6 million, or $0.22 per share, a year earlier. Non‑GAAP Adjusted EBITDA from continuing operations was a loss of $8.2 million, down from positive $39.9 million, reflecting lower paperboard pricing and the timing of a planned major maintenance outage at the Lewiston, Idaho mill that had direct costs of $22 million.
The company restructured its Cypress Bend, Arkansas facility, cutting about 20% of roles and targeting $8–$12 million of annual savings, and reduced net debt to $266.8 million at June 30, 2026 from $316.7 million at December 31, 2025, supported by lower working capital, tax refunds and insurance proceeds. For the first six months of 2026, net sales were $735.1 million and Adjusted EBITDA from continuing operations was $(6.4) million, compared with $770.0 million and $69.6 million, respectively, in 2025. Management projects Q3 2026 Adjusted EBITDA of $20–$30 million and full‑year 2026 revenue of $1.4–$1.5 billion, assuming flat shipments versus Q2, benefits from price increases and total 2026 major maintenance costs of $32–$35 million.
Positive
- Clearwater Paper reduced net debt to $266.8 million at June 30, 2026 from $316.7 million at December 31, 2025, and reported net leverage of 3.5x with liquidity of $445 million, supported by working capital reductions, tax refunds and insurance recoveries.
Negative
- Q2 2026 featured net sales of $374.8 million versus $391.8 million and Adjusted EBITDA from continuing operations of $(8.2) million versus $39.9 million in Q2 2025, resulting in a net loss from continuing operations of $21.5 million.
Filing Explained
The filing reports completed second-quarter results and presents cash, debt, and non-GAAP performance measures.
Under Item 2.02, this
Adjusted EBITDA from continuing operations is a supplemental non-GAAP measure, and the company says it is not a substitute for GAAP net income and may not be comparable with similarly titled measures from other companies.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Net sales: $374.8 million
Q2 2026 Net loss from continuing operations: $21.5 million
Q2 2026 Adjusted EBITDA from continuing operations: $(8.2) million
+5 more
8 metrics
Q2 2026 Net sales
$374.8 million
Net sales for the quarter ended June 30, 2026
Q2 2026 Net loss from continuing operations
$21.5 million
Loss from continuing operations in Q2 2026 versus $3.6 million income in Q2 2025
Q2 2026 Adjusted EBITDA from continuing operations
$(8.2) million
Non-GAAP Adjusted EBITDA in Q2 2026 versus $39.9 million in Q2 2025
Q2 2026 diluted EPS from continuing operations
$(1.33)
Diluted earnings per share from continuing operations in Q2 2026
Paperboard sales volumes Q2 2026
328,722 tons
Sales volumes in Q2 2026, an increase of 8% versus 304,713 tons in Q2 2025
Average paperboard net selling price Q2 2026
$1,077 per ton
Average net selling price in Q2 2026, down from $1,182 per ton in Q2 2025
Net debt at June 30, 2026
$266.8 million
Net debt as of June 30, 2026 versus $316.7 million at December 31, 2025
Q3 2026 Adjusted EBITDA guidance
$20–$30 million
Projected Adjusted EBITDA range for the third quarter of 2026
Key Terms
Adjusted EBITDA from continuing operations, normalized income tax, net debt, free cash flow conversion, +1 more
5 terms
Adjusted EBITDA from continuing operations financial
"Adjusted EBITDA from continuing operations was $(8.2) million in Q2 2026"
normalized income tax financial
"Normalized income tax (benefit) provision calculated at 25%"
net debt financial
"Net debt was $266.8 million at June 30, 2026"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
free cash flow conversion financial
"Targeting 40% to 50% FCF conversion across the cycle"
Free cash flow conversion measures how effectively a company turns its reported profits into actual cash that can be used for growth, debt repayment, or dividends. It compares the cash generated after expenses to the company's net income, similar to how a person might compare their savings to their paycheck. High conversion indicates the company is efficient at translating profits into cash, which is important for investors assessing its financial health and flexibility.
SBS financial
"We are seeing early signs of improvement in SBS industry conditions"
Earnings Snapshot
Net sales: $374.8 million · Guidance included
Quarter ended June 30, 2026
Net sales
$374.8 million
vs $391.8 million in Q2 2025
Net income (loss) from continuing operations
$(21.5) million
vs $3.6 million in Q2 2025
Adjusted EBITDA from continuing operations
$(8.2) million
vs $39.9 million in Q2 2025
Diluted EPS from continuing operations
$(1.33)
vs $0.22 in Q2 2025
Guidance
The company projects Q3 2026 Adjusted EBITDA of $20–$30 million and full-year 2026 revenue of $1.4–$1.5 billion, with 2026 major maintenance costs of $32–$35 million and capital expenditures of $65–$75 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Clearwater Paper (CLW) perform financially in Q2 2026?
Clearwater Paper reported Q2 2026 net sales of $374.8 million and a net loss from continuing operations of $21.5 million, or $(1.33) per diluted share. A year earlier, it had net sales of $391.8 million and income from continuing operations of $3.6 million, or $0.22 per share.
What drove the Adjusted EBITDA decline for Clearwater Paper (CLW) in Q2 2026?
Non‑GAAP Adjusted EBITDA from continuing operations was $(8.2) million, down from $39.9 million in Q2 2025. Management attributes this mainly to lower paperboard pricing and the timing of the planned major maintenance outage at the Lewiston, Idaho mill, which cost $22 million.
How have sales volumes and pricing trended for Clearwater Paper (CLW)?
Q2 2026 paperboard sales volumes rose to 328,722 tons, up 8% from 304,713 tons in Q2 2025. However, the average net selling price fell to $1,077 per ton, a 9% decrease from $1,182 per ton, pressuring revenue and earnings despite higher volumes.
What is Clearwater Paper’s (CLW) current net debt and leverage position?
At June 30, 2026, Clearwater Paper reported net debt of $266.8 million, down from $316.7 million at December 31, 2025 and $325.8 million at March 31, 2026. The company cites net leverage of 3.5x and total liquidity of $445 million, reflecting recent deleveraging.
What cost‑reduction actions did Clearwater Paper (CLW) take in Q2 2026?
Clearwater Paper restructured its Cypress Bend, Arkansas facility, reducing approximately 20% of roles and targeting annual savings of $8–$12 million. It also completed a planned major maintenance outage at Lewiston, Idaho on time and on budget, at a direct cost of $22 million.
What guidance did Clearwater Paper (CLW) provide for Q3 and full‑year 2026?
Management projects Q3 2026 Adjusted EBITDA of $20–$30 million. For full‑year 2026, it anticipates revenue of $1.4–$1.5 billion, major maintenance costs of $32–$35 million, net working capital improvement of $20 million and capital expenditures of $65–$75 million.
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): (July 28, 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 July 28, 2026, Clearwater Paper Corporation (the “Company”) announced its results of operations and financial condition for the second quarter ending June 30, 2026. A copy of the press release containing this announcement is furnished as Exhibit 99.1 hereto. In addition, a copy of the Company’s Second Quarter Supplemental Information 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, other operating credits and charges, net, income (loss) from discontinued operations, net of tax 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, income (loss) from discontinued operations, net of tax 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.
The information in Item 2.02, including Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibit Index
| Exhibit No. | Description | ||||
| 99.1 | Press release issued by Clearwater Paper Corporation regarding the second quarter ended June 30, 2026 financial results. | ||||
| 99.2 | Supplemental financial information for the second quarter ended June 30, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
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: July 28, 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 Second Quarter 2026 Results
SPOKANE, Wash.--(BUSINESS WIRE)--July 28, 2026 --Clearwater Paper Corporation (NYSE:CLW), a premier independent supplier of bleached paperboard to North American converters today reported financial results for the second quarter ended June 30, 2026.
SECOND QUARTER HIGHLIGHTS
•Net sales of $375 million versus $392 million in the second quarter of 2025, with lower market pricing partially offset by volume growth of 8%
•Net loss of $21 million, or $1.33 per diluted share versus net income of $3 million, or $0.17 per diluted share in the second quarter of 2025
•Negative Adjusted EBITDA from continuing operations of $8 million versus positive $40 million in the second quarter of 2025 primarily driven by lower market pricing and timing of the 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 approximately 20% of roles and expected annual savings of $8 to $12 million
•Reduced net debt in the quarter by $59 million and $50 million year to date, driven by net working capital reductions, tax refunds and additional representation and warranty insurance proceeds
“We executed well during the second quarter, successfully completing the Lewiston major maintenance outage while reducing costs at our Cypress Bend facility. We delivered significant volume growth sequentially and versus prior year as we continue to maintain and improve share with our key strategic customers. We also significantly reduced our net debt during the quarter while continuing to invest in our assets,” said Arsen Kitch, president and chief executive officer.
OVERALL RESULTS
For the second quarter of 2026, Clearwater Paper reported net sales of $375 million, compared to $392 million in the second quarter of 2025. The company reported a net loss from continuing operations of $21 million, or $1.33 per diluted share for the quarter, compared to net income from continuing operations of $4 million, or $0.22 per diluted share, in the prior‑year period. Adjusted EBITDA from continuing operations was negative $8 million for the second quarter of 2026 compared to positive of $40 million in the second quarter of 2025. The decrease in Adjusted EBITDA from continuing operations was due to the timing of our major maintenance outage at our Lewiston facility and reduced sales prices offset by higher sales volumes. The Lewiston outage occurred in the third quarter of 2025 as compared to the second quarter of this year.
For the six months of 2026, Clearwater Paper reported net sales of $735 million compared to $770 million for the six months of 2025. The company reported a net loss from continuing operations of $34 million, or $2.13 per diluted share for the six months of 2026, compared to a net loss from continuing operations of $2 million, or $0.14 per diluted share, in the prior‑year period. Adjusted EBITDA from continuing operations was negative $6 million for the six months of 2026 compared to positive $70 million in the six months of 2025. The decrease in Adjusted EBITDA from continuing operations was due to the timing of our major maintenance outage at our Lewiston facility, the impact of a weather event during the first quarter of 2026 and reduced sales prices offset by higher sales volumes.
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 of 6% compared to 594,200 tons in the first six months of 2025.
•Paperboard average net selling price decreased 9% to $1,077 per ton for the second quarter of 2026, compared to $1,182 per ton in the second quarter of 2025. Paperboard average net selling price decreased 8% to $1,089 per ton for the first six months of 2026, compared to $1,185 per ton in the first six months of 2025.
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 Spokane, Wash., 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 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 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) | |||||||||||||||||
| 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 | |||||||||
| 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 | |||||||||||
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
Second Quarter Earnings Release Materials July 28, 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, 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 Q3 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 INDUSTRY TRENDS 1. Based on data from AF&PA. 2. Based on data reported by RISI Fastmarkets, other industry sources, and Company estimates. MODEST DEMAND GROWTH EXPECTED IN 2026 SBS shipments nearly flat in Q1’26 vs PY; outperformed CUK and CRB declines of 3% 1 2026 SBS demand growth projected at ~1%2 SBS pricing per square foot now below CUK and CRB, supporting substitution SBS INDUSTRY OPERATING RATES IMPROVING Industry operating rates2 forecasted at 88% in Q2’26, up from 81% in Q1’26 ~300K reduction in SBS production year to date, RISI forecasting additional 200K ton capacity decrease by year end Operating rates forecasted to improve to 90%+ by end of 2026 RISI reported price increase of $40/ton on folding carton and $60/ton on cup in July BLEACHED PAPERBOARD IMPORTS ARE DECLINING Imports down ~11% YTD through May vs PY Exports forecasted to decrease by ~4%2 in 2026 vs PY Tariffs and trade actions reducing import viability
4 +8% increase in Q2’26 vs. Q2’25 Share gains with strategic customers, led by food service -9% decrease in Q2’26 average pricing vs. Q2’25 RISI reported $100/ton decrease in SBS folding carton pricing in 2025 Q2 2026 Financial Summary NET SALES FROM CONTINUING OPERATIONS $375M NET LOSS FROM CONTINUING OPERATIONS ($21.5M)1 OFFSET BY MARKET DRIVEN PRICING ADJUSTED EBITDA FROM CONTINUING OPERATIONS ($8.2M ) ADJUSTED EBITDA MARGIN FROM CONTINUING OPERATIONS (2.2%) ADJUSTED EBITDA WITHIN GUIDANCE RANGE Higher inflation partly offset by improved cost structure; SG&A 5.6% of sales versus 6.7% in Q2’25 Completed Lewiston, Idaho major maintenance outage on time and on target, at total direct cost of $22M CONTINUED TO MAINTAIN A STRONG BALANCE SHEET 3.5x2 net leverage, $445M liquidity Reduced net debt by $59M through lower net working capital, tax refund, and insurance recovery YEAR OVER YEAR GROWTH IN SALES VOLUMES See Appendix for Non-GAAP reconciliations 1. Includes $8M in insurance proceeds (tax adjusted). 2. As calculated in accordance with CLW banking agreements
5 Q2’26 VS Q2’25 Adjusted EBITDA Results from Continuing Operations ($ in millions) $39.9 -$20.1 $5.0 -$8.2 -$32.0 -$1.0 Q2'25 Adj. EBITDA Price/Mix Volume Costs/Other SGA Q2'26 Adj. EBITDA Lower paperboard and pulp market pricing Lewiston outage and war-related impact partly offset by cost reductions Cost actions Higher sales volumes and lower production
6 Q3 Outlook and 2026 Assumptions Q3 2026 Adjusted EBITDA: $20 to $30M 1 Shipments flat vs. Q2, higher production volumes Benefits from price increases No planned major outage costs, $3 to $5M additional war-related impact vs. Q2 FY 2026 Assumptions Revenue of $1.4 to $1.5B, projected to run full balance of year after Cypress Bend restructure $10 to $20M impact from recently announced price increases Offset by ~$70M carryover price decreases Major maintenance costs of $32 to $35M, reduced scope of Augusta outage to $5 to $6M in Q4’26, remaining spend of $10 to $11M in Q1’27 Productivity and restructuring actions mostly offsetting higher cost, including war-related impact of $20M to $25M Net working capital improvement of $20M, primarily inventory Capital expenditures of $65 to $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.
7 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 Cyclical industry driven by supply and demand Early recovery signs emerging Targeting 13% to 14% EBITDA margin across the cycle 40% to 50% FCF conversion1, or $100M+ annually 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
8 Exploring Options to Expand Our Product Offering Post consumer recycled content Developed and in market Support sustainability needs of CPG and QSR customers Compostable plate BPI certified at two locations Help plate converters meet retailer demand Lightweight folding carton Launched Velora in April Offer high-performance alternative to FBB imports Poly-free coatings / barriers Continuing to develop options in addition to current offering Serve demand for poly-free cup offerings Unbleached paperboard grade (CUK) Exploring lower capital cost solutions, in trial phase Help independent converters compete more effectively Recycled paperboard grade (CRB) Launched Circa in July Broaden offering for North American converter customers Initiative Status Objective
9 Capital Allocation Focused on Value Creation $70-80M Normalized annual maintenance capex, excluding large replacement projects 1-2x Target cross-cycle leverage ratio Diversify product portfolio Evaluate strategic M&A or other options Return capital through share buybacks Deleverage with free cash flow Investing to maintain the long-term performance of our assets
10 Long-Term Value Creation Priorities Sharp focus on improving and growing our paperboard business • De-levered balance sheet through tissue sale proceeds • Grow as a premier independent supplier to North American converters Well invested asset base to support future growth • High-quality U.S. asset base serving North American converters • Longstanding sustainability focus • Expand product portfolio through internal and external options Focused on optimizing business to deliver free cash flows • Improve operational performance • Invest to maintain competitiveness • Deploy capital to create long-term value
11 Appendix
12 Q1’26 VS Q2’26 Adjusted EBITDA Results from Continuing Operations ($ in millions) $1.9 -$19.5 -$0.5 -$8.2 -$4.7 $14.6 Q1'26 Adj. EBITDA Price/Mix Volume Costs/Other SGA Q2'26 Adj. EBITDA Higher paperboard sales and production Lewiston outage and war-related inflation, offset by no weather event Lower market pricing and changes in mix
13 Key Metrics June 30, 2026 March 31, 2026 June 30, 2025 Food service $ 173.0 $ 153.7 $ 166.1 Folding carton 132.5 124.9 147.6 Sheeting & distribution 37.1 38.9 39.9 Pulp and other 32.2 42.7 38.2 Net sales $ 374.8 $ 360.3 $ 391.8 Input cost (raw materials & energy) $ 164.9 $ 167.6 $ 174.5 Labor and overhead 144.4 121.7 128.0 Supply chain costs (principally freight) 44.1 39.6 39.0 Depreciation 22.0 22.4 (14.5) Other 10.2 9.9 21.8 Cost of sales $ 385.6 $ 361.2 $ 348.8 Paperboard sale volumes 328,722 302,918 304,713 Paperboard production volumes 316,267 292,479 323,489 Net sales price per ton $ 1,077 $ 1,101 $ 1,182 Quarter Ended
14 Financial Performance ($ IN MILLIONS, UNAUDITED) June 30, 2026 March 31, 2026 June 30, 2025 Net sales $ 374.8 $ 360.3 $ 391.8 Costs and expenses: Cost of sales 385.2 361.2 348.8 Selling, general and administrative expenses 21.1 20.6 26.1 Other operating charges, net (7.5) (11.1) 7.1 Total operating costs and expenses 398.7 370.7 382.1 Total income (loss) from operations (23.9) (10.4) 9.8 Total non-operating expense (6.2) (6.1) (4.2) Income (loss) from operations before income taxes (30.1) (16.5) 5.5 Income tax (benefit) provision (8.6) (3.7) 1.9 Income (loss) from continuing operations (21.5) (12.8) 3.6 Loss from discontinued operations, net of tax - - (0.9) Net income (loss) $ (21.5) $ (12.8) $ 2.7 Quarter Ended
15 Reconciliation of Adjusted EBITDA ($ IN MILLIONS, UNAUDITED) June 30, 2026 March 31, 2026 June 30, 2025 Net income (loss) $ (21.5) $ (12.8) $ 2.7 Add (deduct): Less: Loss from discontinued operations, net of tax - - (0.9) Income (loss) from continuing operations (21.5) (12.8) 3.6 Income tax benefit (8.6) (3.7) 1.9 Interest expense, net 5.1 5.0 3.9 Depreciation and amortization expense 23.2 23.4 23.0 Other operating charges, net (7.5) (11.1) 7.1 Other non-operating expense 1.1 1.1 0.3 Adjusted EBITDA from continuing operations $ (8.2) $ 1.9 $ 39.9 Adjusted EBITDA Margin -2.2% 0.5% 10.2% Quarter Ended
16 Reconciliation of Adjusted Net Income ($ IN MILLIONS, UNAUDITED) June 30, 2026 March 31, 2026 June 30, 2025 Net income (loss) $ (21.5) $ (12.8) $ 2.7 Add (deduct): Less: Loss from discontinued operations, net of tax - - (0.9) Income (loss) from continuing operations (21.5) (12.8) 3.6 Add back: Income tax benefit (8.6) (3.7) 1.9 Other operating charges, net (7.5) (11.1) 7.1 Adjusted income (loss) before tax (37.6) (27.7) 12.6 Normalized income provision (benefit) (9.4) (6.9) 3.2 Adjusted net income (loss) from continuing operations $ (28.2) $ (20.7) $ 9.5 Adjusted income (loss) from continuing operations, per diluted share (1.75)$ (1.29)$ 0.58$ Quarter Ended
17 Reconciliation 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$ ($ IN MILLIONS, UNAUDITED)