Clearwater Paper Corporation Reports Fourth Quarter and Full Year 2025 Results

Full Year 2025 Highlights

Clearwater Paper reported net sales of $1.6 billion, up 12% year-over-year, driven primarily by operating the Augusta facility for a full year. Sales volumes increased 14% to 1.24 million tons.

The company recorded a net loss from continuing operations of $53 million ($3.28 per diluted share), primarily due to a $48 million non-cash goodwill impairment, partially offset by insurance proceeds.

Adjusted EBITDA from continuing operations improved significantly to $107 million, compared to $36 million in 2024. The improvement was driven by:

• Over $50 million in fixed-cost reductions

• $16 million in SG&A savings (reducing SG&A from 8.4% to 6.5% of net sales)

• Lower input costs

Major planned maintenance outages were completed on schedule at a direct cost of approximately $50 million.

The company also:

• Successfully completed integration of the Augusta mill

• Finalized separation of the tissue business (completed ahead of schedule and below targeted costs)

• Repurchased approximately $17 million of shares, with $79 million remaining under its authorization

Fourth Quarter 2025 Results

Fourth quarter net sales were $386 million, essentially flat compared to Q4 2024.

Net income totaled $38 million ($2.39 per diluted share), compared to $199 million in Q4 2024, which had included a $307 million gain on the sale of the tissue division.

Adjusted EBITDA from continuing operations increased to $20 million, compared to $9 million in the prior year quarter, driven by:

• Higher sales volumes

• Cost reduction initiatives

• Lower input costs

• Insurance proceeds

These improvements were partially offset by lower pricing.

Sales volumes increased 4% year-over-year to 317,715 tons, while average net selling prices declined 3% to $1,139 per ton.

Pricing & Volume Trends

For full year 2025:

• Sales volumes increased 14% to 1.24 million tons

• Average net selling price declined 4% to $1,167 per ton

The company continues to operate in an oversupplied market environment with pricing pressure impacting margins.

Balance Sheet & Cash Flow

As of December 31, 2025:

• Cash and cash equivalents: $30.7 million

• Long-term debt: $345.5 million

• Net debt: $316.7 million

Operating cash flow for the full year was $12.3 million.

Capital expenditures totaled $88.8 million for 2025.

Operational & Strategic Updates

• Completed integration of Augusta paperboard facility

• Completed separation of consumer tissue division

• Executed cost reduction initiatives exceeding $50 million

• Improved SG&A efficiency

• Completed major maintenance outages on target

• Share repurchase program ongoing

No new acquisitions or mergers were announced in this release.

2026 Outlook & Industry Conditions

In early 2026, severe weather disruptions at Augusta and Cypress Bend facilities resulted in an estimated $20 million reduction in Adjusted EBITDA to date.

Management cited continued industry oversupply and margin pressure but expects a medium-term recovery supported by:

• Demand growth

• Lower imports

• Adjustments in domestic supply

The company remains focused on operational execution, cost control, capital discipline, and strengthening customer relationships.