Clearwater Paper Reports Wider Net Loss and Sharp EBITDA Decline in Q1 2026

Clearwater Paper Corporation reported a wider net loss and significantly lower earnings in the first quarter of 2026, as pricing pressure and severe weather impacts weighed on performance.

Net sales declined to $360.3 million from $378.2 million in the prior-year period, despite a 5% increase in sales volumes to 302,918 tons. The company attributed the revenue decline primarily to lower market pricing, with average paperboard selling prices falling 7% year-on-year to $1,101 per ton.

The company reported a net loss of $12.8 million, or $0.80 per diluted share, compared with a net loss of $6.3 million, or $0.38 per share, in the first quarter of 2025. Loss from continuing operations widened to $12.8 million from $5.9 million a year earlier.

Adjusted EBITDA from continuing operations declined sharply to $1.9 million from $29.8 million in the prior-year quarter, reflecting the impact of lower pricing and weather-related disruptions, partially offset by cost reductions and insurance proceeds.

Operating results showed total operating costs and expenses of $370.7 million, exceeding net sales for the quarter. Interest expense rose to $5.0 million, while total non-operating expenses reached $6.1 million.

Cash flow from operations was marginally positive at $0.5 million, compared with $1.5 million in the prior year, while capital expenditures totaled $9.1 million. The company ended the quarter with $36.5 million in cash and cash equivalents and total assets of $1.57 billion.

During the quarter, Clearwater Paper launched Velora™, a lightweight folding carton paperboard, and announced a restructuring of its Cypress Bend, Arkansas facility, expected to reduce approximately 20% of roles and generate annual savings of $8 million to $12 million.

President and CEO Arsen Kitch said the company achieved solid operational execution and volume growth despite challenging industry conditions and a severe weather event in the southeastern United States.

Looking ahead, the company expects industry conditions to improve over the medium term, supported by demand growth, reduced imports and changes in domestic supply dynamics.