Clearwater Paper Earnings Call Transcripts
Fiscal Year 2026
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Q3 adjusted EBITDA was $24 million, with price increases offsetting some Augusta disruption and cost inflation. Refinancing extends maturities to 2031; Q4 adjusted EBITDA guidance is $10 million-$20 million, while 2027 maintenance and Augusta investment needs are rising.
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Shipment volumes rose 8% year-over-year, but lower market pricing led to a net loss and negative adjusted EBITDA. Cost reductions, product launches, and price increases are expected to improve margins and cash flow as industry conditions recover.
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Shipment volumes rose 5% but net sales fell 5% year-over-year due to lower pricing, resulting in a $13M net loss and $2M adjusted EBITDA. Cost pressures from the Middle East conflict and industry oversupply persist, but restructuring and pricing actions aim to restore margins and cash flow.
Fiscal Year 2025
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2025 saw a 12% sales increase and $71M EBITDA improvement, driven by Augusta Mill integration and cost reductions. Industry headwinds persist, but price increases, new product launches, and disciplined capital allocation aim to restore margins and cash flow in 2026.
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Q3 adjusted EBITDA reached $18M, with year-to-date at $87M, driven by cost reductions and higher volumes. Net loss was $54M due to a $48M goodwill impairment. 2026 guidance includes $1.45B-$1.55B revenue, mid-80% utilization, and $65M-$75M in capex.
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Q2 saw strong results with $40M Adjusted EBITDA and 14% sales growth, driven by the Augusta acquisition and cost reductions. Guidance reflects major maintenance costs and stable demand amid mixed industry signals, with full-year revenue expected at $1.5B–$1.6B.
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Q1 2025 saw a 46% sales increase and $30M adjusted EBITDA, driven by the Augusta acquisition and cost reductions. Despite a net loss, operational improvements offset pricing and input cost headwinds. Guidance projects higher Q2 EBITDA and continued cost savings, with industry demand expected to recover.
Fiscal Year 2024
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Augusta acquisition and tissue business sale transformed the company into a paperboard-focused enterprise, significantly reducing debt and enabling growth. 2024 results were impacted by lower pricing and operational disruptions, but 2025 guidance anticipates cost savings, improved margins, and robust demand recovery.
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Q3 Adjusted EBITDA reached $64 million, in line with guidance despite hurricane impacts. The tissue business was sold for $1.06 billion, enabling significant deleveraging and a $100 million share repurchase program. 2025 targets include 8%-10% EBITDA margin and $50 million in cost savings.
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Q2 2024 saw 12% sales growth driven by the Augusta acquisition, but a major maintenance outage led to a net loss. Strategic moves include the $1.06B tissue business sale and focus on paperboard growth, with Q3 Adjusted EBITDA guidance of $58–$68M.
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The business operates two main segments—private-branded tissue and SBS paperboard—both benefiting from high utilization rates and disciplined capacity management. Recent acquisition of the Augusta mill enhances scale and geographic reach, with a focus on deleveraging and maintaining strong margins amid cyclical market conditions.