Clearwater Paper (CLW) Q1 2025 earnings summary

Executive summary

• Net sales rose 46% year-over-year to $378 million in Q1 2025, driven by the Augusta acquisition and operational improvements, while the company transitioned to a paperboard-focused business and completed the sale of its tissue operations.

• Adjusted EBITDA more than doubled to $30 million, at the high end of guidance, reflecting higher volumes, cost reduction initiatives, and Augusta integration synergies.

• Net loss from continuing operations was $6 million ($0.36 per diluted share), compared to a $2 million loss in Q1 2024, due to higher costs and integration expenses.

• Over 200 positions (10% of workforce) were eliminated, targeting $30–40 million in annual fixed cost savings.

• $11 million in share repurchases completed in Q1 2025 as part of a $100 million buyback program.

Financial highlights

• Q1 2025 net sales from continuing operations were $378 million, with a net loss of $6 million and adjusted EBITDA of $30 million, up from $14 million year-over-year.

• Sales volumes increased 55% to 289,487 tons, but average net selling price for paperboard fell 7% to $1,188/ton.

• SG&A as a percent of sales declined from 10.9% to 7.6% year-over-year.

• Cash and cash equivalents decreased to $44 million from $79.6 million at year-end 2024.

• Capital expenditures were $32.7 million in Q1 2025, with $80–90 million planned for the year.

Outlook and guidance

• Q2 2025 adjusted EBITDA expected at $35–45 million, with ~5% sequential growth in sales and production volumes.

• Full-year 2025 revenue projected at $1.5–$1.6 billion, with internal utilization around 85% and $30–40 million in fixed cost reductions.

• Capital expenditures expected at $80–90 million for 2025, with major maintenance costs of $45–50 million.

• Management targets full realization of Augusta mill synergies by end of 2026.

• Recent U.S. tariffs not expected to significantly impact FY25 results; ongoing evaluation of potential effects.