Clearwater Paper (CLW) Q2 2025 earnings summary

Executive summary

• Net sales rose 14% year-over-year to $392 million in Q2 2025, driven by the Augusta acquisition and higher shipment volumes, partially offset by lower average pricing and product mix changes.

• Net income from continuing operations was $4 million ($0.22 per diluted share), reversing a prior year loss, with improved cost performance and lower major maintenance expenses.

• Adjusted EBITDA improved to $40 million (10.2%–10.3% margin), up from negative $8.6 million to $9 million last year, reflecting cost reductions and higher volumes.

• The company completed the sale of its tissue operations in 2024; results are now reported as discontinued operations.

• Focus remains on operational execution, cost reduction, and maintaining a strong balance sheet to support strategic options.

Financial highlights

• Q2 2025 net sales: $392 million (up 14% year-over-year); first half net sales: $770 million (up 28%).

• Net income from continuing operations: $4 million ($0.22/share) vs. $42 million loss ($2.50/share) year-over-year.

• Adjusted EBITDA: $40 million (10.2%–10.3% margin); first half Adjusted EBITDA: $70 million.

• SG&A expenses down nearly 14% year-over-year to 6.7% of net sales.

• Paperboard sale volumes increased to 304,713 tons, up 12% year-over-year; average net selling price fell 3% to $1,182/ton.

Outlook and guidance

• Q3 2025 Adjusted EBITDA expected in the $10 million–$20 million range, reflecting major maintenance outage costs and flat to slightly lower production volumes.

• Full-year 2025 revenue expected at $1.5 billion–$1.6 billion, with $30 million–$40 million in cost savings and $80 million–$90 million in capital expenditures.

• Utilization rates projected to remain in the mid-80% range for 2025.

• Major maintenance costs of $45–$50 million expected for the year.

• Recent U.S. tariff changes and new tax legislation are not expected to materially impact 2025 results.