Clearwater Paper (CLW) Q4 2025 earnings summary

Executive summary

• Net sales reached $1.6 billion in 2025, up 12% year-over-year, driven by a 14% increase in shipments, primarily from the Augusta Mill integration and full-year operation.

• Adjusted EBITDA improved by $71 million to $107 million, reflecting strong cost control, execution, and over $50 million in fixed cost reductions, including $16 million in SG&A savings.

• Net loss from continuing operations was $53 million, or $3.28 per diluted share, mainly due to a non-cash goodwill impairment, partially offset by insurance proceeds.

• Share repurchases totaled $17 million, with $79 million remaining authorized; liquidity exceeded $400 million at year-end.

• Integration of the Augusta Mill and separation of the tissue business were completed ahead of schedule and below targeted costs.

Financial highlights

• Q4 2025 net sales were $386 million, flat year-over-year, with net income from continuing operations at $3 million, including $17 million in insurance proceeds.

• Full-year net loss from continuing operations was $53 million, primarily due to a non-cash goodwill impairment.

• Adjusted EBITDA for Q4 2025 was $20 million, above guidance midpoint, aided by cost reductions and insurance proceeds.

• Sales volumes for 2025 were 1,236,114 tons, up 14% year-over-year; average net selling price decreased 4% to $1,167 per ton.

• Net leverage ratio at year-end was 2.5x, with available liquidity of $439 million.

Outlook and guidance

• Q1 2026 adjusted EBITDA expected to be approximately break even due to operational disruptions and higher costs from severe weather, resulting in $15-$20 million incremental costs.

• 2026 revenue guidance is $1.4-$1.5 billion, with flat to modest shipment growth and a $70 million pricing headwind from 2025 carryover.

• Capital expenditures projected at $65-$75 million; $20 million working capital improvement expected, weighted to the back half of the year.

• Assumptions exclude impact from recent price increases and RISI's latest forecast; net productivity expected to offset 2%-3% input cost inflation.

• Management expects industry oversupply and low operating rates to pressure margins but anticipates medium-term recovery driven by demand growth, lower imports, and supply changes.