CLW

This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. Pricing proved to be a central topic during major fiber companies’ second-quarter earnings calls. Executives frequently cited higher transportation and raw material costs as reasons for significant price hikes from companies including Packaging Corporation of America, Smurfit Westrock and others, which have since prompted some blowback. Containerboard producers also noted signs of improving supply and demand dynamics. Pricing also was a theme for some slightly smaller or international paper and packaging companies. Here’s a roundup of key points from four of their earnings reports. Clearwater Paper’s Q2 shipment volumes were up 8% year over year. The company reduced net debt by $59 million in the quarter. “We are currently sold out across our network,” said CEO Arsen Kitch during a July 28 earnings call. The company posted a loss of $21.5 million for the quarter. The Spokane, Washington-based company recently announced its second $60 per ton price increase of 2026 for all products. Executives expect it will take a couple quarters for that to be recognized in Fastmarkets RISI’s index. However, the prior increase should result in a $50 million to $60 million annual improvement in EBITDA, Kitch explained. About half of the company’s volumes are tied to that pricing index. Regarding the ongoing industry oversupply of solid bleached sulfate, the company is “seeing some meaningful green shoots” in conditions, Kitch said. SBS shipment volumes year-to-date are up 6%. Manufacturers across the industry have reduced SBS production by a collective 300,000 tons since the beginning of the year, and “we're seeing evidence of substitution into SBS from other substrates,” Kitch said. Higher-than-expected transportation costs, mostly driven by the war with Iran, have had an impact. Clearwater intends to continue actions to reduce costs and improve margins. That includes restructuring its mill in Cypress Bend, Arkansas, and reducing the number of employees there by approximately 20%. “This action limits our network production to approximately 1.2 million tons per year, balancing supply with our current demand,” Kitch said. The restructuring is projected to reduce costs by $8 million to $12 million on an annualized basis. In July, Clearwater introduced a new coated recycled paperboard product, Circa, intended for folding carton and beverage carrier applications in the U.S. It complements the SBS portfolio and will enhance the company’s ability to serve customers across more end-use applications, Kitch said. For Finland-based Huhtamaki, which has 18 locations across North America, overall net sales in Q2 were relatively flat year over year at 1 billion euros. But North American net sales decreased by nearly 10% year over year. Adjusted EBITDA was down 2% year over year to 151.7 million euros. The flexible packaging segment was a leader for the company, with a nearly 11% year-over-year increase in net sales. Fiber packaging net sales increased 6.7% year over year. Foodservice dipped 1.3%, reflecting “a still very challenging market” that’s feeling effects from the war with Iran, including through reduced consumer confidence, said CEO Ralf Wunderlich during a July 23 earnings call. Wunderlich noted that the war presented numerous challenges, but Huhtamaki was able to secure raw materials to continue supplying customers. The company also ensured employee safety at its six sites in the Middle East, and all sites have continued to operate. He noted steep increases in energy and logistics costs. Huhtamaki continues work to address “operational issues” in North America, Wunderlich said, mainly coming from starting up expansions in Hammond, Indiana, and Paris, Texas. The company also has cut 140 North American employees in the last year. “Overall, the market in North America isn’t growing a lot,” he said. U.K.-based Mondi, which has 13 locations across North America, offered a look at its first half of the year, showing a 1.7% increase in revenue compared with the first half of 2025. Revenue for the corrugated packaging segment came in at 1.98 billion euros, a 4.4% year-over-year increase, while the flexible packaging segment charted a 1.1% year-over-year decrease to just over 2 billion euros. Underlying EBITDA dropped nearly 33% to 379 million euros, mainly due to margin pressure from lower average selling prices and higher input costs, said CEO Andrew King during a July 30 earnings call. Containerboard volumes were up about 12% and box volumes grew 2%. Executives cited a volatile market environment and higher input costs, including for energy, due to the war. As such, they implemented a series of price increases across all key fiber grades. “Although not sufficient to fully offset the impact of the cost increases in Q2, we do see further benefits from these price increases into the second half,” King said. In light of the prolonged industry downturn, Mondi is implementing optimization measures. This includes closing six converting sites and cutting 580 employees by year’s end. “2026 is a transition year,” said Sylvamo CEO John Sims during an Aug. 7 earnings call. The Memphis, Tennessee-based company launched its “lean transformation” intended to improve operations and results. Sylvamo’s net loss grew to $11 million during Q2 compared with a net loss of $3 million in Q1. Net sales increased 1.3% year over year. Total adjusted EBITDA was $60 million, down almost 27% year over year. When Sylvamo spun off from International Paper in 2021, it agreed to purchase certain products from IP’s Riverdale mill in Selma, Alabama. Last year, the companies altered the agreement to end this May as IP started to convert a machine there to produce containerboard instead of uncoated freesheet. IP confirmed in its Q2 earnings release that the mill conversion is complete. Sylvamo executives discussed impacts from the contract termination, projecting a sales hit in the second half of the year. They estimate that the conversion removed 7% of the North American industry’s annual UCFS supply from the market. Sylvamo continues to implement UCFS price increases across regions and expects to see realization continue through year’s end. Executives anticipate a price and mix benefit of $75 million to $85 million in the second half of the year compared with the first. They also expect improvements in operations and other costs in the back half of the year, despite volume offsets from lost Riverdale supply and from a longer-than-expected outage at its Eastover, South Carolina, mill to complete paper machine investments. The upgrades there will add 60,000 tons of annual UCFS capacity — which won’t completely cover the 90,000 tons lost from the IP contract. Recommended Reading Packaging suppliers share mid-year results and reflections

Interested in Clearwater Paper Corporation? Here are five stocks we like better. Clearwater Paper reported a difficult second quarter: continuing-operations net loss was $21 million, or $1.33 per share, and adjusted EBITDA was negative $8 million. Lower pricing, a $22 million Lewiston maintenance outage, and roughly $5 million in Iran-related costs outweighed an 8% increase in shipments. Market conditions and pricing are improving: the company announced two $60-per-ton SBS price increases and expects $50 million to $60 million in annualized EBITDA benefit once fully implemented, with $10 million to $20 million expected in the second half of 2026. Clearwater expects a stronger second half while reducing costs and debt: third-quarter adjusted EBITDA guidance is $20 million to $30 million, and the company maintained 2026 revenue guidance of $1.4 billion to $1.5 billion. It also reduced net debt by $59 million in the quarter, expects positive 2026 free cash flow, and projects $8 million to $12 million in annual savings from Cypress Bend restructuring. Clearwater Paper (NYSE:CLW) reported a second-quarter net loss from continuing operations of $21 million, or $1.33 per diluted share, as lower market pricing and a major maintenance outage outweighed higher shipment volumes and insurance recoveries. Net sales totaled $375 million in the quarter. Shipment volumes rose 8% from a year earlier, while market pricing declined 9%, as measured by the RISI index. Adjusted EBITDA was negative $8 million, within the company’s guidance range. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Chief Executive Officer Arsen Kitch said the company completed a major maintenance outage at its Lewiston, Idaho, facility in June, on time and on target, with direct costs of about $22 million. He also cited higher-than-expected transportation costs, partly tied to the Iran conflict, as a pressure on quarterly results. Chief Financial Officer Sherri Baker said the Iran conflict added roughly $5 million in chemical and transportation costs during the second quarter compared with the first quarter. Clearwater expects another $3 million to $5 million of pressure in the third quarter and estimated that the conflict could reduce full-year results by $20 million to $25 million. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Oil-derived chemicals, particularly polyethylene, have experienced cost pressure, while transportation expenses have been affected by fuel prices and driver shortages, Baker said. The company expects some supply-chain improvement during the fourth quarter. Clearwater reduced net debt by $59 million during the quarter and by $50 million year to date. The improvement was driven by a $26 million cash tax refund received in the second quarter, $15 million in insurance proceeds and lower net working capital. → 2 Stocks Built to Thrive If Inflation Refuses to Fade The company has recovered $55.5 million under representation and warranty insurance related to its Augusta acquisition, including $32.5 million recovered year to date. About $25 million remains available under the policy’s $105 million limit, and Clearwater said it will continue pursuing a final settlement. Baker said the company expects positive free cash flow for 2026, supported by insurance recoveries, tax refunds and a targeted $20 million to $30 million reduction in working capital. Clearwater is also working with its existing bank partners to extend debt maturities before its credit facilities become current. Kitch said Clearwater is seeing “meaningful green shoots” in solid bleached sulfate, or SBS, market conditions. Company SBS shipment volumes were up 6% year to date, while industry imports declined 11%, according to management’s comments. RISI has reported approximately 300,000 tons of reduced SBS production across the industry since the start of the year. RISI forecasts SBS operating rates will rise from the low-80% range in the first quarter to 88% in the second quarter and above 90% by year-end, Kitch said. Clearwater said it is sold out across its network and oversold on extruded capacity serving the cup market. In response to cost pressure and improving industry conditions, Clearwater announced a $60-per-ton price increase in June and a second $60-per-ton increase scheduled to take effect in August. RISI’s latest report reflected a $40-per-ton increase in folding carton pricing and a $60-per-ton increase for cup stock. Management expects the first Clearwater price increase and the RISI index movements to produce a $50 million to $60 million annualized EBITDA improvement once fully reflected in results. The company expects $10 million to $20 million of that benefit in the second half of 2026, with the full run rate expected by early 2027. About half of Clearwater’s volume is tied to the RISI index, with the remainder subject to direct market negotiations. Clearwater restructured its Cypress Bend, Arkansas, facility during the quarter, reducing roughly 20% of roles at the mill. The action is expected to yield $8 million to $12 million in annualized savings and limits the company’s network production to approximately 1.2 million tons annually. Kitch said Clearwater has removed more than $60 million of fixed costs from its system since 2024, including mill restructurings and lower SG&A spending. Second-quarter SG&A was 5.6% of net sales, below the company’s targeted range of 6% to 7%. The company also launched Circa, a coated recycled board product line for folding-carton and beverage-carrier applications. Circa will be manufactured by Green Paper at its Monterrey, Mexico, facility and sold through Clearwater’s distribution network. Kitch said the arrangement is intended to provide independent converters with an additional paperboard option without channel conflict from integrated suppliers. Clearwater is also evaluating production of coated unbleached kraft, or CUK, at Cypress Bend. While a full capital solution would cost about $60 million, management said it is testing a lower-cost alternative requiring less than $10 million that could fit within the company’s normal capital spending budget. For the third quarter, Clearwater expects adjusted EBITDA of $20 million to $30 million. Paperboard shipments are expected to be roughly flat with the second quarter, while production is projected to increase as the company rebuilds inventories after the Lewiston outage. No major maintenance outages are planned for the third quarter. For 2026, Clearwater maintained its revenue expectation of $1.4 billion to $1.5 billion, with moderate shipment growth. The company expects approximately $70 million of carryover impact from 2025 market-driven price declines, partly offset by $10 million to $20 million of pricing improvement in the second half of 2026. Clearwater reduced its forecast for total direct maintenance-outage costs this year to $32 million to $35 million from a previous estimate of $45 million to $50 million. The company narrowed the scope of its Augusta outage planned for the fourth quarter, deferring $10 million to $11 million of work to the first quarter of 2027. It also plans a Cypress Bend outage in the fourth quarter costing an estimated $5 million to $7 million. Clearwater Paper Corporation is an independent manufacturer of premium tissue and pulp and paperboard products for private-label and commercial customers in North America. The company operates through two core segments: Consumer Products, which produces bathroom tissue, paper towels and other away-from-home tissue products under private-label contracts; and Pulp & Paperboard, which supplies bleached paperboard used in folding cartons, foodservice packaging and specialty paper applications. The Consumer Products segment services retail grocers, warehouse clubs, online merchants and janitorial distributors, leveraging multiple converting facilities to produce roll and folded tissue items for both household and institutional use. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Clearwater Paper Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Shipment volumes grew 8% year-over-year, driven by strong performance in the foodservice segment and growth with strategic customers. Management attributed the adjusted EBITDA loss of -$8 million to a 9% decline in market pricing and higher-than-expected transportation costs linked to the Iran conflict. The company restructured its Cypress Bend facility, reducing roles by 20% to align network production with current demand of approximately 1.2 million tons. SBS industry operating rates are improving from the low 80% range in Q1 toward a forecast of over 90% by year-end, supported by 300,000 tons of reduced industry production. Management noted that current margins remain roughly 10% below levels required to support long-term investment in capital-intensive assets across the cycle. The launch of the CIRCA product line via a manufacturing partnership with Greenpaper aims to capture the non-integrated CRB market without channel conflict. Strategic positioning is shifting toward becoming a preferred independent supplier by offering a full range of substrates including SBS, CRB, and potentially CUK. Q3 adjusted EBITDA is projected between $20 million and $30 million, assuming flat shipments but higher sequential production following the Lewiston outage. Management expects a $50 million to $60 million annual EBITDA improvement from the June price increase and RISI index changes as they flow through the P&L over several quarters. The Iran conflict is expected to have a total negative impact of $20 million to $25 million in 2026, primarily through chemical and transportation cost pressure. Capital expenditure for 2026 is targeted at $65 million to $75 million, focusing on asset maintenance and exploring a low-cost $10 million solution for CUK production. Long-term financial targets include delivering cross-cycle EBITDA margins of 13% to 14% and generating over $100 million in annual free cash flow. The Augusta maintenance outage was split, with $5 million to $6 million occurring in the fourth quarter of 2026 and the remainder in early 2027. and the remainder deferred to Q1 2027 to allow new leadership more preparation time. Year-to-date insurance recoveries from representation and warranty claims related to the Augusta acquisition totaled $32.5 million, with $25 million remaining on the policy limit. Net debt was reduced by $59 million in the quarter, aided by a $26 million tax refund and improved working capital management. Management highlighted an 'oversold' position on extruded capacity, which primarily serves the cup market, indicating tight supply in specific high-demand segments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that backlogs remain strong and they are not seeing signs of trailing orders that would indicate significant pre-buying ahead of price hikes. Growth is being driven by new and existing programs in foodservice rather than just market fluctuations. The partnership allows Clearwater to offer a 'wholesome solution' to independent converters who currently must buy CRB from integrated competitors. Management estimates the non-integrated CRB market is about 20% of the industry and aims to capture a meaningful portion of that share. The company is pivoting from a $60 million full capital solution to a lower-cost alternative under $10 million to achieve faster market entry. Trials are currently underway to ensure the product meets or exceeds the quality of existing market offerings before a full launch.

This article first appeared on GuruFocus. Revenue: $375 million with 8% shipment growth offset by a 9% decline in market pricing. Net Loss: $21 million or $1.33 per diluted share, including $15 million of insurance proceeds. Adjusted EBITDA: Negative $8 million for the quarter. SG&A Expenses: 5.6% of net sales, below the targeted range of 6% to 7%. Net Debt Reduction: Reduced by $59 million in the quarter and $50 million year-to-date. Major Maintenance Outage Cost: $22 million at the Lewiston, Idaho facility. Cost Reduction from Restructuring: Expected annual savings of $8 million to $12 million from Cypress Bend facility restructuring. Insurance Recovery: $15 million received in the quarter, $32.5 million year-to-date. Third Quarter EBITDA Outlook: Expected to be $20 million to $30 million. Full Year Revenue Outlook: $1.4 billion to $1.5 billion with modest shipment growth. Capital Expenditures: Expected to be $65 million to $75 million for the year. Warning! GuruFocus has detected 3 Warning Signs with CLW. Is CLW fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Clearwater Paper Corp (NYSE:CLW) reported an 8% year-over-year growth in shipment volumes for the second quarter. The company successfully completed a major maintenance outage at its Lewiston, Idaho facility on time and within budget. Clearwater Paper Corp (NYSE:CLW) reduced net debt by $59 million in the quarter and by $50 million year-to-date. The launch of the new CRD product line, Circa, aligns with the company's strategy to offer a broader product range to North American converter customers. The company is implementing a $60 per ton price increase, which is expected to improve EBITDA by $50 million to $60 million annually. Clearwater Paper Corp (NYSE:CLW) faced a 9% year-over-year decline in market pricing, impacting overall revenue. Adjusted EBITDA for the quarter was negative $8 million, reflecting financial challenges. Higher than expected transportation costs, partly driven by geopolitical conflicts, negatively impacted financial performance. The company continues to face substantial cost pressure and margin levels that do not support long-term investment. The Iran conflict has led to increased costs in chemicals and transportation, with an estimated negative impact of $20 million to $25 million for the year. Q: Do you have a view on what free cash flow will be for this year, given the momentum in 2Q and some of the pricing? A: Sherri Baker, CFO, stated that they expect free cash flow to be positive, driven by insurance proceeds, tax refunds, and working capital improvements, offset by capital and interest expenses. Q: On the tax refunds, what's left at this juncture? A: Sherri Baker explained that they received $4 million in the first quarter and $26 million in the second quarter, with a small net payable remaining. Q: Can you talk about the maintenance outage expense for the year and the drivers behind the reduction? A: Arsen Kitch, CEO, mentioned that the Augusta outage was split into two parts, with critical tasks in October and the rest in January, allowing more preparation time and leadership changes at the mill. Q: Can you provide an update on the collaboration with Green Papers and its strategic impact? A: Arsen Kitch highlighted that the collaboration aims to offer a complete solution to independent converter customers, with potential volume capture in the CRB market, and they are exploring a lower-cost solution for CUK production. Q: What gives you confidence that the bleached board demand increase is not just pre-buying ahead of price hikes? A: Arsen Kitch noted that the growth is driven by strategic customer programs and strong backlogs, indicating genuine demand rather than pre-buying. Q: How should we think about the financial contribution from the new CRB arrangement? A: Arsen Kitch stated it's too early to quantify the financial impact, as it depends on market traction in the coming quarters. Q: Can you explain the volume guide for higher production but flat shipments? A: Arsen Kitch explained that the increase in production is due to the absence of downtime from the Lewiston maintenance outage in Q2, while shipments remain flat. Q: How do you view the impact of tariffs on product imports from Canada? A: Arsen Kitch mentioned that the impact of tariffs is difficult to predict, but they are monitoring the situation closely, considering the potential effects on the North American market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SPOKANE, Wash., July 28, 2026--(BUSINESS WIRE)--Clearwater Paper Corporation (NYSE:CLW), a premier independent supplier of bleached paperboard to North American converters, today reported financial results for the second quarter ended June 30, 2026. SECOND QUARTER HIGHLIGHTS Net sales of $375 million versus $392 million in the second quarter of 2025, with lower market pricing partially offset by volume growth of 8% Net loss of $21 million, or $1.33 per diluted share versus net income of $3 million, or $0.17 per diluted share in the second quarter of 2025 Negative Adjusted EBITDA from continuing operations of $8 million versus positive $40 million in the second quarter of 2025 primarily driven by lower market pricing and timing of the Lewiston, Idaho planned major maintenance outage Completed Lewiston, Idaho planned major maintenance outage on time and on target at a total direct cost of $22 million Restructured Cypress Bend, Arkansas facility, resulting in a reduction of approximately 20% of roles and expected annual savings of $8 to $12 million Reduced net debt in the quarter by $59 million and $50 million year to date, driven by net working capital reductions, tax refunds and additional representation and warranty insurance proceeds "We executed well during the second quarter, successfully completing the Lewiston major maintenance outage while reducing costs at our Cypress Bend facility. We delivered significant volume growth sequentially and versus prior year as we continue to maintain and improve share with our key strategic customers. We also significantly reduced our net debt during the quarter while continuing to invest in our assets," said Arsen Kitch, president and chief executive officer. OVERALL RESULTS For the second quarter of 2026, Clearwater Paper reported net sales of $375 million, compared to $392 million in the second quarter of 2025. The company reported a net loss from continuing operations of $21 million, or $1.33 per diluted share for the quarter, compared to net income from continuing operations of $4 million, or $0.22 per diluted share, in the prior‑year period. Adjusted EBITDA from continuing operations was negative $8 million for the second quarter of 2026 compared to positive of $40 million in the second quarter of 2025. The decrease in Adjusted EBITDA from continuing operations was due to the timing of our major maintenance outage at our Lewiston facility and reduced sales prices offset by higher sales volumes. The Lewiston outage occurred in the third quarter of 2025 as compared to the second quarter of this year. For the six months of 2026, Clearwater Paper reported net sales of $735 million compared to $770 million for the six months of 2025. The company reported a net loss from continuing operations of $34 million, or $2.13 per diluted share for the six months of 2026, compared to a net loss from continuing operations of $2 million, or $0.14 per diluted share, in the prior‑year period. Adjusted EBITDA from continuing operations was negative $6 million for the six months of 2026 compared to positive $70 million in the six months of 2025. The decrease in Adjusted EBITDA from continuing operations was due to the timing of our major maintenance outage at our Lewiston facility, the impact of a weather event during the first quarter of 2026 and reduced sales prices offset by higher sales volumes. Sales volumes and prices: Sales volumes were 328,722 tons in the second quarter of 2026, an increase of 8% compared to 304,713 tons in the second quarter of 2025. Sales volumes were 631,640 tons in the first six months of 2026, an increase of 6% compared to 594,200 tons in the first six months of 2025. Paperboard average net selling price decreased 9% to $1,077 per ton for the second quarter of 2026, compared to $1,182 per ton in the second quarter of 2025. Paperboard average net selling price decreased 8% to $1,089 per ton for the first six months of 2026, compared to $1,185 per ton in the first six months of 2025. COMPANY OUTLOOK "We are seeing early signs of improvement in SBS industry conditions, with volume growth, lower imports, and increased operating rates. While RISI has recently reflected an increase in SBS pricing, it remains below levels necessary to generate acceptable returns. We continue to focus on actions within our control, including cost reduction, operational execution, and implementation of previously announced price increases. We believe that these actions will support an improvement in our financial results in the long run," concluded Kitch. WEBCAST INFORMATION Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Time on July 28, 2026. A live webcast and accompanying supplemental information will be available on the company's website at www.clearwaterpaper.com. A replay of the conference call will be available on the website beginning at 5:00 p.m. Pacific Time the same day. ABOUT CLEARWATER PAPER CORPORATION Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters. Headquartered in Spokane, Wash., our team produces high-quality paperboard that provides sustainable packaging solutions for consumer goods and food service applications. For additional information, please visit our website at www.clearwaterpaper.com. USE OF NON-GAAP MEASURES In this press release, the company presents certain non-GAAP financial information for the second quarter and first six months of 2026 and 2025, including adjusted net income (loss) from continuing operations and Adjusted EBITDA from continuing operations. Because these amounts are not in accordance with GAAP, reconciliations to net income (loss) from continuing operations and Adjusted EBITDA from continuing operations as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP metrics because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses Adjusted EBITDA from continuing operations: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to Adjusted EBITDA from continuing operations to measure the company's compliance with certain covenants. Non-GAAP measures may differ from similarly titled measures of other companies. FORWARD-LOOKING STATEMENTS This press release contains certain "forward-looking" statements within the meaning of Section 27A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the company’s expectations about the outlook for the next quarter, industry supply and demand conditions, pricing trends, market recovery timing, operating performance, cost reduction initiatives, restructuring outcomes, insurance recoveries, operational execution, import conditions, market share, and the company’s ability to execute its strategy and strengthen customer relationships amid current market conditions. The company’s actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this press release. Factors that could cause or contribute to such material differences in actual results include, but are not limited to: our inability to realize the expected benefits of the Augusta, Georgia paperboard manufacturing facility acquisition, including anticipated financial results, due to integration challenges or other factors; unexpected costs, charges or expenses resulting from the sale of our consumer products division (tissue business) and the related restructuring initiatives; competitive pricing pressures for our products arising from capacity additions, demand reduction and market conditions; the loss of, changes in prices for, or reduction in, orders from significant customers; changes in customer preferences, industry consolidation and vertical integration; changes in the cost and availability of wood fiber, pulp, energy, chemicals, packaging and transportation services; cyclical industry conditions and broader U.S. and global economic conditions; manufacturing or operating disruptions; labor disruptions; reliance on a limited number of suppliers and service providers; cyber-security risks; environmental liabilities and litigation, including PFAS-related claims involving our Augusta facility; our ability to execute our growth, expansion and operational efficiency initiatives and capital projects; changes in expenses, required contributions or withdrawal costs associated with our pension plans; our ability to attract and retain qualified personnel; our ability to service our debt obligations and comply with debt covenants; changes in banking relationships or credit ratings; and changes in laws, regulations or industry standards affecting our business, as well as other risks discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements based on new developments or changes in the company’s expectations after the date of this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260728832956/en/ Contacts Clearwater Paper CorporationInvestors contact: [email protected] 509-344-5906News media: Virginia Aulin, Senior Vice President, Human Resources and Public [email protected]

SPOKANE, Wash., April 28, 2026--(BUSINESS WIRE)--Clearwater Paper Corporation (NYSE:CLW), a premier independent supplier of bleached paperboard to North American converters today reported financial results for the first quarter ended March 31, 2026. FIRST QUARTER HIGHLIGHTS Net sales of $360 million versus $378 million in the first quarter of 2025, with volume up 5%, offset by lower market pricing Net loss of $13 million, or $0.80 per diluted share versus net loss of $6 million, or $0.38 per diluted share in the first quarter of 2025 Adjusted EBITDA from continuing operations of $2 million versus $30 million in the first quarter of 2025 primarily due to lower market pricing and severe weather impacts Launched Velora™ a new lightweight folding carton paperboard engineered to deliver dependable performance, higher yield and strong value for everyday packaging Announced restructuring of Cypress Bend, Arkansas facility in April, resulting in reduction of approximately 20% of roles and expected annual savings of $8 to $12 million Received $17 million in additional representation and warranty insurance proceeds, pursuing claims against $50 million of remaining policy limit "We delivered solid operational execution during the first quarter, with our team doing an outstanding job managing through a severe weather event in the Southeast. We also delivered healthy volume growth that outpaced the market even as we navigated a challenging industry environment," said Arsen Kitch, president and chief executive officer. OVERALL RESULTS For the first quarter of 2026, Clearwater Paper reported net sales of $360 million, compared to $378 million in the first quarter of 2025. The company reported a net loss from continuing operations of $13 million, or $0.80 per diluted share for the quarter, compared to a net loss of $6 million, or $0.36 per diluted share, in the prior‑year period. Adjusted EBITDA from continuing operations was $2 million for the first quarter of 2026 compared to $30 million in the first quarter of 2025. The increase in net loss was primarily driven by lower pricing and the impact of a weather event during the first quarter of 2026, partially offset by insurance proceeds and cost reductions. The decrease in Adjusted EBITDA primarily reflects lower pricing and weather‑related impacts, partially offset by reduced costs. Sales volumes and prices: Sales volumes were 302,918 tons in the first quarter of 2026, an increase of 5% compared to 289,487 tons in the first quarter of 2025. Paperboard average net selling price decreased 7% to $1,101 per ton for the first quarter of 2026, compared to $1,188 per ton in the first quarter of 2025. COMPANY OUTLOOK "We are focused on items within our control, namely reducing costs and maintaining share with our strategic customers, while anticipating an improvement in industry conditions. Today’s operating rates and recent increases in input costs are resulting in margins and cash flows that do not support long-term investments in our industry’s capital-intensive assets. We believe that a combination of demand growth, lower imports, and changes in net domestic supply will drive a recovery in the medium term," concluded Kitch. WEBCAST INFORMATION Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Time on April 28, 2026. A live webcast and accompanying supplemental information will be available on the company's website. A replay of the conference call will be available on the website beginning at 5:00 p.m. Pacific Time the same day. ABOUT CLEARWATER PAPER CORPORATION Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters. Headquartered in Spokane, Wash., our team produces high-quality paperboard that provides sustainable packaging solutions for consumer goods and food service applications. For additional information, please visit our website at www.clearwaterpaper.com. USE OF NON-GAAP MEASURES In this press release, the company presents certain non-GAAP financial information for the first quarter of 2026 and 2025, including adjusted net income (loss) from continuing operations and Adjusted EBITDA from continuing operations. Because these amounts are not in accordance with GAAP, reconciliations to net income (loss) from continuing operations and Adjusted EBITDA from continuing operations as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP metrics because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses Adjusted EBITDA from continuing operations: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to Adjusted EBITDA from continuing operations to measure the company's compliance with certain covenants. Non-GAAP measures may differ from similarly titled measures of other companies. FORWARD-LOOKING STATEMENTS This press release contains certain "forward-looking" statements within the meaning of Section 27A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the company’s expectations about the outlook for the next quarter, industry supply and demand conditions, pricing trends, market recovery timing, operating performance, cost reduction initiatives, restructuring outcomes, insurance recoveries, operational execution, import conditions, market share, and the company’s ability to execute its strategy and strengthen customer relationships amid current market conditions. The company’s actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this press release. Factors that could cause or contribute to such material differences in actual results include, but are not limited to: our inability to realize the expected benefits of the Augusta, Georgia paperboard manufacturing facility acquisition, including anticipated financial results, due to integration challenges or other factors; unexpected costs, charges or expenses resulting from the sale of our consumer products division (tissue business) and the related restructuring initiatives; competitive pricing pressures for our products arising from capacity additions, demand reduction and market conditions; the loss of, changes in prices for, or reduction in, orders from significant customers; changes in customer preferences, industry consolidation and vertical integration; changes in the cost and availability of wood fiber, pulp, energy, chemicals, packaging and transportation services; cyclical industry conditions and broader U.S. and global economic conditions; manufacturing or operating disruptions; labor disruptions; reliance on a limited number of suppliers and service providers; cyber-security risks; environmental liabilities and litigation, including PFAS-related claims involving our Augusta facility; our ability to execute our growth, expansion and operational efficiency initiatives and capital projects; changes in expenses, required contributions or withdrawal costs associated with our pension plans; our ability to attract and retain qualified personnel; our ability to service our debt obligations and comply with debt covenants; changes in banking relationships or credit ratings; and changes in laws, regulations or industry standards affecting our business, as well as other risks discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2025. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements based on new developments or changes in the company’s expectations after the date of this press release.al economies and in general economic conditions in the regions and industries in which we operate; increased regulation of retaliatory trade actions in response to announced or proposed U.S. tariffs, including potential impact on costs, structure, supply chains, or consumer demand; cyclical industry conditions; manufacturing or operating disruptions, including equipment malfunctions and damage to the company’s manufacturing facilities; the loss of, changes in prices in regard to, or reduction in, orders from a significant customer; changes in the cost and availability of wood fiber and wood pulp; changes in energy, chemicals, packaging and transportation costs and disruptions in transportation services impacting the company’s ability to receive inputs or ship products to customers; reliance on a limited number of third-party suppliers, vendors and service providers required for the production of the company’s products and the company’s operations; changes in customer product preferences and competitors’ product offerings; changes in labor contracts, including any related wage adjustments; labor disruptions; cyber-security risks; larger competitors having operational, financial and other advantages; consolidation and vertical integration of converting operations in the paperboard industry; the company’s ability to execute on the company’s growth and expansion strategies; the company’s ability to successfully execute capital projects and other activities to operate the company’s assets, including effective maintenance, implement the company’s operational efficiencies and realize higher throughput or lower costs; IT system disruptions and IT system implementation failures; changes in expenses, required contributions and potential withdrawal costs associated with the company’s pension plans; environmental liabilities or expenditures and climate change; risks and costs associated with new or ongoing environmental litigation, including PFAS related claims or regulatory actions affecting recently acquired facilities; the company’s ability to attract, motivate, train and retain qualified and key personnel; the company’s ability to service the company’s debt obligations and restrictions on the company’s business from debt covenants and terms; changes in the company’s banking relations, or in the company’s customer supply chain financing; negative changes in the company’s credit agency ratings; changes in laws, regulations or industry standards affecting the company’s business; and other risks and uncertainties described from time to time in the company’s public filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2025. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements based on new developments or changes in the company’s expectations after the date of this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260428815117/en/ Contacts Clearwater Paper Corporation Investors contact: [email protected] 509-344-5906 News media: Virginia Aulin, Senior Vice President, Human Resources and Public Affairs 509-344-5967 [email protected]

Management attributed the 5% net sales decline to lower market pricing, which more than offset a 5% increase in shipment volumes achieved through share gains in foodservice. The company implemented a restructuring at the Cypress Bend mill, reducing headcount by 20% to lower the annual cost base by $8 million to $12 million while industry conditions remain soft. Management believes the SBS market is stabilizing as it has become the low-cost substrate on a per-square-foot basis, leading to substitution effects and lower import competition. Current industry capacity exceeds demand by over 10%, but management estimates recent industry-wide capacity reductions have already addressed approximately 50% of this excess supply. Operational performance in Q1 was significantly impacted by a $15 million weather-related headwind in the Southeast, though customer service disruptions were minimized. The company launched Velora, a lightweight folding carton brand, specifically to compete with imported Folding Boxboard (FBB) and provide customers with a versatile alternative to traditional SBS. Management expects Q2 adjusted EBITDA to range from breakeven to negative $10 million, primarily due to a $22 million to $24 million planned maintenance outage at the Lewiston facility. The company anticipates $3 million to $5 million in quarterly cost headwinds from Middle East conflict-driven volatility in chemical, wood, and diesel prices until global supply chains normalize. A $60 per ton price increase on extruded products is effective in May, supported by a 'sold-out' position and strong backlogs in the cup and polycoated business segments. Full-year guidance assumes a path to breakeven or better free cash flow, supported by $20 million to $30 million in targeted working capital improvements and expected insurance recoveries. Management is targeting a return to cross-cycle EBITDA margins of 13% to 14% once industry operating rates exceed the 90% threshold forecasted by RISI for late 2026. The company received $17.5 million in representation and warranty insurance proceeds during Q1 and continues to pursue claims against the remaining $50 million policy limit. Management is evaluating a $60 million investment to convert capacity to Coated Unbleached Kraft (CUK) but noted the decision is contingent on balance sheet strength and cash flow timing. A new 4-year labor agreement at the Lewiston mill was ratified, providing competitive wages while granting management significant additional operational flexibility. The company intends to refinance or extend its 2020 notes and ABL facility before they go current in late 2027 and late 2026, respectively. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified that they will run at a reduced capacity of 1.2 million tons (vs 1.4 million tons total) to ensure profitable sales while the market remains oversupplied. They noted that industry-wide capacity cuts of 280,000 to 300,000 tons have already occurred, representing about half of the required correction to reach 90% utilization. The $3 million to $5 million quarterly headwind is a sequential comparison driven by chemicals, diesel, and the transportation component of wood costs. Management is attempting to mitigate these costs through the $60 per ton price increase on extruded products, which are more chemical-intensive due to polycoating. The $60 million CUK conversion at Cypress Bend is 'engineered and ready' but currently viewed as a capital allocation challenge given the goal of remaining cash flow neutral. For Coated Recycled Board (CRB), management is exploring M&A or partnerships rather than mill conversion, as SBS mills are structurally difficult to convert to recycled substrates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Net Sales: $360 million, down approximately 5% compared to the first quarter of 2025. Net Loss: $13 million or $1.29 per diluted share from continuing operations. Adjusted EBITDA: $2 million, slightly above guidance of breakeven. Weather Impact on EBITDA: Approximately $15 million due to weather events at mills. Cost Reduction from Restructuring: Expected $8 million to $12 million annually from Cypress Bend mill restructuring. Insurance Proceeds: $17.5 million received in the first quarter, with over $40 million total received. SG&A as Percentage of Sales: Below target range of 6% to 7%. Quarterly Cost Headwinds: $3 million to $5 million from increased chemical, wood, and diesel costs. Second Quarter EBITDA Outlook: Breakeven to negative $10 million, impacted by major maintenance outage costs of $22 million to $24 million. Full Year Revenue Guidance: $1.4 billion to $1.5 billion. Capital Expenditures: $65 million to $75 million for the year. Targeted Working Capital Improvement: $20 million to $30 million. Warning! GuruFocus has detected 4 Warning Signs with CLW. Is CLW fairly valued? Test your thesis with our free DCF calculator. Release Date: April 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Clearwater Paper Corp (NYSE:CLW) increased shipment volumes by 5% in a competitive market environment. The company launched Velora, a new lightweight folding carton paperboard brand, to compete with imported FBB. Clearwater Paper Corp (NYSE:CLW) restructured its Cypress Bend facility, reducing roles by 20% and expecting annual cost savings of $8 million to $12 million. The Lewiston, Idaho union ratified a new four-year labor agreement, providing flexibility in mill operations. The company received $17.5 million in additional insurance proceeds, contributing to a total of over $40 million in recoveries. Net sales were down 5% compared to the prior year due to lower market pricing. Adjusted EBITDA was only $2 million, slightly above breakeven, impacted by $15 million in weather-related disruptions. The company is facing significant cost pressures from chemical, wood, and diesel costs due to the Middle East conflict. Clearwater Paper Corp (NYSE:CLW) reported a net loss from continuing operations of $13 million for the quarter. The company anticipates $3 million to $5 million of quarterly headwinds from increased input costs until global supply chains normalize. Q: Arsen, regarding the Cypress Bend restructuring, you're cutting roll production by 20% but don't expect an overall impact on shipment volumes. Does this imply you'll be adding volume at other mills? How do you assess the overall industry cost curve and the supply response? A: Yes, we've reduced roles at the mill by 20%, which should drive $8 million to $12 million of annual savings. We intend to run the mill at reduced rates until conditions improve, focusing on producing and selling 1.2 million tons profitably. Industry changes have reduced capacity by 280,000 to 300,000 tons, addressing about 50% of the oversupply. With forecasted growth and reduced imports, we expect a 90% utilization rate by year-end, indicating recovery. Q: Sherri, regarding the free cash flow bridge, you mentioned a tax refund. Can you provide details on the amount and timing? A: For the full year, the tax refund is expected to be $27 million to $28 million, with $4 million received in the first quarter. Approximately $23 million remains for the rest of the year. Q: Does the Moody's debt rating downgrade affect your borrowing costs now, or is it more relevant for future credit facility negotiations? A: It is more applicable to future refinancings rather than current borrowing costs. Q: Arsen, you mentioned $3 million to $5 million per quarter of input cost pressure due to the conflict. Is this a comparison to February costs, and does it include potential recovery mechanisms? A: Yes, it's a sequential comparison. The cost pressures are from chemicals, transportation, and wood. We're implementing cost reductions, like the Cypress Bend restructure, and a $60 price increase on extruded products to recover some of these costs. Q: Can you explain how Velora fits into your product portfolio and its expected share of folding carton and foodservice volumes? A: Velora is a lightweight grade meant to compete with FBB, not replace SBS. It's another tool for our folding carton customers. It will take up some existing SBS capacity, but we haven't sized it yet. We don't expect it to be large in the near term. Q: What has been the customer response to the $60 per ton price increase on extruded products? A: We're still working through it with customers. We're facing unique cost pressures on polycoated grades and are sold out, which supports our case for the price increase. Q: Regarding CUK, what would prompt you to proceed with the $60 million investment at Cypress Bend, and what are your options for CRB? A: For CUK, it's about balancing cash flows and capital allocation. We're exploring ways to produce CUK with less investment. For CRB, it would involve M&A or partnerships, as SBS mills can't easily convert to CRB. Q: If market conditions remain challenging and major players don't cut capacity, what can you do from a portfolio perspective? A: We're focused on price, cost reductions, and restructuring. We'll continue to assess our cost structure and assets, but we're optimistic about recovery signs in our market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.