Clearwater Paper (CLW) investor relations material

Executive summary

• Q3 net sales were $384.9 million, down 4% YoY; Adjusted EBITDA from continuing operations rose 37% to $24.4 million, while nine-month Adjusted EBITDA fell to $17.8 million from $87.4 million.

• Augusta disruptions reduced production and weighed on sales volumes and costs; pricing improved sequentially, with demand and backlogs remaining solid.

• Debt refinancing extended maturities to 2031, supporting liquidity and execution of long-term priorities.

Financial highlights

• Q3 continuing-operations net loss was $1.6 million, or $0.10 per diluted share, versus $53.9 million a year earlier; Q3 2025 included a $48.0 million goodwill impairment.

• Q3 operating income was $2.5 million versus an operating loss of $55.4 million; net sales were $384.9 million versus $399.0 million.

• Q3 Adjusted EBITDA was $24.4 million versus $17.8 million in Q3 2025, with a 6.3% margin versus 4.5%.

• SG&A was $20.1 million, or 5.2% of net sales, versus 6.2% in Q3 2025; results included $13 million of tax-adjusted insurance proceeds.

• Nine-month operating cash flow was $100.1 million versus $7.3 million, supported by insurance proceeds, tax refunds and inventory reductions.

Outlook and guidance

• Q4 Adjusted EBITDA guidance is $10 million-$20 million; seasonally lower shipments and continued early-Q4 Augusta disruptions are expected to weigh on results.

• Q4 assumptions include $8 million-$12 million from price increases, $5 million-$7 million of Cypress Bend maintenance, and $5 million-$6 million in seasonal energy and conflict-related costs.

• FY 2026 revenue assumption is ~$1.5 billion; recent price increases are expected to add $15 million-$20 million, partly offset by ~$70 million of 2025 price-decrease carryover.

• FY 2026 major maintenance costs are estimated at $27 million-$29 million; capital expenditures are projected at $55 million-$60 million, with Augusta outage capital shifted to 2027.

• Positive FY free cash flow is expected, supported by positive EBITDA, $50 million in insurance recoveries, $25 million-$30 million of lower net working capital and tax refunds, partly offset by capex.