Clearwater Paper (CLW) investor relations material

Executive summary

• Net sales for Q3 2025 reached $399 million, up 1% year-over-year, driven by a 3% increase in shipment volumes despite lower pricing.

• Q3 2025 net loss was $54 million, or $3.34 per diluted share, mainly due to a non-cash goodwill impairment of $45–$48 million.

• Adjusted EBITDA for Q3 2025 was $18 million (margin 4–4.5%), with year-to-date adjusted EBITDA at $87 million, up significantly year-over-year, driven by cost reductions and Augusta results.

• Major maintenance outages at Lewiston and Augusta were completed at direct costs of $24 million and $16 million, respectively.

• Cost reduction initiatives are on track, targeting $50 million in annual savings, and the Augusta acquisition continues to drive higher volumes.

Financial highlights

• Q3 2025 net sales were $399 million, with a 3% increase in paperboard shipment volumes and a 3% decline in average pricing.

• Adjusted EBITDA margin for Q3 2025 was 4–4.5%, down from 5.3% in Q3 2024.

• SG&A as a percent of sales was 6.2%, at the lower end of the targeted 6–7% range.

• Net leverage ratio stood at 2.7x, with available liquidity of $455 million.

• Generated $34 million in cash from operations and $3.5 million in free cash flow in Q3 2025.

Outlook and guidance

• Q4 2025 adjusted EBITDA expected in the range of $13–$23 million, with slightly lower shipments due to seasonality and a $16 million maintenance outage at Augusta.

• FY 2026 revenue projected at $1.45–$1.55 billion, with mid-80% capacity utilization and $65–$75 million in capital expenditures.

• Targeting over $20 million in working capital improvements, mainly from inventory.

• Not expecting to be a net cash taxpayer in 2026 due to new tax legislation.

• RISI forecasts SBS price increases in 2026, with folding carton up $30/ton and cup stock up $40/ton in H1.