Clearwater Paper (CLW) investor relations material

Executive summary

• Net sales rose 14% year-over-year to $392M 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 $4M, reversing a prior year loss, with Adjusted EBITDA at $40M and a 10.2% margin, reflecting cost reductions and improved operational performance.

• SG&A expenses declined nearly 14% year-over-year, now 6.7% of net sales, within the target range.

• Completed major maintenance at Cypress Bend mill and advanced integration of the Augusta facility.

• Share repurchases totaled $4M in Q2 and $15M–$18M year-to-date under the $100M authorization.

Financial highlights

• Q2 2025 net sales: $392M (up 14% year-over-year); net income: $4M; Adjusted EBITDA: $40M; Adjusted EBITDA margin: 10.2%.

• Paperboard sales volumes increased 12% to 304,713 tons; average net selling price per ton decreased 3% to $1,182.

• Gross margin improved to $43M from a loss last year; operating income was $9.8M.

• Net leverage ratio at 1.9x; long-term debt at $328.5M as of June 30, 2025.

• Cash and cash equivalents at quarter end: $46.7M, down from $165.9M at year-end 2024.

Outlook and guidance

• Q3 2025 Adjusted EBITDA expected between $10M and $20M, with flat shipments and higher maintenance costs.

• FY 2025 revenue projected at $1.5B–$1.6B, with $30M–$40M in fixed cost savings and $80M–$90M in capital expenditures.

• Major maintenance costs of $45M–$50M expected for the year; tariffs and new tax legislation not expected to materially impact 2025.

• Focus remains on operational execution, cost reduction, and customer retention amid industry oversupply.