Clearwater Paper (CLW) Q1 2026 earnings summary

Executive summary

• Net sales declined 5% year-over-year to $360 million for Q1 2026, with a 5% increase in shipment volumes offset by a 7% drop in average pricing.

• Net loss from continuing operations was $13 million, compared to $6 million in Q1 2025, with Adjusted EBITDA at $1.9–$2 million, slightly above break-even guidance.

• Severe weather events and higher input costs increased expenses and disrupted operations, impacting profitability.

• Restructuring at Cypress Bend reduced workforce by 20%, targeting $8–$12 million in annual cost savings.

• Launched Velora, a new lightweight folding carton paperboard brand to compete with imported FBB.

Financial highlights

• Net sales were $360 million, down 5% year-over-year, with sales volumes up 5% to 302,918 tons and average net selling price down 7% to $1,101/ton.

• Adjusted EBITDA margin declined to 0.5%–1% from 7.9% year-over-year.

• Net loss from continuing operations was $13 million, or $1.29 per diluted share.

• Cost of sales rose 6% year-over-year to $361 million, mainly due to higher maintenance, energy, and freight costs.

• Received $17.5 million in insurance proceeds, with $50 million of policy limit remaining.

Outlook and guidance

• Q2 2026 Adjusted EBITDA expected between breakeven and negative $10 million, impacted by a $22–$24 million major maintenance outage at Lewiston.

• Full-year 2026 revenue guidance of $1.4–$1.5 billion, with flat to modest shipment growth and $70 million carryover impact from 2025 price decreases.

• Productivity gains and cost reductions, including Cypress Bend restructuring, expected to offset 2%–3% of input cost inflation.

• Capital expenditures projected at $65–$75 million; targeted working capital improvement of $20–$30 million.

• Path to break-even or better free cash flow for the year, including insurance recoveries and a $27–$28 million tax refund.