Clearwater Paper (CLW) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $374.8M–$375M, down 4% year-over-year, with an 8% increase in sales volumes driven by food service share gains, but offset by a 9% decline in market pricing.

• Net loss from continuing operations was $21M–$21.5M, or $1.33–$1.75 per diluted share, impacted by lower pricing, inflation, and a major maintenance outage.

• Adjusted EBITDA was negative $8M–$8.2M, with a margin of -2% to -2.2%, mainly due to lower pricing and maintenance timing.

• Major maintenance at Lewiston, Idaho was completed on time and on budget at a direct cost of $22M.

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

Financial highlights

• Net sales for the first six months of 2026 were $735M, down from $770M in 2025.

• Adjusted EBITDA for the first six months was negative $6M, compared to positive $70M in 2025.

• SG&A expenses were reduced to 5.6% of net sales, below the targeted 6%–7% range.

• Net debt reduced by $59M in Q2 and $50M year-to-date, aided by working capital improvements, tax refunds, and insurance recoveries.

• Cash and cash equivalents increased to $95.4M at quarter-end from $30.7M at year-end 2025.

Outlook and guidance

• Q3 2026 Adjusted EBITDA expected between $20M–$30M, with flat shipments and higher production volumes due to no major outages.

• Full-year 2026 revenue guidance is $1.4B–$1.5B, with $10M–$20M in price improvements expected in the second half.

• Capital expenditures for 2026 projected at $65M–$75M.

• Targeted working capital improvement of $20M–$30M for the year, primarily from inventory.

• Early signs of SBS industry improvement, with operating rates forecasted to exceed 90% by year-end.