Clearwater Paper Reports Fourth Quarter and Year End 2025 Results
2025 FULL YEAR HIGHLIGHTS
-
Net sales of
$1.6 billion , up 12% compared to 2024, with volumes up 14%, primarily from operating theAugusta facility for the full year -
Net loss from continuing operations of
$53 million , or$3.28 per diluted share, primarily driven by a$48 million non-cash goodwill impairment, partly offset by insurance proceeds -
Adjusted EBITDA improved to
$107 million from$36 million in 2024, driven by over$50 million in fixed‑cost reductions, including$16 million in SG&A savings that lowered SG&A costs from 8.4% to 6.5% of net sales -
Significant improvement in execution of planned major maintenance outages, with all three completed on target at a total direct cost of approximately
$50 million -
Successfully completed integration of the
Augusta mill and separation of the tissue business, both completed ahead of schedule and below targeted costs -
Repurchased approximately
$17 million of shares, with$79 million remaining of the authorization approved in November of 2024
“We delivered significant year over year Adjusted EBITDA improvement in an oversupplied market by focusing on the variables within our control, namely reducing costs and improving operating performance,” said
OVERALL FOURTH QUARTER AND FULL YEAR RESULTS
Net sales were
Net sales were
Sales Volumes and Prices:
- Sales volumes were 317,715 tons in the fourth quarter of 2025, an increase of 4% compared to 306,692 tons in the fourth quarter of 2024. Sales volumes were 1,236,114 tons for the year ended 2025, an increase of 14% compared to 1,080,898 tons for the year ended 2024.
-
Paperboard average net selling price decreased 3% to
$1,139 per ton for the fourth quarter of 2025, compared to$1,177 per ton in the fourth quarter of 2024. Paperboard average net selling price decreased 4% to$1,167 per ton for the year ended 2025, compared to$1,210 per ton for the year ended 2024.
COMPANY OUTLOOK
In early 2026, the company experienced production disruptions and higher operating costs due to severe weather affecting its
“Current industry oversupply and the resulting operating rates are leading to margins that cannot sustain long term investments in our industry’s capital intensive assets. We believe that a combination of demand growth, lower imports, and changes in domestic supply will lead to a recovery in the medium term and put us on a path towards cross-cycle margin levels and cash flows,” concluded Kitch.
WEBCAST INFORMATION
ABOUT
USE OF NON-GAAP MEASURES
In this press release, the company presents certain non-GAAP financial information for the quarters and years ended 2025 and 2024, including adjusted net income (loss) from continuing operations and Adjusted EBITDA from continuing operations. Because these amounts are not in accordance with GAAP, reconciliations to net income (loss) from continuing operations and Adjusted EBITDA from continuing operations as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP metrics because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses Adjusted EBITDA from continuing operations: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to Adjusted EBITDA from continuing operations to measure the company's compliance with certain covenants. Non-GAAP measures may differ from similarly titled measures of other companies.
FORWARD-LOOKING STATEMENTS
This press release contains certain “forward-looking” statements within the meaning of Section 27A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding the company’s expectations about industry supply and demand conditions, pricing trends, market recovery timing, operating performance, cost reduction initiatives, operational execution, capital allocation priorities, liquidity, maintenance and capital expenditure levels, share repurchases, and the company’s ability to execute its strategy and strengthen customer relationships amid current market conditions. The company’s actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this press release. Factors that could cause or contribute to such material differences in actual results include, but are not limited to: our inability to realize the expected benefits of the
|
|
|||||||||||||||
|
Consolidated Statements of Operations |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
(In millions, except per share data) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net sales |
$ |
386.4 |
|
|
$ |
387.1 |
|
|
$ |
1,555.4 |
|
|
$ |
1,383.6 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
|
Cost of sales |
|
369.2 |
|
|
|
372.4 |
|
|
|
1,439.8 |
|
|
|
1,307.5 |
|
|
Selling, general and administrative expenses |
|
21.1 |
|
|
|
26.7 |
|
|
|
100.8 |
|
|
|
116.7 |
|
|
Other operating charges, net |
|
(11.5 |
) |
|
|
3.7 |
|
|
|
8.9 |
|
|
|
24.0 |
|
|
|
|
— |
|
|
|
— |
|
|
|
48.0 |
|
|
|
— |
|
|
Total operating costs and expenses |
|
378.8 |
|
|
|
402.8 |
|
|
|
1,597.5 |
|
|
|
1,448.1 |
|
|
Operating income (loss) |
|
7.5 |
|
|
|
(15.7 |
) |
|
|
(42.1 |
) |
|
|
(64.5 |
) |
|
Interest expense, net |
|
(4.8 |
) |
|
|
(5.3 |
) |
|
|
(16.8 |
) |
|
|
(29.2 |
) |
|
Debt retirement costs |
|
— |
|
|
|
(9.1 |
) |
|
|
— |
|
|
|
(9.1 |
) |
|
Other non-operating expense (income) |
|
(0.3 |
) |
|
|
0.7 |
|
|
|
(1.2 |
) |
|
|
1.8 |
|
|
Total non-operating expense |
|
(5.1 |
) |
|
|
(13.6 |
) |
|
|
(18.0 |
) |
|
|
(36.6 |
) |
|
Income (loss) from continuing operations before income taxes |
|
2.4 |
|
|
|
(29.3 |
) |
|
|
(60.1 |
) |
|
|
(101.1 |
) |
|
Income tax benefit |
|
(0.8 |
) |
|
|
(9.7 |
) |
|
|
(7.1 |
) |
|
|
(27.1 |
) |
|
Income (loss) from continuing operations |
|
3.2 |
|
|
|
(19.6 |
) |
|
|
(53.0 |
) |
|
|
(74.0 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Income (loss) from discontinued operations |
|
(0.6 |
) |
|
|
4.4 |
|
|
|
(3.5 |
) |
|
|
73.3 |
|
|
Gain on sale of discontinued operations |
|
0.5 |
|
|
|
307.2 |
|
|
|
1.5 |
|
|
|
307.2 |
|
|
Income tax provision (benefit) |
|
(35.2 |
) |
|
|
92.8 |
|
|
|
(36.4 |
) |
|
|
110.2 |
|
|
Income from discontinued operations |
|
35.1 |
|
|
|
218.8 |
|
|
|
34.4 |
|
|
|
270.3 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) |
$ |
38.3 |
|
|
$ |
199.1 |
|
|
$ |
(18.6 |
) |
|
$ |
196.3 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) per common share (basic and diluted): |
|
|
|
|
|
|
|
||||||||
|
Income (loss) per share from continuing operations |
$ |
0.20 |
|
|
$ |
(1.17 |
) |
|
$ |
(3.28 |
) |
|
$ |
(4.41 |
) |
|
Income per share from discontinued operations |
|
2.19 |
|
|
|
13.08 |
|
|
|
2.13 |
|
|
|
16.11 |
|
|
Net income (loss) per share - basic and diluted |
|
2.39 |
|
|
|
11.91 |
|
|
|
(1.15 |
) |
|
|
11.70 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average shares outstanding (in thousands): |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
16,038 |
|
|
|
16,724 |
|
|
|
16,169 |
|
|
|
16,781 |
|
|
Diluted |
|
16,067 |
|
|
|
16,724 |
|
|
|
16,169 |
|
|
|
16,781 |
|
|
|
||||||
|
Condensed Consolidated Balance Sheets |
||||||
|
(Unaudited) |
||||||
|
|
|
|
||||
|
(In millions) |
|
|
||||
|
Assets |
|
|
||||
|
Current assets: |
|
|
||||
|
Cash and cash equivalents |
$ |
30.7 |
|
$ |
79.6 |
|
|
Receivables, net |
|
195.3 |
|
|
188.7 |
|
|
Inventories, net |
|
281.7 |
|
|
258.0 |
|
|
Other current assets |
|
18.3 |
|
|
19.1 |
|
|
Total current assets |
|
526.0 |
|
|
545.4 |
|
|
Property, plant and equipment |
|
2,377.9 |
|
|
2,328.4 |
|
|
Accumulated depreciation and amortization |
|
(1,376.1 |
) |
|
(1,305.4 |
) |
|
Property, plant and equipment, net |
|
1,001.8 |
|
|
1,023.1 |
|
|
|
|
2.1 |
|
|
52.9 |
|
|
Other assets, net |
|
58.3 |
|
|
57.9 |
|
|
Total Assets |
$ |
1,588.3 |
|
$ |
1,679.2 |
|
|
|
|
|
||||
|
Liabilities and Stockholders' Equity |
|
|
||||
|
Current liabilities: |
|
|
||||
|
Current portion of long-term debt |
$ |
0.6 |
|
$ |
0.6 |
|
|
Accounts payable and accrued liabilities |
|
215.6 |
|
|
319.7 |
|
|
Total current liabilities |
|
216.2 |
|
|
320.4 |
|
|
Long-term debt |
|
345.5 |
|
|
281.6 |
|
|
Liability for pension and other postretirement employee benefits |
|
49.5 |
|
|
52.5 |
|
|
Deferred tax liabilities |
|
68.2 |
|
|
89.7 |
|
|
Other long-term obligations |
|
83.7 |
|
|
80.5 |
|
|
Total Liabilities |
|
763.0 |
|
|
824.7 |
|
|
|
|
|
||||
|
Common stock |
|
— |
|
|
— |
|
|
Additional paid-in capital |
|
8.3 |
|
|
11.5 |
|
|
|
|
(14.8 |
) |
|
(3.3 |
) |
|
Retained earnings |
|
862.3 |
|
|
880.8 |
|
|
Accumulated other comprehensive loss, net of tax |
|
(30.5 |
) |
|
(34.5 |
) |
|
Total Stockholders' Equity |
|
825.3 |
|
|
854.6 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
1,588.3 |
|
$ |
1,679.2 |
|
|
|
|||||||||||||||
|
Consolidated Statements of Cash Flows |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
(In millions) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Operating Activities |
|
|
|
|
|
|
|
||||||||
|
Net income (loss) |
$ |
38.3 |
|
|
$ |
199.1 |
|
|
$ |
(18.6 |
) |
|
$ |
196.3 |
|
|
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: |
|
|
|
|
|
|
|
||||||||
|
|
|
— |
|
|
|
— |
|
|
|
48.0 |
|
|
|
— |
|
|
Depreciation and amortization |
|
23.7 |
|
|
|
21.5 |
|
|
|
92.4 |
|
|
|
99.8 |
|
|
Equity-based compensation expense |
|
(0.3 |
) |
|
|
(1.6 |
) |
|
|
3.8 |
|
|
|
5.6 |
|
|
Deferred taxes |
|
(15.6 |
) |
|
|
49.0 |
|
|
|
(22.5 |
) |
|
|
39.0 |
|
|
Defined benefit pension and other postretirement employee benefits |
|
0.3 |
|
|
|
(1.0 |
) |
|
|
0.1 |
|
|
|
(4.2 |
) |
|
Gain on business divestiture |
|
(0.4 |
) |
|
|
(307.2 |
) |
|
|
(1.5 |
) |
|
|
(307.2 |
) |
|
Amortization of deferred debt costs and debt retirement |
|
0.5 |
|
|
|
9.8 |
|
|
|
2.2 |
|
|
|
11.8 |
|
|
Loss on sale or impairment associated with assets |
|
2.9 |
|
|
|
0.3 |
|
|
|
7.9 |
|
|
|
1.9 |
|
|
Changes in operating assets and liabilities, net of acquisition and divestiture: |
|
|
|
|
|
|
|
||||||||
|
(Increase) decrease in accounts receivable |
|
(29.0 |
) |
|
|
4.2 |
|
|
|
(2.2 |
) |
|
|
(87.2 |
) |
|
(Increase) decrease in inventories |
|
1.9 |
|
|
|
18.0 |
|
|
|
(23.5 |
) |
|
|
12.4 |
|
|
(Increase) decrease in other current assets |
|
(8.5 |
) |
|
|
(6.0 |
) |
|
|
1.4 |
|
|
|
(2.5 |
) |
|
Increase (decrease) in accounts payable and accrued liabilities |
|
(10.3 |
) |
|
|
(19.6 |
) |
|
|
(75.3 |
) |
|
|
98.9 |
|
|
Other, net |
|
1.5 |
|
|
|
(1.1 |
) |
|
|
0.1 |
|
|
|
(3.0 |
) |
|
Net cash flows provided by (used in) operating activities |
|
5.0 |
|
|
|
(34.7 |
) |
|
|
12.3 |
|
|
|
61.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Investing Activities |
|
|
|
|
|
|
|
||||||||
|
Additions to property, plant and equipment, net |
|
(14.9 |
) |
|
|
(33.0 |
) |
|
|
(88.8 |
) |
|
|
(116.6 |
) |
|
Acquisition of business |
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
(708.2 |
) |
|
Proceeds from business divestiture |
|
0.4 |
|
|
|
992.5 |
|
|
|
(11.6 |
) |
|
|
992.5 |
|
|
Net cash flows provided by (used in) investing activities |
|
(14.4 |
) |
|
|
959.1 |
|
|
|
(100.4 |
) |
|
|
167.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Financing Activities |
|
|
|
|
|
|
|
||||||||
|
Borrowings on long-term debt |
|
10.0 |
|
|
|
— |
|
|
|
82.0 |
|
|
|
753.4 |
|
|
Repayments of long-term debt |
|
(0.2 |
) |
|
|
(880.2 |
) |
|
|
(18.6 |
) |
|
|
(931.1 |
) |
|
Taxes paid related to net share settlement of equity awards |
|
— |
|
|
|
— |
|
|
|
(2.3 |
) |
|
|
(4.1 |
) |
|
Repurchases of common stock |
|
— |
|
|
|
(3.9 |
) |
|
|
(17.2 |
) |
|
|
(10.0 |
) |
|
Payments for debt issuance costs |
|
— |
|
|
|
(0.7 |
) |
|
|
— |
|
|
|
(5.6 |
) |
|
Other, net |
|
(4.0 |
) |
|
|
4.6 |
|
|
|
(4.6 |
) |
|
|
5.9 |
|
|
Net cash flows provided by (used in) financing activities |
|
5.8 |
|
|
|
(880.3 |
) |
|
|
39.3 |
|
|
|
(191.4 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Increase (decrease) in cash and cash equivalents |
|
(3.7 |
) |
|
|
44.1 |
|
|
|
(48.9 |
) |
|
|
37.7 |
|
|
Cash and cash equivalents at beginning of period |
|
34.4 |
|
|
|
35.5 |
|
|
|
79.6 |
|
|
|
42.0 |
|
|
Cash and cash equivalents at end of period |
$ |
30.7 |
|
|
$ |
79.6 |
|
|
$ |
30.7 |
|
|
$ |
79.6 |
|
|
|
|||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||
|
Adjusted EBITDA |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|
|
|||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
(In millions) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net income (loss) |
$ |
38.3 |
|
|
$ |
199.1 |
|
|
$ |
(18.6 |
) |
|
$ |
196.3 |
|
|
Add (deduct): |
|
|
|
|
|
|
|
||||||||
|
Less: Income from discontinued operations, net of tax |
|
35.1 |
|
|
|
218.8 |
|
|
|
34.4 |
|
|
|
270.3 |
|
|
Income (loss) from continuing operations |
|
3.2 |
|
|
|
(19.6 |
) |
|
|
(53.0 |
) |
|
|
(74.0 |
) |
|
Income tax benefit |
|
(0.8 |
) |
|
|
(9.7 |
) |
|
|
(7.1 |
) |
|
|
(27.1 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
48.0 |
|
|
|
— |
|
|
Interest expense, net |
|
4.8 |
|
|
|
5.3 |
|
|
|
16.8 |
|
|
|
29.2 |
|
|
Depreciation and amortization expense |
|
23.7 |
|
|
|
21.5 |
|
|
|
92.4 |
|
|
|
69.8 |
|
|
Inventory revaluation on acquired business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.8 |
|
|
Other operating charges, net1 |
|
(11.5 |
) |
|
|
3.7 |
|
|
|
8.9 |
|
|
|
24.0 |
|
|
Other non-operating expense (income) |
|
0.3 |
|
|
|
(0.7 |
) |
|
|
1.2 |
|
|
|
(1.8 |
) |
|
Debt retirement costs |
|
— |
|
|
|
9.1 |
|
|
|
— |
|
|
|
9.1 |
|
|
Adjusted EBITDA from continuing operations |
$ |
19.8 |
|
|
$ |
9.5 |
|
|
$ |
107.2 |
|
|
$ |
36.0 |
|
|
1 |
Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 10 within |
|
|
|||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||
|
Adjusted Net Income (Loss) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
(In millions, except per share data) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net income (loss) |
$ |
38.3 |
|
|
$ |
199.1 |
|
|
$ |
(18.6 |
) |
|
$ |
196.3 |
|
|
Add (deduct): |
|
|
|
|
|
|
|
||||||||
|
Less: Income from discontinued operations, net of tax |
|
35.1 |
|
|
|
218.8 |
|
|
|
34.4 |
|
|
|
270.3 |
|
|
Income (loss) from continuing operations |
|
3.2 |
|
|
|
(19.6 |
) |
|
|
(53.0 |
) |
|
|
(74.0 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Income tax benefit |
|
(0.8 |
) |
|
|
(9.7 |
) |
|
|
(7.1 |
) |
|
|
(27.1 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
48.0 |
|
|
|
— |
|
|
Debt retirement costs |
|
— |
|
|
|
9.1 |
|
|
|
— |
|
|
|
9.1 |
|
|
Other operating charges, net |
|
(11.5 |
) |
|
|
3.7 |
|
|
|
8.9 |
|
|
|
24.0 |
|
|
Adjusted loss before tax |
|
(9.1 |
) |
|
|
(16.5 |
) |
|
|
(3.3 |
) |
|
|
(68.0 |
) |
|
Normalized income tax benefit |
|
(2.3 |
) |
|
|
(4.1 |
) |
|
|
(0.8 |
) |
|
|
(17.0 |
) |
|
Adjusted net loss from continuing operations |
$ |
(6.8 |
) |
|
$ |
(12.4 |
) |
|
$ |
(2.5 |
) |
|
$ |
(51.0 |
) |
|
Adjusted net loss from continuing operations per share, diluted |
$ |
(0.42 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.15 |
) |
|
$ |
(3.04 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Calculation of net debt: |
|
|
|
|
|
|
|
||||||||
|
Current portion of long-term debt |
$ |
0.6 |
|
|
$ |
0.6 |
|
|
$ |
0.6 |
|
|
|
||
|
Long-term debt |
|
345.5 |
|
|
|
335.5 |
|
|
|
281.6 |
|
|
|
||
|
Add back: |
|
|
|
|
|
|
|
||||||||
|
Unamortized deferred debt costs |
|
1.3 |
|
|
|
1.5 |
|
|
|
1.8 |
|
|
|
||
|
Less: |
|
|
|
|
|
|
|
||||||||
|
Cash and cash equivalents |
|
30.7 |
|
|
|
34.4 |
|
|
|
79.6 |
|
|
|
||
|
Net debt |
$ |
316.7 |
|
|
$ |
303.2 |
|
|
$ |
204.4 |
|
|
|
||
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