Clearwater Paper Corporation (CLW) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Should l Buy CLW?
Source: SeekingAlpha
Adjusted EBITDA $18 million, which is towards the high end of the guidance range of $10 million to $20 million. Year-to-date adjusted EBITDA from continuing operations stands at $87 million, up from $26 million during the same period last year. This increase is driven mostly by efforts to reduce fixed costs and 4 incremental months of Augusta results included in the P&L.
Net Sales $399 million, up 1% year-over-year, driven by a 3% increase in paperboard shipment volumes partially offset by lower market pricing.
Net Loss from Continuing Operations $54 million or $3.34 per diluted share, primarily due to a $48 million noncash impairment of goodwill. This impairment was driven by the decline in market capitalization as compared to the increase in book value, which was driven by the gain from divestiture of the tissue business late last year.
Fixed Cost Reduction Initiatives Savings are now tracking to around $50 million for the year, exceeding the original estimate of $30 million to $40 million. These savings are helping offset some of the margin pressure during the industry down cycle.
Cash from Operations $34 million during the quarter.
Free Cash Flow Approximately $3.5 million during the quarter.
Net Leverage Ratio 2.7x, with aggregate debt level remaining stable despite the current industry down cycle.
Available Liquidity $455 million, providing ample financial flexibility.
SG&A as a Percent of Sales 6.2%, at the lower end of the targeted range of 6% to 7% of net sales, demonstrating a lean, cost-effective operation.
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Analyst Views on CLW
Wall Street analysts forecast CLW stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 14.660
Low
25.00
Averages
27.50
High
30.00
Current: 14.660
Low
25.00
Averages
27.50
High
30.00
About CLW
Clearwater Paper Corporation is an independent supplier of solid bleached sulfate (SBS) paperboard packaging products to North American converters. The Company produces quality paperboards that provides sustainable packaging solutions for consumer goods and food service applications. The Company operates through Pulp and Paperboard segment. It supplies bleached paperboard to quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. SBS paperboard is a premium paperboard grade that is used to produce folding cartons (also includes blister and carded packaging and top sheet), food service (including liquid packaging, cups and plates) and commercial printing items. It produces paperboard that is then converted and printed by independent converters and primarily used in folding carton and food service applications. Food service paperboard includes both liquid packaging and cup and plate categories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Performance Growth and Challenges: Clearwater Paper reported a 12% year-over-year increase in net sales to $386 million for 2025, primarily driven by full-year operations at the Augusta mill, yet faces pricing and margin pressures due to industry supply-demand imbalances.
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- Strategic Investments and Product Launch: Clearwater plans to launch a new lightweight paperboard product line, Valora, in Q2, and has completed engineering feasibility for a $60 million investment at Cypress Bend, aiming to capture 100,000 to 150,000 tons of market demand.
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- Historical Performance Review: Over the past year, Clearwater Paper has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, indicating relative stability in financial forecasting, yet the recent downward revisions raise concerns about future performance.
- Forecast Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and one downward revision, with revenue estimates also seeing no upward revisions and one downward revision, suggesting a waning analyst confidence in the company's future outlook, which may affect investor sentiment.
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- Arhaus Leads Decline: Arhaus shares dropped by about 5%, reflecting weak consumer demand and increased market competition, which may lead to a decrease in the company's short-term sales.
- RH Struggles: RH's stock fell by approximately 4.9%, indicating challenges in the high-end home market that could affect its profitability and market share.
- Uncertain Industry Outlook: Other sectors like paper and forest products also performed poorly, suggesting that the overall economic environment may exert pressure on the home improvement industry, necessitating close monitoring of future market dynamics.
See More
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