Clearwater Paper Corporation reported fourth‑quarter 2025 net sales of $386.4 million and full‑year sales of $1.6 billion, a 12% increase from the previous year. Net income for the quarter was $38.3 million, up sharply from $199 million in Q4 2024, while adjusted EBITDA rose to $20 million from $9 million. For the full year, adjusted EBITDA reached $107 million, a 197% increase over the $36 million reported in 2024, reflecting the company’s aggressive cost‑reduction program and higher production volumes.
The 12% sales growth was driven by a 12% rise in volumes, offset by a modest decline in average net selling prices—3% in Q4 and 4% for the year—due to an oversupplied paperboard market. Insurance proceeds of $17 million helped cushion the impact of lower pricing, while severe weather disruptions at the Augusta and Cypress Bend facilities reduced adjusted EBITDA by an estimated $20 million.
Adjusted EBITDA’s 197% jump was largely a result of $16 million in SG&A savings that lowered SG&A costs from 8.4% to 6.5% of net sales, and $6 million in insurance proceeds that were included in the adjusted EBITDA calculation. The company also benefited from a $48 million goodwill impairment that reduced net income from continuing operations to $3 million, but the $17 million insurance proceeds brought the total net income to $38.3 million for the quarter.
Full‑year 2025 net income from continuing operations was a $53 million loss, driven by the goodwill impairment. However, the company’s operating performance improved markedly, with adjusted EBITDA more than tripling year‑over‑year, indicating that cost controls and volume gains are offsetting pricing pressures.
Management guided for 2026 revenue of $1.4 billion to $1.5 billion and expects adjusted EBITDA to break even in Q1 2026. The guidance signals confidence in maintaining profitability while navigating weather‑related costs and an oversupplied market.
President and CEO Arsen Kitch said, “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.” CFO Sherri Baker added, “Net sales were $386 million, flat versus Q4 2024 as higher shipments were offset by lower pricing. Adjusted EBITDA from continuing operations was $20 million, above the midpoint of our guidance range of $13 million to $23 million, driven by cost‑reduction efforts and $6 million of insurance proceeds.”
Investors responded positively to the results, reflecting confidence in Clearwater’s cost‑control strategy and its ability to generate cash flow in a challenging market.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.