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Clearwater Paper Q1 2025 Earnings Report
Clearwater Paper reported a net loss of $6.3 million for Q1 2025, with net sales increasing by 46% due to the Augusta operations acquisition, despite market-driven price decreases.
Key Takeaways
Clearwater Paper Corporation reported a net loss of $6.3 million for the first quarter of 2025, a decrease from a net income of $17.2 million in the same period last year. Net sales increased significantly by 46% to $378.2 million, primarily driven by higher sales volume from the Augusta operations acquisition. The company's gross margin improved by 10%, attributed to better operating performance and cost reduction efforts.
Net sales increased by 46% to $378.2 million in Q1 2025, primarily due to higher sales volume from the Augusta operations acquisition.
The company reported a net loss of $6.3 million for Q1 2025, compared to a net income of $17.2 million in Q1 2024.
Gross profit increased by 10% due to improved operating performance, absence of significant weather events, and planned cost reduction activities.
Operating income from continuing operations and Adjusted EBITDA both increased, driven by cost reduction efforts and deflation in input costs.
Forward Guidance
For the second quarter of fiscal 2025, Clearwater Paper expects higher sales volumes and additional benefits from fixed cost reduction efforts. Energy costs are anticipated to decrease, but a planned maintenance expense at the Cypress Bend Arkansas mill is expected.
Positive Outlook
- Expected higher sales volumes in the second quarter.
- Anticipated decrease in energy costs due to seasonal trends.
- Additional benefits expected from fixed cost reduction efforts.
- The new universal baseline tariff of 10% on U.S. imports is not expected to significantly impact fiscal 2025 financial results.
- Tariffs exempt imports compliant with USMCA, which includes some raw materials from Canada.
Challenges Ahead
- Expected increase in planned maintenance expense due to the annual outage at the Cypress Bend Arkansas mill.
- Uncertainty regarding potential retaliatory tariffs.
- The outlook does not include any impact from potential tariffs due to their timing and uncertainty.
Historical Earnings Impact
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