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Jun 30, 2024
Clearwater Paper Q2 2024 Earnings Report
Reported a net loss driven by planned major maintenance and acquisition costs, while sales increased due to the Augusta facility acquisition and strong tissue demand.
Key Takeaways
Clearwater Paper reported a net loss of $26 million for Q2 2024, compared to a net income of $30 million in Q2 2023. Net sales increased by 12% to $586 million, primarily driven by incremental sales volume from the Augusta acquisition. Adjusted EBITDA was $35 million, down from $71 million in the same period last year due to the impact of planned major maintenance.
Completed the acquisition of the Augusta paperboard manufacturing facility.
Net sales increased by 12% year-over-year, primarily driven by the Augusta facility.
Net loss was $26 million, compared to net income of $30 million in the second quarter of last year.
Adjusted EBITDA decreased to $35 million, impacted by planned major maintenance at the Lewiston facility.
Forward Guidance
Clearwater Paper expects gradual demand recovery for paperboard through the balance of 2024 and into 2025. The sale of the tissue business is expected to close in the fourth quarter of 2024, with proceeds used to de-lever the balance sheet and grow the paperboard product portfolio.
Positive Outlook
- Confident in the long-term fundamentals of the paperboard market.
- Expects gradual demand recovery for paperboard for the balance of 2024 and into 2025.
- Plans to use proceeds from the sale of the tissue business to de-lever the balance sheet.
- Will continue executing strategy to grow and diversify paperboard product portfolio.
- Sale of tissue business expected to close in Q4 2024.
Challenges Ahead
- Closing conditions and regulatory approval are required for the sale of the tissue business.
- Potential delays in the sale of the tissue business.
- Possible unexpected costs, charges, or expenses from the pending tissue business sale transaction.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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