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Jun 30, 2025
Clearwater Paper Q2 2025 Earnings Report
Clearwater Paper reported a strong second quarter in line with expectations, driven by higher shipments, increased production, and reduced fixed costs.
Key Takeaways
Clearwater Paper delivered a strong second quarter in 2025, with net sales increasing to $392 million from $344 million in the prior year. The company reported net income of $4 million, a significant improvement from a net loss of $42 million in Q2 2024. Adjusted EBITDA also saw a substantial increase to $40 million, up from a negative $9 million in the same period last year, primarily due to higher sales volume from the Augusta facility, favorable timing of maintenance outages, and cost reduction efforts.
Net sales for Q2 2025 increased to $392 million, up from $344 million in Q2 2024.
The company achieved a net income of $4 million ($0.22 per diluted share) in Q2 2025, a significant turnaround from a net loss of $42 million ($2.50 per diluted share) in Q2 2024.
Adjusted EBITDA improved substantially to $40 million in Q2 2025, compared to negative $9 million in Q2 2024.
The increase in performance was primarily attributed to higher sales volume due to the Augusta facility, favorable timing of major maintenance outages, and benefits from cost reduction plans.
Forward Guidance
Clearwater Paper anticipates continued challenges due to industry oversupply but remains focused on operational execution, fixed cost reduction, and maintaining customer share to navigate the down cycle and prepare for recovery.
Positive Outlook
- Continued focus on strong operational execution.
- Ongoing efforts to reduce fixed costs.
- Maintaining market share with existing customers.
- Strategic actions to navigate the current industry down cycle.
- Positioning the company well for future industry recovery.
Challenges Ahead
- Industry continues to experience an oversupply position.
- Competitive pricing pressures are expected to persist.
- Potential for unexpected costs or charges related to past transactions.
- Risks associated with operating without the tissue business, including less product diversification.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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