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Sep 30, 2025
Clearwater Paper Q3 2025 Earnings Report
Clearwater Paper reported financial results for the third quarter ended September 30, 2025.
Key Takeaways
Clearwater Paper delivered a strong third quarter, with net sales of $399 million, an increase from the previous year. However, the company reported a net loss of $53.3 million, primarily due to a significant non-cash goodwill impairment charge of $48 million. Adjusted EBITDA from continuing operations decreased to $17.8 million, impacted by a major maintenance outage and reduced sales prices, partially offset by higher sales volumes and cost reduction efforts.
Net sales for Q3 2025 were $399 million, an increase from $393 million in Q3 2024.
The company reported a net loss of $53.3 million, or $3.34 per diluted share, primarily due to a $48 million non-cash goodwill impairment charge.
Adjusted EBITDA from continuing operations was $17.8 million, down from $20.9 million in the prior year, mainly due to the timing of a major maintenance outage and lower sales prices.
The goodwill impairment was driven by a decline in market capitalization compared to an increase in book value from the divestiture of the Tissue business in late 2024.
Forward Guidance
Clearwater Paper anticipates continued oversupply in the SBS market, impacting the broader consumer paperboard market. The company remains focused on internal controls, including fixed cost reduction and market share maintenance, while expressing optimism for a long-term recovery.
Positive Outlook
- Focus on reducing fixed costs to improve profitability.
- Commitment to maintaining market share in a competitive environment.
- Belief that high-quality assets are well-positioned for significant cash flows and strong returns on capital in the long run.
- Optimism about a potential recovery in the SBS market.
- Emphasis on operational execution and strategic actions to navigate industry challenges.
Challenges Ahead
- SBS market continues to be in an oversupplied position.
- Oversupply in SBS is impacting the broader consumer paperboard market.
- Challenging industry conditions are expected to persist.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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