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Dec 31, 2025
Clearwater Paper Q4 2025 Earnings Report
Clearwater Paper reported flat net sales and a significant decrease in net income for the fourth quarter of 2025, primarily due to a large gain on sale of the tissue division in the prior year, while Adjusted EBITDA improved.
Key Takeaways
Clearwater Paper Corporation reported flat net sales of $386.4 million for the fourth quarter of 2025 compared to $387.1 million in the fourth quarter of 2024. Net income for the quarter was $38.3 million, or $2.39 per diluted share, a substantial decrease from $199.1 million in the prior year, which included a $307 million gain on the sale of the tissue division. Adjusted EBITDA from continuing operations improved to $19.8 million from $9.5 million in the fourth quarter of 2024.
Net sales remained flat at $386.4 million in Q4 2025 compared to $387.1 million in Q4 2024.
Net income significantly decreased to $38.3 million in Q4 2025 from $199.1 million in Q4 2024, largely due to the absence of a prior-year gain on the sale of the tissue division.
Adjusted EBITDA from continuing operations improved to $19.8 million in Q4 2025, up from $9.5 million in Q4 2024.
Diluted EPS was $2.39 in Q4 2025, down from $11.91 in Q4 2024.
Forward Guidance
Clearwater Paper anticipates production disruptions and higher operating costs in early 2026 due to severe weather, resulting in an estimated $20 million reduction in Adjusted EBITDA. The company expects a medium-term recovery driven by demand growth, lower imports, and changes in domestic supply.
Positive Outlook
- Anticipated recovery in the medium term due to demand growth.
- Expectation of lower imports contributing to market recovery.
- Changes in domestic supply are expected to aid market recovery.
- Belief in achieving cross-cycle margin levels.
- Expectation of improved cash flows in the medium term.
Challenges Ahead
- Estimated $20 million reduction in Adjusted EBITDA in early 2026 due to production disruptions.
- Higher operating costs anticipated in early 2026 due to severe weather.
- Current industry oversupply leading to unsustainable margins for long-term investments.
Historical Earnings Impact
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