Clearwater Paper Stock Earnings Reports

Clearwater Paper reported Q1 FY2026 net sales of $360M (down ~5% YoY) with shipment volumes up 5% but lower market pricing. Adjusted EBITDA was $2M, slightly above guidance, and included ~ $15M of weather-related mill impacts. Management launched a lightweight board product (Velora), restructured the Cypress Bend mill (reducing roles ~20%) to save an estimated $8M–$12M annually, and ratified a 4-year labor deal at Lewiston. They received an additional $17.5M of representation & warranty insurance proceeds (over $40M to date) and are pursuing the remaining ~$50M of policy limits. Industry commentary: SBS demand showing pockets of strength (foodservice, cups/plates) while industry capacity remained in excess earlier in the year but recent capacity actions have reduced the oversupply by roughly half; RISI forecasts ~90% industry operating rates by year-end. Management highlighted ~$3M–$5M of incremental quarterly cost headwinds tied to the Middle East conflict (chemicals, diesel, wood/transport), and implemented/revised pricing actions (a $60/ton increase on extruded products). Q2 outlook: adjusted EBITDA expected between breakeven and negative $10M, driven by a major Lewiston outage with direct costs of $22M–$24M plus $5M–$7M higher input costs; full-year guidance assumes $1.4B–$1.5B revenue, flat to modest shipment growth, $65M–$75M capex, and a path to breakeven or better free cash flow supported by cost actions, insurance recoveries, a ~$27M tax refund ( ~$23M remaining ), and working capital improvements. Management plans to refinance/extend near-term maturities and says they will prioritize cash preservation while awaiting a cycle recovery back to historical cross-cycle EBITDA margins (targeting 13%–14% long-term).