Clearwater Paper (NYSE:CLW) Announces Earnings Results

Clearwater Paper (NYSE:CLW) announced its earnings results on Monday. The basic materials company reported ($0.23) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.07), FiscalAI reports. The business had revenue of $384.90 million for the quarter, compared to the consensus estimate of $388.39 million.

Here are the key takeaways from Clearwater Paper’s conference call:

• Pricing improvements began benefiting results: Third-quarter adjusted EBITDA was $24 million, within guidance, with the first $60-per-ton price increase contributing nearly $8 million sequentially. Management expects the increase to deliver more than $70 million in annualized benefit and is making progress on a second $60-per-ton increase.
• Augusta Mill disruptions weighed on performance: Electrical and mechanical failures reduced production and shipments, with the mill operating roughly 10%-15% below needed production levels. Clearwater expects $12 million-$15 million of maintenance spending in January 2027 and another $7 million-$10 million outage later in the year, with additional capital investments likely.
• Debt refinancing reduces near-term refinancing risk: The company extended maturities to 2031, replaced its prior facilities with a new $200 million revolver, and reported $15 million drawn at quarter-end. Clearwater expects to end 2026 with positive free cash flow, supported by insurance recoveries, working-capital reductions, and tax refunds.
• Industry conditions are showing signs of recovery: Management cited stronger SBS demand, improving pricing, reduced industry production, and operating rates expected to exceed 90% by year-end. If projected price increases materialize, Clearwater estimates adjusted EBITDA run-rate upside of nearly $200 million and a return to 13%-14% cross-cycle margins.
• Near-term earnings remain pressured: Fourth-quarter adjusted EBITDA is expected at $10 million-$20 million due to seasonality, continued Augusta issues, a Cypress Bend maintenance outage, higher energy costs, and another $1 million-$2 million of conflict-related expenses. The company also announced that CFO Sherri Baker will leave in the coming weeks.

Clearwater Paper Stock Down 29.3%

Shares of Clearwater Paper stock opened at $13.58 on Wednesday. Clearwater Paper has a 12-month low of $11.73 and a 12-month high of $23.59. The stock has a market capitalization of $219.03 million, a P/E ratio of 84.88 and a beta of 0.33. The stock has a 50 day moving average price of $20.09 and a two-hundred day moving average price of $17.24.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on CLW shares. Weiss Ratings reiterated a “sell (d)” rating on shares of Clearwater Paper in a research report on Wednesday, August 5th. TD Securities restated a “hold” rating and issued a $20.00 target price on shares of Clearwater Paper in a report on Wednesday, July 29th. Truist Financial decreased their target price on Clearwater Paper from $20.00 to $17.00 and set a “hold” rating for the company in a research report on Tuesday. Bank of America lifted their price target on Clearwater Paper from $24.00 to $25.00 and gave the company a “neutral” rating in a report on Friday, September 11th. Finally, Royal Bank Of Canada dropped their price target on Clearwater Paper from $23.00 to $22.00 and set an “outperform” rating on the stock in a research report on Tuesday. One research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Clearwater Paper has an average rating of “Hold” and an average price target of $19.67.

About Clearwater Paper

Clearwater Paper Corporation is a manufacturer of bleached paperboard and pulp products. Its paperboard is used in packaging applications such as folding cartons, food and beverage packaging, and other consumer and industrial products. The company also produces pulp used in the manufacture of paper and tissue products.

Clearwater Paper primarily serves customers in North America, supplying packaging manufacturers, consumer-products companies, and other converters. Its operations have included paper mills in the United States, including facilities in Idaho and Arkansas, with products marketed to a range of food, beverage, household, and commercial markets.

The company was formed in 2008 through the separation of Potlatch Corporation’s pulp and paperboard businesses.