Clearwater Paper (NYSE:CLW) Issues Quarterly Earnings Results

Clearwater Paper (NYSE:CLW) issued its quarterly earnings results on Monday. The basic materials company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of ($0.16) by ($0.07), FiscalAI reports. The firm had revenue of $384.90 million for the quarter, compared to analysts’ expectations of $388.39 million. Clearwater Paper had a negative net margin of 3.24% and a negative return on equity of 7.95%.

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 Price Performance

CLW stock opened at $19.09 on Tuesday. Clearwater Paper has a one year low of $11.73 and a one year high of $23.59. The company’s fifty day moving average price is $20.22 and its 200-day moving average price is $17.26. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.17 and a current ratio of 2.29. The company has a market capitalization of $307.84 million, a PE ratio of -6.28 and a beta of 0.33.

Analyst Ratings Changes

CLW has been the topic of several recent analyst reports. TD Securities restated a “hold” rating and set a $20.00 price objective on shares of Clearwater Paper in a research report on Wednesday, July 29th. Zacks Research upgraded shares of Clearwater Paper to a “hold” rating in a research note on Monday, July 6th. Truist Financial upped their target price on shares of Clearwater Paper from $12.00 to $17.00 and gave the stock a “hold” rating in a report on Wednesday, July 15th. Bank of America increased their price target on Clearwater Paper from $24.00 to $25.00 and gave the stock a “neutral” rating in a research note on Friday, September 11th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Clearwater Paper in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Clearwater Paper currently has an average rating of “Hold” and an average target price of $19.83.

Clearwater Paper Company Profile

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.