Download PDF

1. Company Snapshot

1.a. Company Description

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally.It operates through two segments, Pulp and Paperboard, and Consumer Products.The Pulp and Paperboard segment offers folding cartons, liquid packaging, cups and plates, blister and carded packaging products, top sheet and commercial printing items, and softwood pulp products, as well as custom sheeting, slitting, and cutting of paperboard products.


It sells its products to packaging converters, folding carton converters, merchants, and commercial printers.The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues.This segment sells its products to retailers and wholesale distributors, including grocery, club, mass merchants, and discount stores.


Clearwater Paper Corporation was incorporated in 2005 and is headquartered in Spokane, Washington.

Show Full description

1.b. Last Insights on CLW

Clearwater Paper Corporation's recent performance was negatively impacted by high debt levels and declining EBITDA. Despite strong Q4 2024 earnings, the company's financial flexibility remains constrained due to its debt burden. Additionally, the strategic divestment of the tissue business, while improving financial flexibility, may also lead to a decline in revenue. Furthermore, the company's focus on paperboard manufacturing may not be enough to offset the decline in other segments.

1.c. Company Highlights

2. Clearwater Paper's 2025 Earnings: A Year of Transformation and Challenges Ahead

Clearwater Paper Corporation reported a mixed bag in their 2025 earnings, with net sales increasing by 12% year over year to an undisclosed figure, driven primarily by a 14% increase in shipments due to the full-year operation of the Augusta Mill. Adjusted EBITDA was $107,000,000, a significant improvement from the prior year, driven by exceptional cost control and execution. The company's EPS came out at $2.38, beating estimates of -$0.495. The company's ability to deliver more than $50,000,000 in fixed cost reductions, including $16,000,000 in SG&A savings, is expected to improve its long-term earning potential as the industry recovers.

Publication Date: Mar -05

📋 Highlights
  • Net Sales Growth:: Increased 12% YoY to $1.4B–$1.5B in 2026 forecast, driven by 14% shipment growth from Augusta Mill integration.
  • Adjusted EBITDA Surge:: Reached $107M in 2025, up $71M YoY, due to cost control and maintenance efficiency ($50M in direct costs).
  • Fixed Cost Reductions:: Achieved $50M+ in savings, including $16M in SG&A cuts, supporting 13–14% cross-cycle EBITDA margin goals.
  • Liquidity & Buybacks:: Maintained $400M+ liquidity and repurchased $17M in shares, with $79M remaining under buyback authorization.
  • 2026 Outlook:: Revenue guided to $1.4B–$1.5B with 2–3% input cost inflation offset by $20–30M productivity gains and $70M pricing headwinds.

Operational Performance and Outlook

The company completed all three major maintenance outages in 2025 on schedule, with total direct costs of $50,000,000, marking a significant improvement in execution and cost versus 2024. For 2026, Clearwater Paper expects revenue of $1,400,000,000 to $1,500,000,000 with flat to modest shipment growth. The company's guidance assumes approximately $70,000,000 in pricing headwind from 2025 carryover and 2% to 3% input cost inflation, which is expected to be offset by net productivity gains. As Arsen Kitch noted, the company is biased towards taking rolling market-related downtime to supplement the maintenance schedule, indicating a proactive approach to managing supply and demand.

Valuation and Financial Health

Clearwater Paper's current valuation metrics indicate a challenging environment. The company's P/E Ratio stands at -11.63, P/B Ratio at 0.29, and EV/EBITDA at 14.17. The Net Debt / EBITDA ratio is 9.05, indicating a significant leverage position. Despite these challenges, the company maintained a strong balance sheet, ending 2025 with more than $400,000,000 in liquidity. Analysts estimate revenue growth at 4.2% for the next year, which may help the company navigate the current downturn.

Industry Dynamics and Management's Strategy

The company believes that the current supply-driven downturn is temporary and expects an improvement in the supply and demand balance driven by growing SBS demand, decreasing imports, and net capacity reductions. Management remains confident in returning to cross-cycle EBITDA margins of 13% to 14% and generating more than $100,000,000 of annual free cash flow. The company is considering extended curtailments if the situation doesn't improve and is reviewing its assets to make long-term decisions, including variabilizing costs and reducing expenses.

3. NewsRoom

Card image cap

Clearwater Paper Corporation $CLW Shares Bought by JPMorgan Chase & Co.

Apr -08

Source: defenseworld.net

Card image cap

Clearwater Paper Launches Velora™ Lightweight Paperboard for Everyday Packaging

Mar -30

Source: businesswire.com

Card image cap

Clearwater Paper Corporation (NYSE:CLW) Receives $22.25 Average Target Price from Analysts

Mar -30

Source: defenseworld.net

Card image cap

Clearwater Paper Corporation (CLW) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

Card image cap

Clearwater Paper Announces Participation in Bank of America Global Agricultural and Materials Conference

Feb -17

Source: businesswire.com

Card image cap

Clearwater Paper Announces Availability and Timing of Fourth Quarter and Full Year 2025 Earnings Conference Call and Webcast

Feb -05

Source: businesswire.com

Card image cap

Brandywine Global Investment Management LLC Acquires Shares of 70,020 Clearwater Paper Corporation $CLW

Nov -25

Source: defenseworld.net

Card image cap

Clearwater Paper Corporation (CLW) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Pulp and Paperboard

Expected Growth: 4.5%

Growing demand for sustainable packaging, increasing e-commerce sales, and rising need for specialty papers drive the growth of pulp and paperboard market. Clearwater Paper Corporation's focus on innovative products and operational efficiency will further boost the segment's growth.

Consumer Products

Expected Growth: 4.5%

Growing demand for sustainable and eco-friendly products, increasing consumer preference for premium and ultra-premium products, and expansion of online sales channels are expected to drive the growth of Clearwater Paper Corporation's Consumer Products segment.

Eliminations

Expected Growth: 4.5%

Consolidated financial statements of Clearwater Paper Corporation are driven by the elimination of intercompany transactions and balances, resulting in a forecasted CAGR of 4.5%. This growth is fueled by the increasing demand for sustainable paper products, cost savings from intercompany eliminations, and improved operational efficiency.

7. Detailed Products

Consumer Tissue

Clearwater Paper Corporation offers a wide range of consumer tissue products, including bathroom tissue, paper towels, and facial tissues, designed for everyday use in households and commercial settings.

Parent Roll Tissue

The company provides parent roll tissue products, which are large rolls of tissue paper used as raw material for converters and manufacturers to produce finished tissue products.

Pulp and Paperboard

Clearwater Paper Corporation produces pulp and paperboard products, including recycled paperboard, containerboard, and kraft paper, used in packaging and printing applications.

Wood Products

The company offers wood products, including lumber and timber, used in construction, furniture, and other wood products manufacturing.

8. Clearwater Paper Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Clearwater Paper Corporation is medium due to the availability of alternative products such as digital media and recycled paper products.

Bargaining Power Of Customers

The bargaining power of customers for Clearwater Paper Corporation is low due to the company's strong brand presence and limited buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Clearwater Paper Corporation is medium due to the presence of multiple suppliers and the company's moderate dependence on them.

Threat Of New Entrants

The threat of new entrants for Clearwater Paper Corporation is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Clearwater Paper Corporation is high due to the presence of several established players in the industry, leading to intense competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.71%
Debt Cost 6.50%
Equity Weight 58.29%
Equity Cost 6.50%
WACC 6.50%
Leverage 71.56%

11. Quality Control: Clearwater Paper Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CVR Partners

A-Score: 7.4/10

Value: 7.3

Growth: 4.7

Quality: 5.9

Yield: 10.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Westlake Chemical Partners

A-Score: 6.7/10

Value: 8.6

Growth: 3.1

Quality: 6.5

Yield: 10.0

Momentum: 2.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Acadian Timber

A-Score: 6.0/10

Value: 3.7

Growth: 5.1

Quality: 5.4

Yield: 9.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Mativ

A-Score: 4.4/10

Value: 8.6

Growth: 1.9

Quality: 2.0

Yield: 7.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Jewett-Cameron Trading

A-Score: 4.3/10

Value: 10.0

Growth: 2.4

Quality: 4.8

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Clearwater Paper

A-Score: 2.9/10

Value: 8.2

Growth: 1.3

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.95$

Current Price

14.95$

Potential

-0.00%

Expected Cash-Flows