Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q4 2025 Earnings Presentation
18 slides from Clearwater Paper's earnings presentation, Feb 18, 2026
Slide 1: Fourth Quarter Earnings Release Materials
Fourth Quarter Earnings Release Materials February 18, 2026 ARSEN KITCH President, Chief Executive Officer and Director SHERRI BAKER Senior Vice President and Chief Financial Officer
Slide 2: Forward Looking Statements
Forward Looking Statements Cautionary Statement Regarding Forward Looking Statements This presentation of supplemental information contains, in addition to historical information, certain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Se
Slide 3: Clearwater is Well Positioned to Deliver Strong Returns Across the Cycle
Clearwater is Well Positioned to Deliver Strong Returns Across the Cycle TARGETING STRONG CASH FLOW GENERATION ACROSS THE CYCLE ADJUSTED EBITDA TARGET MARGINS Paperboard industry is cyclical, Across the cycle Adjusted EBITDA margins driven by supply and demand balance target of 13% to 14% >16% Cycle
Slide 4: Exploring Options to Expand Our Product Offering
Exploring Options to Expand Our Product Offering Initiative Status Objective Provide options for converter customers to service sustainability driven Post consumer recycled content Developed and in market Consumer Packaged Goods (CPG) and Quick Service Restaurants (QSR) customers Enable our plate co
Slide 5: Industry Trends
INDUSTRY SBS industry shipments were flat in 2025 vs. 2024, TRENDS EXPECTING MODEST outperformed CUK and CRB that were down 4.1% 1 DEMAND GROWTH IN 2026 Demand growth of ~1%2 projected for 2026 SBS price per square foot is now below CUK and CRB levels Some customers looking at substitution between s
Slide 6: Q4 2025 Financial Summary
Q4 2025 NET SALES FROM YEAR OVER YEAR GROWTH IN SALES VOLUMES +4% increase in Q4’25 vs. Q4’24, -2% vs. Q3’25 Financial CONTINUING OPERATIONS Maintaining share in a competitive environment, industry $386M shipments were flat vs. prior year Summary NET INCOME FROM CONTINUING OPERATIONS PARTIALLY OFFSE
Slide 7: Q4'25 vs Q4'24 Adjusted EBITDA Results from Continuing Operations
Q4’25 VS Q4’24 Adjusted EBITDA Results from Continuing Operations ($ in millions) $4.9 $19.8 $16.9 Lower expenses $9.5 primarily driven by cost Higher sales reduction initiatives volumes and lower production $1.2 -$12.7 Cost reduction Lower paperboard initiatives, insurance market pricing and recove
Slide 8: FY 2025 Financial Summary
FY 2025 NET SALES FROM GROWTH IN PAPERBOARD SALES VOLUMES Financial CONTINUING OPERATIONS +14% increase in 2025 vs. 2024 $1.6B Maintaining share in a competitive environment; volume Summary NET LOSS FROM CONTINUING OPERATIONS growth driven primarily by Augusta acquisition PARTIALLY OFFSET BY MARKET
Slide 9: 2025 vs 2024 Adjusted EBITDA Results from Continuing Operations
2025 VS 2024 Adjusted EBITDA Results from Continuing Operations ($ in millions) $15.4 $107.2 $54.3 Lower expenses primarily driven by cost reduction initiatives Higher sales volumes $36.0 $33.3 Lower cost from fixed cost reduction initiatives -$31.8 Lower paperboard market pricing 2024 Adj. EBITDA P
Slide 10: Outlook and Assumptions for Q1 and 2026
Outlook and Assumptions for Q1 and 2026 Q1 2026: Roughly breakeven Adjusted EBITDA1 $15-20M impact from severe weather in Southeast U.S. impacting production and costs Flat to slightly lower paperboard shipments vs. Q4 $10-12M impact from $100/ton price reduction reported by RISI in Q4’25 $11-13M lo
Slide 11: Optimized Capital Allocation Approach Supports Value Creation
Optimized Capital Allocation Approach Supports Value Creation Investing to maintain Utilizing free cash flow Evaluating capital the long-term (FCF) to deleverage investments to diversify performance of our our balance sheet product portfolio assets Opportunistic M&A or other external options $70-80M
Slide 12: Optimistic About Long-Term Value Creation
Optimistic About Long-Term Value Creation Sharp focus on improving and growing our • De-levered balance sheet with proceeds from tissue sale paperboard business • Focus on growing our position as a premier independent paperboard packaging supplier to North American converters Well invested asset bas
Slide 13: Appendix
Appendix 13
Slide 14: Q3'25 vs Q4'25 Adjusted EBITDA Results from Continuing Operations
Q3’25 VS Q4’25 Adjusted EBITDA Results from Continuing Operations ($ in millions) $3.6 $19.8 $17.8 $14.3 Cost reduction activities -$7.4 Lower market pricing and changes in mix -$8.5 Lower annual outage- Lower paperboard related maintenance sales and costs and insurance production recovery Q3'25 Adj
Slide 15: Key Metrics
Key Metrics Quarter Ended Year Ended Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Food service $ 165.3 $ 182.0 $ 173.9 $ 664.6 $ 540.4 Folding carton 140.0 143.0 143.5 578.9 580.2 Sheeting & distribution 33.9 37.9 36.9 150.4 160.1 Pulp and other 47.2 36.1 32.8 161.5 102.9 Net sa
Slide 16: Financial Performance
Financial Performance ($ IN MILLIONS, UNAUDITED) Quarter Ended Year Ended Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Net sales $ 386.4 $ 399.0 $ 387.1 $ 1,555.4 $ 1,383.6 Costs and expenses: Cost of sales 369.2 380.3 372.4 1,439.8 1,307.5 Selling, general and administrative ex
Slide 17: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ IN MILLIONS, UNAUDITED) Quarter Ended Year Ended Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Net income (loss) $ 38.3 $ (53.3) $ 199.1 $ (18.6) $ 196.3 Add (deduct): Less: Income from discontinued operations, net of tax 35.1 0.6 218.8 34.4 2
Slide 18: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income ($ IN MILLIONS, UNAUDITED) Quarter Ended Year Ended Dec 31, 2025 Sept 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Net income (loss) $ 38.3 $ (53.3) $ 199.1 $ (18.6) $ 196.3 Add (deduct): Less: Income (loss) from discontinued operations, net of tax 35.1 0.6 2