Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q3 2025 Earnings Presentation
15 slides from Clearwater Paper's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter Earnings Release Materials
Third Quarter Earnings Release Materials October 28, 2025 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 Current SBS oversupply impacting broader paperboard TRENDS EXPECT DEMAND RECOVERY market IN 2026 Price gap between substrates outside of historical norms Modest shipment growth expected in 20252 Demand growth of ~3%2 projected for 2026 Imports forecasted to decrease by ~4%2 in 2025 vs. 2024
Slide 6: Q3 2025 Financial Summary
Q3 2025 NET SALES FROM GROWTH IN PAPERBOARD SALES VOLUMES Financial CONTINUING OPERATIONS +3% increase in Q3’25 vs. Q3’24, +6% vs. Q2’25 $399M Maintaining share in a competitive environment Summary NET LOSS FROM CONTINUING OPERATIONS PARTIALLY OFFSET BY MARKET DRIVEN PRICING -3% decrease in Q3’25 av
Slide 7: Q3'25 vs Q3'24 Adjusted EBITDA Results from Continuing Operations
Q3’25 VS Q3’24 Adjusted EBITDA Results from Continuing Operations ($ in millions) $20.9 $5.3 $7.0 $17.8 -$9.7 -$5.7 Higher sales volumes Lower expenses Lower paperboard on paperboard and Higher cost due to primarily driven by cost market pricing pulp timing of annual reduction initiatives outage par
Slide 8: Outlook and Assumptions for Q4 and Initial 2026
Outlook and Assumptions for Q4 and Initial 2026 Q4 2025: $13 to $23M of Adjusted EBITDA1 Slightly lower paperboard shipments vs. Q3 2025 due to seasonality 3-4% lower production volumes driving less cost absorption vs. Q3 2025 Continued benefits from fixed cost reduction efforts, other input costs s
Slide 9: 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 to support strategic $70-80M 1-2x
Slide 10: Optimistic About Long-Term Value Creation
Optimistic About Long-Term Value Creation Sharp focus on improving and growing our • De-levered balance sheet with proceeds from tissue sale paperboard business • Focus on growing our position as a premier independent paperboard packaging supplier to North American converters Well invested asset bas
Slide 11: Appendix
Appendix 11
Slide 12: Financial Performance
Financial Performance ($ IN MILLIONS, UNAUDITED) Quarter Ended September 30, 2025 June 30, 2025 September 30, 2024 Net sales $ 399.0 $ 391.8 $ 393.3 Costs and expenses: Cost of sales 380.3 348.8 363.2 Selling, general and administrative expenses 24.7 26.1 31.6 Other operating charges, net 1.5 7.1 (0
Slide 13: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ IN MILLIONS, UNAUDITED) Quarter Ended September 30, 2025 June 30, 2025 September 30, 2024 Net income (loss) $ (53.3) $ 2.7 $ 5.8 Add (deduct): Less: Income from discontinued operations, net of tax 0.6 (0.9) 16.6 Income from continuing operations (53.9) 3.6 (10.7)
Slide 14: Q2'25 vs Q3'25 Adjusted EBITDA Results from Continuing Operations
Q2’25 VS Q3’25 Adjusted EBITDA Results from Continuing Operations ($ in millions) $39.9 -$3.9 -$0.7 Lower market Higher paperboard pricing sales offset by lower pulp sales and Cost reduction production activities $1.2 $17.8 -$18.7 Higher annual outage- related maintenance costs and increases in chem
Slide 15: Key Metrics
Key Metrics Quarter Ended September 30, 2025 June 30, 2025 September 30, 2024 Food service $ 182.0 $ 166.1 $ 142.1 Folding carton 143.0 147.6 182.1 Sheeting & distribution 37.9 39.9 41.6 Pulp and other 36.1 38.2 27.5 Net sales 399.0 391.8 $ 393.3 Input cost (raw materials & energy) $ 173.5 $ 174.5 $