Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q2 2025 Earnings Presentation
15 slides from Clearwater Paper's earnings presentation, Jul 29, 2025
Slide 1: Second Quarter Earnings Release Materials
Second Quarter Earnings Release Materials July 29, 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 Evaluating internal and external options to broaden product offering to North American converter customers Initiative Status Objective Provide options for converter customers to service sustainability driven Post consumer recycled content Developed an
Slide 5: Industry Trends
INDUSTRY Industry SBS shipments1 down 3% Q2’25 vs. Q1’25 TRENDS MIXED DEMAND SIGNALS, SBS SHIPMENTS DECLINED Unmade SBS orders1 up 14% Q2’25 vs. Q1’25 IN Q2’25, BACKLOGS GREW Modest growth expected in 20252 Demand growth of ~3%2 projected for 2026 BLEACHED PAPERBOARD NET Imports forecasted to decrea
Slide 6: Q2 2025 Financial Summary
Q2 2025 NET SALES FROM GROWTH IN PAPERBOARD SALES VOLUMES Financial CONTINUING OPERATIONS $392M +12% increase in Q2’25 vs. Q2’24 Primarily due to Augusta acquisition Summary NET INCOME FROM CONTINUING OPERATIONS PARTIALLY OFFSET BY MARKET DRIVEN PRICE DECREASES -3% decrease in Q2’25 average pricing
Slide 7: Q2'25 vs Q2'24 Adjusted EBITDA Results from Continuing Operations
Q2’25 VS Q2’24 Adjusted EBITDA Results from Continuing Operations ($ in millions) $4.4 $39.9 $29.1 Lower expenses primarily driven by cost Higher paperboard reduction initiatives production and sales volumes partly due to Augusta acquisition $20.0 Lower cost due to Lower paperboard timing of annual
Slide 8: Outlook and Assumptions for Q3 and Full Year 2025
Outlook and Assumptions for Q3 and Full Year 2025 Q3 2025: $10 to $20M of Adjusted EBITDA1 Flat paperboard shipments vs. Q2 2025 Lower production and cost absorption vs. Q2 2025 due to maintenance outage at Lewiston, ID mill Continued benefits from fixed cost reduction efforts Other input costs stab
Slide 9: Optimized Capital Allocation Approach Supports Value Creation
Optimized Capital Allocation Approach Supports Value Creation PRIORITIZING CAPITAL ALLOCATION TO CREATE SHAREHOLDER VALUE Investing to maintain Utilizing free cash flow Evaluating capital the long-term (FCF) to deleverage investments to diversify performance of our our balance sheet product portfoli
Slide 10: Optimistic About Long-Term Value Creation
Optimistic About Long-Term Value Creation Sharp focus on improving and growing our • Meaningfully de-levered balance sheet with proceeds from tissue paperboard business sale • Focus on growing our position as a premier independent paperboard packaging supplier to North American converters Well inves
Slide 11: Appendix
Appendix 4 Es
Slide 12: Financial Performance
Financial Performance ($ IN MILLIONS, UNAUDITED) Quarter Ended June 30, 2025 March 31, 2025 June 30, 2024 Net sales $ 391.8 $ 378.2 $ 344.4 Costs and expenses: Cost of sales 348.8 341.5 346.4 Selling, general and administrative expenses 26.1 28.9 30.3 Other operating charges, net 7.1 11.8 14.6 Total
Slide 13: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ IN MILLIONS, UNAUDITED) June 30, 2025 March 31, 2025 June 30, 2024 Net income (loss) $ 2.7 $ (6.3) $ (25.8) Add (deduct): Less: Income from discontinued operations, net of tax (0.9) (0.4) 15.7 Income from continuing operations 3.6 (5.9) (41.6) Income tax provisio
Slide 14: Q1'25 vs Q2'25 Adjusted EBITDA Results from Continuing Operations
Q1’25 VS Q2’25 Adjusted EBITDA Results from Continuing Operations ($ in millions) $19.6 $2.8 $39.9 -$10.5 Cost reduction $29.8 Higher maintenance activities costs, primarily -$1.8 from Cypress Bend, Higher paperboard AR outage, partly Lower pricing offset by lower production and sales volumes energy
Slide 15: Key Metrics
Key Metrics June 30, 2025 March 31, 2025 June 30, 2024 Food service $ 166.1 $ 151.4 $ 134.7 Folding carton 147.6 148.4 147.6 Sheeting & distribution 39.9 38.8 41.2 Pulp and other 38.2 39.6 20.9 Net sales 391.8 378.2 $ 344.4 Input cost (raw materials & energy) $ 174.5 $ 168.4 $ 145.9 Labor and overhe