Clearwater Paper Corp (CLW) Q4 2025 Earnings Call Highlights: Strong Sales Growth Amid Industry …

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Thu, February 19, 2026 at 2:00 PM GMT+9 3 min read

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CLW

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This article first appeared on GuruFocus.

Release Date: February 18, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Clearwater Paper Corp (NYSE:CLW) successfully completed the integration of the Augusta mill and the separation of its tissue business ahead of schedule.

Net sales increased by 12% year over year, driven by a 14% increase in shipments, primarily from operating the Augusta mill for a full year.

The company achieved a $71 million improvement in adjusted EBITDA, driven by exceptional cost control and execution.

Clearwater Paper Corp (NYSE:CLW) delivered more than $50 million in fixed cost reductions, including $16 million in SG&A savings.

The company maintained a strong balance sheet, ending the year with more than $400 million in liquidity.

Negative Points

The paperboard industry is facing challenging supply and demand dynamics, particularly in SBS, with industry operating rates decreasing to the low 80% range.

Clearwater Paper Corp (NYSE:CLW) is facing a $70 million pricing headwind in 2026 due to changes in the Reesi price index.

The company experienced operational disruptions and higher costs due to severe weather at its Augusta and Cypress Bend facilities, incurring approximately $15 to $20 million in incremental costs.

Current margins and cash flow levels are not sustainable for the company in the long term, impacting its ability to reinvest in capital-intensive assets.

Clearwater Paper Corp (NYSE:CLW) may need to take extended curtailments on its assets and variabilize costs to balance supply with demand in 2026.

Q & A Highlights

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Q: Can you provide more details on the grade switching from CRB to SBS and how it affects your portfolio? A: (CEO) We are in the early stages of this transition. Customers are considering switching due to cost pressures, as SBS is currently priced lower than both CUK and CRB. While there is significant overlap in applications, this transition will not happen overnight.

Q: What gives you confidence in a demand recovery for paperboard this year, given some negative outlooks from companies like General Mills? A: (CEO) Paperboard has been in a volume recession due to inflation and reduced promotion by CPG and QSR companies. However, these companies are now focusing on growth, and inflation is slowing. We are seeing early signs of demand recovery, although it needs to translate into real volume.

Story Continues  

Q: Have you made any decisions regarding extended curtailments if the market situation does not improve? A: (CEO) We have not made concrete decisions yet but are considering options. We expect to have a strategy by the end of Q2. We are looking at cost reductions and asset management to address potential extended curtailments.

Q: Are there any risks related to fiber costs in Georgia and North Carolina due to reduced pulp supply? A: (CFO) We have not identified any risks in this area. We expect inflation to be around 2-3%, mainly driven by labor, chemicals, and transportation, but we have productivity measures in place to offset these costs.

Q: How should we think about the timing of the $20 million working capital improvement? A: (CFO) The working capital improvement will be heavily weighted towards the back half of the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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