Clearwater Paper Corporation reported Adjusted EBITDA from continuing operations of $107 million for the year ended December 31, 2025, a significant improvement from $36 million in 2024, driven by cost reduction activities and lower input costs.
Net sales for the full year increased by 12% to $1.6 billion, primarily from operating the Augusta facility for the full year. Net loss from continuing operations was $53 million, or $3.28 per diluted share, which included a $48 million non-cash goodwill impairment.
For the Q4 2025, net sales were flat at $386 million compared to the same period last year. Adjusted EBITDA from continuing operations was $20 million, up from $9 million in the Q4 2024, driven by higher sales volumes, cost reductions, lower input costs, and insurance proceeds, partially offset by lower pricing. Net income for the quarter was $38 million, compared to $199 million in Q4 2024, which included a $218 million after-tax gain on the sale of the tissue division.
The company successfully completed the integration of the Augusta mill and the separation of the tissue business, both ahead of schedule and below targeted costs. Fixed cost reductions exceeded $50 million for the year, including $16 million in SG&A savings, which lowered SG&A costs from 8.4% to 6.5% of net sales. All three planned major maintenance outages were completed on target at a total direct cost of approximately $50 million.
The company repurchased approximately $17 million of shares during the year, with $79 million remaining under the authorization approved in November 2024.
In early 2026, the company experienced production disruptions and higher operating costs due to severe weather affecting its Augusta and Cypress Bend facilities, resulting in an estimated $20 million reduction in Adjusted EBITDA to date. Looking ahead, the company believes that a combination of demand growth, lower imports, and changes in domestic supply will lead to a recovery in the medium term, putting it on a path towards cross-cycle margin levels and cash flows.
Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters.
