10-Q · April 28, 2026
Clearwater Paper reported Q1 2026 net sales of $360.3M, down 5% vs Q1 2025 ($378.2M), with paperboard shipments rising 4.6% but realized prices falling 7.3% per ton. Profitability compressed sharply — Adjusted EBITDA…
Earnings analysis · 10-Q
CLW earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Clearwater Paper reported Q2 revenue of $374.8 million, down 4% year over year, and a GAAP diluted loss per share of $1.33 versus diluted EPS of $0.17 a year earlier. Gross margin fell from 11.0% to negative 2.8% and…
Read full summary
Clearwater Paper reported Q2 revenue of $374.8 million, down 4% year over year, and a GAAP diluted loss per share of $1.33 versus diluted EPS of $0.17 a year earlier. Gross margin fell from 11.0% to negative 2.8% and operating margin declined from 2.5% to negative 6.4%, as lower selling prices and the Lewiston maintenance outage outweighed higher paperboard volumes and lower SG&A. Liquidity and six-month cash generation improved materially, but that improvement was substantially supported by $32.5 million of insurance proceeds and $30.0 million of tax refunds rather than operating performance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.33
- Gross margin
- -2.8%
- Operating margin
- -6.4%
What stood out
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Higher paperboard volume could not offset pricing
Q2 net sales were $374.8 million, down 4% from $391.8 million a year earlier. Paperboard shipments increased 8% to 328,722 short tons, but paperboard price per ton fell 9% to $1,077.
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Cost-reduction actions lowered SG&A
SG&A declined 19% to $21.1 million from $26.1 million, which management attributed to planned cost-reduction efforts.
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Cash flow improved on recoveries and tax refunds
Six-month operating cash flow was $69.5 million, compared with cash used of $26.7 million in the prior-year period. The improvement included $32.5 million of insurance recoveries, $30.0 million of income-tax refunds, and inventory reductions; less $18.7 million of capex, implied six-month free cash flow was $50.8 million.
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ABL liquidity remained available
Liquidity under the ABL was supported by $197.7 million of eligible receivables and inventory at June 30, 2026; $82.8 million was utilized, including $79.0 million of borrowings and $3.8 million of letters of credit.
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Insurance recovery provided a meaningful benefit
The company received $32.5 million of Augusta representation-and-warranty insurance proceeds during the first six months, including $9.2 million recorded in cost of sales and $23.3 million in other operating charges. A further $25.0 million remains under the policy limit, though recovery is not assured.
What to watch
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Pricing and outage costs drove gross loss
Margins deteriorated sharply: Q2 cost of sales rose 10% to $385.2 million while sales fell 4% to $374.8 million, producing an approximately $10.4 million gross loss (negative 2.8% margin), versus an approximately $43.0 million gross profit (11.0% margin) a year ago.
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Pulp decline compounded paperboard pricing pressure
Pulp volumes and pricing were both weak: shipments declined 25% to 29,313 short tons and price declined 22% to $557 per short ton. Management cited the Lewiston maintenance outage as limiting pulp production capability.
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Profitability remains pressured by outages
Adjusted EBITDA from continuing operations fell to negative $8.2 million from positive $39.9 million, while the net loss was $21.5 million compared with net income of $2.7 million in Q2 2025. Q4 2026 will also include a planned Cypress Bend outage and a reduced-scope Augusta outage.
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Leverage and covenant headroom require monitoring
The company had $79.0 million outstanding under its ABL at June 30, 2026 and disclosed that covenant compliance could be jeopardized if financial performance or market conditions deteriorate. The ABL fixed-charge coverage covenant is 1.10x to 1.00x when triggered.
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No material risk-factor updates disclosed
Item 1A states there were no material changes to risk factors from the Form 10-K for the year ended December 31, 2025; therefore, the filing did not identify a newly added or materially revised risk factor.
Management's outlook
The 10-Q provided no quantitative revenue or EPS guidance. For Q3 2026, management expects lower operating costs without a planned major maintenance outage, partly offset by higher petroleum-based chemical and transportation costs. Cash capital expenditures are expected to be approximately $65 million to $75 million during 2026.
Earlier filings 4
10-K · February 18, 2026
Clearwater Paper (CLW) has repositioned itself as a pure-play SBS paperboard producer after the 2024 acquisition of an Augusta, GA mill for approximately $710.6 million and the October 2024 divestiture of its tissue…
10-Q · October 28, 2025
Clearwater Paper reported Q3 net sales of $399.0M (up from $393.3M YoY) but swung to a large GAAP loss: net loss $(53.3)M (EPS $(3.30)) driven by a $48.0M non‑cash goodwill impairment and elevated operating costs.…
10-Q · April 29, 2025
Clearwater Paper reported Q1 2025 revenue of $378.2M (up 46% vs Q1 2024 $258.8M) and Adjusted EBITDA rose to $29.8M from $14.2M a year ago, but the company posted a net loss of $6.3M (EPS -$0.38) and generated only…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.