Clearwater Paper Reports Third Quarter 2026 Results
Clearwater Paper Corp (CLW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Clearwater Paper Reports Third Quarter 2026 Results SPOKANE, Wash.--(BUSINESS WIRE)--October 26, 2026 -- Clearwater Paper Corporation (NYSE:CLW) , a premier independent supplier of bleached paperboard to North American converters today reported financial results for
How this was made
The 30-second read
Why it matters
The earnings release introduces new financial metrics that could influence CLW's stock price in the short term.
Market read
Primary earnings disclosure for a mid‑cap paperboard supplier; relevant for traders focused on industrial and packaging stocks.
What to watch
Improved average selling price and upcoming price increases may boost future margins.
Clearwater Paper Reports Third Quarter 2026 Results
Third-quarter net sales declined and the company remained in a net loss, while Adjusted EBITDA from continuing operations increased year over year, average selling price improved versus the second quarter, and net debt declined year to date. The Augusta mill disruption and transportation and chemical cost headwinds remain material operating risks.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, quarter ended September 30, 2026GAAP | $384.9M | – | – |
| Cost of sales, quarter ended September 30, 2026GAAP | $363.7M | – | – |
| Selling, general and administrative expenses, quarter ended September 30, 2026GAAP | $20.1M | – | – |
| Other operating charges, net, quarter ended September 30, 2026GAAP | −$1.4M | – | – |
| Goodwill impairment, quarter ended September 30, 2026GAAP | — | – | – |
| Total operating costs and expenses, quarter ended September 30, 2026GAAP | $382.4M | – | – |
| Income (loss) from continuing operations, quarter ended September 30, 2026GAAP | $2.5M | – | – |
| Interest expense, net, quarter ended September 30, 2026GAAP | −$4.8M | – | – |
| Early debt extinguishment, quarter ended September 30, 2026GAAP | −$1.1M | – | – |
| Other non-operating expense, quarter ended September 30, 2026GAAP | −$1.1M | – | – |
| Total non-operating expense, quarter ended September 30, 2026GAAP | −$7M | – | – |
| Loss from continuing operations before income taxes, quarter ended September 30, 2026GAAP | −$4.5M | – | – |
| Income tax benefit, quarter ended September 30, 2026GAAP | −$2.9M | – | – |
| Loss from continuing operations, quarter ended September 30, 2026GAAP | −$1.6M | – | – |
| Income (loss) from discontinued operations, net of tax, quarter ended September 30, 2026GAAP | — | – | – |
| Net loss, quarter ended September 30, 2026GAAP | −$1.6M | – | – |
| Loss per share from continuing operations, basic, quarter ended September 30, 2026GAAP | $(0.10) | – | – |
| Net loss per share, basic and diluted, quarter ended September 30, 2026GAAP | $(0.10) | – | – |
| Average shares outstanding, basic and diluted, quarter ended September 30, 2026GAAP | 16.13M | – | – |
| Adjusted EBITDA from continuing operations, quarter ended September 30, 2026non-GAAP | $24.4M | – | – |
| Adjusted income (loss) from continuing operations, quarter ended September 30, 2026non-GAAP | −$3.7M | – | – |
| Adjusted income (loss) from continuing operations per diluted share, quarter ended September 30, 2026non-GAAP | $(0.23) | – | – |
| Sales volumes, third quarter of 2026other | 322,265 tons | – | decrease of 1% |
| Paperboard average net selling price, third quarter of 2026other | $1,111 per ton | – | decreased 4% |
| Average selling price improvement versus the second quarter of 2026other | $34 per ton | improved by $34 per ton | – |
| Net sales, nine months ended September 30, 2026GAAP | $1.12B | – | – |
| Cost of sales, nine months ended September 30, 2026GAAP | $1.11B | – | – |
| Selling, general and administrative expenses, nine months ended September 30, 2026GAAP | $61.8M | – | – |
| Other operating charges, net, nine months ended September 30, 2026GAAP | −$20.1M | – | – |
| Goodwill impairment, nine months ended September 30, 2026GAAP | — | – | – |
| Total operating costs and expenses, nine months ended September 30, 2026GAAP | $1.15B | – | – |
| Income (loss) from continuing operations, nine months ended September 30, 2026GAAP | −$31.8M | – | – |
| Loss from continuing operations, nine months ended September 30, 2026GAAP | −$35.9M | – | – |
| Net loss, nine months ended September 30, 2026GAAP | −$35.9M | – | – |
| Net loss per share, basic and diluted, nine months ended September 30, 2026GAAP | $(2.23) | – | – |
| Adjusted EBITDA from continuing operations, nine months ended September 30, 2026non-GAAP | $18M | – | – |
| Adjusted income (loss) from continuing operations, nine months ended September 30, 2026non-GAAP | −$52.6M | – | – |
| Adjusted income (loss) from continuing operations per diluted share, nine months ended September 30, 2026non-GAAP | $(3.27) | – | – |
| Sales volumes, first nine months of 2026other | 953,906 tons | – | increase of 4% |
| Paperboard average net selling price, first nine months of 2026other | $1,096 per ton | – | decreased 7% |
later this quarter and into next year outlook
- NoteRISI is forecasting improved pricing later this quarter and into next year.
- NoteThe company expects cost headwinds in transportation and chemicals.
- NoteThe company expects improved pricing to help recover some cost increases and put it on the path towards its cross-cycle Adjusted EBITDA margins and cash flows.
Capital returns
- Repurchases of common stock: — in the quarter ended September 30, 2026, compared to $(2.1) million in the quarter ended September 30, 2025.
- Repurchases of common stock: $(0.1) million in the nine months ended September 30, 2026, compared to $(17.2) million in the nine months ended September 30, 2025.
What drove it
- Net sales were primarily affected by lower market pricing.
- Adjusted EBITDA from continuing operations increased due to the timing of the major maintenance outage at the Lewiston facility, partly offset by reduced sales prices.
- The Lewiston outage occurred in the third quarter of 2025 compared with the second quarter of 2026.
- Previously announced price increases and sales mix improvement drove the increase in average selling price versus the second quarter of 2026.
- For the nine months of 2026, Adjusted EBITDA from continuing operations was affected by a weather event during the first quarter of 2026 and reduced sales prices, offset by higher sales volumes.
- The company executed refinancing of all debt, meaningfully extending maturities.
- The company received $17.5 million in additional representation and warranty insurance proceeds.
Concerns
- Volumes and costs were negatively affected by a significant operational disruption at the Augusta mill late in the third quarter.
- Operational issues at the Augusta mill continued into October.
- Paperboard average net selling price decreased 4% year over year in the third quarter and decreased 7% in the first nine months of 2026.
- The company cited cost headwinds in transportation and chemicals.
- The company reported a net loss from continuing operations of $(35.9) million for the nine months ended September 30, 2026.
- Adjusted EBITDA from continuing operations was $18.0 million for the nine months ended September 30, 2026, compared to $87.4 million in the prior-year period.
What to watch
- Implementation of the second announced price increase.
- Progress in returning the Augusta mill to normal operating conditions and addressing underlying reliability issues.
- SBS industry conditions and the timing of improved pricing later this quarter and into next year.
- Transportation and chemical cost headwinds.
- Recovery of cost increases and progress toward cross-cycle Adjusted EBITDA margins and cash flows.
Balance sheet and cash flow
- Cash and cash equivalents were $35.7 million at September 30, 2026, compared to $30.7 million at December 31, 2025.
- Restricted cash for redemption of debt was $276.7 million at September 30, 2026.
- Current portion of long-term debt was $274.7 million and long-term debt was $292.7 million at September 30, 2026.
- Net debt was $260.7 million at September 30, 2026, compared to $266.8 million at June 30, 2026, $325.8 million at March 31, 2026, and $316.7 million at December 31, 2025.
- Net cash flows provided by operating activities were $30.6 million in the quarter ended September 30, 2026, compared to $33.9 million in the quarter ended September 30, 2025.
- Net cash flows provided by operating activities were $100.1 million in the nine months ended September 30, 2026, compared to $7.3 million in the nine months ended September 30, 2025.
- Additions to property, plant and equipment, net were $(14.7) million in the quarter ended September 30, 2026 and $(33.4) million in the nine months ended September 30, 2026.
- Borrowings on long-term debt were $290.0 million in the quarter ended September 30, 2026, while repayments of long-term debt were $(79.1) million.
- Borrowings on long-term debt were $305.0 million in the nine months ended September 30, 2026, while repayments of long-term debt were $(79.4) million.
- Cash, cash equivalents and restricted cash at end of period were $319.6 million at September 30, 2026.
Analysis
Clearwater Paper reported third-quarter net sales of $384.9 million, compared with $399.0 million in the prior-year period. The release attributes the sales decline primarily to lower market pricing. Sales volumes were 322,265 tons, a decrease of 1%, while paperboard average net selling price decreased 4% to $1,111 per ton. Commercial momentum improved sequentially: average selling price improved by $34 per ton versus the second quarter of 2026, driven by previously announced price increases and sales mix improvement.
The company recorded a net loss of $(1.6) million, or $(0.10) per share, compared with a net loss of $(53.3) million, or $(3.30) per share. The prior-year loss included $48.0 million of goodwill impairment. Adjusted EBITDA from continuing operations increased to $24.4 million from $17.8 million. Management attributed the increase to the timing of the Lewiston major maintenance outage, which occurred in the third quarter of 2025 rather than the second quarter of 2026, offset by reduced sales prices.
The nine-month results remain materially weaker on an adjusted operating basis. Net sales were $1,120.0 million versus $1,169.0 million, and Adjusted EBITDA from continuing operations was $18.0 million versus $87.4 million. The company cited the weather event in the first quarter of 2026 and reduced sales prices, partly offset by higher sales volumes. The nine-month net loss was $(35.9) million, compared with $(56.9) million, with the prior-year result affected by goodwill impairment.
Liquidity and debt management were active during the period. Cash and cash equivalents were $35.7 million, restricted cash for redemption of debt was $276.7 million, and net debt was $260.7 million at September 30, 2026. The company said it executed refinancing of all debt and reduced net debt by $56 million year to date. Operating cash flow was $100.1 million for the nine months, while additions to property, plant and equipment were $(33.4) million.
The outlook is qualitative rather than quantified. Management expects continued SBS industry recovery and cites RISI's forecast for improved pricing later this quarter and into next year, but also identifies transportation and chemical cost headwinds. Near-term execution depends on implementing the second price increase and restoring normal operating conditions at Augusta, where the late-quarter disruption reduced volumes and raised costs and operational issues continued into October.
Management, verbatim
We delivered strong commercial execution during the quarter, with average selling prices increasing versus the second quarter. We successfully implemented our first announced price increase and continue to make meaningful progress on implementing the second increase.
Arsen Kitch, president and chief executive officer
Our volumes and costs were negatively affected by a significant operational disruption at our Augusta mill late in the third quarter, with the impact being largely offset by a portion of RWI settlements. Operational Issues have continued into October, but we are making progress getting the mill back to normal operating conditions.
Arsen Kitch, president and chief executive officer
We are optimistic about a continued recovery in SBS industry conditions, even as we face cost headwinds in transportation and chemicals. RISI is forecasting improved pricing later this quarter and into next year, which should help us recover some of the cost increases that we’ve faced and put us on the path towards our cross-cycle Adjusted EBITDA margins and cash flows.
Arsen Kitch, president and chief executive officer
Not in the filing
stated, not guessed- Quantified forward revenue guidance.
- Quantified forward gross-margin guidance.
- Quantified forward operating-expense guidance.
- Quantified forward tax-rate guidance.
- Segment revenue and segment profitability.
- Gross profit and gross margin.
- Reported effective tax rate.
- Free cash flow.
- Dividend declaration or dividend payment.
- Prior-quarter net sales, earnings, Adjusted EBITDA and operating cash flow figures for the third quarter of 2026.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Clearwater Paper is a U.S. listed supplier of bleached paperboard. The 8‑K filing provides the first public release of its Q3 2026 financials.
Ticker impact
Clearwater Paper reported Q3 2026 results with net sales $385M, a $2M loss and adjusted EBITDA $24M, marking the first public disclosure of these numbers.
likely slight downside as market prices in the loss and operational issues
The loss versus prior year and operational disruption at Augusta mill are fresh negative catalysts, while debt reduction and higher EBITDA provide some support.
Market effects
Paperboard packaging sector may see modest pressure as a peer reports a loss, but debt reduction could be viewed positively.
North American packaging market may adjust expectations for pricing trends.
Limited; impact confined to US paperboard suppliers.
Counterpoint
Despite the loss, the debt reduction and higher EBITDA could signal a turnaround, presenting a buying opportunity.
Key entities
- CompanyClearwater Paper Corporation
Issuer of the earnings report.
- ExecutiveArsen Kitch
President and CEO who commented on results.
