Clearwater Paper Corporation (CLW) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Should l Buy CLW?
Source: SeekingAlpha
Adjusted EBITDA $18 million, which is towards the high end of the guidance range of $10 million to $20 million. Year-to-date adjusted EBITDA from continuing operations stands at $87 million, up from $26 million during the same period last year. This increase is driven mostly by efforts to reduce fixed costs and 4 incremental months of Augusta results included in the P&L.
Net Sales $399 million, up 1% year-over-year, driven by a 3% increase in paperboard shipment volumes partially offset by lower market pricing.
Net Loss from Continuing Operations $54 million or $3.34 per diluted share, primarily due to a $48 million noncash impairment of goodwill. This impairment was driven by the decline in market capitalization as compared to the increase in book value, which was driven by the gain from divestiture of the tissue business late last year.
Fixed Cost Reduction Initiatives Savings are now tracking to around $50 million for the year, exceeding the original estimate of $30 million to $40 million. These savings are helping offset some of the margin pressure during the industry down cycle.
Cash from Operations $34 million during the quarter.
Free Cash Flow Approximately $3.5 million during the quarter.
Net Leverage Ratio 2.7x, with aggregate debt level remaining stable despite the current industry down cycle.
Available Liquidity $455 million, providing ample financial flexibility.
SG&A as a Percent of Sales 6.2%, at the lower end of the targeted range of 6% to 7% of net sales, demonstrating a lean, cost-effective operation.
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Analyst Views on CLW
Wall Street analysts forecast CLW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLW is 27.50 USD with a low forecast of 25.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 17.380
Low
25.00
Averages
27.50
High
30.00
Current: 17.380
Low
25.00
Averages
27.50
High
30.00
About CLW
Clearwater Paper Corporation is an independent supplier of solid bleached sulfate (SBS) paperboard packaging products to North American converters. The Company produces quality paperboards that provides sustainable packaging solutions for consumer goods and food service applications. The Company operates through Pulp and Paperboard segment. It supplies bleached paperboard to quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. SBS paperboard is a premium paperboard grade that is used to produce folding cartons (also includes blister and carded packaging and top sheet), food service (including liquid packaging, cups and plates) and commercial printing items. It produces paperboard that is then converted and printed by independent converters and primarily used in folding carton and food service applications. Food service paperboard includes both liquid packaging and cup and plate categories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Transcript of Clearwater Paper's (CLW) Q3 2025 Earnings Call
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- Service Innovation: Clearwater's offerings, including continuous monitoring, threat detection and response, and cloud security, enable clients to enhance their security posture while meeting regulatory obligations, further solidifying its competitive advantage in the industry.
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- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
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