Clearwater Paper Corporation (CLW)

Clearwater Paper Corp.'s stock price has experienced a notable decline over the past six months, with a decrease of approximately 30.36% and a 40.00% change over the past year. Key events impacting the stock include a net loss reported in Q3 2025 due to a non-cash goodwill impairment charge, despite increased net sales. Q2 2025 earnings missed EPS forecasts, although net sales increased due to the Augusta acquisition and increased shipments in the food service business. The company sustained a $5 million negative impact from Hurricane Helene in Q3 2024. Clearwater Paper completed the sale of its tissue business to Sofidel America for $1.06 billion. The acquisition of a bleached paperboard manufacturing facility in Augusta, Georgia, significantly expanded Clearwater Paper's paperboard capacity and national geographic footprint.

The demand for Clearwater Paper's products is influenced by the broader paperboard market. While tissue demand remained strong in late 2023, paperboard demand was soft but anticipated to recover in the second half of 2024. Demand showed improvement in the third quarter of 2024, though challenges persist in the SBS market due to industry oversupply, with a full recovery expected into 2025 and 2026. Clearwater Paper is strategically positioned to benefit from the growing trend towards sustainable packaging and food service products and is exploring opportunities to expand into unbleached paperboard (CUK) and recycled paperboard (CRB).

Clearwater Paper Corp. is a prominent American manufacturer specializing in pulp and paperboard products, operating within the Materials sector, specifically in the Paper and Forest Products industry. The company functions as a premier independent supplier of Solid Bleached Sulfate (SBS) paperboard to North American converters, which is utilized in various consumer-facing products. In late 2024, Clearwater Paper divested its private label tissue consumer products division to concentrate on its paperboard business, aiming to enhance its position in sustainable packaging solutions.

Clearwater Paper's operations are primarily concentrated in North America, with its headquarters in Spokane, Washington. It operates three solid bleached sulfate mills in Lewiston, Idaho; Arkansas City, Arkansas; and Augusta, Georgia. Additionally, Clearwater Paper has smaller converting facilities under its subsidiary, Manchester Industries, and other administrative or operational locations in Columbia, South Carolina; Concord, California; Dallas, Texas; Mendon, Michigan; Hagerstown, Indiana; Wilkes-Barre, Pennsylvania; and Richmond, Virginia.

Clearwater Paper has actively focused on enhancing its brand reputation through sustainability initiatives and strategic business transformation. The company released its 2024 Sustainability Report, highlighting its commitment to "Everyday Responsibility". Key achievements include developing a roadmap for 2030 Scope 1 and 2 emissions targets, receiving International Sustainability and Carbon Certification (ISCC), establishing the Clearwater Paper Foundation, and achieving a 75% reduction in significant injuries from 2023. The strategic divestiture of its tissue business underscores its commitment to a focused and sustainable future in packaging.

Clearwater Paper Corp. has a widely distributed ownership structure, with institutional investors holding the vast majority of the shares, ranging from 82.76% to 84.24%. Major institutional owners include BlackRock, Inc., Dimensional Fund Advisors Lp, Vanguard Group Inc, Southeastern Asset Management Inc/tn/, LLSCX - Longleaf Partners Small-Cap Fund, and Readystate Asset Management Lp. Company insiders also maintain a meaningful stake, holding between 10.88% and 12.29% of the shares, with Gordon L. Jones noted as a significant individual shareholder.