Clearwater Paper Corporation (CLW)

In the past six months, Clearwater Paper's stock has experienced a decrease of approximately 25.08%. Clearwater Paper reported Q2 2025 earnings with revenue up 14% and adjusted EBITDA of $39.9 million, supported by volumes of approximately 305k tons. The company provided a "soft Q3 guide" with anticipated adjusted EBITDA of $10-20 million, partly due to scheduled annual maintenance at the Lewiston mill. The successful acquisition of the Augusta paperboard facility increased paperboard capacity by 70% and enhanced its geographic footprint. Clearwater Paper announced a new $100 million share repurchase program in November 2024 and bought back 148.1k shares for $4 million during Q2 2025. TD Cowen initiated coverage of Clearwater Paper with a "Buy" recommendation in September 2025. The stock experienced a 26% price drop in the month leading up to August 16, 2025, adding to a 35% drop over the preceding twelve months.

The demand for Clearwater Paper's products exhibits seasonality, particularly influenced by the broader pulp and paper industry trends. The demand for pulp experiences minor peak seasons from March to June and a major peak season from September to December. The fourth quarter marks a peak for white card paper demand. Historically, the consumption of household tissue paper remains consistent throughout the year, showing no clear seasonal peaks.

Clearwater Paper Corporation manufactures and supplies bleached paperboards, primarily for the packaging industry, including solid bleached sulfate paperboard and softwood market pulp. In 2024, the company sold its private label tissue consumer products division to focus on being a premier independent supplier of paperboard packaging products to North American converters. The company also offers custom services like sheeting, slitting, and cutting of paperboard products.

Clearwater Paper's headquarters are located in Spokane, Washington. The company operates solid bleached sulfate mills in Lewiston, Idaho; Arkansas City, Arkansas; and Augusta, Georgia. Additionally, it has smaller converting facilities owned by its subsidiary Manchester Industries and other administrative or operational locations in Columbia, SC; Concord, CA; Dallas, TX; Mendon, MI; Hagerstown, IN; Wilkes-Barre, PA; and Richmond, VA. The company's operations and sales are primarily focused on the United States and internationally, serving North American converters.

Clearwater Paper's brand reputation has been influenced by its strategic shift and operational adjustments. The company has been positioning itself as a premier independent supplier of paperboard packaging products, emphasizing sustainable practices and quality consumer products. The sale of its private label tissue business in 2024 for $1.06 billion allowed the company to focus on its paperboard segment and deleverage its balance sheet. The company has been targeting $30 million to $40 million in cost savings for 2025, including a 10% reduction in workforce, aimed at improving its cost structure and operational efficiency.

Clearwater Paper is primarily owned by institutional shareholders, who hold approximately 85.66% of the company's stock. Major institutional owners include BlackRock, Inc., Dimensional Fund Advisors LP, and Vanguard Group Inc. Gordon L. Jones is noted as the largest individual Clearwater Paper shareholder, owning 407,667 shares, representing 2.53% of the company. Arsen Kitch, the CEO, owns 1.5% of the shares.