Clearwater Paper Corporation (CLW)

Clearwater Paper's stock has experienced significant underperformance, declining approximately 44% since mid-2024, while the S&P 500 saw a rise of nearly 17% during the same period. In April 2026, the company reported its First Quarter results, showing a 5% increase in paperboard volumes but a 7% drop in average selling price per ton, and a severe weather event negatively impacted Adjusted EBITDA and net loss from continuing operations. In April 2026, Clearwater Paper announced a reduction in SBS production at its Arkansas facility. In March 2026, the company launched Velora™ Lightweight Paperboard. In February 2026, Clearwater Paper released its Fourth Quarter and Year-End 2025 results and participated in the Bank of America Global Agricultural and Materials Conference. In late 2025/early 2026, Clearwater Paper restructured its Cypress Bend, Arkansas facility, leading to a reduction of approximately 20% of salaried and hourly roles, with an expectation of $8 million to $12 million in annualized cost savings. In February 2026, the company provided earnings guidance for fiscal year 2026, projecting revenue between $1.4 billion and $1.5 billion.

The demand for products in the papermaking industry exhibits seasonal patterns. The industry generally experiences a traditional peak season starting in August, with demand often remaining strong into the first half of the following year. July is typically considered an off-season for the packaging paper industry. Demand for pulp also sees a minor peak from March to June and a major peak from September to December. The paperboard market is cyclical, and temporary oversupply can impact demand and pricing.

Clearwater Paper Corp. is an independent manufacturer focused on solid bleached sulfate (SBS) paperboard packaging products for private-label and commercial customers across North America. The company operates within the Basic Materials sector, specifically in the Paper & Paper Products and Paperboard Mills industries. Clearwater Paper's core business revolves around its Pulp & Paperboard segment, which supplies SBS paperboard used in folding cartons, foodservice packaging, and specialty paper applications. In 2024, the company divested its private-label tissue business to concentrate on its paperboard operations. Clearwater Paper emphasizes operational efficiency and environmental responsibility, incorporating recycling and energy-recovery initiatives across its mill network.

Headquartered in Spokane, Washington, Clearwater Paper has expanded its manufacturing presence across North America. Its facilities are located in Idaho, Arkansas, Minnesota, Wisconsin, and Ontario, Canada. The acquisition of a paperboard manufacturing facility in Augusta, Georgia, further enhanced its North American footprint and significantly increased its paperboard capacity. The majority of the company's revenue is derived from the United States.

Clearwater Paper maintains a positive brand reputation, particularly in its commitment to sustainability and safety. In 2024, the company achieved a 75% reduction in significant injuries compared to 2023, became Water Stewardship Verified through The Water Council's WAVE Program, and received multiple sustainability and safety awards, including AF&PA's Leadership in Sustainability award. The launch of Velora™ Lightweight Paperboard further underscores its dedication to providing sustainable packaging solutions. The company's focus on operational efficiency and environmental responsibility contributes to its positive image.

Clearwater Paper's ownership is a mix of institutional, retail, and individual investors. Institutional investors hold a significant portion, commonly ranging from 85% to 95% of the float, while insiders typically hold around 1% to 3%. Major institutional owners include BlackRock, Inc., Southeastern Asset Management Inc/tn/, Dimensional Fund Advisors Lp, Vanguard Group Inc, Charles Schwab Investment Management Inc, Geode Capital Management, Llc, Millennium Management Llc, American Century Companies Inc, and Towle & Co. Mason Hawkins is noted as one of the largest individual shareholders.