Call Transcript for Clearwater Paper Corporation's Q2 2025 Earnings Discussion
Clearwater Paper Corporation has reported a robust Q2 2025 earnings performance, with significant improvements across various financial metrics. The conference call, led by Sloan Bohlen, was held on July 29, 2025, at 5:00 PM ET, to discuss these results.
Key Participants
The conference call participants included Arsen S. Kitch, CEO, President, and Director, and Sherri J. Baker, Senior VP & CFO from Clearwater Paper Corporation. Other participants were Matthew McKellar from RBC Capital Markets, Research Division, and Sloan Bohlen from SOLEBURY TROUT LLC.
Financial Highlights
- Net sales for Q2 2025 were approximately $392 million, marking a 14% year-over-year increase, primarily due to higher shipment volumes and the Augusta facility acquisition.
- The company reported a net income of $4 million from continuing operations, equivalent to $0.22 per diluted share, a significant turnaround from a net loss of $42 million in Q2 2024.
- Adjusted EBITDA stood at around $40 million, a marked improvement from the negative $8.6 million reported in the year-ago quarter.
Revenue Growth and Profitability Turnaround
The revenue growth was driven by higher production volumes and the Augusta facility acquisition, despite some downward pressure on prices in the paperboard segment. The company returned to profitability, highlighting effective cost management and operational efficiencies.
Industry Context and Strategic Transformation
Despite a 3% decline in industry shipments and operating rates at 83% in Q2 2025, the paperboard market experiencing a cyclical downturn, Clearwater Paper is benefiting from unfilled orders and strategic pivots toward more profitable product mixes. The company emphasized ongoing efforts in cost-cutting, improved production efficiency, and the strategic integration of operations following its shift to focus primarily on paperboard products.
Management Outlook
Clearwater Paper’s management expressed optimism about sustaining growth, integrating new assets, and maintaining strong margins despite industry headwinds. The stock closed near the midpoint of its 52-week trading range following the earnings release.
In summary, Clearwater Paper’s Q2 2025 results reflected a solid recovery, successful execution of strategic initiatives, and improved profitability amidst a challenging market environment. The company's non-GAAP financial information was provided during the conference call, with a reconciliation of the non-GAAP information to comparable GAAP information included in the press release and on Clearwater Paper's website. A presentation of supplemental information, including the company's current outlook, is posted on the Investor Relations page of Clearwater Paper's website. The conference call was conducted over the phone, and a slide covering forward-looking statements was available in the supplemental information provided on Clearwater Paper's website.
[1] Clearwater Paper Corporation Q2 2025 Earnings Release [2] Clearwater Paper Corporation Q2 2025 Earnings Conference Call Transcript [3] Clearwater Paper Corporation Q2 2025 Earnings Supplemental Information [4] Clearwater Paper Corporation Investor Relations Page [5] Paperboard Packaging Council Q2 2025 Market Report
Businesses interested in investing in the paperboard industry may find the performance of Clearwater Paper Corporation appealing, as the company demonstrated a robust Q2 2025 earnings performance, resulting from revenue growth, profitability turnaround, and strategic initiatives. Finance experts might also be interested in the company's net income of $4 million from continuing operations and Adjusted EBITDA of around $40 million, which represent significant improvements compared to the same period last year.
