Clearwater Paper Reports Transformational Year in 2025

Paperboard-focused business sees strong execution and cost reductions amid challenging market conditions

Published on Feb. 23, 2026

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Clearwater Paper (NYSE:CLW) management characterized 2025 as a 'transformational year' for the company, marking its first full year operating as a paperboard-focused business following the separation of its tissue operations. The company reported a 12% increase in net sales year-over-year, driven by a 14% increase in shipments, primarily from operating the Augusta Mill for a full year. Management also emphasized structural cost reductions, including more than $50 million in fixed cost reductions and a 40% reduction in corporate SG&A headcount.

Why it matters

Clearwater Paper's transition to a paperboard-focused business and its efforts to improve operational efficiency and reduce costs are significant as the company navigates challenging market conditions in the paperboard industry, including muted packaging demand, a large increase in industry capacity, and lower operating rates.

The details

Clearwater Paper completed the integration of the Augusta mill and the tissue separation ahead of schedule. The company repurchased $17 million of shares during the year and ended 2025 with more than $400 million in liquidity. However, the company faces pricing and margin pressure due to a 10% increase in industry supply in 2025, which pushed operating rates into the low-80% range. Clearwater recently announced price increases of $60 per ton for cup grades and $50 per ton for all other products to support reinvestment.

  • Clearwater Paper completed the integration of the Augusta mill and the tissue separation ahead of schedule in 2025.
  • Clearwater repurchased $17 million of shares during 2025.

The players

Clearwater Paper Corporation

An independent manufacturer of premium tissue and pulp and paperboard products for private-label and commercial customers in North America.

Arsen Kitch

President and CEO of Clearwater Paper.

Sherri Baker

CFO of Clearwater Paper.

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