Clearwater Paper Reports 14% Revenue Growth in Q2 2025, Achieves Net Income Recovery

Clearwater Paper Corporation reported a significant increase in financial performance for the second quarter of 2025, with net sales reaching $391.8 million, a 14% increase compared to $344.4 million in the same quarter of 2024. For the first half of 2025, net sales totaled $770.0 million, marking a 28% rise from $603.2 million in the prior year. The company attributed this growth primarily to higher sales volumes following the acquisition of a paperboard manufacturing facility in Augusta, Georgia, which was completed in May 2024. Despite the increase in sales, Clearwater Paper experienced a net income of $2.7 million for the quarter, a recovery from a net loss of $25.8 million in the same period last year.

The company’s cost of sales for the second quarter was $348.8 million, slightly up from $346.4 million in the previous year, while total operating costs and expenses decreased to $382.1 million from $391.3 million. This reduction was driven by a 14% decrease in selling, general, and administrative expenses, which fell to $26.1 million from $30.3 million. The improved gross margin of $43.0 million, compared to a loss of $2.0 million in the prior year, reflects enhanced operational efficiency and cost management strategies, including the implementation of a cost reduction plan.

Operationally, Clearwater Paper has seen changes in its asset structure, with total assets decreasing to $1.64 billion as of June 30, 2025, down from $1.68 billion at the end of 2024. The company’s current liabilities also decreased significantly to $259.1 million from $320.4 million, indicating improved liquidity management. The employee headcount remained stable, with no significant changes reported, while the company continues to focus on integrating the Augusta operations into its existing framework.

Looking ahead, Clearwater Paper anticipates flat sales volumes for the third quarter of 2025, with expectations of reduced energy costs due to seasonal trends. The company is also preparing for increased planned maintenance expenses at its Lewiston, Idaho mill. Additionally, Clearwater Paper is evaluating the potential impacts of recent tariff announcements on its operations, although it does not expect these to significantly affect its financial results for the fiscal year. The company remains committed to its strategic initiatives, including ongoing cost reduction efforts and the integration of the Augusta facility, to enhance its competitive position in the market.