Clearwater Paper Reports $53.3 Million Net Loss in Q3 2025 Amid Increased Sales

Clearwater Paper Corporation reported a net loss of $53.3 million for the third quarter of 2025, a significant decline compared to a net income of $5.8 million in the same quarter of 2024. For the nine months ending September 30, 2025, the company recorded a net loss of $56.9 million, compared to a loss of $2.8 million for the same period in the previous year. The company's net sales increased slightly by 1% to $399.0 million for the third quarter, and by 17% to $1.169 billion for the nine months, driven primarily by higher sales volumes from the recently acquired Augusta operations, despite market-driven price decreases.

The financial performance was impacted by a goodwill impairment charge of $48.0 million, attributed to a decline in market capitalization and ongoing softness in the paperboard market. Total operating costs and expenses rose to $454.4 million for the third quarter, up from $394.5 million a year earlier, largely due to increased costs of sales and the aforementioned impairment charge. The cost of sales for the quarter was $380.3 million, reflecting a 5% increase from the prior year, while selling, general, and administrative expenses decreased by 22% to $24.7 million, attributed to cost reduction efforts.

Operationally, Clearwater Paper has been focusing on integrating the Augusta facility, which was acquired in May 2024 for approximately $708.2 million. The acquisition has contributed to increased production capacity and sales volume, although it has also led to higher operational costs. The company has implemented a cost reduction plan, anticipating total severance costs of $5 to $7 million by the end of 2025. As of September 30, 2025, Clearwater Paper's total assets stood at $1.561 billion, down from $1.679 billion at the end of 2024, while total liabilities decreased to $778.5 million from $824.7 million.

Looking ahead, Clearwater Paper expects sales volumes to decline in the fourth quarter due to seasonal factors, although it anticipates continued benefits from its fixed cost reduction initiatives. The company is also negotiating a new union agreement at its Lewiston, Idaho facility, which may result in retroactive wage increases once ratified. Additionally, Clearwater Paper is evaluating the potential impacts of new tariffs on its operations, although it does not expect significant effects on its financial results for 2025. The company remains focused on stabilizing its operations and improving profitability in the coming quarters.