Clearwater Paper Reports 12% Net Sales Increase to $1.56 Billion for Fiscal Year 2025

Clearwater Paper Corporation reported a net sales increase of 12% for the fiscal year ending December 31, 2025, reaching $1.56 billion, compared to $1.38 billion in 2024. This growth was primarily attributed to the inclusion of operations from the recently acquired Augusta, Georgia paperboard manufacturing facility, which was purchased for approximately $710.6 million in May 2024. However, the company faced challenges with declining market prices and shifts in product mix, which impacted overall profitability. The gross profit margin improved to 7.4% from 5.5% in the previous year, despite a significant goodwill impairment charge of $48 million.

In terms of operational changes, Clearwater Paper divested its tissue business to Sofidel America Corp. in November 2024 for $1.06 billion, a move aimed at refocusing on its core paperboard packaging segment. The divestiture resulted in a gain of $307.2 million in 2024, but the company recorded a loss from continuing operations of $53 million in 2025, reflecting the transitional challenges post-divestiture. The company also initiated a cost reduction plan, incurring $6.6 million in severance expenses as part of its restructuring efforts.

The company’s workforce consisted of approximately 1,900 employees as of December 31, 2025, with 1,263 covered under collective bargaining agreements. Clearwater Paper's operational footprint includes five manufacturing facilities across the continental United States, with the Augusta facility expected to contribute significantly to production capacity in the coming years. The company reported a total production capacity of 1.42 million tons of paperboard, with plans for further geographic expansion and product innovation to meet growing sustainability demands.

Looking ahead, Clearwater Paper anticipates generating revenue between $1.45 billion and $1.55 billion in 2026, with expectations of improved productivity initiatives to offset input cost inflation. The company is also targeting $20 million in working capital improvements, primarily through reduced finished goods inventories. However, the outlook remains cautious due to potential market volatility and the impact of ongoing economic conditions, including inflation and interest rate fluctuations. The company’s management emphasized the importance of executing its strategic initiatives effectively to navigate these challenges and achieve long-term growth.