Clearwater Paper Drives $71M EBITDA Boost with $50M Cost Cuts and Sets 2026 Guidance
Clearwater Paper cut fixed costs by over $50 million in 2025, reducing SG&A to 6.5% of net sales and boosting adjusted EBITDA by $71 million to $107 million. It forecasts $1.4–1.5 billion revenue in 2026 with a $70 million pricing headwind and planned price hikes.
1. Cost Reductions and Earnings
In 2025 Clearwater Paper cut more than $50 million in fixed costs, including $16 million in SG&A savings, trimming SG&A to 6.5% of net sales (from 8.4%) and reducing headcount by over 10%. These actions lifted adjusted EBITDA to $107 million, a $71 million year-over-year increase.
2. Augusta Integration and Sales Growth
The company completed the Augusta mill integration and tissue separation ahead of schedule, contributing to a 12% increase in net sales and a 14% rise in shipments driven by a full year of mill operations.
3. 2026 Guidance and Market Outlook
Clearwater forecasts revenue of $1.4–1.5 billion for 2026 with $65–75 million in capex, modest shipment growth, and targets of 13–14% cross-cycle EBITDA margins and over $100 million in annual free cash flow. The outlook assumes a $70 million pricing headwind from index moves and $15–20 million of weather-related costs in Q1.
4. Pricing Strategy and Market Pressures
Facing a 10% industry capacity increase and weak packaging demand, Clearwater announced per-ton price hikes of $60 for cup grades and $50 for other grades on roughly half of its non-indexed volume. Management is evaluating possible curtailments if pricing and margins remain under pressure.