Clearwater Paper posts $53M loss, plans mill curtailments and $60/ton price hike
Clearwater Paper recorded a $53 million net loss in continuing operations for fiscal 2025, driven by a $48 million non-cash goodwill impairment stemming from the $1.06 billion tissue division sale. CEO Arsen Kitch will finalize mill curtailment plans by end-June and has raised cup grade prices by $60 per ton.
1. 2025 Financial Loss Detail
Clearwater Paper reported a $53 million net loss in continuing operations for its fiscal year ended December 31, 2025, compared with a $74 million loss in 2024. The primary factor was a $48 million non-cash goodwill impairment linked to its $1.06 billion sale of the tissue division in 2024.
2. Cost Management and Price Increases
To offset inflationary pressures and improve margins, the company raised cup grade prices by $60 per ton and increased rates on select other products by $50 per ton. CEO Arsen Kitch emphasized these moves as necessary to sustain reinvestment in capital-intensive manufacturing assets.
3. Mill Curtailment Strategy
Clearwater Paper plans to evaluate and potentially extend production curtailments at unspecified mills, with a final strategy to be announced by the end of June. The aim is to reduce operating costs and bolster cash flow amid an oversupplied paperboard market.
4. Launch of Velora Lightweight Paperboard
The company is preparing to introduce Velora, a new lightweight paperboard produced in Lewiston featuring a mechanical pulp middle layer. Velora is designed to compete with a segment that represents roughly 10% of North American bleached paperboard demand.