Revenue goal of $1.5 billion to $1.6 billion set by Clearwater Paper for 2025, with focus on product growth and cost reductions
Clearwater Paper Corporation Delivers Strong Second Quarter Performance
Clearwater Paper Corporation (CLW) has announced a robust performance in the second quarter of 2025, according to CEO Arsen S. Kitch. The company's success was driven by multiple factors, including the acquisition of the Augusta, Georgia mill and strategic cost reduction initiatives.
The acquisition of the Augusta mill was the main driver behind the increase in shipments. The mill added incremental sales volume, significantly boosting net sales by 14% year-over-year to $392 million. Despite a slight decrease in paperboard sales prices, the company was able to expand its product portfolio and focus on integrating the Augusta facility, which further enhanced shipments and benefits.
Strategic efforts to reduce costs and improve efficiencies also played a significant role in the company's success. These efforts lowered selling, general, and administrative expenses, boosting profitability. The company's focus on cost discipline was a key factor in delivering continued benefits.
Although the overall paperboard industry faced a cyclical downturn with declining shipments industry-wide, Clearwater Paper's focused strategy and acquisition integration allowed it to buck the trend internally. The company's performance was in line with expectations, with adjusted EBITDA improving to $40 million, a substantial turnaround from a negative $8.6 million in the prior year, and contributing to net income improvement and margin expansion.
CEO Arsen S. Kitch highlighted these strategic moves in the earnings report and earnings call, emphasizing the importance of the Augusta acquisition and cost discipline in delivering the company's strong second quarter performance. However, no information was provided about the company's future plans or expectations.
In the earnings report, the company did not mention any challenges or issues in the second quarter. Arsen S. Kitch is the CEO of the company. The increased shipments were a factor in the second quarter performance, but the company did not provide specific numerical details about the second quarter performance.
References:
- Clearwater Paper Corporation Q2 2025 Earnings Release, Clearwater Paper Corporation, 2025.
- Clearwater Paper Corporation Q2 2025 Earnings Call Transcript, Seeking Alpha, 2025.
- Clearwater Paper Corporation Q2 2025 Earnings Presentation, Clearwater Paper Corporation, 2025.
- Clearwater Paper Corporation Q2 2025 Earnings Supplement, Clearwater Paper Corporation, 2025.
- Clearwater Paper Corporation Q2 2025 Earnings Fact Sheet, Clearwater Paper Corporation, 2025.
The acquisition of the Augusta mill was a strategic investment that significantly boosted Clearwater Paper's net sales and contribution to adjusted EBITDA, driving its strong second quarter performance in 2025. The company's focus on cost reduction initiatives also played an integral role in its improved profitability.
