Clearwater Paper's Strategic Shift: Q3 2024 Earnings and Beyond

In the third quarter of 2024, Clearwater Paper Corporation (NYSE: CLW) reported earnings that reflected a significant strategic shift in the company's focus. The earnings call provided insights into the company's performance, strategic initiatives, and future outlook. This article will delve into the key aspects of Clearwater Paper's Q3 2024 earnings and the implications for investors.


Clearwater Paper's strategic shift towards paperboard packaging has been a significant driver of its performance in Q3 2024. The company reported adjusted EBITDA of $64 million, within its guidance range, despite a $5 million impact from Hurricane Helene. The paperboard segment contributed $42 million to adjusted EBITDA, while the tissue segment contributed $41 million. This strategic move has allowed Clearwater Paper to focus on its core competencies and position itself as a premier independent supplier to North American converters.

The cyclical downturn in the SBS market and inventory destocking have negatively impacted Clearwater Paper's earnings in Q3 2024. The company reported a $5 million impact from Hurricane Helene and a $40-50 million negative price/cost impact for 2025 due to the continued SBS downcycle. Additionally, Clearwater Paper anticipates a major maintenance outage at the Augusta facility in Q4, estimated to cost $15-20 million. Despite these challenges, the company has demonstrated resilience and delivered strong earnings within its guidance range.


The major maintenance outage at the Lewiston facility and Hurricane Helene have had a significant impact on Clearwater Paper's Q3 2024 earnings. The maintenance outage resulted in a $40-50 million negative price/cost impact for 2025 and an additional $2-3 million impact in Q4 2024. Hurricane Helene had a $5 million impact on Q3 results and an additional $2-3 million expected in Q4. Despite these challenges, Clearwater Paper has maintained a strong focus on its strategic initiatives and delivered a solid performance in Q3.

Clearwater Paper's strategic shift towards paperboard packaging has had a positive impact on its stock price and market capitalization. The company's Board of Directors approved a new $100 million share repurchase authorization, allowing the company to opportunistically repurchase shares and potentially increase earnings per share. As of November 6, 2024, Clearwater Paper's stock price has increased by 5.2% compared to the previous day, reaching $27.50 per share. This upward trend can be attributed to the company's strong Q3 earnings results and the new share repurchase authorization.

In conclusion, Clearwater Paper's Q3 2024 earnings call provided valuable insights into the company's strategic shift towards paperboard packaging and its performance amidst challenging market conditions. Despite the cyclical downturn in the SBS market and the impact of Hurricane Helene, Clearwater Paper has demonstrated resilience and delivered strong earnings within its guidance range. The company's strategic initiatives, including the acquisition of the Augusta facility and the tissue business sale, have positioned it well for future growth. Investors should closely monitor Clearwater Paper's progress as it continues to execute its strategic plan and navigate the dynamic market landscape.