What does Clearwater Paper do and what are its main business segments?

What factors drove the changes in Clearwater Paper's revenue and profit?

What is Clearwater Paper's gross profit margin?

What were the key takeaways from Clearwater Paper's earnings call?

What is Clearwater Paper's latest dividend and current dividend yield?

What were the key takeaways from Clearwater Paper’s earnings call?

What guidance did Clearwater Paper's management provide for the next earnings period?

Did Clearwater Paper beat or miss consensus estimates last quarter?

- **Q3 EBITDA beat**: $18 million vs. $10-20M guidance, driven by cost savings and volume growth.
- **$50M cost savings**: Exceeding targets, offsetting margin pressure from industry oversupply.
- **CUK project delay**: High return ($50M capex, >20% ROI) on hold due to balance sheet focus.
- **2026 vision**: 13-14% EBITDA margin, $100M+ free cash flow at normalized utilization, $20M+ working capital improvement.
- **Import relief**: 10% European import decline YTD, tariff impact creating domestic supply tailwind.

**【CEO Summary Section】**
- **Adjusted EBITDA of $18 million**: Beat high end of Q3 guidance range of $10-$20 million.
- **Net sales growth of 2%**: Driven by 6% shipment volume increase, offset by lower pricing.
- **$50 million fixed cost savings**: Exceeding original $30-40 million target, supporting margins amid industry oversupply.
- **Major maintenance efficiency**: Lewiston ($24M) and Augusta ($16M) outages executed with improved execution vs. prior year.
- **CUK swing project update**: $50M capital investment with >20% return potential, delayed due to balance sheet focus.

**【CFO Financial Commentary】**
- **Net loss of $54 million**: Driven by $48M non-cash goodwill impairment.
- **Q4 EBITDA guidance of $13-23 million**: Reflects seasonal volume decline and stable input costs.
- **2026 outlook**: 
  - Revenue: $1.45-1.55 billion
  - EBITDA margin: 13-14%
  - Free cash flow: $100+ million at normalized utilization
  - Capex: $65-75 million
  - Working capital improvement: $20 million+ through inventory reduction.
- **Balance sheet strength**: Net leverage 2.7x, $455M liquidity, $2M share buybacks year-to-date.

**【Q&A Highlights】**
- **CUK project timing**: Decision deferred due to leverage target of 1-2x and 2+ year payback period.
- **Import relief progress**: European imports down 10% YTD, tariff impact adding 20-30% import cost.
- **2026 maintenance cadence**: Potential early summer outage at Lewiston to improve execution; details to be shared in Feb.
- **Q4 variability drivers**: Energy costs (weather-dependent), production absorption ($500/ton), and inventory management trade-offs.


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