Clearwater Paper

Clearwater Paper makes the thick paper used for food containers and shipping boxes. It sells these materials to companies that turn them into items like coffee cups and plates. The business focuses on serving professional packaging makers across North America.

What Does Clearwater Make?

• Food Service: Paperboard for making cups, plates, and liquid cartons; accounted for $153.7 million in Q1 2026 net sales.
• Folding Carton: Sturdy paper used for retail boxes and consumer packaging; brought in $124.9 million in Q1 2026 net sales.
• Sheeting and Distribution: Custom services that cut and size paperboard to meet the specific needs of packaging customers.
• Pulp: Raw softwood fibers sold to other manufacturers for industrial use.

Recent Strategic Shifts

• Purchased a large manufacturing mill in Augusta, Georgia, in May 2024 from Graphic Packaging International, LLC.
• Sold the company's entire consumer tissue division in November 2024 to focus strictly on paperboard production.
• Started a cost-reduction program in 2025 to simplify operations following the sale of the tissue business.
• Secured $17.5 million in insurance proceeds during Q1 2026 related to claims from the Augusta mill acquisition.

A Focused Industrial Supplier

Clearwater Paper operates as a key supplier for independent converters, which are businesses that transform raw paper into finished products but do not own their own mills. By focusing on these specific customers, the company fills a niche in the North American supply chain for food and retail packaging.

The Latest Numbers

• Net sales fell to $360.3 million in Q1 2026, down 5% from the first quarter of 2025.
• Net loss reached $12.8 million in Q1 2026, worsening 103.2% year over year.
• Adjusted EBITDA, a measure of core operational profit, fell 94% to $1.9 million in Q1 2026.
• Free cash flow hit negative $8.6 million in Q1 2026, an improvement of 72.4% year over year.

A Business in Transition

Clearwater Paper is narrowing its focus to become a dedicated supplier of paperboard for the packaging industry. Recent asset sales and strategic restructuring reflect an evolution toward industrial markets and improved operational efficiency.