Clearwater Paper Corporation Q3 2026 Earnings Recap

Clearwater Paper’s shares fell 28.8% after earnings, with Augusta mill failures and the resulting production disruption, added capital needs and costly maintenance outages likely weighing on investors. The company also faces a cautious near-term outlook as it works to restore the mill, despite improving pricing.

Key Takeaways

• Third-quarter adjusted EBITDA was $24.4 million, within the company’s $20 million–$30 million guidance range; revenue declined 4% year over year, primarily due to lower market-driven pricing.
• Average selling price rose $34 per ton from the second quarter, adding nearly $8 million to quarterly results. The first announced $60-per-ton increase is fully implemented; the company is progressing on a second increase.
• Electrical and mechanical failures at Augusta disrupted production and prevented some planned maintenance. The company expects a $12 million–$15 million outage in January 2027 and estimates another $7 million–$10 million of downtime-related costs in Q2 or Q3 2027, plus additional capital spending to address asset conditions.
• Clearwater received its final $17.5 million representation and warranty insurance payment during the quarter, bringing total recoveries related to the Augusta acquisition to $73 million.
• The company completed a refinancing that extended debt maturities by five years to 2031. It cited improving pricing and demand, but the projected nearly $200 million adjusted EBITDA run-rate benefit depends on announced and forecast price increases materializing across its volumes.