Clearwater Paper Corporation reported net sales of $392 million for the second quarter ended June 30, 2025, a 14% increase compared to $344 million in Q2 2024, though this was $5 million below analyst expectations. Net income from continuing operations was $4 million, or $0.22 per diluted share, missing the $0.70 GAAP consensus estimate.
Adjusted EBITDA saw a significant turnaround, reaching $40 million compared to a negative $9 million in Q2 2024. For the first six months of 2025, net sales were $770 million, up 28% year-over-year, with Adjusted EBITDA of $70 million, up from $6 million in the prior year period.
The improved Adjusted EBITDA was driven by higher sales volume from the Augusta facility, timing of major maintenance outages, and benefits from the cost reduction plan, offsetting a 3% decrease in average net selling price to $1,182 per ton due to industry oversupply. Fixed cost reduction efforts remain on track to deliver $30 million to $40 million in annual savings for FY2025.
The company announced BPI compostable certification for most of its folding carton and food service grades, with market entry expected by year-end 2025, and is developing lightweight folding carton products for 2026. For Q3 2025, Adjusted EBITDA is projected between $10 million and $20 million, with flat shipments, due to a significant planned major maintenance outage at the Lewiston mill, incurring $23 million to $25 million in direct costs and resulting in approximately 5% lower production volumes.
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