Clearwater Paper Corporation'snet sales from total operations were $483 million for the Q4 2024, down 6% compared to Q4 2023 net sales of $513 million. Net income from total operations for the Q4 2024 was $199 million, or $11.91 per diluted share which includes $307 million of gain on sale of the tissue division ($219 million after tax) compared to $18 million for the Q4 2023, or $1.06 per diluted per share.
Adjusted EBITDA from total operations was $21 million in the Q4 2024, compared to $63 million in the Q4 2023. The increase in net income was driven by the gain on the sale of its tissue operation, offset by lower sales prices and the planned major maintenance at its Augusta, Georgia facility. The decrease in its total company Adjusted EBITDA was driven by the planned major maintenance at Augusta, Georgia facility, lower sales prices and the divestiture of its tissue operations on November 1, 2024.
“2024 was a transformational year for Clearwater Paper. We took significant steps to focus our strategy on becoming a paperboard packaging company. We acquired a high-quality manufacturing facility in Augusta, Georgia, increasing our paperboard capacity by nearly 75% and improving our geographic footprint in North America,” said Arsen Kitch, President and CEO. “We also divested our tissue business for $1.06 billion at closing and used the proceeds to de-lever our balance sheet and position the company for future growth in paperboard.”
Company Outlook
“We continue to experience challenging SBS industry conditions, with supply exceeding demand, but we remain optimistic about the future growth prospects of paperboard packaging. We are taking actions to address the resulting near term margin pressure by reducing fixed costs, including eliminating more than 10% of all positions across the company. These combined actions should deliver $30 to $40 million in cost savings in 2025. While our industry is currently in a down cycle, we continue to invest in our assets to ensure that they remain competitive in the long-run,” concluded Kitch.
Clearwater Paper is a premier independent supplier of paperboard packaging products to North American converters.
