Clearwater Paper reported third-quarter 2026 sales of USD 385 million, down from USD 399 million a year earlier, with adjusted EBITDA from continuing operations up to USD 24 million from USD 18 million, aided by maintenance timing at its Lewiston mill. A disruption at the Augusta mill cut volumes and raised costs late in the quarter and into October, while the company refinanced its debt and cut net debt by USD 56 million year to date.
Why this mattersAugusta's ongoing disruption and soft SBS pricing show the paperboard producer still relies on cost cuts and balance-sheet work rather than demand to rebuild margins.
- Q3 2026 sales were USD 385 million, against USD 399 million in Q3 2025.
- Adjusted EBITDA from continuing operations rose to USD 24 million from USD 18 million a year earlier.
- Net loss narrowed to USD 2 million, or USD 0.10 per diluted share, from a USD 53 million loss including a USD 48 million goodwill impairment.
- Paperboard deliveries fell 1% to 322,265 tons; average net pricing was USD 1,111 per ton, 4% below a year earlier.
- Clearwater refinanced its debt, received USD 17.5 million in additional representation and warranty insurance proceeds, and cut net debt by USD 56 million year to date.
- Nine-month sales reached USD 1.12 billion with adjusted EBITDA of USD 18 million, down from USD 87.4 million a year earlier.
The US Patent Trial and Appeal Board has ruled unpatentable the challenged claims of a Graphic Packaging International patent covering a laminated, biodegradable paper-based cup, finding them anticipated or obvious over prior art. The decision, issued 24 September 2026, came in an inter partes review brought by competitor Clearwater Paper.
Why this mattersThe ruling strips patent protection from a Graphic Packaging cup laminate design, potentially opening the way for rivals to use similar constructions.
- The Patent Trial and Appeal Board issued the decision on 24 September 2026
- The patent covers a laminated paper cup made of a biodegradable paper-based laminate
- Clearwater Paper filed the inter partes review challenging the patent's claims
- The board found the claims anticipated or obvious over prior art disclosing similar laminate and cup structures
Clearwater Paper has replaced its 2028 senior notes and existing revolving and term credit facilities with a new credit agreement led by AgWest Farm Credit, extending its debt maturity profile to 2031. The package comprises a USD 200m revolving credit facility, of which about USD 15m was drawn at closing, and a USD 275m term loan fully funded at closing, with proceeds used to redeem the USD 275m 2028 senior notes and terminate the prior ABL facility.
Why this mattersExtending maturities to 2031 removes near-term refinancing risk for the North American paperboard producer amid a soft demand environment.
- New credit agreement signed 18 September 2026 with AgWest Farm Credit, PCA as administrative agent
- USD 275m term loan fully funded at closing
- USD 200m revolving credit facility with about USD 15m drawn at closing
- Uncommitted USD 100m increase option available subject to conditions including 2027 year-end financials
- Proceeds redeem USD 275m senior notes due 2028 and terminate existing ABL facility
- New agreement matures 18 September 2031
- Redemption completed 3 October 2026 at 100% of principal plus about USD 1.7m accrued interest
- Second-quarter 2026 net sales were USD 375m, with a net loss from continuing operations of USD 21m and negative adjusted EBITDA of USD 8m
- Net debt fell USD 59m in the quarter and USD 50m year to date, while paperboard average net selling price fell 9% as volumes rose 8%
