Clearwater Paper Corporation (CLW): Business Model Canvas [Dec-2025 Updated]

You're digging into Clearwater Paper Corporation (CLW) right now, wanting to see exactly how this pivot to a pure-play paperboard supplier is translating into its operational reality, and honestly, the numbers from the 2025 fiscal year tell a clear story of focused execution. As your former BlackRock colleague, I can tell you that understanding the mechanics behind their $\mathbf{\$1.5}$ billion to $\mathbf{\$1.6}$ billion revenue guidance and their aggressive push for nearly $\mathbf{\$50}$ million in fixed-cost reductions is key to seeing their strategy in action. This isn't just about making paper; it's about managing three large mills, maintaining $\mathbf{\$455}$ million in liquidity, and serving North American converters with $\mathbf{1.4}$ million tons of capacity-so let's break down the nine essential blocks of their business model below to see where the real value is being built.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Clearwater Paper Corporation running as a premier independent supplier of paperboard packaging products, especially after their big strategic shift. These partnerships are critical for securing materials and serving their customer base, which is focused on independent converters across North America.

The focus on North American paperboard converters is central to Clearwater Paper Corporation's strategy, especially after they divested their tissue business. They aim to be a top-three supplier in this space. Their operational backbone supporting these converters is their capacity, which stands at approximately 1.4 million tons of annual SBS (solid bleached sulfate) paperboard capacity across their three mills in Lewiston, Idaho; Cypress Bend, Arkansas; and the recently acquired Augusta, Georgia facility. For the first nine months of 2025, Clearwater Paper reported net sales of $1.2 billion, showing the scale of the business these partnerships support.

When it comes to raw material suppliers for sustainably sourced pulp and fiber, Clearwater Paper Corporation emphasizes that all of its products are made using fiber from responsibly-managed forests. This commitment to responsible sourcing is a non-negotiable for their packaging customers. To give you a concrete example of material reuse, their Augusta mill repurposed 25,320 tons of salvaged wood for pulp fiber production during 2024, which speaks to their supplier/resource management approach.

Collaboration for industry standards is managed through key affiliations. Clearwater Paper Corporation is a proud member of the Sustainable Packaging Coalition (SPC). The SPC brings together various entities across the packaging lifecycle, from sourcing to end-of-life, to foster a collaborative environment for new product ideas. This membership helps Clearwater Paper align its product development, like its ReMagine® paperboard, with broader industry sustainability goals.

Conservation efforts are also a direct partnership activity. To support biodiversity near the Augusta mill, Clearwater Paper Corporation established a partnership with Ducks Unlimited in 2024. Through a financial contribution, they are helping advance Ducks Unlimited's work to place conservation easements on nearly 3,900 acres of high conservation value land along the Savannah River corridor. It's a tangible local commitment tied to a major operational asset.

Here's a quick look at the scale of the business these partnerships enable, based on the latest reported figures:

These key external relationships also involve industry groups that help drive product innovation and responsible sourcing standards:

• Membership in the Sustainable Packaging Coalition (SPC).
• Partnership with the Forest Stewards Guild for responsible forestry management.
• Affiliation with the Sustainable Forestry Initiative (SFI®).
• Collaboration with Charter Next Generation for ISCC Plus certification.
• Customer recognition, such as Neff Packaging Solutions winning an award for using ReMagine® paperboard.

The company's focus on specialty and sustainable packaging aligns with the goals of these partners, helping Clearwater Paper Corporation navigate the current industry cycle. For instance, their Q3 2025 shipment volumes were 324,198 tons, a 3% increase year-over-year, showing continued engagement with their converter base.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Key Activities

You're managing a paperboard business in a tight market, so your key activities revolve around maximizing output from existing assets while aggressively controlling the cost base. Clearwater Paper Corporation (CLW) is definitely focused on this balancing act as of late 2025.

The core activity remains the manufacturing of Solid Bleached Sulfate (SBS) paperboard. You saw shipment volumes increase in the first half of 2025, with 918,399 tons shipped in the first nine months of 2025, a 19% increase year-over-year from the 774,207 tons shipped in the first nine months of 2024. By the third quarter of 2025, sales volumes reached 324,198 tons. This production is anchored by a total SBS capacity of approximately 1.4 million tons.

Executing fixed-cost reduction initiatives is critical to navigating the current industry utilization rate, which management noted was around 83%. Clearwater Paper projected nearly $50 million in total fixed cost savings for the full year 2025, which was an increase over the initial target of $30-$40 million. A concrete result of this focus is the reduction of Selling, General, and Administrative (SG&A) expenses to 6.7% of net sales in the second quarter of 2025.

Managing major maintenance outages is a scheduled, high-cost activity that directly impacts short-term profitability. You had three major shutdowns impacting operations in 2025. The planned major maintenance shutdown at the Lewiston, Idaho plant was successfully completed in the third quarter with a direct cost of approximately $24 million. Earlier in the year, the planned major maintenance outage at the Cypress Bend, Arkansas mill cost approximately $9 million in the second quarter. Total direct major maintenance costs for the full year were projected to be between $45-$50 million.

To enhance the portfolio, strategic expansion into Coated Unbleached Kraft (CUK) and Recycled Paperboard (CRB) is a key forward-looking activity. Management noted that a decision on investing in CUK capability is expected by year-end 2025, which involves an anticipated $50 million investment.

Here's a quick look at the operational performance and cost structure metrics that these key activities drive:

The ongoing focus areas supporting these activities include:

• Capturing benefits from the Augusta acquisition volumes.
• Reducing input costs where possible.
• Developing new product offerings, like compostable plates, with certification secured for most foodservice grades.
• Maintaining a strong balance sheet with a net leverage ratio of 1.9x as of Q2 2025.

Finance: draft the Q4 2025 cash flow forecast incorporating the final maintenance costs by next Tuesday.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Key Resources

You're looking at the core assets that power Clearwater Paper Corporation's operations as of late 2025, focusing on what they own and what they know. These are the tangible and intangible foundations supporting their position as a premier independent supplier of paperboard packaging products to North American converters.

The physical footprint is anchored by three integrated paperboard mills, giving Clearwater Paper Corporation national coverage across the United States. Specifically, you have the Lewiston, Idaho mill covering the western U.S., the Cypress Bend, Arkansas mill serving the central part, and the recently acquired Augusta, Georgia mill handling the East. This network is designed to service the North American market effectively. The combined annual production capacity for Solid Bleached Sulfate (SBS) across these facilities is approximately 1.4 million tons.

Financially, maintaining operational flexibility is key, especially given the current industry cycle. As of the third quarter of 2025, Clearwater Paper Corporation reported available liquidity of $455 million. This liquidity position is critical for navigating market fluctuations and funding ongoing optimization efforts. To put the operational scale into context, here's a look at some key Q3 2025 operational metrics:

Beyond the physical assets, Clearwater Paper Corporation relies on proprietary papermaking technology and process know-how. This intellectual capital is what allows them to produce the high-quality paperboard required by their customers. Furthermore, the company has been actively working to improve its cost structure, which is a key non-tangible resource for near-term performance. For 2025, they are aiming to capture benefits from fixed cost reduction actions, targeting savings of approximately $40 to $50 million in annual run rate by year-end. That's a defintely material improvement to the bottom line if achieved.

The company's physical assets include the three main paperboard mills, plus smaller converting facilities owned by the Manchester Industries subsidiary. The focus on these core assets is clear following the 2024 divestiture of the tissue business. Here are the primary production sites:

• Lewiston, Idaho Mill (Western U.S. coverage)
• Cypress Bend, Arkansas Mill (Central U.S. coverage)
• Augusta, Georgia Mill (Eastern U.S. coverage)

The company's operational efficiency is also supported by its workforce, though recent restructuring has occurred. As of the 2024 reporting, Clearwater Paper Corporation had 2,207 full-time employees. The successful completion of major maintenance outages, like the one at the Lewiston mill for approximately $24 million and the Augusta mill for approximately $16 million in 2025, demonstrates the operational capability to maintain these complex assets. Finance: draft 13-week cash view by Friday.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Value Propositions

Clearwater Paper Corporation offers value through its focused position as a leading North American supplier of paperboard packaging products, underpinned by operational scale and a commitment to sustainability.

Premier independent supplier of high-quality bleached paperboard.

Clearwater Paper Corporation is a premier independent supplier of solid bleach sulfate (SBS) paperboard to independent converters across North America. The company operates three mills with five paper machines located in Lewiston, Idaho; Cypress Bend, Arkansas; and Augusta, Georgia. The acquisition of the Augusta, Georgia mill in May 2024 increased the company's paperboard production capacity by approximately 75%. This strategic focus results in an annual SBS paperboard capacity of about 1.4 million tons. Clearwater Paper competes within a 10 million-ton North American paperboard market, where SBS represents approximately 5 million tons of available supply. For the first nine months of 2025, shipment volumes reached 918,399 tons, marking a 19% increase year-over-year. The average net selling price for paperboard in the third quarter of 2025 was $1,160 per ton. The company has a 2025 revenue target between $1.5 billion and $1.6 billion, with trailing twelve-month revenue through September 2025 reported at $1.6 billion.

National geographic footprint for reliable supply chain logistics.

The mill locations in Idaho, Arkansas, and Georgia provide a geographically advantaged footprint serving independent converters across North America. The company maintains strong pulp integration, exceeding 90% across approximately 1.4 million tons of pulp capacity, which supports supply reliability. The strategic transactions in 2024, including the Augusta acquisition, were designed to enhance this national footprint.

Sustainable, fiber-based packaging solutions for consumer goods.

Clearwater Paper Corporation is focused on environmental stewardship with several stated goals for 2030. The company is committed to reducing Scope 1 and 2 GHG emissions by at least 29.1% from a 2021 baseline. Scope 3 emissions reduction target is 25% by 2030 from the same baseline. A water stewardship goal is to reduce water intake intensity by 10% from a 2024 baseline by 2030. Furthermore, the company aims for 75% of its SBS products to be recyclable or compostable by 2030. Specific product lines reflect this commitment; in 2025, the Lewiston and Cypress Bend mills received BPI (Biodegradable Products Institute) certification for the premium Candesce® paperboard. Also, the ReMagine® and NuVo® paperboard brands incorporate up to 30% post-consumer recycled material. The company achieved ISCC Plus certification for its packaging in collaboration with Charter Next Generation.

Key sustainability targets include:

• Reduce Scope 1 & 2 GHG emissions by 29.1% by 2030.
• Reduce Scope 3 GHG emissions by 25% by 2030.
• 75% of SBS products recyclable/compostable by 2030.
• BPI certification achieved for Candesce® in 2025.

Product development partnership with converter customers.

Clearwater Paper Corporation explicitly avoids channel conflict with its converter customers, positioning itself as a partner rather than a competitor in the final packaging stage. The company is investing in product diversification to meet evolving demands, including a $50 million capital project to retrofit an existing SBS machine for CUK (unbleached paperboard) production. This flexibility allows the company to toggle production based on demand. A concrete example of partnership success is a customer, Neff Packaging Solutions, receiving a sustainability award for using Clearwater Paper's ReMagine® paperboard to improve performance and reduce environmental impact.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Customer Relationships

You're looking at how Clearwater Paper Corporation (CLW) locks in its business, and honestly, it all comes down to those deep, direct ties with its buyers.

Direct, long-term B2B relationships with North American converters.

Clearwater Paper Corporation positions itself as a premier independent supplier of bleached paperboard specifically to North American converters. This isn't a spot market game; the strategy centers on strengthening this position. For the first nine months of 2025, shipment volumes hit 918,399 tons, showing they are maintaining share with their established customer base even in a cyclical market. The company's focus is on maintaining that share while navigating industry oversupply. The average net selling price for board in the third quarter of 2025 settled at $1,160 per ton, reflecting the negotiated terms within these B2B structures.

Here's a quick look at the scale of the business supporting these relationships as of late 2025:

The company's operational footprint, with mills in Idaho, Arkansas, and the recently acquired Augusta, Georgia facility, is geographically advantaged to serve this national network of converters efficiently.

Collaborative product development for new consumer solutions.

Clearwater Paper Corporation actively partners with its converter customers to develop new products. This isn't just about selling existing stock; it's about joint innovation for future consumer demands. They are investing in growth opportunities within consumer-focused fiber-based packaging. This collaboration is key to differentiating their offering in carbon-conscious markets.

The focus areas for this joint development include:

• Developing poly-free coatings for folding cartons.
• Creating lightweight folding cartons to replace imported FBB.
• Continued investment in the NuVo cupstock brand, which contains up to 35% post-consumer recycled fiber.
• Expanding the ReMagine folding carton brand.

The goal is to create reliable products that enable sustainable choices without compromising performance, such as their Candesce® SBS paperboard.

Dedicated sales and technical support teams.

The management states they are focused on operational execution and maintaining share with their customers, which implies robust support structures are in place. The company's strategy involves transforming into a focused supplier, which requires dedicated resources to service that customer base effectively. While specific team sizes aren't public, the commitment to product innovation like NuVo® and Candesce® necessitates strong technical support to help converters integrate these new materials. The company is definitely focused on the execution of its fixed-cost reduction efforts to help navigate the current down cycle, which frees up resources to support key customer needs.

The company's SG&A efficiency, which was down to 6.7% of net sales in Q2 2025, shows a disciplined approach to overhead, which helps maintain the financial health needed to support dedicated customer service functions.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Channels

You're looking at how Clearwater Paper Corporation moves its premium Solid Bleached Sulfate (SBS) paperboard to North American converters. The scale of their operation, especially after integrating the Augusta, Georgia mill, dictates how these channels function.

Direct sales force managing large-volume contracts.

The direct sales effort supports the core business of supplying bleached paperboard to converters. The results from the first nine months of 2025 show the output these channels are moving:

• Total shipment volumes for the first nine months of 2025 reached 918,399 tons.
• For the third quarter of 2025 alone, shipment volumes were 324,198 tons.
• The average net selling price for board in the third quarter of 2025 was $1,160 per ton.

This volume is the result of maintaining relationships, which includes managing those large-volume agreements. The total net sales for the first nine months of 2025 hit $1.2 billion, reflecting the revenue generated through these direct customer relationships.

National distribution network leveraging three mill locations.

Clearwater Paper Corporation's distribution backbone relies on its manufacturing footprint across the US. The primary production sites feeding this network include:

The company is also expanding its physical footprint to enhance distribution reach, having selected a site for a 672,000-square-foot east coast production and distribution facility to serve its growth market strategy.

Direct shipments from mills to converter customer facilities.

The logistics lean heavily on direct movement from the mills to the customer base, which is described as North American converters. This minimizes handling costs for high-volume product. The scale of this direct movement is evident in the quarterly volume figures:

The total tonnage shipped in the second quarter of 2025 was 304,713 tons. That's a lot of product moving directly from the mill gates.

The company's focus on operational execution and cost structure is designed to support this direct shipment model, as evidenced by the goal to capture volume and cost synergies from the Augusta mill integration by the end of 2026.

Here's a quick look at the sales performance supporting these channels for the first half of 2025:

• Net Sales (Six Months 2025): $770 million.
• Sales Volume (Six Months 2025): 594,200 tons.
• Paperboard Average Net Selling Price (Six Months 2025): $1,185 per ton.

Finance: draft 13-week cash view by Friday.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Clearwater Paper Corporation's output. Honestly, the entire business model hinges on serving a specific set of industrial customers who then take Clearwater Paper Corporation's product and turn it into something you see on a shelf or use at a restaurant.

North American Paperboard Converters (primary focus).

This group is the bread and butter. Clearwater Paper Corporation explicitly states it is a premier independent supplier of bleached paperboard to these North American converters. They take the Solid Bleached Sulfate (SBS) paperboard that Clearwater Paper Corporation makes and convert it into final packaging. The performance of this segment directly drives Clearwater Paper Corporation's top line. For instance, in the third quarter of 2025, shipment volumes totaled 324,198 tons, which was a 3 % increase from the 314,320 tons shipped in the third quarter of 2024. Over the first nine months of 2025, volumes hit 918,399 tons, marking a significant 19 % jump compared to the 774,207 tons in the same period of 2024. Still, the average net selling price for the board softened, coming in at $1,160 per ton for Q3 2025.

Food Service Packaging manufacturers (a growing segment).

This is a specific subset within the converter base that Clearwater Paper Corporation is actively growing with. The CEO noted in July 2025 that Q2 results were driven by higher production volumes and increased shipments, particularly in the food service business. This focus suggests a strategic push to capture more of this market, which uses SBS paperboard for things like cups and containers. While the overall TTM revenue as of September 30, 2025, was $1.56B, the growth in this specific application area is key to hitting the full-year 2025 revenue target of $1.5B to $1.6B.

Consumer Goods Companies (indirectly, via converters).

You won't find Consumer Goods Companies listed as direct customers on Clearwater Paper Corporation's invoices, but they are the ultimate end-users driving demand. Their packaging needs-for items like frozen foods, pharmaceuticals, or premium retail boxes-dictate what the converters order. Clearwater Paper Corporation's SBS paperboard is frequently used to produce folding cartons, which is the packaging format these consumer goods companies require. The company's focus on high-quality assets is meant to secure its position as the preferred supplier to the converters serving these major brands.

Here's a quick look at the scale of the business impacting these customer groups through the first nine months of 2025.

The operational focus for Clearwater Paper Corporation remains on cost control, with projected annualized fixed cost reductions for 2025 exceeding the initial target, aiming for nearly $50 million in total savings. This cost discipline is necessary to maintain market share while navigating an industry environment where SBS continues to face excess supply.

• The company's Q3 2025 net sales were $399 million.
• The SG&A expense ratio for Q2 2025 was at the lower end of the targeted 6%-7% range.
• Available liquidity stood at $455 million as of Q3 2025.
• The net leverage ratio was reported at 2.7 times.

Finance: draft 13-week cash view by Friday.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Cost Structure

You're looking at the cost side of Clearwater Paper Corporation's operations as of late 2025, and it's clear that scale comes with significant fixed obligations. The cost structure is dominated by the need to keep three large-scale paperboard mills running.

The company operates its Lewiston, Idaho, Cypress Bend, Arkansas, and Augusta, Georgia, mills, which together have an annual capacity of approximately 1.4 million tons of SBS and can produce around 1.4 million tons of pulp per year. Running this asset base means substantial fixed overhead, though Clearwater Paper has been aggressively tackling this. Management is targeting annualized run-rate cost savings of $40 million to $50 million by the end of 2025, having already slashed SG&A expenses to 6.7% of net sales in Q2 2025. For context, the annual SG&A Expense was $116.3M in 2024.

The variable costs, tied directly to production, are heavily influenced by inputs. Raw material costs are a major component, driven by:

• Wood fiber and wood pulp availability and cost.
• Chemicals required for the pulping and bleaching processes.
• Energy costs, which saw an expected increase of $4 million to $5 million in Q1 2025 alone.

These input costs are a constant pressure point, often offsetting gains from lower selling prices.

Maintenance is a scheduled, non-negotiable expense that hits the bottom line hard when it occurs. Major maintenance expenses are a significant, planned cash outflow. For 2025 planned outages, the total is around $40 million. For example, the major planned maintenance shutdown at the Lewiston, Idaho plant had a direct cost of approximately $24 million.

Here's a look at the major planned and ongoing capital commitments for 2025:

The company is managing these costs while investing for the future; the total projected capital expenditures for 2025 are between $80 million to $90 million. This CapEx plan includes roughly $70 million to $80 million dedicated to annual maintenance spending plus project carryovers. Finance: draft 13-week cash view by Friday.

Clearwater Paper Corporation (CLW) - Canvas Business Model: Revenue Streams

Clearwater Paper Corporation's revenue streams are primarily anchored in its production and sale of paperboard products, with a significant focus on Solid Bleached Sulfate (SBS) paperboard. This core business forms the foundation of the company's top line.

As of November 2025, the Trailing Twelve-Month (TTM) revenue for Clearwater Paper Corporation stood at $1.55 billion. This figure reflects performance across the preceding four quarters leading up to that point in late 2025. Furthermore, the company's outlook for the full fiscal year 2025 projected total revenue to be in the range of $1.5 billion to $1.6 billion.

The company's revenue generation is heavily weighted toward its existing product lines, but strategic investments are being made to diversify and capture new revenue opportunities. Clearwater Paper Corporation is actively exploring expansion into new product lines, specifically mentioning Coated Unbleached Kraft (CUK) and Recycled Paperboard (CRB).

The push into CUK involves a potential capital project, estimated around $50 million, to retrofit an existing SBS machine, allowing the company to switch production between high-quality SBS and CUK based on market demand. This move is designed to better serve customers and optimize asset utilization, creating a new potential revenue stream as these capabilities come online, with production expected to start approximately 18 months after a final decision, which is anticipated by year-end 2025.

You can see a snapshot of recent sales performance below, which feeds into the TTM calculation:

The revenue streams are further segmented by product focus, with the core business being:

• Sales of Solid Bleached Sulfate (SBS) paperboard, which makes up approximately half of the total paperboard market.
• Revenue growth from the Augusta acquisition, which contributed to Q2 2025 net sales.
• Revenue derived from the Foodservice business, which saw increased shipments in Q2 2025.

The company is also focused on capturing revenue from future product diversification:

• Expansion into CUK (unbleached paperboard) capability.
• Exploring entry into CRB (recycled paperboard), potentially via acquisition.
• Developing lightweight and compostable product offerings, though these are projected for 2026.

Finance: draft 13-week cash view by Friday.