Clearwater Paper: Asset Value Provides Downside Protection Despite Near-Term Earnings Headwinds
Applying conservative recovery assumptions to the Q1 2026 balance sheet results in an adjusted equity liquidation value of $376 million, implying meaningful downside protection. Q1 EBITDA came in slightly above expectations despite weather disruptions. Lower industry supply, declining FBB imports, announced price increases, and improving utilization rates should gradually support margins. Augusta integration, uncertain insurance claims related to the acquisition, commodity cost inflation, and the absence of full-year EBITDA guidance continue to limit visibility.