Clearwater Paper : First Quarter 2025 First Quarter 2025 Presentation

First Ǫuarter Earnings Release Materials

April 29, 2025

ARSEN KITCH

President, Chief Executive Officer and Director

SHERRI BAKER

Senior Vice President and Chief Financial Officer

2024 Was a Transformational Year For Clearwater Paper

Completed acquisition of Augusta paperboard mill for $700M on May 1

Increased total SBS capacity to ~1.4M tons

Balanced network to deliver lower landed costs and targeting synergies of

$40-50M by end of 2026

Completed sale of tissue business for $1.06 billion 1on November 1

Transforming Clearwater into a leading paperboard packaging supplier

Strengthened our position as a premier, independent supplier of paperboard packaging products to North American converters

Utilized ~$850 million of net proceeds from sale to pay down debt

A strong balance sheet with 1-2x net leverage ratio target across cycle

Paid down all credit facilities, except $275 million of 2028 notes with an interest rate of 4.75%

$100 million share repurchase authorization approved

Launched and executed a new share repurchase program

Repurchased $11M of shares in first quarter of 2025

3 1. Subject to customary adjustments

Clearwater is Well Positioned to Deliver Strong Returns Across the Cycle

TARGETING STRONG CASH FLOW GENERATION ACROSS THE CYCLE

Paperboard industry is cyclical, driven by supply and demand balance

Currently in downcycle as new capacity is added ahead of demand recovery

Across the cycle Adjusted EBITDA margins target of 13% to 14%

Delivering a 40-50% Adjusted EBITDA to free cash flow conversion rate1, or $100M+ per year

ADJUSTED EBITDA TARGET MARGINS

>1C%

Cycle peak

(>G5% utilization,

50-60% FCF conversion)

~13 to 14%

Average across cycle

Clearwater is focused on value creation across the cycle

Near-term focus on reducing fixed cost structure by $30-40M in 2025; implemented 10% reductions in positions

Continued investment in assets to enhance competitiveness

Exploring growth opportunities to expand product offering through internal investments or acquisitions

Strong balance sheet to sustain the business and create strategic options across the cycle

(G0-G5% utilization,

40-50% FCF conversion)

<10%

Downcycle

(<85% utilization,

0-20% FCF conversion)

4

1. Cash flow from operating activities adjusted for other operating charges less capital, divided by Adjusted EBITDA

Exploring Options to Expand Our Product Offering

Initiative Post consumer recycled content	Status Developed and in market	Objective Provide options for converter customers to service sustainability driven Consumer Packaged Goods (CPG) and Ǫuick Service Restaurants (ǪSR) customers
Compostable plate	Developed and expected in market by year end	Enable our plate converter customers to meet demands of leading domestic retailers
Lightweight folding carton	Developing and expected in market in 2026	Offer alternatives to Folding Boxboard (FBB) imports with superior performance
Poly-free coatings / barriers	Continuing to develop options in addition to current offering	Meet current and future needs of sustainability driven cup converters looking for a poly-free offering
Beverage carrier grade (CUK)	Evaluating market potential and existing equipment capabilities	Enable independent converters to better compete with large integrated incumbents
Recycled paperboard grade (CRB)	Open to evaluating MCA Options	Provide a more complete paperboard offering to existing Solid Bleached Sulfate (SBS) customers

5

INDUSTRY TRENDS

SBS PAPERBOARD SHIPMENTS IMPROVED IN Ǫ1'25, PROJECTED TO GROW IN 2025

Industry shipments1 up ~1% Ǫ1'25 vs Ǫ4'24 Shipments projected to grow by 3 to 5%2 in 2025

Domestic demand expected to recover to pre-COVID levels by end of 2025

BLEACHED PAPERBOARD NET EXPORTS ARE EXPECTED TO IMPROVE IN 2025

Imports forecasted to decrease by ~5%2 in 2025 vs. 2024 Exports forecasted to increase by ~1%2 in 2025 vs. 2024 Uncertainty around impact of tariffs on imports and exports

UTILIZATION RATES UP FROM Ǫ1'24 AND SEǪUENTIALLY, BUT BELOW THE CROSS CYCLE AVERAGE

Industry operating rates1 at 88% Ǫ1'25 vs. 84% Ǫ1'24

N.A. capacity2 remained largely unchanged New industry capacity being added in Ǫ2'252

Balanced market will have utilization rates between G0 and G5%2

6

1. Based on data from AFCPA. 2. Based on data reported by RISI Fastmarkets and other industry sources.

Ǫ1 2025

Financial Summary

SIGNIFICANT GROWTH IN PAPERBOARD SALES VOLUME

NET SALES FROM CONTINUING OPERATIONS

$378M

NET LOSS FROM CONTINUING OPERATIONS

$6M

+46% increase in Ǫ1'25 vs. Ǫ1'24

Primarily due to Augusta acquisition

PARTIALLY OFFSET BY MARKET DRIVEN PRICE DECREASES

-4% decrease in Ǫ1'25 average pricing vs. Ǫ1'24

Consistent with industry trends

ADJUSTED EBITDA FROM CONTINUING OPERATIONS

$30M

ADJUSTED EBITDA MARGIN FROM CONTINUING OPERATIONS

8%

ADJUSTED EBITDA AT TOP END OF GUIDANCE RANGE

Strong operational performance, higher volumes, and improved cost structure

COMBINED WITH A STRONG BALANCE SHEET

Net leverage ratio at 1.5x

Repurchased $11M of shares, $15M since new $100M authorization in November of 2024

7

See Appendix for Non-GAAP reconciliations

Ǫ1'25 VS Ǫ1'24 Adjusted EBITDA Results from Continuing Operations

($ in millions)

Lower paperboard market pricing as reported by RISI, partially offset by higher pricing on external pulp sales

Higher sales and production, primarily from Augusta acquisition

Improved operating performance and cost structure, partially offset by inflation

8

Outlook and Assumptions for Ǫ2 and Full Year 2025

Ǫ2 2025: $35 to $45M of Adjusted EBITDA1

~5% growth in sales and production volumes vs Ǫ1'25 Additional benefits from fixed cost reduction efforts

$6 million lower energy expenses due to seasonality vs Ǫ1'25 Other input costs stable, no tariff impacts included in outlook

$7 to $9 million of planned major maintenance costs at Cypress Bend, AR mill

FY 2025 Assumptions

Capacity utilization at ~85%, with approximately $1.5 to $1.6B of revenue Full year benefit of Augusta sales volume

Improved mill operating performance offsetting lower pricing and inflation

$30-40M fixed cost reduction in 2025, $40-50M annual run rate benefit

$45-50M of total direct major maintenance cost (Ǫ2 Cypress Bend, Ǫ3 Lewiston, Ǫ4 Augusta)

$80-90M of capital expenditures, including large project carryover spend

G

1. As there is uncertainty in connection with calculating the adjustments necessary to prepare reconciliations from Adjusted EBITDA to the comparable GAAP financial measure, the Company is unable to reconcile the Adjusted EBITDA projections without unreasonable efforts. Therefore, no reconciliation is being provided at this time. These items could result in significant adjustments from the most comparable GAAP measure.

Optimized Capital Allocation Approach Supports Value Creation

Investing to maintain the long-term performance of our assets

$70-80M

EXPECTED ANNUAL MAINTENANCE CAPEX, EXCLUDING LARGE REPLACEMENT PROJECTS

Utilizing free cash flow (FCF) to deleverage our balance sheet

1-2x

TARGET LEVERAGE RATIO

Evaluating capital investments to diversify product portfolio

Opportunistic M&A to support strategic priorities

Return capital to shareholders through share buybacks

10

10

Optimistic About Long-Term Value Creation

Sharp focus on improving and growing our paperboard business	Meaningfully de-levered balance sheet with proceeds from tissue sale Focus on growing our position as a premier independent paperboard packaging supplier to North American converters
Well invested asset base to support future growth	High quality paperboard assets well positioned across the U.S. to efficiently service North American converters Strong legacy of prioritizing sustainability Focused on expanding product portfolio through internal investment and opportunistic M&A
Focused on optimizing business to deliver free cash flows	Driving improvement in operational performance Consistently investing to maintain competitiveness of our assets Strategically deploy capital to create long-term shareholder value

11

11

12

Appendix

Financial Performance

($ IN MILLIONS, UNAUDITED)

		Ǫuarter Ended
March 31, 2025		December 31, 2024		March 31, 2024
Net sales	$ 378.2		$ 387.1		$ 258.8
Costs and expenses:
Cost of sales	341.5		372.4		225.5
Selling, general and administrative expenses	28.9		26.7		28.1
Other operating charges, net	11.8		3.7		6.0
Total operating costs and expenses	382.2		402.8		259.6
Total income (loss) from operations	(4.0)		(15.7)		(0.8)
Total non-operating expense	3.6		(13.6)		(0.9)
Total income (loss) from operations before income taxes	(7.7)		(29.3)		(1.7)
Income tax provision (benefit)	(1.8)		(9.7)		0.5
Total income (loss) from operations	(5.9)		(19.6)		(2.1)
Income from discontinued operations, net of tax	(0.4)		218.7		19.3
Net income	$ (6.3)		$ 199.1		$ 17.2

13

Reconciliation of Adjusted EBITDA
($ IN MILLIONS, UNAUDITED)
	Ǫuarter Ended
March 31, 2025	December 31, 2024		March 31, 2024
Net income (loss) $ (6.3) Add (deduct): Less: Income from discontinued operations, net of tax (0.4)	$ 199.1 218.8		$ 17.2 19.3
Income from continuing operations (5.9)	(19.6)		(2.1)
Income tax provision (benefit) (1.8)	(9.7)		0.5
Interest expense, net 3.3	5.3		1.2
Depreciation and amortization expense 22.0	21.5		9.0
Other operating charges, net 11.8	3.7		6.0
Other non-operating expense (income) 0.3	(0.7)		(0.3)
Debt retirement costs -	9.1		-
Adjusted EBITDA from continuing operations 29.8	9.5		14.2
Adjusted EBITDA Margin 7.9%	2.5%		5.5%

14

Ǫ4'24 VS Ǫ1'25 Adjusted EBITDA Results from Continuing Operations

($ in millions)

Cost reduction initiatives and no planned major maintenance

Lower paperboard production and sales volumes

15

Key Metrics

				Ǫuarter Ended
	March 31, 2025			December 31, 2024		March 31, 2024
Food service	$ 151.4		$	174.0		$ 89.6
Folding carton	148.4			143.5		107.0
Sheeting & distribution	38.8			36.9		40.4
Pulp and other	39.6	32.7			21.8
Net sales	378.2	$ 387.1			$ 258.8
Input cost (raw materials & energy)	$ 168.4	$		165.9	$ 115.5
Labor and overhead	117.1			148.3	80.4
Supply chain costs (principally freight)	36.3			38.7	26.2
Depreciation	21.0			20.7	8.0
Other	(1.3)	(1.2)			(4.7)
Cost of sales	$ 341.5	$ 372.4			$ 225.5
Total paperboard volumes	289,487	306,692			187,303
Net sales price per ton	$ 1,188	$ 1,177			$ 1,284

16