Financial Analysis

DEBT Long-term debt at the balance sheet dates consisted of: June 30, 2026 December 31, 2025 Interest Rate at June 30, 2026 Principal Unamortized Debt Costs Total Principal Unamortized Debt Costs Total 2020 Notes, maturing 2028, fixed interest rate 4.75% $ 275.0 $ (1.1) $ 273.9 $ 275.0 $ (1.3) $ 273.7 ABL Credit Agreement (revolving loan), maturing 2027, variable interest rate 5.0% 79.0 79.0 64.0 64.0 Finance leases 8.2 8.2 8.4 8.4 Total debt 362.2 (1.1) 361.1 347.4 (1.3) 346.1 Less: current portion (0.6) (0.6) (0.6) (0.6) Net long-term portion $ 361.6 $ (1.1) $ 360.5 $ 346.8 $ (1.3) $ 345.5 PCA CREDIT AGREEMENT Our PCA Credit Agreement matures on May 1, 2029, subject to a springing maturity 91 days prior to the maturity of the Companys 2020 Notes if the outstanding principal of the 2020 Notes plus $50 million at any time during such 91 day period is greater than the sum of our available borrowing liquidity and unrestricted cash. The term revolver commitment under the PCA Credit Agreement is currently $259.3 million and is subject to an annual reduction of 2% of the commitments then in effect. As of June 30, 2026, no balance was outstanding on the term revolver commitment. We may increase term revolver commitments under the PCA Credit Agreement in an aggregate amount of up to $60.0 million, subject to obtaining commitments from any participating lenders and certain other conditions. We may prepay and reborrow any borrowings under the PCA Credit Agreement, in whole or in part, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Carrying amounts reported on the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. The fair value of our debt is included in the following table: June 30, 2026 December 31, 2025 2020 Notes, maturing 2028, fixed interest rate $ 224.6 $ 258.2 ABL Credit Agreement (revolving loan), maturing 2027, variable interest rate 79.0 64.0 $ 303.6 $ 322.2

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INCOME TAXES For interim periods, accounting standards require that income tax expense be determined by applying the estimated annual effective income tax rate to year-to-date results, unless this method does not result in a reliable estimate of year-to-date income tax expense. Each period, the income tax accrual is adjusted to the latest estimate and the difference from the previously accrued year-to-date balance is adjusted to the current quarter. For the six months ended June 30, 2026 and 2025, we recognized an income tax benefit of $12.3 million and a provision of $0.1 million on loss from continuing operations. Our effective tax rate for the six months ended June 30, 2026 varied from the U.S. federal statutory tax rate of 21% primarily due to the effects of changes in state taxes, interest received on tax refunds and nondeductible compensation. Our effective tax rate for the six months ended June 30, 2025 varied from the U.S. federal statutory tax rate of 21% primarily due to the effects of state taxes, nondeductible compensation, and a change in the state valuation allowance.

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"RETIREMENT PLANS AND POSTRETIREMENT BENEFITS The following table details the components of net periodic cost of our company-sponsored pension and other postretirement employee benefit plans for the periods presented: Quarter Ended June 30, Six Months Ended June 30, Pension Benefit Plans 2026 2025 2026 2025 Service cost $ 0.6 $ 0.8 $ 1.3 $ 1.5 Interest cost 2.8 3.0 5.6 5.9 Expected return on plan assets (3.0) (3.3) (6.0) (6.7) Amortization of actuarial loss 0.9 0.2 1.8 0.4 Net periodic cost $ 1.3 $ 0.6 $ 2.7 $ 1.2 Quarter Ended June 30, Six Months Ended June 30, Other Postretirement Employee Benefit Plans 2026 2025 2026 2025 Service cost $ $ $ 0.1 $ 0.1 Interest cost 0.6 0.6 1.1 1.2 Amortization of actuarial gain (0.1) (0.1) (0.3) (0.3) Net periodic cost $ 0.5 $ 0.5 $ 0.9 $ 1.0 We record the service component of net periodic cost as part of ""Cost of sales"" and ""Selling, general, and administrative expenses,"" while the non-service component of net periodic cost is recorded in ""Other non-operating expense"" on our Consolidated Statements of Operations. For the quarter and six months ended June 30, 2026, we recorded $0.6 million and $1.2 million to ""Cost of sales"" and $0.1 million and $0.2 million to ""Selling, general, and administrative expenses."" For the quarter and six months ended June 30, 2025, we recorded $0.7 million and $1.3 million to ""Cost of sales"" and $0.1 million and $0.3 million to ""Selling, general, and administrative expenses."" During the quarter end …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"COST REDUCTION PLAN During 2025, we announced a plan to reduce our cost structure across operations and selling, general and administrative expenses as we right-size our operations. During 2026, we announced further restructuring actions to reduce personnel at certain manufacturing facilities, incurring additional severance expense of $1.7 million which was recorded in ""Other operating charges, net"" in the Consolidated Statement of Operations. Changes in our severance liability (included in accounts payable and accrued liabilities on the consolidated balance sheets) for the six months ended June 30, 2026 and 2025 are as follows: Six Months Ended June 30, 2026 2025 Beginning balance $ 1.7 $ Employee severance charges 1.7 5.1 Cost paid or otherwise settled (2.8) (4.5) Ending balance $ 0.5 $ 0.5"

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SEGMENT DISCLOSURE Our Chief Operating Decision Maker (CODM) evaluates performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis. Since our CODM evaluates financial performance on a consolidated basis, we have determined that we have a single operating segment composed of the consolidated financial results of Clearwater Paper. Our CODM also reviews total assets, as reported on our consolidated balance sheets, and purchases of property and equipment, as reported on our consolidated statements of cash flows. Our CODM utilizes other key operating metrics, including disaggregated measures of net sales by product line, disaggregation of significant segment expenses and Adjusted EBITDA in order to assess our financial performance. Net sales classified by major product lines and a reconciliation of significant expenses to consolidated income (loss) from continuing operations is as follows: Quarter Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales by product line: Food service $ 173.0 $ 166.1 $ 326.7 $ 317.5 Folding carton 132.5 147.6 257.3 296.0 Sheeting and distribution 37.1 39.9 76.1 78.7 Pulp and other 32.2 38.2 74.9 77.8 Total net sales $ 374.8 $ 391.8 $ 735.1 $ 770.0 Input cost (raw materials and energy) 164.9 174.5 332.6 342.9 Labor and overhead 144.0 128.0 265.7 245.1 Supply chain costs (principally freight) 44.1 39.0 83.7 75.3 Selling, general and administrative expenses 19.9 24.4 39.5 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS' EQUITY Common Stock Plans We have stock-based compensation plans under which restricted stock awards and stock options are outstanding or granted subject to time or performance vesting requirements. At June 30, 2026, approximately 2.0 million shares were available for future issuance under our current plan. Quarter Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total stock-based compensation expense $ 1.7 $ 2.5 $ 2.4 $ 3.5 Income tax provision related to stock-based compensation $ 0.3 $ 0.5 $ 0.3 $ 0.2 Impact on cash flow due to taxes paid related to net share settlement of equity awards $ $ $ 0.6 $ 2.3 As of June 30, 2026, there was $9.9 million of total unrecognized compensation costs related to outstanding restricted stock unit awards. During the six months ended June 30, 2026, we granted 328,558 restricted stock units (time vesting) at an average grant date fair value of $14.74 per share and 169,753 restricted stock units (performance vesting) at an average grant date fair value of $14.69 per share. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing