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Third Quarter Earnings Release Materials October 26, 2026 ARSEN KITCH President, Chief Executive Officer and Director SHERRI BAKER Senior Vice President and Chief Financial Officer
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2 Forward Looking Statements Cautionary Statement Regarding Forward Looking Statements This presentation of supplemental information contains, in addition to historical information, certain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements as to: our expectations regarding additional savings from our fixed cost reduction initiatives; the Company’s strategic positioning to capitalize on the paperboard industry’s cyclical nature and deliver strong returns; product demand and industry trends; assumptions for Q4 2026 and full year 2026, including operational factors, the timing and cost of planned major maintenance, capital, input costs, pricing, inflation and war-related cost impacts; our capital allocation priorities; our strategy, including achieving target leverage ratio and maintaining liquidity; our focus on free cash flow generation through operational efficiencies and demand; our plans to explore avenues for strategic growth opportunities, particularly to expand our own product offerings and broaden such offerings to North American customers; continued investments into our assets to strengthen our competitive advantages and maintain our long-term performance; expectations regarding the paperboard market; targeted working capital improvements; and our financial flexibility and liquidity; and repurchases under the existing share buyback authorization. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this presentation. Important factors that could cause or contribute to such differences include the risks and uncertainties described from time to time in the Company's public filings with the Securities and Exchange Commission, including but not limited to the following: our inability to realize the expected benefits of the Augusta, Georgia paperboard manufacturing facility acquisition, including anticipated financial results, due to integration challenges or other factors; unexpected costs, charges or expenses resulting from the sale of our consumer products division (tissue business) and the related restructuring initiatives; competitive pricing pressures for our products arising from capacity additions, demand reduction and market conditions; the loss of, changes in prices for, or reduction in, orders from significant customers; changes in customer preferences, industry consolidation and vertical integration; changes in the cost and availability of wood fiber, pulp, energy, chemicals, packaging and transportation services; cyclical industry conditions and broader U.S. and global economic conditions; manufacturing or operating disruptions; labor disruptions; reliance on a limited number of suppliers and service providers; cyber-security risks; environmental liabilities and litigation, including PFAS-related claims involving our Augusta facility; our ability to execute our growth, expansion and operational efficiency initiatives and capital projects; changes in expenses, required contributions or withdrawal costs associated with our pension plans; our ability to attract and retain qualified personnel; our ability to service our debt obligations and comply with debt covenants; changes in banking relationships or credit ratings; and changes in laws, regulations or industry standards affecting our business. Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward-looking statements or to retract future revisions of management's views based on events or circumstances occurring after the date of this presentation. Non-GAAP Financial Measures This presentation includes certain financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA from continuing operations, adjusted net income and net debt. The Company’s management believes that the presentation of these financial measures provides useful information to investors because these measures are regularly used by management in assessing the Company’s performance. These financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered substitutes for or superior to GAAP results. In addition, these non-GAAP financial measures may not be comparable to similarly-titled measures utilized by other companies, since such other companies may not calculate such measure in the same manner as we do. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure is available in the appendix of this presentation.
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3 INDUSTRY TRENDS 1. Based on data from AF&PA. 2. Based on data reported by RISI Fastmarkets, other industry sources, and Company estimates. MODEST DEMAND GROWTH EXPECTED IN 2026 SBS shipments up 6% in Q2’26 YTD vs PY; outperformed CUK and CRB declines of 2-3% 1 2026 SBS demand growth projected at ~1%2 SBS pricing per square foot below CUK and CRB, supporting substitution SBS INDUSTRY OPERATING RATES IMPROVING Industry operating rates2 forecasted at 86% in Q3’26, flat vs Q2’26 ~800K ton reduction in SBS production year to date2 Based on YTD reduction in production, operating rates are projected to improve to 90%+ by end of year2 RISI reported price increase of $60/ton on folding carton and cup in 2026, additional $100/ton on folding and $90 on cup increase forecasted by end of 20272 BLEACHED PAPERBOARD IMPORTS ARE STABILIZING Imports down ~1% August YTD vs PY Exports forecasted to decrease by ~3%2 in 2026 vs PY Tariffs and trade actions reducing import viability
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4 Volume down 1% vs Q3’25, down 2% vs Q2’26 Solid demand and robust backlogs on extruded products Q3’26 average pricing down YoY , up $34/ton vs Q2’26 RISI reported folding carton/cup pricing up +$60/ton in 2026 ~50% of Clearwater volume tied to RISI price index, takes up to several quarters to flow through P&L Q3 2026 Financial Summary NET SALES, CONTINUING OPERATIONS $385M NET LOSS FROM CONTINUING OPERATIONS ($2M)1 MARKET PRICING IS IMPROVING ADJUSTED EBITDA, CONTINUING OPERATIONS $24.4M ADJUSTED EBITDA MARGIN FROM CONTINUING OPERATIONS 6.3% ADJUSTED EBITDA WITHIN GUIDANCE RANGE OF $20 to $30M Operational disruption in Augusta offset by RWI reimbursement SG&A at 5.2% of net sales vs 6.2% in Q3’25 STRONG BALANCE SHEET 3.2x2 net leverage, $221M liquidity Refinanced debt, meaningfully extended maturities to 2031 Reduced net debt by $56M YTD 2026 through working capital initiatives, insurance recovery and tax refund SALES VOLUMES IMPACTED BY PRODUCTION DISRUPTIONS See Appendix for Non-GAAP reconciliations 1. Includes $13M insurance proceeds (tax adjusted). 2.Net debt / Adjusted EBITDA per bank agreement definition
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5 Q3’26 VS Q3’25 Adjusted EBITDA Results from Continuing Operations ($ in millions) $17.8 $25.4 $4.9 $24.4 -$18.1 -$5.6 Q3'25 Adj. EBITDA Price/Mix Volume Costs/Other SGA Q3'26 Adj. EBITDA Lower paperboard and pulp market pricing Lewiston outage timing and cost reductions, partly offset by war- related impact Cost reduction initiatives Lower production volumes
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6 Q4 Outlook and 2026 Assumptions Q4 2026 Adjusted EBITDA: $10 to 20 million 1 Lower seasonal shipments, additional impact of operational disruptions at Augusta mill in early Q4 $8 to 12 million benefit from price increases $5 to 7 million of planned major maintenance at Cypress Bend mill $5 to 6 million of seasonal energy increases and additional war-related cost, primarily in transportation FY 2026 Assumptions Revenue of ~$1.5 billion $15 to 20 million benefit from recently announced price increases Offset by ~$70 million carryover price decreases from 2025 Major maintenance costs of $27 to 29 million for Lewiston and Cypress Bend outages Productivity and restructuring actions mostly offsetting higher cost, including war-related impact of $28 to 32 million Net working capital improvement of $25 to 30 million, primarily inventory reductions Capital expenditures of $55 to 60 million; Augusta outage capital moved to 2027 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.
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7 Clearwater is Well Positioned to Deliver Strong Returns Across the Cycle >16% Cycle peak (>95% utilization, 50-60% FCF conversion) Average across cycle (90-95% utilization, 40-50% FCF conversion) ~13 to 14% Downcycle (<85% utilization, 0-20% FCF conversion) <10% TARGETING STRONG CASH FLOW GENERATION ACROSS THE CYCLE Cyclical industry driven by supply and demand Early recovery signs emerging Targeting 13% to 14% Adjusted EBITDA margin across the cycle 40% to 50% FCF conversion1, or $100M+ annually Reduced fixed cost structure by over ~$50M in 2025 Continued investment in assets to enhance competitiveness Exploring growth opportunities to expand product offering through internal investments or external options Strong balance sheet to sustain the business and create strategic options across the cycle Clearwater is focused on value creation across the cycle 1. Cash flow from operating activities adjusted for other operating charges less capital, divided by Adjusted EBITDA ADJUSTED EBITDA TARGET MARGINS
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8 Exploring Options to Expand Our Product Offering Evaluating internal and external options to serve North American converters Post consumer recycled content Developed and in market Support sustainability needs of CPG and QSR customers Lightweight folding carton Launched Velora in April Offer high-performance alternative to FBB imports Recycled paperboard grade (CRB) Launched Circa in July Broaden offering for North American converter customers Compostable plate BPI certified at all three locations Help plate converters meet retailer demand Unbleached paperboard grade (CUK) Expect to launch by year-end 2026 Help independent converters compete more effectively Poly-free coatings / barriers Continuing to develop options in addition to current offering Serve demand for poly-free cup offerings Initiative Status Objective
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9 Capital Allocation Focused on Value Creation DISCIPLINED CAPITAL ALLOCATION TO CREATE VALUE $70-80M Normalized annual maintenance capex, excluding large replacement projects 1-2x Target cross-cycle leverage ratio Diversify product portfolio Evaluate strategic M&A or other options Return capital through share buybacks Deleverage with free cash flow 9 Investing to maintain the long-term performance of our assets
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10 Long-T erm Value Creation Priorities Sharp focus on improving and growing our paperboard business • De-levered balance sheet through tissue sale proceeds • Grow as a premier independent supplier to North American converters Well invested asset base to support future growth • High-quality U.S. asset base serving North American converters • Longstanding sustainability focus • Expand product portfolio through internal and external options Focused on optimizing business to deliver free cash flows • Improve operational performance • Invest to maintain competitiveness • Deploy capital to create long-term value 1010
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11 Appendix
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12 Q3’26 VS Q2’26 Adjusted EBITDA Results from Continuing Operations ($ in millions) -$8.2 $24.3 $1.0 $24.4 $8.9 -$1.6 Q2'26 Adj. EBITDA Price/Mix Volume Costs/Other SGA Q3'26 Adj. EBITDA Lower paperboard sales and production Absence of Lewiston outage, partly offset by war-related inflation Higher market pricing and mix
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13 Key Metrics September 30, 2026 June 30, 2026 September 30, 2025 Food service $ 162.6 $ 173.0 $ 182.0 Folding carton 143.5 132.5 143.0 Sheeting & distribution 38.0 37.1 37.9 Pulp and other 40.7 32.2 36.1 Net sales $ 384.9 $ 374.8 $ 399.0 Input cost (raw materials & energy) $ 171.6 $ 164.9 $ 173.5 Labor and overhead 114.7 144.4 142.1 Supply chain costs (principally freight) 46.1 44.1 40.6 Depreciation 9.2 22.0 1.2 Other 22.2 10.2 22.8 Cost of sales $ 363.7 $ 385.6 $ 380.3 Paperboard sale volumes 322,265 328,722 324,198 Paperboard production volumes 307,749 316,267 319,615 Net sales price per ton $ 1,111 $ 1,077 $ 1,160 Quarter Ended
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14 Financial Performance ($ IN MILLIONS, UNAUDITED) September 30, 2026 June 30, 2026 September 30, 2025 Dec 31, 2025 Net sales $ 384.9 $ 374.8 $ 399.0 Costs and expenses: Cost of sales 363.7 385.2 380.3 Selling, general and administrative expenses 20.1 21.1 24.7 Goodwill impairment - - 48.0 Other operating charges, net (1.4) (7.5) 1.5 Total operating costs and expenses 382.4 398.7 454.4 Total income (loss) from operations 2.5 (23.9) (55.4) Total non-operating expense (7.0) (6.2) (5.0) Loss from operations before income taxes (4.5) (30.1) (60.4) Income tax benefit (2.9) (8.6) (6.5) Loss from continuing operations (1.6) (21.5) (53.9) Loss from discontinued operations, net of tax - - 0.6 Net loss $ (1.6) $ (21.5) $ (53.3) Quarter Ended
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15 Reconciliation of Adjusted EBITDA ($ IN MILLIONS, UNAUDITED) September 30, 2026 June 30, 2026 September 30, 2025 Net income (loss) $ (1.6) $ (21.5) $ (53.3) Add (deduct): Less: Loss from discontinued operations, net of tax - - 0.6 Income (loss) from continuing operations (1.6) (21.5) (53.9) Income tax benefit (2.9) (8.6) (6.5) Interest expense, net 4.8 5.1 4.7 Depreciation and amortization expense 23.3 23.2 23.8 Goodwill impairment - - 48.0 Other operating charges, net (1.4) (7.5) 1.5 Other non-operating expense 1.1 1.1 0.3 Early debt extinguishment 1.1 - - Adjusted EBITDA from continuing operations $ 24.4 $ (8.2) $ 17.8 Adjusted EBITDA Margin 6.3% -2.2% 4.5% Quarter Ended
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16 Reconciliation of Adjusted Net Income ($ IN MILLIONS, UNAUDITED) September 30, 2026 June 30, 2026 September 30, 2025 Dec 31, 2025 Net income (loss) $ (1.6) $ (21.5) $ (53.3) Add (deduct): Less: Loss from discontinued operations, net of tax - - 0.6 Income (loss) from continuing operations (1.6) (21.5) (53.9) Add back: Income tax benefit (2.9) (8.6) (6.5) Goodwill - - 48.0 Other operating charges, net (1.4) (7.5) 1.5 Early debt extinguishment 1.1 - - Adjusted income (loss) before tax (4.9) (37.6) (11.0) Normalized income provision (benefit) (1.2) (9.4) (2.7) Adjusted net income (loss) from continuing operations $ (3.7) $ (28.2) $ (8.2) Adjusted income (loss) from continuing operations, per diluted share (0.23)$ (1.75)$ (0.51)$ Quarter Ended
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17 Reconciliation of Net Debt September 30, 2026 June 30, 2026 December 31, 2025 Current portion long-term debt $ 274.7 $ 0.6 $ 0.6 Long-term debt 292.7 360.5 345.5 Add back: Unamortized deferred debt costs (5.7) (1.1) (1.3) Less: Cash and cash equivalents 35.7 95.4 30.7 Restricted cash for bond redemption 276.7 - - Net debt 260.7$ 266.8$ 316.7$ ($ IN MILLIONS, UNAUDITED)