CLW · CIK 0001441236
What Clearwater Paper Corporation told the SEC could break it.
Clearwater Paper's sharpest exposure is its customer base: one customer was about 11% of 2025 net sales and its top ten were 46%, so losing or renegotiating with a major buyer would cut materially into revenue. Its costs swing with raw materials and energy — natural gas, electricity, chemicals and pulp — where firm-price contracts cover only about 38% of its gas and electricity needs through 2026, leaving the rest exposed to commodity prices (it holds $122.1 million of related purchase commitments). It also carries substantial secured debt under its PCA term-revolver and ABL facilities and can take on more, adding leverage and refinancing risk.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- one customer ~11% of sales; top 10 = 46% of saleshigh
Clearwater's sales are concentrated — one customer was 11% of 2025 net sales and the top 10 customers were 46% — so losing a major customer or worsening terms would materially reduce net sales.
“We derive a substantial amount of revenue from a concentrated group of customers. Our top 10 customers accounted for 46% of our sales in 2025.”
SEC filing →As of 2026
Commodity & input dependence
- raw materials and energy inputs (natural gas, electricity, chemicals, pulp)medium
Clearwater's cost of sales is driven by raw materials and energy; it holds $122.1M of purchase commitments for natural gas, electricity, chemicals and pulp, with firm-price contracts covering only ~38% of gas/electricity needs through 2026, leaving exposure to commodity price swings.
“Other purchase obligations include purchase commitments of $122.1 million, of which $67.9 million is payable within 12 months, related to contracts for raw materials (including natural gas, electricity, chemicals and pulp), capital expenditures, and various IT services.”
SEC filing →As of 2026
Liquidity & debt
- substantial indebtedness and capacity to add secured debtmedium
Clearwater carries substantial indebtedness (PCA term-revolver and ABL credit agreements secured by substantially all personal property) and may incur additional secured debt, raising leverage and refinancing risk.
“We may be able to incur substantial additional indebtedness, including additional secured indebtedness, in the future. The terms of the Credit Agreements restrict but do not prohibit us from doing so.”
SEC filing →As of 2026
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