April 28th, 2026

The call conveyed a balanced view: management highlighted operational resilience (5% shipment growth), a slight adjusted EBITDA beat, product innovation (Velora), cost reductions (Cypress Bend savings) and meaningful insurance recoveries, while also disclosing significant near-term headwinds including a Q1 net loss, weather-related EBITDA hits (~$15M), ongoing input-cost inflation ($3M–$5M per quarter), difficult pricing dynamics in an oversupplied market, and planned maintenance that pressures Q2 results. Management provided a credible plan to control costs, protect share, and pursue refinancing, and cited industry indicators (imports down, SBS demand growth, expected higher operating rates) that could support recovery later in the year.

Company Guidance

Management guided Q2 adjusted EBITDA of breakeven to negative $10 million, driven by a planned Lewiston major maintenance outage with direct costs of $22–24 million and $5–7 million of higher input costs (including $3–5 million/quarter headwinds from the Middle East), while the Cypress Bend outage was moved to Q4; for the full year they expect revenue of $1.4–1.5 billion, flat to modest shipment growth, approximately $70 million of carryover market‑driven price declines from 2025, productivity gains offsetting roughly 2%–3% of input cost inflation, full‑year major maintenance costs of $45–50 million, capital expenditures of $65–75 million, targeted working capital improvement of $20–30 million, and SG&A toward the lower end of 6%–7% of sales (with a Cypress Bend restructuring benefit noted at about $6 million in the outlook while the mill restructuring is expected to reduce costs by $8–12 million annually); they expect a path to breakeven or better free cash flow for the year aided by insurance recoveries (Q1 proceeds $17.5 million, total recovered >$40 million with ~ $50 million of the policy remaining), a tax refund of $27–28 million (Q1 $4 million, ~$23 million remaining), price actions including a $60/ton increase on extruded products affecting ~70,000 tons effective May (plus ~150,000 tons tied to the RISI index) and prior $50/ton actions on folding/plate, and longer‑term targets of returning to cross‑cycle EBITDA margins of 13%–14% and generating >$100 million of annual free cash flow, while planning to refinance/extend upcoming debt maturities.