Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $40 million for Q2 2025, which was within the guidance range of $35 million to $45 million [4][21] - Net sales reached $392 million, reflecting a 14% increase year-over-year and a 4% increase compared to Q1 2025, primarily driven by the Augusta acquisition [4][20] - SG&A expenses decreased nearly 14% year-over-year to 6.7% of net sales, aligning with the company's target range of 6% to 7% [6][21] Business Line Data and Key Metrics Changes - The Foodservice business saw increased shipments, contributing to the overall sales growth [5] - The Augusta acquisition positively impacted net sales, marking the last quarter where year-over-year comparisons are affected by the acquisition timing [20] Market Data and Key Metrics Changes - Industry shipments of SBS decreased by 4.6% year-over-year and 3.4% sequentially, indicating mixed demand signals [7] - Industry utilization rates fell to 83.1% in Q2 2025, down from 84.7% in Q1 2025, reflecting new capacity startup by competitors [8] Company Strategy and Development Direction - The company aims to strengthen its position as an independent supplier of paperboard packaging products and is exploring opportunities to expand its product offerings, including entering CUK and CRB markets [14][15] - The company is focused on operational execution, cost reduction, and defending its market position to improve performance and margins [6][29] Management's Comments on Operating Environment and Future Outlook - Management noted that current demand softness is viewed as temporary, with expectations for a recovery in industry utilization rates to 90% to 95% in the medium to long term [12][13] - The company anticipates adjusted EBITDA for Q3 2025 to be in the range of $10 million to $20 million, influenced by maintenance costs and production volume reductions [24] Other Important Information - The company completed a major maintenance outage at its Cypress Bend mill at a cost of approximately $9 million, part of a larger $45 million capital project [5][6] - The company has repurchased approximately $4 million of shares in Q2 2025, totaling $18 million since the new authorization in November [6][23] Q&A Session Summary Question: Demand outlook and changes since the last update - Management indicated mixed demand signals with a 5% increase in shipments versus Q1, but overall industry shipments were down year-over-year [33] Question: Impact of maintenance costs on EBITDA guidance - Management confirmed that the increase in outage expenses and lower production volumes are key factors affecting the Q3 EBITDA guidance [40] Question: Factors influencing capacity utilization and shipments - Management highlighted that the Lewiston outage and demand stability are critical factors, with expectations for flat shipments in Q3 and potential slight increases in Q4 [43]