Financial Data and Key Metrics Changes - Net sales increased by 12% year-over-year to $1.6 billion, driven by a 14% increase in shipments from the Augusta Mill acquisition [4][16] - Adjusted EBITDA improved to $107 million, an increase of $71 million compared to the previous year, attributed to strong cost control and execution [4][16] - SG&A expenses decreased to 6.5% of net sales from 8.4% in 2024, reflecting improved cost discipline [5] Business Line Data and Key Metrics Changes - The company successfully integrated the Augusta Mill and separated its tissue business ahead of schedule, contributing to overall performance [4] - Major maintenance outage costs totaled $50 million, significantly lower than the previous year due to better planning and execution [5][16] Market Data and Key Metrics Changes - Industry shipments of SBS were flat year-over-year, while a competitor added over 500,000 tons of new capacity, leading to decreased operating rates and pricing pressure [7][10] - RISI reported a $100 per ton decrease in the SBS folding carton index, although the company experienced a smaller decline of $21 per ton [9] Company Strategy and Development Direction - The company plans to diversify its product portfolio, including the launch of a new lightweight paperboard product line, Viora, in Q2 [13] - A potential investment of $60 million in CUK at the Cypress Bend facility is under consideration, aimed at capturing additional market share [13][14] - The company is focused on maintaining financial flexibility and optimizing capital allocation, including refinancing existing notes [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a recovery of SBS demand in 2026, supported by expected decreases in imports and a net capacity reduction [11] - The company anticipates a pricing headwind of approximately $70 million in 2026 due to carryover from 2025 [10][18] - Management emphasized the need for sustainable margins and cash flows to reinvest in capital-intensive assets [20] Other Important Information - The company ended the year with over $400 million in liquidity, positioning it well to navigate the current supply-driven downturn [5][20] - The company repurchased $17 million worth of shares during the year, with $79 million remaining under its authorization [5] Q&A Session Summary Question: Insights on grade switching from CRB to SBS - Management noted that customers are exploring grade switching due to cost pressures, with SBS currently priced lower than CRB and CUK [26] Question: Confidence in demand improvement - Management highlighted that CPG and QSR companies are optimistic about growth, which supports confidence in demand recovery [28] Question: Plans for extended curtailments - Management has not made specific decisions regarding extended curtailments but is evaluating options to balance supply and demand [31] Question: Liquidity and share buybacks - Management reiterated that maintaining a strong balance sheet and investing in assets are priorities, with share repurchases considered when free cash flow improves [38]