Sylvamo Corporation

Latest Results (05.10.2025):

Sylvamo Corporation reported its second quarter of 2025 earnings, meeting its financial outlook despite a $13 million unfavorable foreign exchange impact and managing the largest planned maintenance outage quarter in over five years. With the majority of maintenance outages completed, the company is poised for stronger performance in the latter half of the year, driven by increased demand in North America and Latin America and enhanced operational efficiency.

Financial Highlights

In Q2 2025, Sylvamo Corporation achieved a net income of $15 million ($0.37 per diluted share), down from $27 million ($0.65 per diluted share) in Q1 2025. Adjusted operating earnings were $15 million ($0.37 per diluted share) compared to $28 million ($0.68 per diluted share) the previous quarter. Adjusted EBITDA stood at $82 million with a 10% margin, slightly decreased from $90 million (11% margin) in Q1. The company generated $64 million in cash from operating activities, a significant increase from $23 million, and improved free cash flow to $(2) million from $(25) million.

Operational Highlights

Price and mix improvements added $12 million, driven by a better product mix in North America and Latin America, despite lower export sales. Volume decreased by $9 million, primarily in North America. Operations and other costs were favorable by $23 million, offsetting the $13 million adverse foreign exchange impact. Planned maintenance outage expenses rose by $39 million, reflecting the heaviest outage quarter since the spinoff. Additionally, input and transportation costs benefited from a $5 million favorable impact, mainly due to energy savings in North America.

Third Quarter Outlook

Sylvamo Corporation expects Q3 2025 adjusted EBITDA to range between $145 million and $165 million. The company anticipates a $15 million to $20 million decrease in price and mix due to lower paper and pulp prices in Europe, offset by a projected $15 million to $20 million improvement in volume driven by seasonal demand in North America and Latin America. Operations and other costs are expected to be up to $5 million favorable, and input and transportation costs are projected to remain stable. With no planned maintenance outages in Q3, the company expects a significant improvement in quarterly earnings in the second half of the year.