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Sylvamo (NYSE: SLVM), the world's paper company, is releasing second quarter earnings. The company will host an audio webcast at 10 a.m. EDT at [url="]investors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sylvamo (NYSE: SLVM), the world’s paper company, is releasing second quarter earnings. The company will host an audio webcast at 10 a.m. EDT at investors.sylvamo.com.

Management Summary from Chief Executive Officer John Sims

Our second quarter highlights include implementing uncoated freesheet price increases with our customers across all regions. We’re advancing our lean transformation journey to embed continuous improvement into how we run the business, so performance improvement becomes employee-driven, systematic and self-sustaining. Our teams also continue to make good progress on our high-return strategic investments at our Eastover, South Carolina, mill.

2026 is a transition year as we adjust our North America footprint while working through the termination of the Riverdale supply agreement with International Paper (NYSE: IP), changing tariffs and the extended outage to complete our strategic investments at our Eastover mill. Our commercial and supply chain teams have done an outstanding job to ensure our customers are well served.

Our strategic investments at Eastover continue to progress:

The woodyard modernization project is going well, with the hardwood line yielding improved reliability and chip quality since its startup in May. The softwood operation remains on schedule for the first quarter of 2027. The paper machine optimization project remains on schedule, on budget and is expected to be completed during a planned maintenance outage in the fourth quarter, which will add an additional 60,000 short tons of uncoated freesheet capacity annually. The new cutsize sheeter passed equipment acceptance testing in June, arrived in the U.S. a few weeks ago and teams are preparing for installation. We are expanding warehouse capacity at our existing sheeting plant through a sale-leaseback transaction with a third party. The project will reduce supply chain costs, improve service to our customers and provide additional flexibility. We expect this project to be completed in the first quarter of 2027. In the second quarter, Sylvamo generated a net loss of $11 million and adjusted EBITDA* of $60 million. Cash from continuing operations was $38 million, and free cash flow* was negative $23 million. In the last few years, we generated most of our free cash flow in the second half, and we expect to do so again this year.

Overall, we expect a much better earnings performance for the last six months of the year as price and mix, volume and operations should be better compared to the first half.

Our board of directors declared a $0.45 dividend for the third quarter, which we paid July 28.

-Regional Business Conditions

In Europe, pulp prices improved throughout the first half of the year and seem stable. We continue to realize previously communicated price increases and announced another price increase effective in mid-June, which we expect to realize through the third quarter. In Latin America, we expect seasonally higher demand through the second half of the year, positively impacting volume and geographic mix. We continue to realize previously communicated price increases to export customers across other Latin American countries as well as customers in the Middle East and Africa. Realization of these increases should continue through the third quarter. In North America, industry supply and demand dynamics improved as roughly 7% of the annual uncoated freesheet industry supply was removed with the Riverdale paper machine conversion. In the second quarter, we saw imports into North America increase compared to the previous quarter, a reaction to the 10% global tariff window. We also continue to realize previously communicated paper price increases and expect to see additional realization through the third quarter. We expect the Middle East conflict to continue pressuring energy, chemical and transportation costs across our regions as we go through the year.

-Looking Ahead

We continue to execute in the six areas I outlined in my letter to shareowners earlier this year that define how Sylvamo will be legendary for the way we relentlessly pursue and achieve world-class excellence. These areas are safety and well-being, employee engagement, customer centricity, operational excellence, cost leadership and sustainability, all of which support our long-term value creation strategy for shareowners.

We will make disciplined, data-driven decisions that position us for sustainable success and strengthen Sylvamo for decades to come. As industry conditions turn, our capital spending normalizes and the benefits from our investments begin to materialize, we have the potential to generate annually:

> $300 million in free cash flow > 15% return on invested capital Earnings Webcast

The company will host an audio webcast at 10 a.m. EDT at investors.sylvamo.com.

To participate in Q&A, use the analyst registration to receive a unique passcode.

Replays will be available at investors.sylvamo.com for one year.

About Sylvamo

Sylvamo Corporation (NYSE: SLVM) is the world's paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We transform renewable resources into papers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, we employ more than 6,500 colleagues. Net sales for 2025 were $3.4 billion. For more information, please visit Sylvamo.com.

Select Financial Measures

  (In millions)

Second
Quarter
2026

First
Quarter
2026

Second
Quarter
2025

Net Sales

$

806

$

755

$

794

Net Income (Loss)

(11

)

(3

)

15

Business Segment Operating Profit (Loss)

14

(15

)

30

Adjusted Operating Earnings (Loss)

1

(21

)

15

Adjusted EBITDA

60

29

82

Cash Provided By (Used For) Operating Activities

38

(10

)

64

Free Cash Flow

(23

)

(59

)

(2

)

Segment Information

Sylvamo uses business segment operating profit (loss) to measure the earnings performance of its businesses, see definition within “Non-GAAP Financial Measures”. Second quarter 2026 sales by business segment and operating profit (loss) by business segment compared with the first quarter of 2026 and the second quarter of 2025 are as follows:

Business Segment Results

  (In millions)

Second
Quarter
2026

First
Quarter
2026

Second
Quarter
2025

Sales by Business Segment

Europe

$

197

$

190

$

181

Latin America

219

187

207

North America

411

390

419

Inter-segment Sales

(21

)

(12

)

(13

)

Net Sales

$

806

$

755

$

794

Operating Profit (Loss) by Business Segment

Europe

$

(20

)

$

(44

)

$

(38

)

Latin America

(16

)

4

2

North America

50

25

66

Business Segment Operating Profit (Loss)

$

14

$

(15

)

$

30

Operating profits in the second quarter of 2026:

Europe - $(20) million compared with $(44) million in the first quarter of 2026. Losses were lower due to higher sales price and mix and lower operating and input costs which were partially offset by higher planned maintenance outages.

Latin America - $(16) million compared with $4 million in the first quarter of 2026. Earnings were lower due to higher planned maintenance outages and higher input costs which were partially offset by higher sales price and mix and higher volumes.

North America - $50 million compared with $25 million in the first quarter of 2026. Earnings were higher due to higher sales price and mix and lower operating and input costs which were slightly offset higher planned maintenance outages.

Effective Tax Rate

The reported effective tax rate for the second quarter of 2026 was 1200%, compared to 50% for the first quarter of 2026. The higher rate for the second quarter was primarily driven by a $12 million valuation allowance on certain foreign deferred tax assets which will not expected to be realized due to a planned internal merger.

The effective operational tax rate for the second quarter of 2026 was 80%, compared with 13% for the first quarter of 2026.

The effective operational tax rate is a non-GAAP financial measure and is calculated by adjusting the income tax provision (benefit) and rate to exclude the tax effect at the applicable statutory rate of net special items and the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary. Management believes that this presentation provides useful information to investors by providing a more meaningful comparison of the income tax rate between past and present periods.

Effects of Net Special Items

Net special items in the second quarter of 2026 amounted to a net after-tax charge of $13 million ($0.34 per diluted share), compared with a net after-tax charge of $1 million ($0.03 per diluted share) in the first quarter of 2026.

Non-GAAP Financial Measures

Adjusted Operating Earnings (Loss) (non-GAAP) are net income (loss) (GAAP) plus the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items. Management uses this measure to focus on ongoing operations and believes it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. The Company believes that using this information, along with net income (loss), provides for a more complete analysis of the results of operations. Net income (loss) is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release.

Adjusted EBITDA (non-GAAP) is net income (loss) (GAAP) plus the sum of income taxes, net interest expense, depreciation, amortization and cost of timber harvested, stock-based compensation, the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items. Management uses these measures in managing the operating performance of our business and believes that adjusted EBITDA along with adjusted EBITDA margin provide investors and analysts meaningful insights into our operating performance and is a relevant metric for the third-party debt. Adjusted EBITDA is reconciled to net income (loss), the most directly comparable GAAP measure. Adjusted EBITDA margin (adjusted EBITDA divided by net sales) is reconciled to net income (loss) margin (net income (loss) divided by net sales), the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release.

Business Segment Operating Profit (Loss) (non-GAAP) is net income (loss) (GAAP) plus the sum of income taxes, net interest expense, the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items. We believe that business segment operating profit (loss) is an important indicator of operating performance as it is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release.

Free Cash Flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operating activities. Management utilizes this measure in connection with managing our business and believes that Free Cash Flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet and service debt, and return cash to shareowners. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. Free Cash Flow also enables investors to perform meaningful comparisons between past and present periods.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the information under the heading "Management Summary from Chief Executive Officer John Sims." Any or all forward-looking statements may turn out to be incorrect, and our actual actions and results could differ materially from what they express or imply, because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. These risks, uncertainties, and other factors include those disclosed in the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2025, filed with the U.S. Securities and Exchange Commission (SEC) and in our subsequent filings with the SEC, available on our website, Sylvamo.com. These forward-looking statements reflect our current expectations, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

SYLVAMO CORPORATION

Consolidated Statement of Operations

Preliminary and Unaudited

(In millions, except per share amounts)

  Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

NET SALES

$

806

$

794

$

755

$

1,561

$

1,615

COSTS AND EXPENSES

Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)

674

640

(d)

630

1,304

1,302

(d)

Selling and administrative expenses

69

(a)

72

73

(g)

142

(a)

145

(f)

Depreciation, amortization and cost of timber harvested

43

45

41

84

85

Taxes other than payroll and income taxes

8

7

8

16

11

Interest expense, net

11

(b)

10

(e)

9

20

(b)

19

(e)

INCOME (LOSS) BEFORE INCOME TAXES

1

20

(6

)

(5

)

53

Income tax provision (benefit)

12

(c)

5

(3

)

9

(c)

11

NET INCOME (LOSS)

$

(11

)

$

15

$

(3

)

$

(14

)

$

42

EARNINGS (LOSS) PER SHARE

Basic

$

(0.28

)

$

0.37

$

(0.08

)

$

(0.35

)

$

1.03

Diluted

$

(0.28

)

$

0.37

$

(0.08

)

$

(0.35

)

$

1.02

Average Shares of Common Stock Outstanding - Diluted

40

41

40

40

41

The accompanying notes are an integral part of this consolidated statement of operations.

Three and Six Months Ended June 30, 2026

(a)

Includes a pre-tax charge of $4 million ($3 million after taxes) for professional and legal fees and a pre-tax gain of $1 million ($0 million after tax) related to environmental reserves in Brazil for the three and six months ended June 30, 2026, and a pre-tax loss of $1 million ($1 million after taxes) for other charges for the six months ended June 30, 2026.

(b)

Includes a pre-tax charge of $2 million ($1 million after taxes) related to debt extinguishment costs for the three and six months ended June 30, 2026.

(c)

Includes $9 million in tax expense related to a change in valuation allowances for certain deferred tax assets for the three and six months ended June 30, 2026.

Three and Six Months Ended June 30, 2025

(d)

Includes a pre-tax gain of $1 million ($1 million after taxes) for the three and six months ended June 30, 2025, to adjust the recognition of a foreign value-added tax refund in Brazil.

(e)

Includes a pre-tax charge of $1 million ($1 million after taxes) of interest expense related to tax settlements for the three and six months ended June 30, 2025.

(f)

Includes a pre-tax loss of $1 million ($1 million after taxes) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after taxes) related to environmental reserves in Brazil for the six months ended June 30, 2025.

Three Months Ended March 31, 2026

(g)

Includes a pre-tax loss of $1 million ($1 million after taxes) for other charges.

SYLVAMO CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Operating Earnings (Loss)

Preliminary and Unaudited

(In millions, except per share amounts)

  Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

Net Income (Loss)

$

(11

)

$

15

$

(3

)

$

(14

)

$

42

Add back: Net special items expense

13

—

1

14

1

Add back: Foreign exchange gain on intercompany note

(1

)

—

(19

)

(20

)

—

Adjusted Operating Earnings (Loss)

$

1

$

15

$

(21

)

$

(20

)

$

43

Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

Diluted Earnings (Loss) Per Common Share as Reported

$

(0.28

)

$

0.37

)

$

(0.08

)

$

(0.35

)

$

1.02

)

Add back: Net special items expense

0.34

—

0.03

0.35

0.02

Add back: Foreign exchange gain on intercompany note

(0.03

)

—

(0.48

)

(0.50

)

—

Adjusted Operating Earnings (Loss) Per Share

$

0.03

$

0.37

$

(0.53

)

$

(0.50

)

$

1.04

SYLVAMO CORPORATION

Sales and Operating Profit (Loss) by Business Segment

Preliminary and Unaudited

(In millions)

Sales by Business Segment

  Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

Europe

$

197

$

181

$

190

$

387

$

371

Latin America

219

207

187

406

406

North America

411

419

390

801

857

Inter-segment Sales

(21

)

(13

)

(12

)

(33

)

(19

)

Net Sales

$

806

$

794

$

755

$

1,561

$

1,615

Reconciliation of Net Income (Loss) to Business Segment Operating Profit (Loss)

  Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

Net Income (Loss)

$

(11

)

$

15

$

(3

)

$

(14

)

$

42

Income tax provision (benefit)

12

(a)

5

(3

)

9

(a)

11

Interest expense, net

11

(b)

10

(d)

9

20

(b)

19

(d)

Foreign exchange gain on intercompany note

(1

)

—

(19

)

(20

)

—

Net special items expense

3

(c)

—

(e)

1

(f)

4

(c)

2

(e)

Business Segment Operating Profit (Loss)

$

14

$

30

$

(15

)

$

(1

)

$

74

Europe

$

(20

)

$

(38

)

$

(44

)

$

(64

)

$

(62

)

Latin America

(16

)

2

4

(12

)

28

North America

50

66

25

75

108

Business Segment Operating Profit (Loss)

$

14

$

30

$

(15

)

$

(1

)

$

74

Three and Six Months Ended June 30, 2026

(a)

Includes $9 million in tax expense related to a change in valuation allowances for certain deferred tax assets for the three and six months ended June 30, 2026.

(b)

Includes a pre-tax charge of $2 million ($1 million after taxes) related to debt extinguishment costs for the three and six months ended June 30, 2026.

(c)

Includes a pre-tax charge of $4 million ($3 million after taxes) for professional and legal fees and a pre-tax gain of $1 million ($0 million after tax) related to environmental reserves in Brazil for the three and six months ended June 30, 2026, and a pre-tax loss of $1 million ($1 million after taxes) for other charges for the six months ended June 30, 2026.

Three and Six Months Ended June 30, 2025

(d)

Includes a pre-tax charge of $1 million ($1 million after taxes) of interest expense related to tax settlements for the three and six months ended June 30, 2025.

(e)

Includes a pre-tax gain of $1 million ($1 million after taxes) for the three and six months ended June 30, 2025, to adjust the recognition of a foreign value-added tax refund in Brazil. Also includes a pre-tax loss of $1 million ($1 million after taxes) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after taxes) related to environmental reserves in Brazil for the six months ended June 30, 2025.

Three Months Ended March 31, 2026

(f)

Includes a pre-tax loss of $1 million ($1 million after taxes) for other charges.

SYLVAMO CORPORATION

Adjusted EBITDA by Business Segment

Preliminary and Unaudited

(In millions)

Reconciliation of Net Income (Loss) to Adjusted EBITDA

  Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

Net Income (Loss)

$

(11

)

$

15

$

(3

)

$

(14

)

$

42

Adjustments:

Income tax provision (benefit)

12

5

(3

)

9

11

Interest expense, net

11

10

9

20

19

Depreciation, amortization and cost of timber harvested

43

45

41

84

85

Stock-based compensation

3

7

3

6

13

Foreign exchange gain on intercompany note

(1

)

—

(19

)

(20

)

—

Net special items expense

3

—

1

4

2

Adjusted EBITDA

$

60

$

82

$

29

$

89

$

172

Net Sales

$

806

$

794

$

755

$

1,561

$

1,615

Net Income Margin

(1

)%

2

%

0

%

(1

)%

3

%

Adjusted EBITDA Margin

7

%

10

%

4

%

6

%

11

%

Adjusted EBITDA by Business Segment

  Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

Adjusted EBITDA

Europe

$

(12

)

$

(30

)

$

(36

)

$

(48

)

$

(45

)

Latin America

9

27

26

35

73

North America

63

85

39

102

144

Total Business Segment Adjusted EBITDA

$

60

$

82

$

29

$

89

$

172

Sales (excluding inter-segment sales eliminations)

Europe

$

197

$

181

$

190

$

387

$

371

Latin America

219

207

187

406

406

North America

411

419

390

801

857

Total Business Segment Sales

$

827

$

807

$

767

$

1,594

$

1,634

Adjusted EBITDA Margin

Europe

(6

)%

(17

)%

(19

)%

(12

)%

(12

)%

Latin America

4

%

13

%

14

%

9

%

18

%

North America

15

%

20

%

10

%

13

%

17

%

SYLVAMO CORPORATION

Consolidated Balance Sheet

Preliminary and Unaudited

(In millions)

  June 30,
2026

December 31,
2025

ASSETS

Current Assets

Cash and temporary investments

$

123

$

135

Accounts and notes receivable, net

366

424

Contract assets

26

19

Inventories

503

418

Other current assets

89

80

Total Current Assets

1,107

1,076

Plants, Properties and Equipment, net

1,093

1,047

Forestlands

393

364

Goodwill

121

114

Right of Use Assets

60

48

Deferred Charges and Other Assets

101

114

TOTAL ASSETS

$

2,875

$

2,763

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable

$

422

$

381

Notes payable and current maturities of long-term debt

121

90

Accrued payroll and benefits

52

55

Other current liabilities

157

190

Total Current Liabilities

752

716

Long-Term Debt

843

763

Deferred Income Taxes

171

175

Other Liabilities

154

143

Equity

Common stock $1.00 par value, 200.0 shares authorized, 46.0 shares and 45.6 shares issued and 39.8 shares and 39.4 shares outstanding at June 30, 2026 and December 31, 2025, respectively

46

46

Paid-in capital

97

89

Retained earnings

2,464

2,514

Accumulated other comprehensive loss

(1,316

)

(1,353

)

1,291

1,296

Less: Common stock held in treasury, at cost, 6.2 shares and 6.2 shares at June 30, 2026 and December 31, 2025, respectively

(336

)

(330

)

Total Equity

955

966

TOTAL LIABILITIES AND EQUITY

$

2,875

$

2,763

SYLVAMO CORPORATION

Consolidated Statement of Cash Flows

Preliminary and Unaudited

(In millions)

  Six Months Ended June 30,

2026

2025

OPERATING ACTIVITIES

Net income (loss)

$

(14

)

$

42

Adjustments to reconcile net income (loss) to cash provided by operating activities:

Depreciation, amortization, and cost of timber harvested

84

85

Deferred income tax provision (benefit), net

—

(5

)

Stock-based compensation

6

13

Foreign exchange gain on intercompany note

(20

)

—

Changes in operating assets, liabilities and other:

Accounts and notes receivable

65

77

Inventories

(76

)

—

Accounts payable and accrued liabilities

(2

)

(79

)

Other

(15

)

(46

)

CASH PROVIDED BY OPERATING ACTIVITIES

28

87

INVESTMENT ACTIVITIES

Invested in capital projects

(110

)

(114

)

Other

1

—

CASH USED FOR INVESTMENT ACTIVITIES

(109

)

(114

)

FINANCING ACTIVITIES

Dividends paid

(36

)

(36

)

Issuance of debt

571

48

Reduction of debt

(469

)

(40

)

Repurchases of common stock

—

(40

)

Other

2

(8

)

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

68

(76

)

Effect of Exchange Rate Changes on Cash

1

11

Change in Cash and Temporary Investments

(12

)

(92

)

Cash and Temporary Investments

Beginning of the period

135

205

End of the period

$

123

$

113

SYLVAMO CORPORATION

Reconciliation of Cash Provided by (Used For) Operating Activities to Free Cash Flow

Preliminary and Unaudited

(In millions)

  Three Months Ended
June 30,

Three Months Ended
March 31,

Six Months Ended
June 30,

2026

2025

2026

2026

2025

Cash Provided By (Used For) Operating Activities

$

38

$

64

$

(10

)

$

28

$

87

Adjustments:

Cash invested in capital projects

(61

)

(66

)

(49

)

(110

)

(114

)

Free Cash Flow

$

(23

)

$

(2

)

$

(59

)

$

(82

)

$

(27

)

Investors in Sylvamo Corporation (SLVM - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug. 21, 2026 $70.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Sylvamo shares, but what is the fundamental picture for the company? Currently, Sylvamo is a Zacks Rank #3 (Hold) in the Paper and Related Products industry that ranks in the Bottom 10% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.64 per share to $1.56 in that period.

Given the way analysts feel about Sylvamo right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Posted by Defense World Staff on Mar 30th, 2026

SG Americas Securities LLC raised its stake in Sylvamo Corporation (NYSE:SLVM – Free Report) by 2,246.7% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 223,568 shares of the company’s stock after purchasing an additional 214,041 shares during the period. SG Americas Securities LLC owned 0.57% of Sylvamo worth $10,765,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in SLVM. Lazard Asset Management LLC increased its position in Sylvamo by 0.9% in the 2nd quarter. Lazard Asset Management LLC now owns 29,415 shares of the company’s stock valued at $1,473,000 after buying an additional 259 shares in the last quarter. Rhumbline Advisers boosted its holdings in Sylvamo by 0.3% in the third quarter. Rhumbline Advisers now owns 96,697 shares of the company’s stock worth $4,276,000 after acquiring an additional 278 shares in the last quarter. Versant Capital Management Inc boosted its holdings in Sylvamo by 328.3% in the third quarter. Versant Capital Management Inc now owns 681 shares of the company’s stock worth $30,000 after acquiring an additional 522 shares in the last quarter. GAMMA Investing LLC grew its stake in Sylvamo by 222.8% in the fourth quarter. GAMMA Investing LLC now owns 765 shares of the company’s stock valued at $37,000 after acquiring an additional 528 shares during the period. Finally, Wealth Enhancement Advisory Services LLC grew its stake in Sylvamo by 10.9% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 5,606 shares of the company’s stock valued at $239,000 after acquiring an additional 553 shares during the period. Institutional investors own 91.16% of the company’s stock.

Analyst Ratings Changes A number of equities analysts have recently weighed in on SLVM shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Sylvamo in a research report on Wednesday, January 21st. Royal Bank Of Canada restated a “sector perform” rating and set a $53.00 price target on shares of Sylvamo in a research note on Thursday, December 18th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $56.00.

Check Out Our Latest Stock Analysis on Sylvamo

Sylvamo Price Performance SLVM stock opened at $40.20 on Monday. The company has a market capitalization of $1.59 billion, a P/E ratio of 12.33, a price-to-earnings-growth ratio of 0.47 and a beta of 0.96. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.92 and a current ratio of 1.50. Sylvamo Corporation has a 52-week low of $37.09 and a 52-week high of $68.42. The business has a 50-day simple moving average of $46.56 and a two-hundred day simple moving average of $46.11.

Sylvamo (NYSE:SLVM – Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $1.05 by $0.03. Sylvamo had a return on equity of 15.12% and a net margin of 3.94%.The firm had revenue of $890.00 million during the quarter, compared to the consensus estimate of $858.76 million. During the same period in the prior year, the business posted $1.96 earnings per share. The company’s quarterly revenue was down 8.2% compared to the same quarter last year. Research analysts expect that Sylvamo Corporation will post 7.45 EPS for the current fiscal year.

Sylvamo Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 28th. Investors of record on Tuesday, April 7th will be given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date of this dividend is Tuesday, April 7th. Sylvamo’s dividend payout ratio is presently 55.21%.

Insider Buying and Selling In other Sylvamo news, SVP Rodrigo Davoli sold 3,250 shares of the firm’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.46, for a total transaction of $150,995.00. Following the transaction, the senior vice president directly owned 46,484 shares in the company, valued at approximately $2,159,646.64. This trade represents a 6.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.74% of the company’s stock.

Sylvamo Profile (Free Report)

Sylvamo Corporation, trading on the New York Stock Exchange under the ticker SLVM, is a leading global producer of uncoated freesheet paper. The company was established in October 2021 through a spin-off from International Paper, creating an independent entity focused exclusively on the development, manufacturing and marketing of high-quality uncoated paper products. Headquartered in Memphis, Tennessee, Sylvamo draws on decades of industry experience inherited from its predecessor, positioning itself to meet evolving customer needs in paper-based communications and packaging applications.

The company’s core product portfolio includes office and digital print papers, direct mail and marketing materials, catalog and commercial printing papers, and a range of specialty and value-added grades.

Further Reading Five stocks we like better than Sylvamo Want to see what other hedge funds are holding SLVM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Sylvamo Corporation (NYSE:SLVM – Free Report).

Receive News & Ratings for Sylvamo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sylvamo and related companies with MarketBeat.com's FREE daily email newsletter.

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-

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sylvamo (NYSE: SLVM), the world’s paper company, will release first quarter earnings before the market opens Friday, May 8.

The company will host an audio webcast at 10 a.m. EDT at investors.sylvamo.com.

To participate in Q&A, use the analyst registration to receive a unique passcode.

Replays will be available at investors.sylvamo.com for one year.

About Sylvamo

Sylvamo (NYSE: SLVM) is the world’s paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We transform renewable resources into papers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, we employ more than 6,500 colleagues. Net sales for 2025 were $3.4 billion. For more information, please visit Sylvamo.com.

More News From Sylvamo

Back to Newsroom

Posted by Defense World Staff on Apr 23rd, 2026

State of Alaska Department of Revenue lessened its stake in shares of Sylvamo Corporation (NYSE:SLVM – Free Report) by 84.5% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 18,772 shares of the company’s stock after selling 102,334 shares during the quarter. State of Alaska Department of Revenue’s holdings in Sylvamo were worth $903,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of SLVM. Nomura Holdings Inc. boosted its stake in Sylvamo by 34.1% in the third quarter. Nomura Holdings Inc. now owns 2,150,000 shares of the company’s stock valued at $95,073,000 after acquiring an additional 546,336 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of Sylvamo by 3,945.8% during the third quarter. Millennium Management LLC now owns 316,380 shares of the company’s stock worth $13,990,000 after purchasing an additional 308,560 shares during the period. Canada Pension Plan Investment Board acquired a new stake in shares of Sylvamo in the second quarter worth $15,030,000. SG Americas Securities LLC lifted its holdings in shares of Sylvamo by 2,246.7% in the 4th quarter. SG Americas Securities LLC now owns 223,568 shares of the company’s stock valued at $10,765,000 after buying an additional 214,041 shares during the period. Finally, Bridgeway Capital Management LLC lifted its holdings in shares of Sylvamo by 334.1% in the 3rd quarter. Bridgeway Capital Management LLC now owns 273,496 shares of the company’s stock valued at $12,094,000 after buying an additional 210,496 shares during the period. 91.16% of the stock is currently owned by institutional investors and hedge funds.

Sylvamo Trading Up 0.1% Shares of SLVM stock opened at $42.40 on Thursday. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.50 and a quick ratio of 0.92. The firm has a market cap of $1.69 billion, a PE ratio of 13.01, a price-to-earnings-growth ratio of 0.51 and a beta of 0.99. The company has a 50-day moving average of $43.69 and a two-hundred day moving average of $45.90. Sylvamo Corporation has a 1-year low of $37.09 and a 1-year high of $62.06.

Sylvamo (NYSE:SLVM – Get Free Report) last posted its earnings results on Thursday, February 12th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.03. Sylvamo had a net margin of 3.94% and a return on equity of 15.12%. The firm had revenue of $890.00 million during the quarter, compared to the consensus estimate of $858.76 million. During the same quarter last year, the firm earned $1.96 EPS. The firm’s revenue for the quarter was down 8.2% on a year-over-year basis. On average, analysts predict that Sylvamo Corporation will post 2.75 EPS for the current year.

Sylvamo Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 28th. Stockholders of record on Tuesday, April 7th will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Tuesday, April 7th. Sylvamo’s dividend payout ratio is currently 55.21%.

Insider Activity at Sylvamo In other Sylvamo news, SVP Rodrigo Davoli sold 3,250 shares of the business’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $46.46, for a total value of $150,995.00. Following the completion of the transaction, the senior vice president owned 46,484 shares in the company, valued at $2,159,646.64. The trade was a 6.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.81% of the stock is currently owned by company insiders.

Analyst Ratings Changes SLVM has been the topic of several analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of Sylvamo in a research report on Wednesday, January 21st. Truist Financial initiated coverage on Sylvamo in a research note on Monday, March 30th. They issued a “buy” rating and a $54.00 price target on the stock. Finally, Royal Bank Of Canada set a $50.00 target price on Sylvamo in a report on Thursday, April 16th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $54.33.

Get Our Latest Stock Analysis on Sylvamo

Sylvamo Profile (Free Report)

Sylvamo Corporation, trading on the New York Stock Exchange under the ticker SLVM, is a leading global producer of uncoated freesheet paper. The company was established in October 2021 through a spin-off from International Paper, creating an independent entity focused exclusively on the development, manufacturing and marketing of high-quality uncoated paper products. Headquartered in Memphis, Tennessee, Sylvamo draws on decades of industry experience inherited from its predecessor, positioning itself to meet evolving customer needs in paper-based communications and packaging applications.

The company’s core product portfolio includes office and digital print papers, direct mail and marketing materials, catalog and commercial printing papers, and a range of specialty and value-added grades.

Featured Stories Five stocks we like better than Sylvamo Want to see what other hedge funds are holding SLVM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Sylvamo Corporation (NYSE:SLVM – Free Report).

Receive News & Ratings for Sylvamo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sylvamo and related companies with MarketBeat.com's FREE daily email newsletter.

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MEMPHIS, Tenn.--(BUSINESS WIRE)--Sylvamo (NYSE: SLVM), the world’s paper company, is releasing first quarter earnings. The company will host an audio webcast at 10 a.m. EDT at investors.sylvamo.com.

Management Summary from Chief Executive Officer John Sims

2026 continues to be a transition year as we work through some short-term capacity constraints due to the termination of the Riverdale supply agreement at the end of April and an upcoming extended outage at our Eastover, South Carolina, mill as we execute our strategic investments.

Our high-return strategic investments at Eastover are on track. The paper machine optimization project is scheduled for completion during a planned maintenance outage in the fourth quarter. The new cutsize sheeter is also on schedule and will be installed in the third quarter, ramping up in the fourth quarter. The hardwood line of the woodyard modernization project is running and already showing improved chip quality, and we expect to see improved yield moving forward. The softwood operation is expected to start up in the first quarter of 2027.

To serve our most valuable customers in the U.S. during this transition, we started importing from our mills in Europe, converting product using third-party vendors and building inventory. This resulted in lower sales volume and incremental costs in the first quarter. Changes in U.S. global tariff rates in late February prompted us to revise our plans and begin bringing product in from our operations in Brazil while ramping down imports from our Europe operations. We expect this to benefit Sylvamo by reducing the 2026 North America footprint transition costs by approximately $20 million at current tariff rates.

The first quarter played out largely as we anticipated with the exception of some reliability issues in Europe and Latin America. The root causes have mostly been corrected or will be during the upcoming annual outages. In the first quarter, we began implementing previously communicated uncoated freesheet paper price increases to customers across all our regions. We started to see the benefits of these increases in the first quarter in North America and Latin America and will continue to see realization of these increases across all regions into the second quarter.

Sylvamo generated a net loss of $3 million and adjusted EBITDA* of $29 million, representing a 4% margin. Cash used for operating activities was $10 million, and free cash flow* was negative $59 million.

As anticipated, free cash flow was lower than the fourth quarter, due to lower earnings, unfavorable impacts of our inventory build, the timing of payments and the payment of annual incentive compensation in the first quarter. These were partially offset by favorable cash collections related to Latin America’s seasonally higher fourth quarter sales.

Our free cash flow is heavily weighted to the second half of the year. In the last few years, we generated the vast majority of our free cash flow in the second half, and we expect to do so again this year.

-Capital Allocation

Our board of directors declared a $0.45 dividend for the second quarter, which we paid April 28.

We refinanced debt due in 2027 to extend our maturity profile, which allows us to navigate the current uncertain environment without changing our long-term approach to capital allocation.

Our capital allocation philosophy has not changed. We will deploy every dollar with the goal of improving our competitive position and delivering the best possible shareowner returns over time. We plan to maintain a strong financial position, reinvest in our business and return cash to shareowners.

-Regional Business Conditions

In Europe, industry supply and demand remain challenging. Pulp prices improved throughout the first quarter, and we are realizing previously communicated paper price increases in April. We have communicated a second paper price increase effective in May and expect the realization to occur through the second and third quarters. In Latin America, we moved from the seasonally strongest demand in the fourth quarter to the seasonally weakest in the first quarter, but now expect demand to increase each quarter this year. We are realizing the previously communicated paper price increases to our customers in Brazil, export customers across other Latin American countries as well as customers in the Middle East and Africa. We have communicated a second paper price increase effective in April to our customers across other Latin American countries as well as customers in the Middle East and Africa. We should continue to see additional realization in these regions through the second quarter. In North America, industry supply and demand dynamics have improved as roughly 7% of the annual uncoated freesheet industry supply was removed with the Riverdale mill conversion. After peaking in June 2025, imports into North America have declined significantly throughout the second half of last year and into the first quarter. We also began realizing previously communicated paper price increases to our customers and expect to see additional realization through the second quarter. Our business is currently experiencing increasing energy, chemical, diesel and ocean freight costs due to the Middle East conflict and we expect the pressure to continue. We are focusing on what we can control across our regions to reduce costs and taking commercial actions to help offset the impacts.

-Looking Ahead

We are transforming Sylvamo into a lean, employee-driven, continuous improvement culture. Lean is a long-term, company-wide transformation focused on maximizing customer value by eliminating waste, improving performance, strengthening customer experience and achieving operational excellence and cost leadership over time. We kicked off our lean transformation in Latin America in the first quarter and will begin our efforts in North America in the second quarter.

We are focused on long-term value creation by making disciplined, data-driven decisions that position us for sustainable success and strengthen Sylvamo for decades to come. As industry conditions turn, our capital spending normalizes and the benefits from our investments begin to materialize, we have the potential to generate annually:

> $300 million in free cash flow > 15% return on invested capital Earnings Webcast

The company will host an audio webcast at 10 a.m. EDT at investors.sylvamo.com.

To participate in Q&A, use the analyst registration to receive a unique passcode.

Replays will be available at investors.sylvamo.com for one year.

About Sylvamo

Sylvamo Corporation (NYSE: SLVM) is the world's paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We transform renewable resources into papers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, we employ more than 6,500 colleagues. Net sales for 2025 were $3.4 billion. For more information, please visit Sylvamo.com.

Select Financial Measures

(In millions)

First
Quarter
2026

Fourth
Quarter
2025

First
Quarter
2025

Net Sales

$

755

$

890

$

821

Net Income (Loss)

(3

)

33

27

Business Segment Operating Profit (Loss)

(15

)

79

44

Adjusted Operating Earnings (Loss)

(21

)

43

28

Adjusted EBITDA

29

125

90

Cash Provided By (Used For) Operating Activities

(10

)

94

23

Free Cash Flow

(59

)

38

(25

)

Segment Information

Sylvamo uses business segment operating profit (loss) to measure the earnings performance of its businesses and is calculated as set forth in footnote (d) under the "Sales and Earnings by Business Segment" table (page 7). First quarter 2026 net sales by business segment and operating profit (loss) by business segment compared with the fourth quarter of 2025 and the first quarter of 2025 are as follows:

Business Segment Results

(In millions)

First
Quarter
2026

Fourth
Quarter
2025

First
Quarter
2025

Net Sales by Business Segment

Europe

$

190

$

186

$

190

Latin America

187

270

199

North America

390

447

438

Inter-segment Sales

(12

)

(13

)

(6

)

Net Sales

$

755

$

890

$

821

Operating Profit (Loss) by Business Segment

Europe

$

(44

)

$

(29

)

$

(24

)

Latin America

4

37

26

North America

25

71

42

Business Segment Operating Profit (Loss)

$

(15

)

$

79

$

44

Operating profits in the first quarter of 2026:

Europe - $(44) million compared with $(29) million in the fourth quarter of 2025. Losses were higher due to lower sales price and mix and higher operating and input costs.

Latin America - $4 million compared with $37 million in the fourth quarter of 2025. Earnings were lower due to lower sales mix, lower volumes, higher operating costs and higher planned maintenance outages.

North America - $25 million compared with $71 million in the fourth quarter of 2025. Earnings were lower due to lower volumes, lower sales mix and higher operating and input costs which more than offset lower planned maintenance outages.

Effective Tax Rate

The reported effective tax rate for the first quarter of 2026 was 50%, compared to 43% for the fourth quarter of 2025. The higher rate for the first quarter was due to the mix of earnings in our regions.

The effective operational tax rate for the first quarter of 2026 was 13%, compared with 36% for the fourth quarter of 2025.

The effective operational tax rate is a non-GAAP financial measure and is calculated by adjusting the income tax provision (benefit) and rate to exclude the tax effect at the applicable statutory rate of net special items and the impact of foreign exchange on a note receivable from our Brazilian subsidiary. Management believes that this presentation provides useful information to investors by providing a more meaningful comparison of the income tax rate between past and present periods.

Effects of Net Special Items

Net special items in the first quarter of 2026 amounted to a net after-tax charge of $1 million ($0.03 per diluted share), compared with a net after-tax charge of $11 million ($0.27 per diluted share) in the fourth quarter of 2025.

Non-GAAP Financial Measures

Adjusted Operating Earnings (Loss) (non-GAAP) are net income (loss) (GAAP), net of tax, plus the impact of foreign exchange on a note receivable from our Brazilian subsidiary and net special items. Management uses this measure to focus on ongoing operations and believes it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. The Company believes that using this information, along with net income (loss), provides for a more complete analysis of the results of operations. Net income (loss) is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release.

Adjusted EBITDA (non-GAAP) is net income (loss) (GAAP), net of tax, plus the sum of income taxes, net interest expense, depreciation, amortization and cost of timber harvested, stock-based compensation, the impact of foreign exchange on a note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items. Management uses this measure in managing the operating performance of our business and believes that Adjusted EBITDA and Adjusted EBITDA Margin provide investors and analysts meaningful insights into our operating performance and Adjusted EBITDA is a relevant metric for the third-party debt. The Company believes that using this information, along with net income (loss), provides for a more complete analysis of the results of its operations. Net income (loss) is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release.

Free Cash Flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operating activities. Management utilizes this measure in connection with managing our business and believes that Free Cash Flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet and service debt, and return cash to shareowners. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. Free Cash Flow also enables investors to perform meaningful comparisons between past and present periods.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the information under the heading "Management Summary from Chief Executive Officer John Sims." Any or all forward-looking statements may turn out to be incorrect, and our actual actions and results could differ materially from what they express or imply, because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. These risks, uncertainties, and other factors include those disclosed in the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2025, filed with the U.S. Securities and Exchange Commission (SEC) and in our subsequent filings with the SEC, available on our website, Sylvamo.com. These forward-looking statements reflect our current expectations, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

SYLVAMO CORPORATION

Consolidated Statement of Operations

Preliminary and Unaudited

(In millions, except per share amounts)

Three Months Ended
March 31,

Three Months Ended
December 31,

2026

2025

2025

NET SALES

$

755

$

821

$

890

COSTS AND EXPENSES

Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)

630

662

690

Selling and administrative expenses

73

(a)

73

(b)

68

Depreciation, amortization and cost of timber harvested

41

40

45

Taxes other than payroll and income taxes

8

4

7

Interest expense, net

9

9

11

Impairment of goodwill

—

—

11

(c)

INCOME (LOSS) BEFORE INCOME TAXES

(6

)

33

58

Income tax provision (benefit)

(3

)

6

25

NET INCOME (LOSS)

$

(3

)

$

27

$

33

EARNINGS (LOSS) PER SHARE

Basic

$

(0.08

)

$

0.66

$

0.84

Diluted

$

(0.08

)

$

0.65

$

0.83

Average Shares of Common Stock Outstanding - Diluted

40

41

40

The accompanying notes are an integral part of this consolidated statement of operations.

Three Months Ended March 31, 2026 (a) Includes a pre-tax loss of $1 million ($1 million after taxes) for other charges.

Three Months Ended March 31, 2025 (b) Includes a pre-tax loss of $1 million ($1 million after taxes) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after taxes) related to environmental reserves in Brazil.

Three Months Ended December 31, 2025 (c) Includes a pre-tax loss of $11 million ($11 million after taxes) related to the impairment of goodwill in our France reporting unit.

SYLVAMO CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Operating Earnings (Loss)

Preliminary and Unaudited

(In millions, except per share amounts)

Three Months Ended
March 31,

Three Months Ended
December 31,

2026

2025

2025

Net Income (Loss)

$

(3

)

$

27

$

33

Add back: Net special items expense

1

1

11

Add back: Foreign exchange gain on intercompany note

(19

)

—

(1

)

Adjusted Operating Earnings (Loss)

$

(21

)

$

28

$

43

Three Months Ended

March 31,

Three Months Ended
December 31,

2026

2025

2025

Diluted Earnings (Loss) Per Common Share as Reported

$

(0.08

)

$

0.65

$

0.83

Add back: Net special items expense

0.03

0.03

0.27

Add back: Foreign exchange gain on intercompany note

(0.48

)

—

(0.02

)

Adjusted Operating Earnings (Loss) Per Share

$

(0.53

)

$

0.68

$

1.08

SYLVAMO CORPORATION

Sales and Earnings by Business Segment

Preliminary and Unaudited

(In millions)

Net Sales by Business Segment

Three Months Ended
March 31,

Three Months Ended December 31,

2026

2025

2025

Europe

$

190

$

190

$

186

Latin America

187

199

270

North America

390

438

447

Inter-segment Sales

(12

)

(6

)

(13

)

Net Sales

$

755

$

821

$

890

Operating Profit (Loss) by Business Segment

Three Months Ended
March 31,

Three Months Ended
December 31,

2026

2025

2025

Europe

$

(44

)

$

(24

)

$

(29

)

Latin America

4

26

37

North America

25

42

71

Business Segment Operating Profit (Loss)

$

(15

)

$

44

$

79

Income (Loss) Before Income Taxes

$

(6

)

$

33

$

58

Interest expense, net

9

9

11

Foreign exchange gain on intercompany note

(19

)

—

(1

)

Net special items expense

1

(a)

2

(b)

11

(c)

Business Segment Operating Profit (Loss) (d)

$

(15

)

$

44

$

79

Three Months Ended March 31, 2026

(a)

Includes a pre-tax loss of $1 million ($1 million after taxes) for other charges.

Three Months Ended March 31, 2025

(b)

Includes a pre-tax loss of $1 million ($1 million after taxes) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after taxes) related to environmental reserves in Brazil.

Three Months Ended December 31, 2025

(c)

Includes a pre-tax loss of $11 million ($11 million after taxes) related to the impairment of goodwill in our France reporting unit.

(d)

As set forth in the chart above, business segment operating profit (loss) is defined as income (loss) before income taxes, but excluding net interest expense, the impact of foreign exchange on a note receivable from our Brazilian subsidiary and net special items. Business segment operating profit is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments.

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin

Preliminary and Unaudited

(In millions)

Three Months Ended
March 31,

Three Months Ended
December 31,

2026

2025

2025

Net Income (Loss)

$

(3

)

$

27

$

33

Adjustments:

Income tax provision (benefit)

(3

)

6

25

Interest expense, net

9

9

11

Depreciation, amortization and cost of timber harvested

41

40

45

Stock-based compensation

3

6

1

Foreign exchange gain on intercompany note

(19

)

—

(1

)

Net special items expense

1

2

11

Adjusted EBITDA

$

29

$

90

$

125

Net Sales

$

755

$

821

$

890

Adjusted EBITDA Margin

4

%

11

%

14

%

Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment

Three Months Ended
March 31,

Three Months Ended
December 31,

2026

2025

2025

Adjusted EBITDA

Europe

$

(36

)

$

(15

)

$

(22

)

Latin America

26

46

58

North America

39

59

89

Total Business Segment Adjusted EBITDA

$

29

$

90

$

125

Net Sales (excluding inter-segment sales eliminations)

Europe

$

190

$

190

$

186

Latin America

187

199

270

North America

390

438

447

Total Business Segment Net Sales

$

767

$

827

$

903

Adjusted EBITDA Margin

Europe

(19

)%

(8

)%

(12

)%

Latin America

14

%

23

%

21

%

North America

10

%

13

%

20

%

SYLVAMO CORPORATION

Consolidated Balance Sheet

Preliminary and Unaudited

(In millions)

March 31,
2026

December 31,
2025

ASSETS

Current Assets

Cash and temporary investments

$

130

$

135

Accounts and notes receivable

378

424

Contract assets

20

19

Inventories

483

418

Other current assets

86

80

Total Current Assets

1,097

1,076

Plants, Properties and Equipment, net

1,064

1,047

Forestlands

389

364

Goodwill

121

114

Right of Use Assets

54

48

Deferred Charges and Other Assets

109

114

TOTAL ASSETS

$

2,834

$

2,763

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable

$

407

$

381

Notes payable and current maturities of long-term debt

155

90

Accrued payroll and benefits

56

55

Other current liabilities

140

190

Total Current Liabilities

758

716

Long-Term Debt

766

763

Deferred Income Taxes

179

175

Other Liabilities

152

143

Equity

Common stock $1.00 par value, 200.0 shares authorized, 46.0 shares and 45.6 shares issued and 39.7 shares and 39.4 shares outstanding at March 31, 2026 and December 31, 2025, respectively

46

46

Paid-in capital

93

89

Retained earnings

2,493

2,514

Accumulated other comprehensive loss

(1,317

)

(1,353

)

1,315

1,296

Less: Common stock held in treasury, at cost, 6.2 shares and 6.2 shares at March 31, 2026 and December 31, 2025, respectively

(336

)

(330

)

Total Equity

979

966

TOTAL LIABILITIES AND EQUITY

$

2,834

$

2,763

SYLVAMO CORPORATION

Consolidated Statement of Cash Flows

Preliminary and Unaudited

(In millions)

Three Months Ended
March 31,

2026

2025

OPERATING ACTIVITIES

Net income (loss)

$

(3

)

$

27

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

Depreciation, amortization and cost of timber harvested

41

40

Deferred income tax provision (benefit), net

(4

)

—

Stock-based compensation

3

6

Foreign exchange gain on intercompany note

(19

)

—

Changes in operating assets and liabilities and other

Accounts and notes receivable

54

30

Inventories

(56

)

4

Accounts payable and accrued liabilities

(23

)

(63

)

Other

(3

)

(21

)

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES

(10

)

23

INVESTMENT ACTIVITIES

Invested in capital projects

(49

)

(48

)

CASH USED FOR INVESTING ACTIVITIES

(49

)

(48

)

FINANCING ACTIVITIES

Dividends paid

(18

)

(18

)

Issuance of debt

114

23

Reduction of debt

(47

)

(11

)

Repurchases of common stock

—

(20

)

Other

4

(5

)

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

53

(31

)

Effect of Exchange Rate Changes on Cash

1

5

Change in Cash and Temporary Investments

(5

)

(51

)

Cash and Temporary Investments

Beginning of the period

135

205

End of the period

$

130

$

154

SYLVAMO CORPORATION

Reconciliation of Cash Provided by Operations to Free Cash Flow

Preliminary and Unaudited

(In millions)

Three Months Ended
March 31,

Three Months Ended
December 31,

2026

2025

2025

Cash Provided By (Used For) Operating Activities

(10

)

$

23

$

94

Adjustments:

Cash invested in capital projects

(49

)

(48

)

(56

)

Free Cash Flow

$

(59

)

$

(25

)

$

38

Sylvamo Corporation (SLVM) Q1 2026 Earnings Call Transcript

Sylvamo NYSE: SLVM reported first-quarter 2026 results that management described as largely in line with expectations, excluding operational reliability issues in Europe and Brazil that weighed on earnings and are expected to create some additional costs in the second quarter.

MEMPHIS, Tenn.--(BUSINESS WIRE)---- $SLVM #TheWorldsPaperCo--Sylvamo (NYSE: SLVM), the world's paper company, will host individual meetings Wednesday, June 17, during the Truist Securities Industrials and Services Conference in New York, New York. John Sims, chief executive officer, and Don Devlin, senior vice president and chief financial officer, will be in attendance. About Sylvamo Sylvamo (NYSE: SLVM) is the world's paper company with mills in Europe, Latin America and North America. Our vision is to be the employer,.