Sylvamo Releases Fourth Quarter, Full Year Earnings
MEMPHIS, Tenn.--( BUSINESS WIRE)--Sylvamo (NYSE: SLVM), the world’s paper company, is releasing fourth quarter and full year 2025 earnings. The company will host an audio webcast at 10 a.m. EST at investors.sylvamo.com.
Management Summary from Chief Executive Officer John Sims
As Sylvamo’s CEO, my vision is that Sylvamo will be legendary for the way we relentlessly pursue and achieve world-class excellence in all that we do. This will create substantial and lasting value for our employees, customers and shareowners and will enable us to be the employer, supplier and investment of choice.
I am committed to allocating capital wisely to create long-term value, communicating transparently, upholding our values and driving smart, data-driven decisions while operating safely with a focus on our customers and cost. We seek high-quality, long-term shareowners who share our vision of disciplined capital allocation and sustainable value-creation.
In 2025, we operated in a challenging environment, but our strategy did not change. We continued to deploy capital with discipline and take actions to strengthen Sylvamo’s competitive position as we invest in our lowest‑cost, most advantaged assets. At the same time, we maintained a strong balance sheet and returned cash to shareowners.
-Financial Results
In the fourth quarter, Sylvamo generated net income of $33 million and adjusted EBITDA * of $125 million, representing a 14% margin. Cash provided by operating activities was $94 million, and free cash flow * was $38 million.
For the full year 2025, Sylvamo generated net income of $132 million and adjusted EBITDA of $448 million, representing a 13% margin. Cash provided by operating activities was $268 million, and free cash flow was $44 million. Despite the challenging environment, we generated 12% return on invested capital * for the year.
-Capital Allocation
Keeping a strong financial position is the cornerstone of our capital allocation framework. This allows us to reinvest in our business, strengthen our competitive advantage through the cycle and increase future earnings and cash flow. In 2025, we maintained our strong financial position and balance sheet, achieving a net debt-to-adjusted EBITDA * of 1.6x.
We reinvested $224 million across our manufacturing network and forestlands in Brazil to strengthen our low-cost position, while accelerating development of high-return capital investments.
Throughout 2025, we returned $155 million to shareowners through $82 million in share repurchases and $73 million in dividends. Our board of directors declared a $0.45 dividend for the first quarter, which we paid Jan. 23. As of Jan. 30, we still have the full $150 million remaining under our current share repurchase authorization.
*See “Non-GAAP Financial Measures” for definitions of non-GAAP financial measures. Reconciliations are included in the financial schedules below.
-Regional Business Conditions
Looking at our regional industry conditions, North America and Brazil remain positive, while Europe and other Latin American countries are challenged. In the first quarter compared to the fourth quarter, our regional businesses will be impacted by lower volumes, higher energy costs and the non-repeat of favorable one-time items.
-Looking Ahead
Our capital spending will peak in 2026 as we execute the majority of our $145 million high-return strategic investments at our Eastover mill, including a paper machine optimization project, a new, state-of-the-art cutsize sheeter and a woodyard modernization project.
2025 and 2026 will be low points in free cash flow as we work through industry headwinds, particularly in Europe, and complete high‑return investments. As these conditions normalize and our investments begin to deliver, Sylvamo is well positioned to generate stronger, more sustainable results with the potential to generate annually:
Our priorities remain unchanged: maintaining a strong financial position, reinvesting with discipline and returning cash to shareowners over time.
Earnings Webcast
The company will host an audio webcast at 10 a.m. EST at investors.sylvamo.com.
Those who want to participate should call 800-715-9871 (U.S.) or +1-646-307-1963 (international) and use access code 4562356.
Replays are available at investors.sylvamo.com for one year and by phone for one week. To listen by phone, call 800-770-2030 (U.S.) or +1-609-800-9909 (international) and use access code 4562356.
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)
Fourth Quarter 2025
Third Quarter 2025
Fourth Quarter 2024
Net Sales
$
890
$
846
$
970
Net Income
33
57
81
Business Segment Operating Profit
79
98
109
Adjusted Operating Earnings
43
58
82
Adjusted EBITDA
125
151
157
Cash Provided By Operating Activities
94
87
164
Free Cash Flow
38
33
100
Segment Information
Sylvamo uses business segment operating profit to measure the earnings performance of its businesses and is calculated as set forth in footnote (f) under the "Sales and Earnings by Business Segment" table (page 9). Fourth quarter 2025 net sales by business segment and operating profit by business segment compared with the third quarter of 2025 and the fourth quarter of 2024 are as follows:
Business Segment Results
(In millions)
Fourth Quarter 2025
Third Quarter 2025
Fourth Quarter 2024
Net Sales by Business Segment
Europe
$
186
$
184
$
194
Latin America
270
228
266
North America
447
450
514
Inter-segment Sales
(13
)
(16
)
(4
)
Net Sales
$
890
$
846
$
970
Operating Profit by Business Segment
Europe
$
(29
)
$
(21
)
$
3
Latin America
37
35
50
North America
71
84
56
Business Segment Operating Profit (Loss)
$
79
$
98
$
109
Operating profits in the fourth quarter of 2025:
Europe - $(29) million compared with $(21) million in the third quarter of 2025. Losses were higher due to lower price and mix and higher operating and input costs which more than offset higher volumes.
Latin America - $37 million compared with $35 million in the third quarter of 2025. Earnings were higher due to higher volumes which more than offset lower price and mix in our export regions and higher operating costs.
North America - $71 million compared with $84 million in the third quarter of 2025. Earnings were lower due to higher planned maintenance outages, and lower mix which more than offset higher volumes and lower operating costs.
Effective Tax Rate
The reported effective tax rate for the fourth quarter of 2025 was 43%, compared to 35% for the third quarter of 2025. The higher rate for the fourth quarter was due to the mix of earnings in our regions.
Excluding net special items, the effective tax rate for the fourth quarter of 2025 was 36%, compared with 35% for the third quarter of 2025.
The effective tax rate excluding net special items is a non-GAAP financial measure and is calculated by adjusting the income tax provision and rate to exclude the tax effect at the applicable statutory rate of net special items. 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 fourth quarter of 2025 amounted to a net after-tax charge of $11 million ($0.27 per diluted share), compared with a net after-tax charge of $1 million ($0.03 per diluted share) in the third quarter of 2025.
Non-GAAP Financial Measures
Adjusted Operating Earnings (non-GAAP) are net income (GAAP), net of tax, 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, provides for a more complete analysis of the results of operations. Net income 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 (GAAP), net of tax, plus the sum of income taxes, net interest expense (income), depreciation, amortization and cost of timber harvested, stock-based compensation, 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, provides for a more complete analysis of the results of its operations. Net income 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.
Return on Invested Capital (“ROIC”) is a non-GAAP measure presented as a supplemental measure of our performance. Management believes that ROIC is useful because it measures how effectively and efficiently we use the capital invested in our business. ROIC = Adjusted Operating Earnings Before Interest / Average Invested Capital. Invested Capital = Equity plus total debt minus cash and temporary investments. The Average Invested Capital is calculated as a simple average for the two most recent fiscal years.
Net Debt is a non‑GAAP measure defined as outstanding principal balance of current and long-term debt, less cash and temporary investments. Management uses Net Debt as an indicator of the Company’s overall leverage and liquidity position, and believes it is useful to investors as it reflects the strength of our financial position.
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, 2024, 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
December 31,
Three Months
Ended
September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
NET SALES
$
890
$
970
$
846
$
3,351
$
3,773
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)
690
733
624
2,616
(b)
2,833
(g)
Selling and administrative expenses
68
81
(e)
68
(i)
281
(c)
311
(e)
Depreciation, amortization and cost of timber harvested
45
44
(f)
49
179
159
(f)
Taxes other than payroll and income taxes
7
5
8
26
26
Interest (income) expense, net
11
7
9
39
(d)
39
(h)
Impairment of goodwill
11
(a)
—
—
11
(a)
—
INCOME BEFORE INCOME TAXES
58
100
88
199
405
Income tax provision
25
19
31
67
103
NET INCOME
$
33
$
81
$
57
$
132
$
302
EARNINGS PER SHARE
Basic
$
0.84
$
1.98
$
1.43
$
3.29
$
7.35
Diluted
$
0.83
$
1.94
$
1.41
$
3.24
$
7.18
Average Shares of Common Stock Outstanding - Diluted
40
42
40
41
42
The accompanying notes are an integral part of this consolidated statement of operations.
Three and Twelve Months Ended December 31, 2025
(a)
(b)
(c)
(d)
(e)
(f)
Includes pre-tax loss of $2 million ($1 million after taxes) and $3 million ($2 million after taxes) for the three and twelve months ended December 31, 2024, respectively, related to forest fires in Brazil.
(g)
(h)
Includes pre-tax loss of $5 million ($4 million after taxes) for the twelve months ended December 31, 2024, related to debt extinguishment costs.
(i)
Includes a pre-tax loss of $1 million ($1 million after taxes) for certain severance costs related to our salaried workforce.
SYLVAMO CORPORATION
Reconciliation of Net Income to Adjusted Operating Earnings
Preliminary and Unaudited
(In millions, except per share amounts)
Three Months Ended
December 31,
Three Months
Ended
September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
Net Income
$
33
$
81
$
57
$
132
$
302
Add back: Net special items expense (income)
11
1
1
13
10
Add back: Foreign exchange on intercompany note
(1
)
—
—
(1
)
—
Adjusted Operating Earnings
$
43
$
82
$
58
$
144
$
312
Three Months Ended
December 31,
Three Months
Ended September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
Diluted Earnings Per Common Share as Reported
$
0.83
$
1.94
$
1.41
$
3.24
$
7.18
Add back: Net special items expense (income)
0.27
0.02
0.03
0.32
0.24
Add back: Foreign exchange on intercompany note
(0.02
)
—
—
(0.02
)
—
Adjusted Operating Earnings Per Share
$
1.08
$
1.96
$
1.44
$
3.54
$
7.42
SYLVAMO CORPORATION
Sales and Earnings by Business Segment
Preliminary and Unaudited
(In millions)
Net Sales by Business Segment
Three Months Ended
December 31,
Three Months
Ended September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
Europe
$
186
$
194
$
184
$
741
$
801
Latin America
270
266
228
904
974
North America
447
514
450
1,754
2,029
Inter-segment Sales
(13
)
(4
)
(16
)
(48
)
(31
)
Net Sales
$
890
$
970
$
846
$
3,351
$
3,773
Operating Profit by Business Segment
Three Months Ended
December 31,
Three Months
Ended September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
Europe
$
(29
)
$
3
$
(21
)
$
(112
)
$
10
Latin America
37
50
35
100
150
North America
71
56
84
263
293
Business Segment Operating Profit (Loss)
$
79
$
109
$
98
$
251
$
453
Income Before Income Taxes
$
58
$
100
$
88
$
199
$
405
Interest expense (income), net
11
7
9
39
(b)
39
(d)
Foreign exchange on intercompany note
(1
)
—
—
(1
)
—
Net special items expense (income)
11
(a)
2
(c)
1
(e)
14
(a)
9
(c)
Business Segment Operating Profit (f)
$
79
$
109
$
98
$
251
$
453
Three and Twelve Months Ended December 31, 2025
(a)
(b)
Three and Twelve Months Ended December 31, 2024
(c)
(d)
Three Months Ended September 30, 2025
(e)
(f)
As set forth in the chart above, business segment operating profit is defined as income before income taxes, but excluding net interest expense (income), 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 to Adjusted EBITDA and Adjusted EBITDA Margin
Preliminary and Unaudited
(In millions)
Three Months Ended
December 31,
Three Months
Ended September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
Net Income
$
33
$
81
$
57
$
132
$
302
Adjustments:
Income tax provision
25
19
31
67
103
Interest expense (income), net
11
7
9
39
39
Depreciation, amortization and cost of timber harvested
45
44
49
179
159
Stock-based compensation
1
6
4
18
23
Foreign exchange on intercompany note
(1
)
—
—
(1
)
—
Net special items expense (income)
11
—
1
14
6
Adjusted EBITDA
$
125
$
157
$
151
$
448
$
632
Net Sales
$
890
$
970
$
846
$
3,351
$
3,773
Adjusted EBITDA Margin
14
%
16
%
18
%
13
%
17
%
Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment
Three Months Ended
December 31,
Three Months
Ended September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
Adjusted EBITDA
Europe
$
(22
)
$
14
$
(11
)
$
(78
)
$
47
Latin America
58
70
61
192
228
North America
89
73
101
334
357
Total Business Segment Adjusted EBITDA
$
125
$
157
$
151
$
448
$
632
Net Sales (excluding inter-segment sales eliminations)
Europe
$
186
$
194
$
184
$
741
$
801
Latin America
270
266
228
904
974
North America
447
514
450
1,754
2,029
Total Business Segment Net Sales
$
903
$
974
$
862
$
3,399
$
3,804
Adjusted EBITDA Margin
Europe
(12
)%
7
%
(6
)%
(11
)%
6
%
Latin America
21
%
26
%
27
%
21
%
23
%
North America
20
%
14
%
22
%
19
%
18
%
SYLVAMO CORPORATION
Consolidated Balance Sheet
Preliminary and Unaudited
(In millions)
December 31, 2025
December 31, 2024
ASSETS
Current Assets
Cash and temporary investments
$
135
$
205
Accounts and notes receivable (less allowances of $17 in 2025 and $21 in 2024)
424
429
Contract assets
19
26
Inventories
418
361
Other current assets
80
42
Total Current Assets
1,076
1,063
Plants, Properties and Equipment, net
1,047
944
Forestlands
364
319
Goodwill
114
111
Right of Use Assets
48
58
Deferred Charges and Other Assets
114
109
TOTAL ASSETS
$
2,763
$
2,604
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
$
381
$
375
Notes payable and current maturities of long-term debt
90
22
Accrued payroll and benefits
55
79
Other current liabilities
190
206
Total Current Liabilities
716
682
Long-Term Debt
763
782
Deferred Income Taxes
175
152
Other Liabilities
143
141
Equity
Common stock $1.00 par value, 200.0 shares authorized, 45.6 shares and 44.9 shares issued and 39.4 shares and 40.6 shares outstanding at December 31, 2025 and 2024, respectively
46
45
Paid-in capital
89
71
Retained earnings
2,514
2,455
Accumulated other comprehensive loss
(1,353
)
(1,490
)
1,296
1,081
Less: Common stock held in treasury, at cost, 6.2 shares and 4.3 shares at December 31, 2025 and December 31, 2024, respectively
(330
)
(234
)
Total Equity
966
847
TOTAL LIABILITIES AND EQUITY
$
2,763
$
2,604
SYLVAMO CORPORATION
Consolidated Statement of Cash Flows
Preliminary and Unaudited
(In millions)
Twelve Months Ended
December 31,
2025
2024
OPERATING ACTIVITIES
Net Income
$
132
$
302
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and cost of timber harvested
179
159
Deferred income tax provision (benefit), net
7
(7
)
Stock-based compensation
18
23
Impairment of goodwill
11
—
Changes in operating assets and liabilities and other
Accounts and notes receivable
33
(47
)
Inventories
(14
)
25
Accounts payable and accrued liabilities
(52
)
42
Other
(46
)
(28
)
CASH PROVIDED BY OPERATING ACTIVITIES
268
469
INVESTMENT ACTIVITIES
Invested in capital projects
(224
)
(221
)
CASH USED FOR INVESTING ACTIVITIES
(224
)
(221
)
FINANCING ACTIVITIES
Dividends paid
(73
)
(62
)
Issuance of debt
229
250
Reduction of debt
(182
)
(407
)
Repurchases of common stock
(82
)
(69
)
Other
(17
)
(22
)
CASH USED FOR FINANCING ACTIVITIES
(125
)
(310
)
Effect of Exchange Rate Changes on Cash
11
(13
)
Change in Cash and Temporary Investments
(70
)
(75
)
Cash and Temporary Investments
Beginning of the period
205
280
End of the period
$
135
$
205
SYLVAMO CORPORATION
Reconciliation of Cash Provided by Operations to Free Cash Flow
Preliminary and Unaudited
(In millions)
Three Months Ended
December 31,
Three Months Ended September 30,
Twelve Months Ended
December 31,
2025
2024
2025
2025
2024
Cash Provided By Operating Activities
$
94
$
164
$
87
$
268
$
469
Adjustments:
Cash invested in capital projects
(56
)
(64
)
(54
)
(224
)
(221
)
Free Cash Flow
$
38
$
100
$
33
$
44
$
248
SYLVAMO CORPORATION
Reconciliation of Return on Invested Capital
Preliminary and Unaudited
(In millions)
2025
2024
Net Income
$
132
Net special items expense (income)
14
Foreign exchange on intercompany note
(1
)
Interest expense (income), net
39
Adjusted Operating Earnings Before Interest
$
184
Total equity
$
966
$
847
Add: Long-term debt
763
782
Add: Notes payable and current maturities of long-term debt
90
22
Less: Cash, temporary investments and restricted cash
(135
)
(205
)
Total Invested Capital
$
1,684
$
1,446
Average Invested Capital
$1,565
Return on Invested Capital for the Twelve Months Ended December 31, 2025
12%
SYLVAMO CORPORATION
Reconciliation of Net Debt-to-Adjusted EBITDA
Preliminary and Unaudited
(In millions)
2025
Long-term debt
$
763
Notes payable and current maturities of long-term debt
90
Less: Financing lease obligations
(15
)
Less: Unamortized debt issuance costs
4
Gross Debt
$
842
Less: Cash and temporary investments
135
Net Debt
$
707
Adjusted EBITDA
$
448
Net Debt-to-Adjusted EBITDA for the Twelve Months Ended December 31, 2025
1.6
x