Sylvamo Releases Second Quarter Earnings
Key Terms
adjusted ebitda financial
free cash flow financial
sale-leaseback transaction financial
effective tax rate financial
uncoated freesheet technical
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
2026 is a transition year as we adjust our
Our strategic investments at
- 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
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
*See “Non-GAAP Financial Measures” for definitions of non-GAAP financial measures. Reconciliations are included in the financial schedules below. |
-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 theMiddle East andAfrica . Realization of these increases should continue through the third quarter.
-
In
North America , industry supply and demand dynamics improved as roughly7% of the annual uncoated freesheet industry supply was removed with the Riverdale paper machine conversion. In the second quarter, we saw imports intoNorth America increase compared to the previous quarter, a reaction to the10% 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
-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
-
>
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
Select Financial Measures |
|||||||||||
(In millions) |
Second
|
|
First
|
|
Second
|
||||||
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
|
|
First
|
|
Second
|
||||||
Sales by Business Segment |
|
|
|
|
|
||||||
|
$ |
197 |
|
|
$ |
190 |
|
|
$ |
181 |
|
|
|
219 |
|
|
|
187 |
|
|
|
207 |
|
|
|
411 |
|
|
|
390 |
|
|
|
419 |
|
Inter-segment Sales |
|
(21 |
) |
|
|
(12 |
) |
|
|
(13 |
) |
Net Sales |
$ |
806 |
|
|
$ |
755 |
|
|
$ |
794 |
|
Operating Profit (Loss) by Business Segment |
|
|
|
|
|
||||||
|
$ |
(20 |
) |
|
$ |
(44 |
) |
|
$ |
(38 |
) |
|
|
(16 |
) |
|
|
4 |
|
|
|
2 |
|
|
|
50 |
|
|
|
25 |
|
|
|
66 |
|
Business Segment Operating Profit (Loss) |
$ |
14 |
|
|
$ |
(15 |
) |
|
$ |
30 |
|
Operating profits in the second quarter of 2026:
Effective Tax Rate
The reported effective tax rate for the second quarter of 2026 was
The effective operational tax rate for the second quarter of 2026 was
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
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
SYLVAMO CORPORATION Consolidated Statement of Operations Preliminary and Unaudited (In millions, except per share amounts) |
|||||||||||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
|
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 |
|
|
(b) |
Includes a pre-tax charge of |
|
|
(c) |
Includes |
|
|
Three and Six Months Ended June 30, 2025 |
|
|
|
(d) |
Includes a pre-tax gain of |
|
|
(e) |
Includes a pre-tax charge of |
|
|
(f) |
Includes a pre-tax loss of |
|
|
Three Months Ended March 31, 2026 |
|
|
|
(g) |
Includes a pre-tax loss of |
SYLVAMO CORPORATION Reconciliation of Net Income (Loss) to Adjusted Operating Earnings (Loss) Preliminary and Unaudited (In millions, except per share amounts) |
||||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
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
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
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
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2026 |
|
|
|
2025 |
|
|
|
$ |
197 |
|
|
$ |
181 |
|
|
$ |
190 |
|
|
$ |
387 |
|
|
$ |
371 |
|
|
|
|
219 |
|
|
|
207 |
|
|
|
187 |
|
|
|
406 |
|
|
|
406 |
|
|
|
|
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
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
(20 |
) |
|
$ |
(38 |
) |
|
$ |
(44 |
) |
|
$ |
(64 |
) |
|
$ |
(62 |
) |
|
|
|
(16 |
) |
|
|
2 |
|
|
|
4 |
|
|
|
(12 |
) |
|
|
28 |
|
|
|
|
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 |
|
|
(b) |
Includes a pre-tax charge of |
|
|
(c) |
Includes a pre-tax charge of |
|
|
Three and Six Months Ended June 30, 2025 |
|
|
|
(d) |
Includes a pre-tax charge of |
|
|
(e) |
Includes a pre-tax gain of |
|
|
Three Months Ended March 31, 2026 |
|
|
|
(f) |
Includes a pre-tax loss of |
SYLVAMO CORPORATION Adjusted EBITDA by Business Segment Preliminary and Unaudited (In millions) |
||||||||||||||||||||
|
||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
||||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
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
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
(12 |
) |
|
$ |
(30 |
) |
|
$ |
(36 |
) |
|
$ |
(48 |
) |
|
$ |
(45 |
) |
|
|
|
9 |
|
|
|
27 |
|
|
|
26 |
|
|
|
35 |
|
|
|
73 |
|
|
|
|
63 |
|
|
|
85 |
|
|
|
39 |
|
|
|
102 |
|
|
|
144 |
|
|
Total Business Segment Adjusted EBITDA |
$ |
60 |
|
|
$ |
82 |
|
|
$ |
29 |
|
|
$ |
89 |
|
|
$ |
172 |
|
|
Sales (excluding inter-segment sales eliminations) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
197 |
|
|
$ |
181 |
|
|
$ |
190 |
|
|
$ |
387 |
|
|
$ |
371 |
|
|
|
|
219 |
|
|
|
207 |
|
|
|
187 |
|
|
|
406 |
|
|
|
406 |
|
|
|
|
411 |
|
|
|
419 |
|
|
|
390 |
|
|
|
801 |
|
|
|
857 |
|
|
Total Business Segment Sales |
$ |
827 |
|
|
$ |
807 |
|
|
$ |
767 |
|
|
$ |
1,594 |
|
|
$ |
1,634 |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(6 |
)% |
|
|
(17 |
)% |
|
|
(19 |
)% |
|
|
(12 |
)% |
|
|
(12 |
)% |
|
|
|
4 |
% |
|
|
13 |
% |
|
|
14 |
% |
|
|
9 |
% |
|
|
18 |
% |
|
|
|
15 |
% |
|
|
20 |
% |
|
|
10 |
% |
|
|
13 |
% |
|
|
17 |
% |
|
SYLVAMO CORPORATION Consolidated Balance Sheet Preliminary and Unaudited (In millions) |
||||||||
|
|
June 30,
|
|
December 31,
|
||||
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 |
|
|
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
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||
|
|
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 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260807770314/en/
Investor Contact: Hans Bjorkman, 901-519-8030, Hans.Bjorkman@sylvamo.com
Media Contact: Adam Ghassemi, 901-519-8115, Adam.Ghassemi@sylvamo.com
Source: Sylvamo