Why AT&T Stock Bumped Higher Today
It topped analyst estimates, although the bottom-line beat was narrow.
The company did manage to improve several crucial operational metrics.
10 stocks we like better than AT&T ›
AT&T (NYSE: T) released its latest set of quarterly results Wednesday morning. While these weren't strong enough to bring the bulls charging into the stock, they were nevertheless pleasing for investors. Collectively, the market bid up AT&T's share price by more than 1% in reaction, edging slightly past the S&P 500 index's 0.8% increase that trading session.
Growth in operational metrics, growth in fundamentals
For its second quarter, AT&T's total revenue came in at $30.8 billion, which was 3.5% higher on a year-over-year basis. The improvement in generally accepted accounting principles (GAAP) net income was more pronounced, as the telecom sector incumbent earned $4.5 billion in net income from $3.5 billion in the year-ago period. Its non-GAAP (adjusted), per-share net income also rose to $0.54 per share from Q2 2024's $0.51.
Much of this was due to growth in key operational metrics. AT&T's net postpaid phone additions totaled 401,000, while its net "adds" for high-speed fiber service clocked in at 243,000.
As for the financials, both headline figures topped the consensus analyst estimates. On average, pundits tracking the stock were modeling just under $30.5 on the top line and $0.53 per share for adjusted net income.
The quarter also marked the end of a long-running saga for AT&T -- its rather clunky 2015 acquisition of broadcaster DirecTV. The company's remaining stake in the business was fully divested in early July.
Selected guidance
In AT&T's earnings release, the company also proffered its latest guidance for the entirety of 2025. Although it did not provide a revenue estimate, it forecast that adjusted earnings per share should come in at $1.97 to $2.07; on average, analysts are expecting $2.07.
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These combined investments should create incremental adjusted EBITDA of more than $50 million per year, resulting in additional cash flows and an internal rate of return of greater than 30%. Spending for these strategic investments began this year, while the majority will take place in 2026. These investments will increase our total capital spending in 2026, with spending returning to prior levels in 2027. We do not expect tariffs to have a material impact on the cost of our Eastover major capital projects or their expected returns. We are focused on creating shareowner value by maintaining a strong financial position, reinvesting in our business to grow our earnings and cash flows and returning cash to shareowners. We are confident in our future and motivated by the opportunities that lie ahead. Earnings Webcast The company will host an audio webcast at 10 a.m. EDT at Those who want to participate should call 800-715-9871 (U.S.) or +1-646-307-1963 (international) and use access code 6289099. Replays are available at for one year and by phone for one week. To listen by phone, call 800-770-2030 (U.S.) or +1-647-362-9199 (international) and use access code 6289099. 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 2024 were $3.8 billion. For more information, please visit Select Financial Measures (In millions) SecondQuarter2025 FirstQuarter2025 SecondQuarter2024 Net Sales $ 794 $ 821 $ 933 Net Income 15 27 83 Business Segment Operating Profit 30 44 122 Adjusted Operating Earnings 15 28 83 Adjusted EBITDA 82 90 164 Cash Provided By Operating Activities 64 23 115 Free Cash Flow (2 ) (25 ) 62 Segment Information Sylvamo uses business segment operating profit to measure the earnings performance of its businesses and is calculated as set forth in footnote (e) under the "Sales and Earnings by Business Segment" table (page 7). Second quarter 2025 net sales by business segment and operating profit by business segment compared with the first quarter of 2025 and the second quarter of 2024 are as follows: Business Segment Results (In millions) SecondQuarter2025 FirstQuarter2025 SecondQuarter2024 Net Sales by Business Segment Europe $ 181 $ 190 $ 206 Latin America 207 199 245 North America 419 438 493 Inter-segment Sales (13 ) (6 ) (11 ) Net Sales $ 794 $ 821 $ 933 Operating Profit by Business Segment Europe $ (38 ) $ (24 ) $ 8 Latin America 2 26 37 North America 66 42 77 Business Segment Operating Profit (Loss) $ 30 $ 44 $ 122 Operating profits in the second quarter of 2025: Europe - $(38) million compared with $(24) million in the first quarter of 2025. Earnings were lower due to higher planned maintenance outages, unfavorable foreign exchange impacts and lower volumes which more than offset lower operating costs and favorable price and mix. Latin America - $2 million compared with $26 million in the first quarter of 2025. Earnings were lower due to higher planned maintenance outages and unfavorable foreign exchange impacts which more than offset favorable price and mix, higher volumes and lower input costs. North America - $66 million compared with $42 million in the first quarter of 2025. Earnings were higher due to lower operating and input costs, favorable price and mix and lower unabsorbed costs due to less economic downtime which more than offset lower volumes and higher planned maintenance outages. Effective Tax Rate The reported effective tax rate for the second quarter of 2025 was 25%, compared to 18% for the first quarter of 2025. The lower rate for the first quarter was primarily driven by a higher stock-based compensation windfall, which resulted in a discrete tax benefit recognized during the first quarter. Excluding net special items, the effective tax rate for the second quarter of 2025 was 28%, compared with 20% for the first 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 second quarter of 2025 amounted to a net after-tax charge of $0 million ($0.00 per diluted share), compared with a net after-tax charge of $1 million ($0.03 per diluted share) in the first quarter of 2025. Non-GAAP Financial Measures Adjusted Operating Earnings (non-GAAP) are net income (GAAP), net of tax 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, 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. 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 headings "Third Quarter Outlook" and "Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras." 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, 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 EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Net Sales $ 794 $ 933 $ 821 $ 1,615 $ 1,838 Costs and Expenses Cost of products sold 640 (a) 684 (d) 662 1,302 (a) 1,400 Selling and administrative expenses 72 82 (e) 73 (f) 145 (c) 156 (e) Depreciation, amortization and cost of timber harvested 45 37 40 85 76 Taxes other than payroll and income taxes 7 8 4 11 15 Interest expense (income), net 10 (b) 9 9 19 (b) 18 Income Before Income Taxes 20 113 33 53 173 Income tax provision 5 30 6 11 47 Net Income $ 15 $ 83 $ 27 $ 42 $ 126 Earnings Per Share Basic $ 0.37 $ 2.02 $ 0.66 $ 1.03 $ 3.06 Diluted $ 0.37 $ 1.98 $ 0.65 $ 1.02 $ 3.00 Average Shares of Common Stock Outstanding - Diluted 41 42 41 41 42 The accompanying notes are an integral part of this consolidated statement of operations. Three and Six Months Ended June 30, 2025 (a) 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. (b) Includes a pretax charge of $1 million ($1 million after tax) of interest expense related to tax settlements for the three and six months ended June 30, 2025. (c) 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 tax) related to environmental reserves in Brazil for the six months ended June 30, 2025. Three and Six Months Ended June 30, 2024 (d) Includes pre-tax gain of $1 million ($1 million after taxes) for the three months ended June 30, 2024, to adjust the recognition of a foreign value-added tax refund in Brazil. (e) Includes pre-tax loss of $1 million ($1 million after taxes) for the three and six months ended June 30, 2024, for certain severance costs related to our salaried workforce and a pre-tax loss of $2 million ($1 million after taxes) for the six months ended June 30, 2024, for integration costs related to the Nymölla acquisition. Three Months Ended March 31, 2025 (f) Includes a pretax loss of $1 million ($1 million after tax) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after tax) related to environmental reserves in Brazil. SYLVAMO CORPORATION Reconciliation of Net Income to Adjusted Operating Earnings Preliminary and Unaudited (In millions, except per share amounts) Three Months EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Net Income $ 15 $ 83 $ 27 $ 42 $ 126 Add back: Net special items expense (income) — — 1 1 2 Adjusted Operating Earnings $ 15 $ 83 $ 28 $ 43 $ 128 Three Months EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Diluted Earnings Per Common Share as Reported $ 0.37 $ 1.98 $ 0.65 $ 1.02 $ 3.00 Add back: Net special items expense (income) — — 0.03 0.02 0.05 Adjusted Operating Earnings Per Share $ 0.37 $ 1.98 $ 0.68 $ 1.04 $ 3.05 SYLVAMO CORPORATION Sales and Earnings by Business Segment Preliminary and Unaudited (In millions) Net Sales by Business Segment Three Months EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Europe $ 181 $ 206 $ 190 $ 371 $ 413 Latin America 207 245 199 406 461 North America 419 493 438 857 983 Inter-segment Sales (13 ) (11 ) (6 ) (19 ) (19 ) Net Sales $ 794 $ 933 $ 821 $ 1,615 $ 1,838 Operating Profit by Business Segment Three Months EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Europe $ (38 ) $ 8 $ (24 ) $ (62 ) $ 4 Latin America 2 37 26 28 51 North America 66 77 42 108 139 Business Segment Operating Profit (Loss) $ 30 $ 122 $ 44 $ 74 $ 194 Income Before Income Taxes $ 20 $ 113 $ 33 $ 53 $ 173 Interest expense (income), net 10 (a) 9 9 19 (a) 18 Net special items expense (income) — (b) — (c) 2 (d) 2 (b) 3 (c) Business Segment Operating Profit (e) $ 30 $ 122 $ 44 $ 74 $ 194 Three and Six Months Ended June 30, 2025 (a) Includes a pretax charge of $1 million ($1 million after tax) of interest expense related to tax settlements for the three and six months ended June 30, 2025. (b) 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 tax) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after tax) related to environmental reserves in Brazil for the six months ended June 30, 2025. Three and Six Months Ended June 30, 2024 (c) Includes pre-tax loss of $1 million ($1 million after taxes) for the three and six months ended June 30, 2024, for certain severance costs related to our salaried workforce and a pre-tax loss of $2 million ($1 million after taxes) for the six months ended June 30, 2024, for integration costs related to the Nymölla acquisition. Also includes pre-tax gain of $1 million ($1 million after taxes) for the three months ended June 30, 2024, to adjust the recognition of a foreign value-added tax refund in Brazil. Three Months Ended March 31, 2025 (d) Includes a pre-tax loss of $1 million ($1 million after tax) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after tax) related to environmental reserves in Brazil. (e) As set forth in the chart above, business segment operating profit is defined as income before income taxes, but excluding net interest expense (income) 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 EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Net Income $ 15 $ 83 $ 27 $ 42 $ 126 Adjustments: Income tax provision 5 30 6 11 47 Interest expense (income), net 10 9 9 19 18 Depreciation, amortization and cost of timber harvested 45 37 40 85 76 Stock-based compensation 7 5 6 13 12 Net special items expense (income) — — 2 2 3 Adjusted EBITDA $ 82 $ 164 $ 90 $ 172 $ 282 Net Sales $ 794 $ 933 $ 821 $ 1,615 $ 1,838 Adjusted EBITDA Margin 10.3 % 17.6 % 11.0 % 10.7 % 15.3 % Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment Three Months EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Adjusted EBITDA Europe $ (30 ) $ 17 $ (15 ) $ (45 ) $ 22 Latin America 27 55 46 73 89 North America 85 92 59 144 171 Total Business Segment Adjusted EBITDA $ 82 $ 164 $ 90 $ 172 $ 282 Net Sales (excluding inter-segment sales eliminations) Europe $ 181 $ 206 $ 190 $ 371 $ 413 Latin America 207 245 199 406 461 North America 419 493 438 857 983 Total Business Segment Net Sales $ 807 $ 944 $ 827 $ 1,634 $ 1,857 Adjusted EBITDA Margin Europe (17 )% 8 % (8 )% (12 )% 5 % Latin America 13 % 22 % 23 % 18 % 19 % North America 20 % 19 % 13 % 17 % 17 % SYLVAMO CORPORATION Consolidated Balance Sheet Preliminary and Unaudited (In millions) June 30,2025 December 31,2024 Assets Current Assets Cash and temporary investments $ 113 $ 205 Accounts and notes receivable, net 383 429 Contract assets 21 26 Inventories 396 361 Other current assets 64 42 Total Current Assets 977 1,063 Plants, Properties and Equipment, Net 1,034 944 Forestlands 367 319 Goodwill 126 111 Right of Use Assets 57 58 Deferred Charges and Other Assets 107 109 Total Assets $ 2,668 $ 2,604 Liabilities and Equity Current Liabilities Accounts payable $ 371 $ 375 Notes payable and current maturities of long-term debt 46 22 Accrued payroll and benefits 53 79 Other current liabilities 165 206 Total Current Liabilities 635 682 Long-Term Debt 767 782 Deferred Income Taxes 151 152 Other Liabilities 156 141 Equity Common stock, $1.00 par value, 200.0 shares authorized, 45.5 shares and 44.9 shares issued and 40.4 shares and 40.6 shares outstanding at June 30, 2025 and December 31, 2024, respectively 45 45 Paid-In Capital 85 71 Retained Earnings 2,460 2,455 Accumulated Other Comprehensive Loss (1,343 ) (1,490 ) 1,247 1,081 Less: Common stock held in treasury, at cost, 5.2 shares and 4.3 shares at June 30, 2025 and December 31, 2024, respectively (288 ) (234 ) Total Equity 959 847 Total Liabilities and Equity $ 2,668 $ 2,604 SYLVAMO CORPORATION Consolidated Statement of Cash Flows Preliminary and Unaudited (In millions) Six Months Ended June 30, 2025 2024 Operating Activities Net income $ 42 $ 126 Depreciation, amortization, and cost of timber harvested 85 76 Deferred income tax provision (benefit), net (5 ) — Stock-based compensation 13 12 Changes in operating assets and liabilities and other Accounts and notes receivable 77 (7 ) Inventories — (20 ) Accounts payable and accrued liabilities (79 ) (26 ) Other (46 ) (19 ) Cash Provided By Operating Activities 87 142 Investing Activities Invested in capital projects (114 ) (113 ) Cash Used for Investing Activities (114 ) (113 ) Financing Activities Dividends paid (36 ) (25 ) Issuance of debt 48 16 Reduction of debt (40 ) (54 ) Repurchases of common stock (40 ) (30 ) Other (8 ) (2 ) Cash Used for Financing Activities (76 ) (95 ) Effect of Exchange Rate Changes on Cash 11 (9 ) Change in Cash, Temporary Investments and Restricted Cash (92 ) (75 ) Cash, Temporary Investments and Restricted Cash Beginning of the period 205 280 End of the period $ 113 $ 205 SYLVAMO CORPORATION Reconciliation of Cash Provided by Operations to Free Cash Flow Preliminary and Unaudited (In millions) Three Months EndedJune 30, Three MonthsEndedMarch 31,2025 Six Months EndedJune 30, 2025 2024 2025 2024 Cash Provided By Operating Activities $ 64 $ 115 $ 23 $ 87 $ 142 Adjustments: Cash invested in capital projects (66 ) (53 ) (48 ) (114 ) (113 ) Free Cash Flow $ (2 ) $ 62 $ (25 ) $ (27 ) $ 29 SYLVAMO CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Third Quarter 2025 Outlook Estimates (In millions) Three Months EndedSeptember 30,2025 Net Income $59 - $74 Adjustments: Income tax provision 24 - 29 Interest expense (income), net 8 Depreciation, amortization and cost of timber harvested 48 Stock-based compensation 6 Adjusted EBITDA $145 - $165 The non-GAAP financial measures presented in this release have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of non-GAAP measures in this release may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as Sylvamo. Management believes certain non-U.S. GAAP financial measures, when used in conjunction with information presented in accordance with U.S. GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company's financial condition and results of operations. Management also uses these non-U.S. GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. View source version on Contacts Investor Contact: Hans Bjorkman, 901-519-8030, Media Contact: Adam Ghassemi, 901-519-8115,
