Latest news with #Sylvamo
Yahoo
08-08-2025
- Business
- Yahoo
Sylvamo Delivers Results In Line With Outlook, Positioned for Stronger Second Half
MEMPHIS, Tenn., August 08, 2025--(BUSINESS WIRE)--Sylvamo (NYSE: SLVM), the world's paper company, is releasing second quarter 2025 earnings. The company will host an audio webcast at 10 a.m. EDT at Message from Chairman and Chief Executive Officer "We delivered second quarter earnings in line with our outlook, overcoming a $13 million unfavorable foreign exchange impact while navigating the heaviest planned maintenance outage quarter in over five years," said Jean-Michel Ribiéras. "With 85% of our full year planned maintenance outages behind us, we are positioned for a stronger performance in the second half of the year as we expect seasonally stronger demand in North America and Latin America as well as improved operational performance." Financial Highlights – Second Quarter vs. First Quarter Net income of $15 million ($0.37 per diluted share) vs. $27 million ($0.65 per diluted share) Adjusted operating earnings* of $15 million ($0.37 per diluted share) vs. $28 million ($0.68 per diluted share) Adjusted EBITDA* of $82 million (10% margin) vs. $90 million (11% margin) Cash provided by operating activities of $64 million vs. $23 million Free cash flow* of $(2) million vs. $(25) million Commercial and Operational Highlights – Second Quarter vs. First Quarter Price and mix were favorable by $12 million, driven by better mix in North America and Latin America, with lower export sales from both regions Volume decreased by $9 million, mainly in North America Operations and other costs were favorable by $23 million, driven by improved operations, which more than offset a $13 million foreign exchange impact Planned maintenance outage expenses increased by $39 million, as expected—the heaviest outage quarter since the spinoff Input and transportation costs were favorable by $5 million, primarily driven by energy in North America Third Quarter Outlook Adjusted EBITDA of $145 million to $165 million Compared to the second quarter: Price and mix are expected to decrease by $15 million to $20 million due to paper and pulp prices in Europe Volume is projected to improve in the range of $15 million to $20 million, primarily due to seasonality in Latin America and North America Operations and other costs are expected to be favorable by up to $5 million, primarily due to improving operational performance Input and transportation costs are projected to be stable in the range of $(5) million to $5 million Total planned maintenance outage expenses will decrease by $66 million with no outages planned in the quarter We expect quarterly earnings to significantly improve in the second half of the year as we benefit from much lower planned maintenance outage expenses, improving volumes and better operations. *See "Non-GAAP Financial Measures" for definitions of non-GAAP financial measures. Reconciliations are included in the financial schedules below. Management Summary Our team navigated the largest planned maintenance outage quarter in over five years, delivering second quarter adjusted EBITDA in line with our outlook. Operational performance improved across our mills during the quarter. We remain focused on productivity, reliability and cost initiatives while ensuring we are well positioned for long-term value creation. Our team is committed to the success of our customers and is partnering with them to be the supplier of choice every day. We returned $38 million in cash to shareowners through dividends and share repurchases. Our board of directors declared a third quarter dividend of $0.45 per share, which we paid July 29. We will continue evaluating opportunities to repurchase shares at attractive prices with $42 million remaining on our $150 million share repurchase authorization from September 2023. Uncoated freesheet industry conditions varied by region in the first half of 2025 compared to the first half of 2024. In Europe, demand remained sluggish, down 8% year-over-year. Paper prices stabilized in the second quarter but are under pressure entering the seasonally slower third quarter. Pulp prices in Europe significantly decreased in the first half of the year, contributing to uncoated freesheet pricing pressure. In Latin America, demand is down 2% year-over-year, driven by other Latin American countries that saw a 6% decline. Brazil, however, is up 6% due to strong publishing demand. In North America, reported apparent demand is stable year-over-year, driven by higher imports, which are up nearly 40%. Much of this increase in imports is in converting and printing rolls. We believe real demand will be down 3% to 4% this year. We continue to monitor the U.S. tariff situation and the potential challenges and opportunities that may unfold. In the first half of the year, we saw some shifts in uncoated freesheet trade flows. This is one of the main reasons why imports into the U.S. were up almost 40% through the first half of 2025. We are also keeping an eye on several cross-regional themes, including currency fluctuations with the U.S. dollar devaluation against many currencies. Looking ahead, we expect third quarter adjusted EBITDA to improve significantly, supported by the absence of planned maintenance outage expenses, improved volumes and better operational performance. Our long-term approach to capital allocation includes reinvesting in our business to strengthen our competitive advantages. As we first announced in February, we are investing in high-return projects at our Eastover, South Carolina, mill, including a $100 million paper machine speed-up and $45 million replacement sheeter. 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,
Business Wire
08-08-2025
- Business
- Business Wire
Sylvamo Delivers Results In Line With Outlook, Positioned for Stronger Second Half
MEMPHIS, Tenn.--(BUSINESS WIRE)--Sylvamo (NYSE: SLVM), the world's paper company, is releasing second quarter 2025 earnings. The company will host an audio webcast at 10 a.m. EDT at Message from Chairman and Chief Executive Officer 'We delivered second quarter earnings in line with our outlook, overcoming a $13 million unfavorable foreign exchange impact while navigating the heaviest planned maintenance outage quarter in over five years,' said Jean-Michel Ribiéras. 'With 85% of our full year planned maintenance outages behind us, we are positioned for a stronger performance in the second half of the year as we expect seasonally stronger demand in North America and Latin America as well as improved operational performance.' Financial Highlights – Second Quarter vs. First Quarter Net income of $15 million ($0.37 per diluted share) vs. $27 million ($0.65 per diluted share) Adjusted operating earnings* of $15 million ($0.37 per diluted share) vs. $28 million ($0.68 per diluted share) Adjusted EBITDA* of $82 million (10% margin) vs. $90 million (11% margin) Cash provided by operating activities of $64 million vs. $23 million Free cash flow* of $(2) million vs. $(25) million Commercial and Operational Highlights – Second Quarter vs. First Quarter Price and mix were favorable by $12 million, driven by better mix in North America and Latin America, with lower export sales from both regions Volume decreased by $9 million, mainly in North America Operations and other costs were favorable by $23 million, driven by improved operations, which more than offset a $13 million foreign exchange impact Planned maintenance outage expenses increased by $39 million, as expected—the heaviest outage quarter since the spinoff Input and transportation costs were favorable by $5 million, primarily driven by energy in North America Third Quarter Outlook Adjusted EBITDA of $145 million to $165 million Compared to the second quarter: Price and mix are expected to decrease by $15 million to $20 million due to paper and pulp prices in Europe Volume is projected to improve in the range of $15 million to $20 million, primarily due to seasonality in Latin America and North America Operations and other costs are expected to be favorable by up to $5 million, primarily due to improving operational performance Input and transportation costs are projected to be stable in the range of $(5) million to $5 million Total planned maintenance outage expenses will decrease by $66 million with no outages planned in the quarter We expect quarterly earnings to significantly improve in the second half of the year as we benefit from much lower planned maintenance outage expenses, improving volumes and better operations. *See 'Non-GAAP Financial Measures' for definitions of non-GAAP financial measures. Reconciliations are included in the financial schedules below. Expand Management Summary Our team navigated the largest planned maintenance outage quarter in over five years, delivering second quarter adjusted EBITDA in line with our outlook. Operational performance improved across our mills during the quarter. We remain focused on productivity, reliability and cost initiatives while ensuring we are well positioned for long-term value creation. Our team is committed to the success of our customers and is partnering with them to be the supplier of choice every day. We returned $38 million in cash to shareowners through dividends and share repurchases. Our board of directors declared a third quarter dividend of $0.45 per share, which we paid July 29. We will continue evaluating opportunities to repurchase shares at attractive prices with $42 million remaining on our $150 million share repurchase authorization from September 2023. Uncoated freesheet industry conditions varied by region in the first half of 2025 compared to the first half of 2024. In Europe, demand remained sluggish, down 8% year-over-year. Paper prices stabilized in the second quarter but are under pressure entering the seasonally slower third quarter. Pulp prices in Europe significantly decreased in the first half of the year, contributing to uncoated freesheet pricing pressure. In Latin America, demand is down 2% year-over-year, driven by other Latin American countries that saw a 6% decline. Brazil, however, is up 6% due to strong publishing demand. In North America, reported apparent demand is stable year-over-year, driven by higher imports, which are up nearly 40%. Much of this increase in imports is in converting and printing rolls. We believe real demand will be down 3% to 4% this year. We continue to monitor the U.S. tariff situation and the potential challenges and opportunities that may unfold. In the first half of the year, we saw some shifts in uncoated freesheet trade flows. This is one of the main reasons why imports into the U.S. were up almost 40% through the first half of 2025. We are also keeping an eye on several cross-regional themes, including currency fluctuations with the U.S. dollar devaluation against many currencies. Looking ahead, we expect third quarter adjusted EBITDA to improve significantly, supported by the absence of planned maintenance outage expenses, improved volumes and better operational performance. Our long-term approach to capital allocation includes reinvesting in our business to strengthen our competitive advantages. As we first announced in February, we are investing in high-return projects at our Eastover, South Carolina, mill, including a $100 million paper machine speed-up and $45 million replacement sheeter. 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 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: 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. 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. Expand Three Months Ended June 30, Three Months Ended March 31, 2025 Six Months Ended June 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 Expand SYLVAMO CORPORATION Sales and Earnings by Business Segment Preliminary and Unaudited (In millions) Net Sales by Business Segment Three Months Ended June 30, Three Months Ended March 31, 2025 Six Months Ended June 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 Expand Operating Profit by Business Segment Three Months Ended June 30, Three Months Ended March 31, 2025 Six Months Ended June 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 Expand 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. Expand Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment 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 % Expand SYLVAMO CORPORATION Consolidated Balance Sheet Preliminary and Unaudited (In millions) 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 Expand 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 Expand SYLVAMO CORPORATION Reconciliation of Cash Provided by Operations to Free Cash Flow Preliminary and Unaudited (In millions) Adjustments: Free Cash Flow $ (2 ) $ 62 $ (25 ) $ (27 ) $ 29 Expand SYLVAMO CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Third Quarter 2025 Outlook Estimates (In millions) September 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. Expand
Business Wire
08-07-2025
- Business
- Business Wire
Sylvamo to Release Second Quarter Earnings Aug. 8
MEMPHIS, Tenn.--(BUSINESS WIRE)--Sylvamo (NYSE: SLVM), the world's paper company, will release second quarter earnings before the market opens Friday, Aug. 8. 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 (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
Yahoo
07-07-2025
- Business
- Yahoo
Kraft Heinz and Helmerich & Payne Hit the Casualty List
July 7, 2025 - Give me your battered, your cheap, Your wounded stocks that crave a second chance, The wretched refuse of the market's heap. They've stumbled, yet they soon again may dance. That little poem (with apologies to Emma Lazarus) sums up the idea behind my Casualty List. It's a roster of stocks that have been banged up in the latest quarter, and that I think can recover and thrive. Warning! GuruFocus has detected 4 Warning Sign with KHC. There aren't a lot of candidates for this, my 89th Casualty List, because the market was up 10% in the second quarter. Nonetheless, I see a few banged-up bargains out there. Kraft Heinz Take Kraft Heinz Co. (NASDAQ:KHC), for instance. The maker of the ketchup you pour on your burgers was down 14% in the quarter. The company lowered its guidance, and had to recall some packaged turkey because of a listeria problem. Worse, the stock shows no net gains over the past ten years. Analysts despise it, with only five buy ratings among the 24 Wall Street denizens who cover it. As a contrarian, this gets me interested. The company's well-known brands include Heinz, Kraft, Oscar Mayer, Philadelphia (cream cheese) and Velveeta. Income investors should like -- maybe love -- the stock's 6% dividend yield. Bluntly, there's been no growth here. But the stock price has fallen to a point where I think it's a buy. The shares sell for less than book value (corporate net worth per share). Sylvamo Down almost 25% in the second quarter, Sylvamo Corp. (NYSE:SLVM) of Memphis, Tennessee, is a paper manufacturer spun out from International Paper Co. (NYSE:IP) in 2021. The company's sin? It missed sales and earnings estimates in the first half, by a fair margin. The stock, which hit $98 a few months ago, languishes today at about $53. Since the paperless society haven't arrived yet, and since Sylvamo predicts that its results will improve in the second half of this year, I think the stock's big slide was an overreaction. The company remains highly profitable. The stock sells for less than 10 times recent earnings. Helmerich & Payne Last July, a barrel of oil cost about $80. A year later, it's about $66. So, energy stocks are out of favor. You can do worse than be a contrarian in a cyclical world. I think now is a pretty good time to stock up on oil-and-gas stocks. One that was slammed in the second quarter is Helmerich & Payne Inc. (NYSE:HP), down 41% as it lost some valuable business in Saudi Arabia. Based in Tulsa, Oklahoma, the company is an oil-and-gas driller, operating in the U.S., Latin America, Australia and the Middle East. It's a high-risk stock but a cheap one, selling for only 56% of book value. The normal ratio in the past ten years has been 130% of book. Centene President Trump's big beautiful bill that just passed Congress cuts federal spending on Medicaid, the federal-and-state program to help poor and disabled people pay for health care. Centene Corp. (NYSE:CNC) is a managed-care company based in Saint Louis, Missouri. About 60% of its members are in Medicaid. No wonder, then, that Centene stock fell off a cliff. It's down 45% this year, with an 11% loss in the second quarter and a lot more in July. I think Centene has a good chance of weathering this storm. It has been profitable in 23 of the past 24 years. Its balance sheet, while not magnificent, seems pretty good to me. Meanwhile, the stock is cheap, selling it less than five times recent earnings. The Record My Casualty List has held up pretty well over the years since it began in June 2000. The average one-year return on my selections has been 14.4%, beating the Standard & Poor's 500 Total Return Index at 11.5%. Bear in mind that my column results are hypothetical and shouldn't be confused with results I obtain for clients. Also, past performance doesn't predict the future. One-year returns can be measured for 85 lists, of which 53 have been profitable and 39 have beaten the index. My list from a year ago was unsuccessful. I recommended five stocks, three of which fell. The biggest loser was Metallus Inc. (NYSE:MTUS), down 26%. D.R. Horton Inc. (NYSE:DHI) dropped 2% and Ball Corp. (NYSE:BALL) 1%. My only gainers were Walgreens Boots Alliance Inc. (NASDAQ:WBA), which rose 12% on a buyout offer, and Valero Energy Corp. (NYSE:VLO), up 1%. Meanwhile, the S&P 500 with dividends included rose 14%. Disclosure: I own D.R. Horton for one client. I have no personal positions in the stocks discussed in today's column. John Dorfman is chairman of Dorfman Value Investments LLC in Boston, Massachusetts. He or his clients may own or trade securities discussed in this column. He can be reached at jdorfman@ This article first appeared on GuruFocus.
Yahoo
20-05-2025
- Business
- Yahoo
Sylvamo (NYSE:SLVM) Is Due To Pay A Dividend Of $0.45
Sylvamo Corporation's (NYSE:SLVM) investors are due to receive a payment of $0.45 per share on 29th of July. This payment means that the dividend yield will be 3.2%, which is around the industry average. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Unless the payments are sustainable, the dividend yield doesn't mean too much. However, prior to this announcement, Sylvamo's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business. Looking forward, earnings per share is forecast to rise by 0.9% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 25%, which is in the range that makes us comfortable with the sustainability of the dividend. See our latest analysis for Sylvamo The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 3 years, which isn't that long in the grand scheme of things. Since 2022, the annual payment back then was $0.45, compared to the most recent full-year payment of $1.80. This means that it has been growing its distributions at 59% per annum over that time. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Unfortunately things aren't as good as they seem. Over the past five years, it looks as though Sylvamo's EPS has declined at around 3.9% a year. A modest decline in earnings isn't great, and it makes it quite unlikely that the dividend will grow in the future unless that trend can be reversed. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Sylvamo's payments, as there could be some issues with sustaining them into the future. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. Overall, we don't think this company has the makings of a good income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. To that end, Sylvamo has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about. Is Sylvamo not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
