Sylvamo Corp

Previous wording

First quarter 2025 net income was $27 million ($0.65 per diluted share) compared with $43 million ($1.02 per diluted share) for the first quarter of 2024. Net sales were $821 million in the current quarter compared with $905 million in the prior year. Cash from operations was $23 million compared to $27 million in the first quarter of last year. Adjusted EBITDA was $90 million and our adjusted EBITDA margin was 11% compared to $118 million and an adjusted EBITDA margin of 13% in the first quarter of 2024. Free cash flow was $(25) million compared to $(33) million in the first quarter of 2024.

Current wording

Second quarter 2025 net income was $15 million ($0.37 per diluted share) compared with $83 million ($1.98 per diluted share) for the second quarter of 2024. Net sales were $794 million in the current quarter compared with $933 million in the prior year. Cash from operations was $64 million compared to $115 million in the second quarter of last year. Adjusted EBITDA was $82 million, with an adjusted EBITDA margin of 10%, compared to $164 million and an adjusted EBITDA margin of 18% in the second quarter of 2024. Free cash flow was $(2) million compared to $62 million in the second quarter of 2024.

Previous wording

Comparing our performance in the first quarter of 2025 to the prior year, volume decreased, primarily due to lower North America volume from International Paper’s Georgetown mill closure and operational challenges in North America. Price and mix decreased in Europe. Less favorable input and transportation costs and higher planned maintenance outage costs were partially offset by more favorable operations and costs. We continued to return cash to shareowners through an $18 million dividend payment and repurchased $20 million in shares during the quarter.

Current wording

Comparing our earnings performance in the second quarter of 2025 to the prior year, volume decreased, primarily due to lower North America volume resulting from International Paper’s Georgetown mill closure. Price and mix decreased in Europe. More favorable operations and costs were partially offset by higher input and transportation costs. Planned maintenance outage costs were significantly higher as we conducted complex outages in five of our mills. We continued to return cash to shareowners through an $18 million dividend payment and repurchased $20 million in shares during the quarter.

Previous wording

Looking ahead to the second quarter of 2025, we expect price and mix to be favorable reflecting favorable mix in Latin America and North America. Volume is expected to remain stable. Operations and costs are expected to improve due to better operations and seasonally lower costs in Europe and North America. Additionally, we expect input and transportation costs to improve primarily due to energy. Lastly, planned maintenance outage costs are projected to increase by $36 million as we execute the heaviest outage quarter of the year across all three regions.

Current wording

Looking ahead to the third quarter of 2025, we expect price and mix to be unfavorable primarily driven by paper and pulp prices in Europe. Volume is expected to be favorable due to stronger seasonality in both Latin America and North America. Operations and costs are projected to improve slightly due to better operational performance. We expect input and transportation costs to remain stable. Lastly, planned maintenance outage costs are projected to improve by $66 million as we have no outages planned in the third quarter.

Previous wording

(b) Net special items represent income or expenses that are incurred periodically, rather than on a regular basis. Net special items in the periods presented primarily include charges related to the termination of the Georgetown mill offtake agreement, environmental reserves in Brazil, integration costs related to the Nymölla acquisition, and other charges.

Current wording

(b) Net special items represent income or expenses that are incurred periodically, rather than on a regular basis. Net special items in the periods presented primarily include a gain to adjust the recognition of a foreign value-added tax refund in Brazil, charges related to the termination of the Georgetown mill offtake agreement, environmental reserves in Brazil, certain severance costs related to our salaried workforce and integration costs related to the Nymölla acquisition.

Previous wording

Our Europe business segment sales decreased $17 million, compared to the same period in 2024, primarily due to lower sales price and mix ($9 million) and lower volumes ($7 million).

Current wording

Our Europe business segment sales decreased $25 million compared to the same period in 2024, primarily due to lower sales price and mix ($17 million) and lower volumes ($18 million), partially offset by favorable foreign exchange impacts.

Previous wording

Our Latin America business segment sales decreased $17 million compared to the same period in 2024, primarily driven by lower volumes ($3 million) and unfavorable foreign exchange.

Current wording

Our Latin America business segment sales decreased $38 million compared to the same period in 2024, primarily driven by lower volumes ($22 million), a decrease in sale price and mix ($6 million) and unfavorable foreign exchange impacts.

Previous wording

Our North America business segment sales decreased $52 million compared to the same period in 2024, primarily due to lower volumes ($51 million).

Current wording

Our North America business segment sales decreased $74 million compared to the same period in 2024, primarily due to a decrease in volumes ($78 million) which was partially offset by an increase in sales price and mix ($4 million).

Previous wording

Operating profit for Latin America was $12 million higher than the same period in 2024, primarily due to lower operating costs ($6 million), lower outage costs ($10 million) and higher sales price and mix ($1 million) which more than offset higher input costs ($4 million), primarily for purchased wood, and lower volumes ($1 million).

Current wording

Operating profit for North America was $11 million lower than the same period in 2024, primarily due to lower volumes ($22 million) and higher input costs ($3 million), primarily for energy, chemicals and wood, which more than offset higher sales price and mix ($4 million), lower outage costs ($4 million), lower unabsorbed costs due to less economic downtime ($4 million) and lower operating costs ($2 million).

Previous wording

(a) Net special items represent income or expenses that are incurred periodically, rather than on a regular basis. Net special items in the periods presented primarily include charges related to the termination of the Georgetown mill offtake agreement, environmental reserves in Brazil, integration costs related to the Nymölla acquisition, and other charges.

Current wording

(a) Net special items represent income or expenses that are incurred periodically, rather than on a regular basis. Net special items in the periods presented primarily include a gain to adjust the recognition of a foreign value-added tax refund in Brazil, charges related to the termination of the Georgetown mill offtake agreement, environmental reserves in Brazil, certain severance costs related to our salaried workforce and integration costs related to the Nymölla acquisition.

Previous wording

Cash provided by operating activities totaled $23 million for the three months ended March 31, 2025, compared with cash provided by operating activities of $27 million for the three months ended March 31, 2024. The decrease in cash provided by operating activities in 2025 relates primarily to lower net income offset by timing of cash flows related to working capital.

Current wording

Cash provided by operating activities totaled $87 million for the six months ended June 30, 2025, compared with cash provided by operating activities of $142 million for the six months ended June 30, 2024. The decrease in cash provided by operating activities in 2025 relates primarily to lower net income offset by timing of cash flows related to working capital.

Previous wording

Cash used for working capital components (accounts and notes receivable, inventories, accounts payable and accrued liabilities, and other) was $50 million for the three months ended March 31, 2025, compared with cash used for working capital components of $64 million for the three months ended March 31, 2024. The three months ended March 31, 2025 working capital components primarily reflect $30 million and $4 million of cash provided by our accounts and notes receivables and inventories, respectively, offset by $63 million and $21 million of cash used for our accounts payable and accrued liabilities and other operating activities, respectively. The three months ended March 31, 2024 working capital components primarily reflect $8 million of cash provided by our accounts and notes receivable, offset by $5 million, $45 million and $22 million of cash used for our inventories, accounts payable and accrued liabilities, and other operating activities, respectively.

Current wording

Cash used for working capital components (accounts and notes receivable, inventories, accounts payable and accrued liabilities, and other) was $48 million for the six months ended June 30, 2025, compared with cash used for working capital components of $72 million for the six months ended June 30, 2024. The six months ended June 30, 2025 working capital components primarily reflect $77 million of cash provided by our accounts and notes receivables, offset by $79 million and $46 million of cash used for our accounts payable and accrued liabilities and other operating activities, respectively. The six months ended June 30, 2024 working capital components primarily reflect $7 million, $20 million, $26 million and $19 million of cash used for our accounts and notes receivable, inventories, accounts payable and accrued liabilities, and other operating activities, respectively.

Previous wording

The total cash used for investing activities for the three months ended March 31, 2025 decreased from the three months ended March 31, 2024, due to the decrease in capital spending in the current year.

Current wording

The total cash used for investing activities for the six months ended June 30, 2025 was consistent with the six months ended June 30, 2024.

Previous wording

Cash used for financing activities for the three months ended March 31, 2025 primarily reflects the payments of $5 million, $3 million, and $3 million on our outstanding principal debt balances for the AR Securitization, Term Loan F-2, and Term Loan A, respectively. These amounts are primarily offset by a draw on our AR Securitization of $22 million. During the three months ended March 31, 2025 the Company also paid $18 million in dividends and repurchased $20 million of our shares pursuant to our share repurchase program. Cash used for financing activities for the three months ended March 31, 2024 primarily reflects the payments of $6 million, $7 million, and $4 million on our outstanding principal debt balances for the AR Securitization, Term Loan F, and Term Loan A, respectively. These amounts are primarily offset by a draw on our AR Securitization of $6 million. During the three months ended March 31, 2024 the Company also paid $12 million in dividends and repurchased $5 million of our shares pursuant to our share repurchase program.

Current wording

Cash used for financing activities for the six months ended June 30, 2025 primarily reflects the payments of $27 million, $6 million, and $6 million on our outstanding principal debt balances for the AR Securitization, Term Loan F-2, and Term Loan A, respectively. These amounts are primarily offset by draws on our AR Securitization and Revolving Credit Facility of $22 million and $23 million, respectively. During the six months ended June 30, 2025 the Company also paid $36 million in dividends and repurchased $40 million of our shares pursuant to our share repurchase program. Cash used for financing activities for the six months ended June 30, 2024 primarily reflects the payments of $23 million, $13 million, $10 million, and $8 million on our outstanding principal debt balances for the AR Securitization, Term Loan F, Revolving Credit Facility, and Term Loan A, respectively. These amounts are primarily offset by draws on our Revolving Credit Facility and AR Securitization of $10 million and $6 million, respectively. During the six months ended June 30, 2024 the Company also paid $25 million in dividends and repurchased $30 million of our shares pursuant to our share repurchase program.

Previous wording

For the three months ended March 31, 2025, we have invested approximately $48 million, or 5.8% of net sales, in total capital expenditures. Over that period, we spent approximately $37 million, or 4.5% of net sales, in maintenance, regulatory and reforestation capital expenditures, and approximately $11 million, or 1.3% of net sales, in high-return capital projects. Our annual maintenance, regulatory and reforestation capital expenditures are expected to be in the range of approximately $175 to $190 million per year (before inflation) for the next several years, which we believe will be sufficient to maintain our operations and productivity. In addition, we expect to spend approximately $50 million to $70 million on high-return projects in 2025.

Current wording

For the six months ended June 30, 2025, we have invested approximately $114 million, or 7.1% of net sales, in total capital expenditures. Over that period, we spent approximately $84 million, or 5.2% of net sales, in maintenance, regulatory and reforestation capital expenditures, and approximately $30 million, or 1.9% of net sales, in high-return capital projects. Our annual maintenance, regulatory and reforestation capital expenditures are expected to be in the range of approximately $165 to $190 million per year (before inflation) for the next several years, which we believe will be sufficient to maintain our operations and productivity. In addition, we expect to spend approximately $55 million to $65 million on high-return projects in 2025.

Previous wording

The Company has included in the 2024 Form 10-K a discussion of these critical accounting policies, which are important to the portrayal of the Company’s financial condition and results of operations and require management’s judgments. The Company has not made any changes in these critical accounting policies during the first three months of 2025.

Current wording

The Company has included in the 2024 Form 10-K a discussion of these critical accounting policies, which are important to the portrayal of the Company’s financial condition and results of operations and require management’s judgments. The Company has not made any changes in these critical accounting policies during the first six months of 2025.

Previous wording

This Quarterly Report on Form 10-Q contains information that includes or is based upon forward-looking statements. Forward-looking statements forecast or state expectations concerning future events. These statements often can be identified by the fact that they do not relate strictly to historical or current facts. They typically use words such as “anticipate,” “assume,” “could,”

Current wording

This Quarterly Report on Form 10-Q contains information that includes or is based upon forward-looking statements. Forward-looking statements forecast or state expectations concerning future events. These statements often can be identified by the fact that they do not relate strictly to historical or current facts. They typically use words such as “anticipate,” “assume,” “could,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “should,” “will” and other words and terms of similar meaning, or they relate to future periods. Some examples of forward-looking statements include those relating to our business and operating outlook, future obligations and anticipated expenditures.

Previous wording

Forward-looking statements are not guarantees of future performance. Any or all forward-looking statements may turn out to be incorrect, and actual results could differ materially from those expressed or implied in forward-looking statements. Forward-looking statements are based on current expectations and the current economic environment. They can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors that are difficult to predict. Although it is not possible to identify all of these risks, uncertainties and other factors, the impact of the following factors, among others, on us or on our suppliers or customers, could cause our actual results to differ from those in the forward-looking statements: deterioration of global and regional economic, civil and political conditions and trade relations; physical, financial and reputational risks associated with climate conditions and climate change, including adverse environmental events such as floods and fires; reduced demand for our products due to the cyclical nature of the paper industry, the industry-wide secular decline in paper demand, or competition from other businesses; increased costs or reduced availability of the raw materials, energy, transportation (truck, rail and ocean) and labor needed to manufacture and deliver our products; a material disruption at any of our manufacturing facilities; information technology risks including potential cybersecurity breaches affecting us or third parties with which we do business; extensive environmental, tax and other laws and regulations in Brazil, Europe, the United States and other jurisdictions to which we are subject, including our compliance costs and risk of liability and loss for violations; our reliance on a small number of customers; and the factors disclosed in Item 1A. Risk Factors of our 2024 Form 10-K, as such disclosures may be amended, supplemented or superseded from time to time by other reports we file with the U.S. Securities and Exchange Commission (the “SEC”), including subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q.

Current wording

Forward-looking statements are not guarantees of future performance. Any or all forward-looking statements may turn out to be incorrect, and actual results could differ materially from those expressed or implied in forward-looking statements. Forward-looking statements are based on current expectations and the current economic environment. They can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors that are difficult to predict. Although it is not possible to identify all of these risks, uncertainties and other factors, the impact of the following factors, among others, on us or on our suppliers or customers, could cause our actual results to differ from those in the forward-looking statements: deterioration of global and regional economic, civil and political conditions and trade relations including the imposition of tariffs or other trade protections; physical, financial and reputational risks associated with climate conditions and climate change, including adverse environmental events such as floods and fires; reduced demand for our products due to the cyclical nature of the paper industry, the industry-wide secular decline in paper demand, or competition from other businesses; increased costs or reduced availability of the raw materials, energy, transportation (truck, rail and ocean) and labor needed to manufacture and deliver our products; a material disruption at any of our manufacturing facilities; information technology risks including potential cybersecurity breaches affecting us or third parties with which we do business; extensive environmental, tax and other laws and regulations in Brazil, Europe, the United States and other jurisdictions to which we are subject, including our compliance costs and risk of liability and loss for violations; our reliance on a small number of customers; and the factors disclosed in Item 1A. Risk Factors of our 2024 Form 10-K, as such disclosures may be amended, supplemented or superseded from time to time by other reports we file with the U.S. Securities and Exchange Commission (the “SEC”), including subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q.