Sylvamo Corp

Previous 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.

Current wording

Third quarter 2025 net income was $57 million ($1.41 per diluted share) compared with $95 million ($2.27 per diluted share) for the third quarter of 2024. Net sales were $846 million in the current quarter compared with $965 million in the prior year. Cash from operations was $87 million compared to $163 million in the third quarter of last year. Adjusted EBITDA was $151 million, with an adjusted EBITDA margin of 18%, compared to $193 million and an adjusted EBITDA margin of 20% in the third quarter of 2024. Free cash flow was $33 million compared to $119 million in the third quarter of 2024.

Previous 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.

Current wording

Comparing our earnings performance in the third 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 were unfavorable in Europe. More favorable operations and costs were partially offset by higher input and transportation costs. We continued to return cash to shareowners through an $18 million dividend payment and repurchased $42 million in shares during the quarter.

Previous 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.

Current wording

Looking ahead to the fourth quarter of 2025, we expect price and mix to be unfavorable primarily driven by paper prices in Europe and mix across our regions. Volume is expected to be favorable, largely due to Latin America and North America. Operations and costs are projected to be unfavorable primarily due to seasonally higher costs. We expect input and transportation costs to remain stable. Lastly, planned maintenance outage costs will be unfavorable by $18 million as we have one planned outage in North America during the fourth 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 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.

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, legal fees related to the Brazil Tax Dispute and integration costs related to the Nymölla acquisition.

Previous wording

Our Europe business segment sales decreased $42 million compared to the same period in 2024, primarily due to lower sales price and mix ($26 million) and lower volumes ($25 million), partially offset by favorable foreign exchange impacts.

Current wording

Our Europe business segment sales decreased $10 million compared to the same period in 2024, primarily due to unfavorable sales price and mix ($26 million), partially offset by higher volumes ($2 million) and favorable foreign exchange impacts.

Previous wording

Europe operating profit was $46 million lower than the same period in 2024, primarily driven by lower sales price and mix ($16 million), higher planned maintenance outages ($28 million), higher operating ($1 million) and input costs ($2 million), primarily for wood and chemicals, and lower volumes ($2 million) which were partially offset by lower unabsorbed costs due to less economic downtime ($3 million).

Current wording

Europe operating profit was $24 million lower than the same period in 2024, primarily driven by lower sales price and mix ($26 million) and higher operating ($1 million) and input costs ($4 million), primarily for wood and energy, which more than offset higher volumes ($2 million), lower planned maintenance outages ($1 million) and lower unabsorbed costs due to less economic downtime ($4 million).

Previous 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.

Current wording

Our Europe business segment sales decreased $52 million compared to the same period in 2024, primarily due to lower sales price and mix ($52 million) and lower volumes ($23 million), partially offset by favorable foreign exchange impacts.

Previous wording

Europe operating profit was $66 million lower than the same period in 2024, primarily driven by lower sales price and mix ($25 million), higher planned maintenance outages ($40 million), higher input costs ($4 million), primarily for wood, and lower volumes ($1 million) which were partially offset by lower unabsorbed costs due to less economic downtime ($3 million) and lower operating costs ($1 million).

Current wording

Europe operating profit was $90 million lower than the same period in 2024, primarily driven by lower sales price and mix ($51 million), higher planned maintenance outages ($39 million) and higher input costs ($8 million), primarily for wood and energy, which more than offset lower unabsorbed costs due to less economic downtime ($7 million) and higher volumes ($1 million).

Previous wording

Our Latin America business segment sales decreased $55 million compared to the same period in 2024, primarily driven by lower volumes ($26 million), a decrease in sale price and mix ($5 million) and unfavorable foreign exchange impacts.

Current wording

Our Latin America business segment sales decreased $19 million compared to the same period in 2024, primarily driven by lower volumes ($14 million) and a decrease in sale price and mix ($7 million), partially offset by favorable foreign exchange impacts.

Previous wording

Operating profit for Latin America was $35 million lower than the same period in 2024, primarily driven by lower sales price and mix ($6 million), higher planned maintenance outages ($13 million), higher operating costs ($9 million) and lower volumes ($7 million).

Current wording

Operating profit for Latin America was $14 million lower than the same period in 2024, primarily driven by lower sales price and mix ($7 million), higher operating costs ($13 million) and lower volumes ($1 million), which were partially offset by lower input costs ($7 million), primarily for purchased pulp, energy and distribution costs.

Previous 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.

Current wording

Our Latin America business segment sales decreased $74 million compared to the same period in 2024, primarily driven by lower volumes ($40 million), a decrease in sale price and mix ($12 million) and unfavorable foreign exchange impacts.

Previous wording

Operating profit for Latin America was $23 million lower than the same period in 2024, primarily driven by lower sales price and mix ($5 million), higher planned maintenance outages ($3 million), higher operating ($3 million) and input costs ($4 million), primarily for wood, chemicals and purchased pulp, and lower volumes ($8 million).

Current wording

Operating profit for Latin America was $37 million lower than the same period in 2024, primarily driven by lower sales price and mix ($12 million), lower volumes ($9 million), higher operating costs ($16 million) and higher planned maintenance outages ($3 million), partially offset by lower input costs ($3 million), primarily for energy and distribution costs.

Previous 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).

Current wording

Our North America business segment sales decreased $82 million compared to the same period in 2024, primarily due to a decrease in volumes ($90 million) which was partially offset by an increase in sales price and mix ($8 million).

Previous 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).

Current wording

Operating profit for North America was $14 million lower than the same period in 2024, primarily due to lower volumes ($23 million) and higher input costs ($11 million), primarily for energy, chemicals and distribution costs, which more than offset higher sales price and mix ($8 million), lower unabsorbed costs due to less economic downtime ($11 million) and lower operating costs ($1 million).

Previous wording

Our North America business segment sales decreased $126 million compared to the same period in 2024, primarily due to a decrease in volumes ($129 million) which was partially offset by an increase in sales price and mix ($3 million).

Current wording

Our North America business segment sales decreased $208 million compared to the same period in 2024, primarily due to a decrease in volumes ($219 million) which was partially offset by an increase in sales price and mix ($12 million).

Previous wording

Operating profit for North America was $31 million lower than the same period in 2024, primarily due to lower volumes ($35 million) and higher operating ($5 million) and input costs ($6 million), primarily for energy, chemicals and wood, which more than offset higher sales price and mix ($4 million), lower planned maintenance outages ($4 million) and lower unabsorbed costs due to less economic downtime ($7 million).

Current wording

Operating profit for North America was $45 million lower than the same period in 2024, primarily due to lower volumes ($58 million) and higher operating ($4 million) and input costs ($17 million), primarily for energy and chemicals, which more than offset higher sales price and mix ($12 million), lower planned maintenance outages ($4 million) and lower unabsorbed costs due to less economic downtime ($18 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 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.

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, legal fees related to the Brazil Tax Dispute and integration costs related to the Nymölla acquisition.

Previous 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.

Current wording

Cash provided by operating activities totaled $174 million for the nine months ended September 30, 2025, compared with cash provided by operating activities of $305 million for the nine months ended September 30, 2024. The decrease in cash provided by operating activities in 2025 relates primarily to lower net income and 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 $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.

Current wording

Cash used for working capital components (accounts and notes receivable, inventories, accounts payable and accrued liabilities, and other) was $66 million for the nine months ended September 30, 2025, compared with cash used for working capital components of $44 million for the nine months ended September 30, 2024. The nine months ended September 30, 2025 working capital components primarily reflect $69 million of cash provided by our accounts and notes receivables, offset by $34 million, $63 million and $38 million of cash used for our inventories, accounts payable and accrued liabilities and other operating activities, respectively. The nine months ended September 30, 2024 working capital components primarily reflect $28 million, $21 million and $11 million of cash used for our accounts and notes receivables, inventories and other operating activities, respectively, offset by $16 million of cash provided by our accounts payable and accrued liabilities balances.

Previous 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.

Current wording

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

Previous 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.

Current wording

Cash used for financing activities for the nine months ended September 30, 2025 primarily reflects the payments of $29 million, $8 million, $9 million, and $16 million on our outstanding principal debt balances for the AR Securitization, Term Loan A, Term Loan F-2, and Revolving Credit Facility, respectively. These amounts are primarily offset by draws on our AR Securitization and Revolving Credit Facility of $41 million and $23 million, respectively. During the nine months ended September 30, 2025 the Company also paid $55 million in dividends and repurchased $82 million of our shares pursuant to our share repurchase program. Cash used for financing activities for the nine months ended September 30, 2024 primarily reflects the payments of $117 million, $44 million, $23 million, and $10 million on our outstanding principal debt balances for Term Loan F, Term Loan A, the AR Securitization, and Revolving Credit Facility, respectively. Additionally, payments of $93 million were made to redeem, at a premium, the full value of our 7.00% Senior Notes and pay $5 million in debt issuance costs in connection with the debt refinancing in the third quarter. These amounts are primarily offset by the issuance of Term Loan F-2, draws on our Revolving Credit Facility, and AR Securitization of $235 million, $10 million, and $6 million, respectively. During the nine months ended September 30, 2024 the Company also paid $43 million in dividends and repurchased $30 million of our shares pursuant to our share repurchase program.

Previous 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.

Current wording

For the nine months ended September 30, 2025, we have invested approximately $168 million, or 6.8% of net sales, in total capital expenditures. Over that period, we spent approximately $124 million, or 5.0% of net sales, in maintenance, regulatory and reforestation capital expenditures, and approximately $44 million, or 1.8% 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 six 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 nine months of 2025.