Sylvamo Corp

Previous wording

Second quarter 2026 net loss was $11 million ($0.28 per diluted share) compared with net income of $15 million ($0.37 per diluted share) for the second quarter of 2025. Net sales were $806 million in the current quarter compared with $794 million in the prior year. Cash provided by operating activities was $38 million compared to $64 million in the second quarter of last year. Adjusted EBITDA was $60 million compared to $82 million in the second quarter of 2025. Free cash flow was $(23) million compared to $(2) million in the second quarter of 2025.

Current wording

Third quarter 2026 net income from continuing operations was $85 million ($2.13 per diluted share) compared with $71 million ($1.76 per diluted share) for the third quarter of 2025. Net sales from continuing operations were $645 million in the current quarter compared with $662 million in the prior year. Cash provided by operating activities from continuing operations was $70 million compared to $114 million in the third quarter of last year. Adjusted EBITDA was $128 million compared to $158 million in the third quarter of 2025. Free cash flow was $16 million compared to $64 million in the third quarter of 2025.

Previous wording

Comparing our performance in the second quarter of 2026 to the prior year, volume decreased, primarily due to lower North America volume with the termination of the Riverdale mill supply agreement and as we build inventory in response to the extended Eastover mill outage later in the year. Price and mix decreased in Europe but were partially offset by improved price and mix in North America. Operations and costs and input costs were unfavorable. Planned maintenance outage costs were lower as the prior year outage in our Saillat mill did not repeat and the current year outage in our Nymölla mill will take place during the fourth quarter. We continued to return cash to shareowners through an $18 million dividend payment during the quarter.

Current wording

Comparing our performance in the third quarter of 2026 to the prior year, volume decreased, primarily due to lower North America volume with the termination of the Riverdale mill supply agreement. Price and mix were favorable in both North America and Latin America. Operations and other costs as well as input and transportation costs were unfavorable. We continued to return cash to shareowners through an $18 million dividend payment during the quarter.

Previous wording

Net sales for the three months ended June 30, 2026 increased by $12 million compared to the same period in 2025. The increase was primarily due to favorable foreign exchange impact ($17 million) partially offset by lower sales price and mix ($7 million). Additional information on sales by business segment, excluding inter-segment eliminations, is provided in the section titled Business Segment Results.

Current wording

Net sales for the three months ended September 30, 2026 decreased by $17 million compared to the same period in 2025. The decrease was largely due to lower sales volume ($49 million), primarily driven by the termination of the Riverdale supply agreement, which was partially offset by a favorable foreign exchange impact ($8 million) and higher sales price and mix ($24 million). Additional information on sales by business segment, excluding inter-segment eliminations, is provided in the section titled Business Segment Results.

Previous wording

Selling and administrative expenses for the three months ended June 30, 2026 decreased by $3 million compared to the same period in 2025. The decrease was primarily due to lower incentive compensation expense partially offset by the net impact of certain special items, including professional and legal fees ($4 million).

Current wording

Selling and administrative expenses for the three months ended September 30, 2026 increased by $21 million compared to the same period in 2025. The increase was primarily due to higher incentive compensation expense ($11 million) and the net impact of certain special items, including professional and legal fees primarily related to our plan to sell the Europe business ($3 million).

Previous wording

Depreciation, amortization and cost of timber harvested for the three months ended June 30, 2026 decreased by $2 million compared to the same period in 2025 primarily due to lower timber depletion expense.

Current wording

Depreciation, amortization and cost of timber harvested for the three months ended September 30, 2026 decreased by $5 million compared to the same period in 2025 primarily due to lower timber depletion expense.

Previous wording

Taxes other than income taxes of $8 million for the three months ended June 30, 2026 was relatively consistent compared to $7 million in the same period in 2025.

Current wording

Taxes other than income taxes of $5 million for the three months ended September 30, 2026 was consistent compared to $5 million in the same period in 2025.

Previous wording

Interest expense, net for the six months ended June 30, 2026 increased by $1 million compared to the same period in 2025. This is primarily due to debt extinguishment costs ($2 million) and higher interest expense which were offset by higher interest income and the capitalization of interest costs for construction projects.

Current wording

Interest expense, net for the three months ended September 30, 2026 increased by $4 million compared to the same period in 2025. This is primarily due to higher interest expense, driven by higher interest rates and weighted average borrowings, which was partially offset by higher capitalization of interest costs for construction projects in 2026.

Previous wording

Income tax provision for the three months ended June 30, 2026 increased by $7 million compared to the same period in 2025. This is primarily due to additional tax expense related to a change in valuation allowances for certain foreign deferred tax assets ($12 million) partially offset by lower tax expense resulting from lower pre-tax income.

Current wording

Income tax provision for the three months ended September 30, 2026 decreased by $48 million compared to the same period in 2025. This is primarily due to a tax benefit related to our investment in our European subsidiaries ($36 million) and lower tax expense resulting from lower pre-tax income.

Previous wording

Net sales for the six months ended June 30, 2026 decreased by $54 million compared to the same period in 2025. The change was primarily attributable to lower sales volume ($63 million) and sales price and mix ($37 million) partially offset by favorable foreign exchange impacts ($46 million). Additional information on sales by business segment, excluding inter-segment eliminations, is provided in the section titled Business Segment Results.

Current wording

Net sales for the nine months ended September 30, 2026 decreased by $79 million compared to the same period in 2025. The change was largely attributable to lower sales volume ($125 million), primarily driven by the termination of the Riverdale supply agreement, which was partially offset by higher sales price and mix ($17 million) and favorable foreign exchange impacts ($29 million). Additional information on sales by business segment, excluding inter-segment eliminations, is provided in the section titled Business Segment Results.

Previous wording

Cost of products sold for the three months ended June 30, 2026 increased by $34 million compared to the same period in 2025. The increase was primarily driven by higher input costs, mainly related to distribution, fiber and energy costs ($23 million), unfavorable foreign exchange, operating and cost impacts ($29 million) and volume impacts ($8 million). These increases were partially offset due to lower planned maintenance outage costs ($25 million) and a favorable impact from foreign exchange on an intercompany note receivable from our Brazilian subsidiary ($1 million).

Current wording

Cost of products sold for the nine months ended September 30, 2026 decreased by $14 million compared to the same period in 2025. The change was primarily driven by volume impacts ($87 million) and a favorable impact from foreign exchange on an intercompany note receivable from our Brazilian subsidiary ($19 million). These decreases were offset by higher input costs ($56 million), mainly related to distribution, energy, chemicals and purchased fiber costs, and operating costs ($37 million).

Previous wording

Selling and administrative expenses for the six months ended June 30, 2026 decreased by $3 million compared to the same period in 2025. The change was primarily the result of lower incentive compensation expense partially offset by the net impact of certain special items, including professional and legal fees ($4 million).

Current wording

Selling and administrative expenses for the nine months ended September 30, 2026 increased by $22 million compared to the same period in 2025. The increase was primarily due to higher incentive compensation expense ($9 million), the result of a provision for credit losses related to outstanding customer receivables ($3 million) and the net impact of certain special items, including professional and legal fees primarily related to our plan to sell the Europe business ($7 million).

Previous wording

Depreciation, amortization and cost of timber harvested for the six months ended June 30, 2026 decreased by $1 million compared to the same period in 2025 primarily due to lower timber depletion.

Current wording

Depreciation, amortization and cost of timber harvested for the nine months ended September 30, 2026 decreased by $5 million compared to the same period in 2025 primarily due to lower timber depletion expense.

Previous wording

Interest expense, net for the three months ended June 30, 2026 increased by $1 million compared to the same period in 2025. This is primarily due to debt extinguishment costs ($2 million) and higher interest expense which were offset by higher interest income and the capitalization of interest costs for construction projects.

Current wording

Interest expense, net for the nine months ended September 30, 2026 increased by $6 million compared to the same period in 2025. This is primarily due to debt extinguishment costs ($2 million) and higher interest expense ($9 million), driven by higher interest rates and weighted average borrowings, which were partially offset by higher interest income and the capitalization of interest costs for construction projects.

Previous wording

Income tax provision for the six months ended June 30, 2026 decreased by $2 million compared to the same period in 2025. The change is primarily attributable to lower tax expense resulting from lower pre-tax income partially offset by additional tax expense related to a change in valuation allowances for certain foreign deferred tax assets ($12 million).

Current wording

Income tax provision for the nine months ended September 30, 2026 decreased by $46 million compared to the same period in 2025. The change is primarily attributable to a tax benefit related to our investment in our European subsidiaries ($36 million) and lower tax expense resulting from lower pre-tax income, partially offset by additional tax expense related to a change in valuation allowances for certain foreign deferred tax assets ($15 million).

Previous wording

Reconciliation of Net Income (Loss) to Business Segment Operating Profit

Current wording

Reconciliation of Net Income from Continuing Operations to Business Segment Operating Profit

Previous wording

Management provides business segment operating profit, a non-GAAP financial measure, to supplement our GAAP financial information, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management believes that business segment operating profit provides investors and analysts useful insights into our operating performance. Business segment operating profit is reconciled to net income (loss), the most directly comparable GAAP measure.

Current wording

Management provides business segment operating profit, a non-GAAP financial measure, to supplement our GAAP financial information, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management believes that business segment operating profit provides investors and analysts useful insights into our operating performance. Business segment operating profit is reconciled to net income from continuing operations, the most directly comparable GAAP measure.

Previous wording

(a)Business Segment Operating Profit (Loss) (non-GAAP) is net income (loss) (GAAP) plus the sum of income taxes, net interest expense, the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items.

Current wording

(a)Business Segment Operating Profit (non-GAAP) is net income from continuing operations (GAAP) plus the sum of income taxes, net interest expense, the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items.

Previous wording

Our Latin America business segment sales increased $12 million compared to the same period in 2025, primarily due to favorable foreign exchange ($12 million).

Current wording

Our Latin America business segment sales increased $30 million compared to the same period in 2025, primarily due to higher volumes ($19 million), higher sales price and mix ($3 million) and favorable foreign exchange ($8 million).

Previous wording

Operating profit for North America was $16 million lower than the same period in 2025, primarily due to higher operating ($8 million) and input costs ($10 million), primarily due to higher distribution costs, and lower volumes ($6 million) which were partially offset by higher sales price and mix ($7 million) and lower planned maintenance outages ($1 million).

Current wording

Operating profit for Latin America was $11 million lower than the same period in 2025, primarily due to higher operating ($8 million) and input costs ($10 million), primarily for purchased fiber and distribution costs, which were partially offset by higher sales price and mix ($3 million) and higher volumes ($4 million).

Previous wording

Our Latin America business segment sales were consistent with the same period in 2025, as lower sales price and mix ($8 million) and lower volumes ($13 million) were offset by favorable foreign exchange ($21 million).

Current wording

Our Latin America business segment sales increased $30 million compared to the same period in 2025, primarily due to higher volumes ($6 million) and favorable foreign exchange ($29 million) which were partially offset by lower sales price and mix ($5 million).

Previous wording

Operating profit for Latin America was $40 million lower than the same period in 2025, primarily due to higher operating ($16 million) and input costs ($9 million), primarily for purchased fiber, lower sales price and mix ($8 million), lower volume ($4 million) and slightly higher planned maintenance outages ($3 million).

Current wording

Operating profit for Latin America was $51 million lower than the same period in 2025, primarily due to higher operating ($24 million) and input costs ($19 million), primarily for purchased fiber and distribution costs, lower sales price and mix ($5 million) and higher planned maintenance outages ($3 million).

Previous wording

Our North America business segment sales decreased $56 million compared to the same period in 2025, primarily due to lower volumes ($57 million) partially offset by higher sales price and mix ($1 million).

Current wording

Our North America business segment sales decreased $36 million compared to the same period in 2025, primarily due to lower volumes ($57 million), primarily driven by the termination of the Riverdale supply agreement, which were partially offset by higher sales price and mix ($21 million).

Previous wording

Our North America business segment sales decreased $8 million compared to the same period in 2025, primarily due to lower volumes ($15 million) which were partially offset by slightly higher sales price and mix ($7 million).

Current wording

Our North America business segment sales decreased $92 million compared to the same period in 2025, primarily due to lower volumes ($114 million), primarily driven by the termination of the Riverdale supply agreement, partially offset by higher sales price and mix ($22 million).

Previous wording

Operating profit for North America was $33 million lower than the same period in 2025, primarily due to higher input costs ($24 million), primarily due to higher energy, chemicals and distribution costs, lower volumes ($18 million) which were partially offset by lower operating costs ($4 million), lower unabsorbed costs due to economic downtime ($3 million), lower planned maintenance outages ($1 million) and higher sales price and mix ($1 million).

Current wording

Operating profit for North America was $46 million lower than the same period in 2025, primarily due to higher input costs ($37 million), primarily due to higher energy, chemicals and distribution costs, and lower volumes ($38 million) which were partially offset by higher sales price and mix ($22 million), lower operating costs ($3 million), lower unabsorbed costs due to economic downtime ($3 million) and lower planned maintenance outages ($1 million).

Previous wording

Reconciliation of Net Income (Loss) to Adjusted EBITDA

Current wording

Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA

Previous wording

Management provides adjusted EBITDA and adjusted EBITDA margin, non-GAAP financial measures, to supplement our GAAP financial information, and they should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management uses these measures in managing the operating performance of our business and believes that adjusted EBITDA along with adjusted EBITDA margin provide investors and analysts meaningful insights into our operating performance and is a relevant metric for the third-party debt. Adjusted EBITDA is reconciled to net income (loss), the most directly comparable GAAP measure. Adjusted EBITDA margin (adjusted EBITDA divided by net sales) is reconciled to net income (loss) margin (net income (loss) divided by net sales), the most directly comparable GAAP measure.

Current wording

Management provides adjusted EBITDA and adjusted EBITDA margin, non-GAAP financial measures, to supplement our GAAP financial information, and they should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management uses these measures in managing the operating performance of our business and believes that adjusted EBITDA along with adjusted EBITDA margin provide investors and analysts meaningful insights into our operating performance and is a relevant metric for the third-party debt. Adjusted EBITDA is reconciled to net income (loss) from continuing operations, the most directly comparable GAAP measure. Adjusted EBITDA margin (adjusted EBITDA divided by net sales) is reconciled to net income (loss) from continuing operations margin (net income (loss) from continuing operations divided by net sales), the most directly comparable GAAP measure.

Previous wording

(a) Adjusted EBITDA (non-GAAP) is net income (loss) (GAAP) plus the sum of income taxes, net interest expense, depreciation, amortization and cost of timber harvested, stock-based compensation, the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items.

Current wording

(a) Adjusted EBITDA (non-GAAP) is net income (loss) from continuing operations (GAAP) plus the sum of income taxes, net interest expense, depreciation, amortization and cost of timber harvested, stock-based compensation, the impact of foreign exchange on an intercompany note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items.

Previous wording

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow

Current wording

Reconciliation of Cash Provided by Operating Activities from Continuing Operations to Free Cash Flow

Previous wording

Management provides free cash flow, a non-GAAP financial measure, to supplement our GAAP financial information, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management 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. By adjusting for certain items that are not indicative of the Company’s ongoing performance, free cash flow also enables investors to perform meaningful comparisons between past and present periods. Free cash flow is reconciled to cash provided by operating activities, the most directly comparable GAAP measure.

Current wording

Management provides free cash flow, a non-GAAP financial measure, to supplement our GAAP financial information, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management 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. By adjusting for certain items that are not indicative of the Company’s ongoing performance, free cash flow also enables investors to perform meaningful comparisons between past and present periods. Free cash flow is reconciled to cash provided by operating activities from continuing operations, the most directly comparable GAAP measure.

Previous wording

Cash provided by operating activities totaled $28 million for the six months ended June 30, 2026, compared with cash provided by operating activities of $87 million for the six months ended June 30, 2025. The decrease in cash provided by operating activities in 2026 relates primarily to lower net income offset by timing of cash flows related to working capital.

Current wording

Cash provided by operating activities from continuing operations totaled $141 million for the nine months ended September 30, 2026, compared with cash provided by operating activities from continuing operations of $240 million for the nine months ended September 30, 2025. The decrease in cash provided by operating activities from continuing operations in 2026 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 $28 million for the six months ended June 30, 2026, compared with cash used for working capital components of $48 million for the six months ended June 30, 2025. The six months ended June 30, 2026 working capital components primarily reflect $65 million of cash provided by our accounts and notes receivable, offset by $76 million, $2 million and $15 million of cash used for our inventories, accounts payable and accrued liabilities, and other operating activities, respectively. The six months ended June 30, 2025 working capital components primarily reflect $77 million of cash provided by our accounts and notes receivable, offset by $79 million and $46 million of cash used for our 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 $50 million for the nine months ended September 30, 2026, compared with cash used for working capital components of $40 million for the nine months ended September 30, 2025. The nine months ended September 30, 2026 working capital components primarily reflect $54 million of cash provided by our accounts and notes receivable, offset by $92 million, $1 million and $11 million of cash used for our inventories, accounts payable and accrued liabilities and other operating activities, respectively. The nine months ended September 30, 2025 working capital components primarily reflect $76 million of cash provided by our accounts and notes receivable, offset by $19 million, $51 million and $46 million of cash used for our inventories, accounts payable and accrued liabilities, and other operating activities, respectively.

Previous wording

The total cash used for investing activities for the six months ended June 30, 2026 decreased from the six months ended June 30, 2025, due to decreased capital spending in the current year.

Current wording

The total cash used for investing activities from continuing operations for the nine months ended September 30, 2026 increased from the nine months ended September 30, 2025, due to increased capital spending in the current year.

Previous wording

Cash used for financing activities for the six months ended June 30, 2026 primarily reflects the payments of $35 million, $6 million, $6 million, and $165 million on our outstanding principal debt balances for the AR Securitization, Term Loan F-2, Term Loan A, and Revolving Credit Facility, respectively. These amounts are primarily offset by draws on our AR Securitization and Revolving Credit Facility of $25 million and $178 million, respectively, as well as a receipt of $11 million from other financing arrangements. Additionally, a payment of $257 million was made to settle the Term Loan F, which was funded by the issuance of Term Loan F-3 for $357 million. During the six months ended June 30, 2026 the Company also paid $36 million in dividends and repurchased no shares pursuant to our share repurchase program. 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.

Current wording

Cash provided by financing activities from continuing operations for the nine months ended September 30, 2026 primarily reflects the payments of $37 million, $9 million, $8 million, $213 million, and $4 million on our outstanding principal debt balances for the AR Securitization, Term Loan F-2, Term Loan A, Revolving Credit Facility, and Term Loan F-3, respectively. These amounts are primarily offset by draws on our AR Securitization and Revolving Credit Facility of $48 million and $246 million, respectively, as well as a receipt of $11 million from other financing arrangements. Additionally, a payment of $257 million was made to settle the Term Loan F, which was funded by the issuance of Term Loan F-3 for $357 million. During the nine months ended September 30, 2026 the Company also paid $54 million in dividends and repurchased no shares pursuant to our share repurchase program. Cash used for financing activities from continuing operations 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.

Previous wording

For the six months ended June 30, 2026, we have invested approximately $110 million, or 7.0% of net sales, in total capital expenditures. Over that period, we spent approximately $73 million, or 4.7% of net sales, in maintenance, regulatory and reforestation capital expenditures, and approximately $37 million, or 2.4% of net sales, in high-return capital projects. Our annual maintenance, regulatory and reforestation capital expenditures are expected to be in the range ofapproximately $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 $95 million on high-return projects in 2026.

Current wording

For the nine months ended September 30, 2026, we have invested approximately $156 million, or 8.5% of net sales, in total capital expenditures. Over that period, we spent approximately $99 million, or 5.4% of net sales, in maintenance, regulatory and reforestation capital expenditures, and approximately $57 million, or 3.1% 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 $140 to $165 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 $105 million on high-return projects in 2026.

Previous wording

The Company has included in the 2025 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 2026.

Current wording

The Company has included in the 2025 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 2026.