Sylvamo (SLVM) Q3 2026 earnings summary

Executive summary

• Q3 continuing-operations sales were $645M vs. $662M a year earlier; net income was $85M, or $2.13 per diluted share.

• Adjusted EBITDA was $128M, a 20% margin, vs. $158M and 24% in Q3’25; Q2’26 was $66M. Adjusted operating EPS was $1.33.

• Reported net loss was $199M, including a $284M discontinued-operations loss, primarily from a noncash Europe impairment.

• Implemented price increases and improved mill performance supported Q3 results; higher input and transportation costs remained a headwind.

Financial highlights

• Q3 free cash flow was $16M vs. $64M in Q3’25 and $(16)M in Q2’26; continuing-operations cash from operations was $70M.

• Nine-month sales were $1.827B vs. $1.906B; adjusted EBITDA was $253M vs. $361M, with margins of 14% vs. 19%.

• Q3 EBITDA bridge QoQ: price and mix +$25M, operations and other costs +$6M, lower maintenance outage costs +$38M, and input and transportation costs -$6M.

• September 30 cash was $93M; gross debt was $964M, net debt $871M, and gross and net debt to adjusted EBITDA were 2.5x and 2.2x.

Outlook and guidance

• 2026 capital spending outlook is ~$230M, including ~$105M for high-return projects; maintenance and regulatory spending is ~$85M and Brazil reforestation ~$40M.

• Eastover paper-machine optimization is on schedule and budget, adding 60,000 annual tons of uncoated freesheet capacity.

• Sumter’s new sheeter is expected to start up in early Q3’27, adding 200,000 tons of converting capacity; Eastover and sheeter investments are expected to earn IRR above 30%.

• North America volume is expected to be relatively flat in 2027 vs. 2026; industry volume is expected to decline ~2% in 2026.

• Input and transportation costs are expected to be another $6M unfavorable in Q4 vs. Q3, with the higher cost base carrying into 2027.