Sylvamo (SLVM) Q4 2025 earnings summary

Executive summary

• Achieved $448 million in Adjusted EBITDA (13% margin) and $44 million in free cash flow for 2025, with a 12% return on invested capital, despite a challenging environment.

• Returned $155 million in cash to shareholders and reinvested $224 million in manufacturing and forestry assets.

• 2026 is a transition year with major investments and operational changes, especially in North America, including the Eastover mill project.

• Uncoated freesheet sales volume increased 9% quarter-over-quarter in Q4 2025, with ongoing productivity improvements.

• Maintained a strong balance sheet with net debt-to-adjusted EBITDA of 1.6x.

Financial highlights

• 2025 Adjusted EBITDA was $448 million (13% margin), with free cash flow of $44 million and net sales of $3.4 billion.

• Adjusted operating earnings were $3.54 per share for 2025.

• Q4 2025 Adjusted EBITDA was $125 million (14% margin), with $38 million in free cash flow and $1.08 adjusted operating earnings per share.

• Returned $155 million to shareholders and invested $224 million in capital spending in 2025.

• Net debt-to-adjusted EBITDA was 1.6x at year-end 2025.

Outlook and guidance

• 2026 will be a transition year with major investments, especially at the Eastover mill, and capital spending peaking at $245 million.

• Discontinued quarterly and full-year Adjusted EBITDA and free cash flow guidance to focus on long-term value.

• 2026 and 2025 are expected to be low points for free cash flow due to cyclical downturns and major investments.

• Long-term targets include annual free cash flow above $300 million and ROIC above 15% as investments mature.

• Income tax rate guidance for 2026 is 30%-31%.