Paper firm Sylvamo beats Q3 sales expectations on higher volumes

Sylvamo

07/11/2025 12:07

Overview

Sylvamo Q3 sales beat analyst expectations, reaching $846 mln

Adjusted EBITDA for Q3 slightly missed analyst expectations

Company returned $60 mln to shareholders via repurchases and dividends

Outlook

Company expects Q4 adjusted EBITDA between $115 mln and $130 mln

Price and mix expected to decrease by $20 mln to $25 mln in Q4

Volume projected to improve by $15 mln to $20 mln in Q4

Result Drivers

VOLUME GROWTH - Sylvamo reported a 7% increase in sales volume quarter-over-quarter, driven by higher volumes in Latin America and North America

COST MANAGEMENT - Decreased planned maintenance outage expenses by $66 mln contributed to improved operational performance

REGIONAL CHALLENGES - Lower prices and mix in Europe impacted results, but were offset by operational efficiencies and strategic initiatives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$846 mln
$840.30 mln (3 Analysts)
Q3 EPS
$1.41
Q3 Net Income
$57 mln
Q3 Adjusted EBITDA
Slight Miss*
$151 mln
$151.10 mln (3 Analysts)
Q3 Free Cash Flow
$33 mln
Q3 Segment Operating Profit
$98 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the paper products peer group is "buy."

Wall Street's median 12-month price target for Sylvamo Corp is $49.00, about 12.1% above its November 6 closing price of $43.08

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw35TYc5a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)