Paper producer Sylvamo's Q1 adjusted EBITDA misses expectations

Sylvamo

08/05/2026 12:08

Overview

Global paper producer's Q1 net sales rose, beating analyst expectations

Adjusted EBITDA for Q1 missed analyst expectations

Company posted net loss and negative free cash flow amid higher costs and inventory build

Outlook

Sylvamo expects most 2026 free cash flow to be generated in the second half of the yr

Company anticipates ongoing cost pressures from energy, chemicals and freight in coming quarters

Sylvamo projects potential annual free cash flow of over $300 mln as investments materialize

Result Drivers

CAPACITY CONSTRAINTS - Lower sales volumes and incremental costs driven by end of Riverdale supply agreement and upcoming Eastover mill outage, per CEO John Sims

HIGHER OPERATING COSTS - Increased energy, chemical, diesel and ocean freight costs, as well as higher operating and input costs, weighed on results

PRICE INCREASES - Company began implementing uncoated freesheet paper price increases, with some benefit realized in North America and Latin America

Company press release: ID:nBw1tWWr2a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$755 mln
$741.10 mln (4 Analysts)
Q1 Net Income
-$3 mln
Q1 Adjusted EBITDA
Miss
$29 mln
$37.35 mln (4 Analysts)
Q1 Free Cash Flow
-$59 mln
Q1 Segment Operating Profit
-$15 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "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 $56.50, about 29.3% above its May 7 closing price of $43.70

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

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