- Sylvamo (SLVM, Financial) reports Q1 2025 net income of $27 million, compared to $81 million in the previous quarter.
- Free cash flow for Q1 2025 stands at $(25) million, a decline from $100 million in Q4 2024.
- The company anticipates improved operations and financial performance in the second half of 2025.
Sylvamo Corporation (SLVM), headquartered in Memphis, Tennessee, reported its financial results for the first quarter of 2025, indicating a net income of $27 million, or $0.65 per diluted share, a significant drop from the $81 million, or $1.94 per diluted share, recorded in the fourth quarter of 2024.
Adjusted operating earnings were $28 million for the quarter, compared to $82 million in the preceding quarter. With an adjusted EBITDA of $90 million, equating to an 11% margin, these figures fell short of the $157 million, or 16% margin, from Q4 2024. Cash provided by operating activities also dwindled, falling to $23 million from $164 million in the last quarter of 2024.
The company attributed the decline to a $10 million impact from unfavorable price and mix due to reduced paper prices in Europe and Brazilian export regions, coupled with a $30 million volume decrease due to weaker demand in Latin America and operational challenges in North America. Higher planned maintenance outages and increased input and transportation costs added to the challenges faced in the first quarter.
Looking ahead to the second quarter, Sylvamo projects an adjusted EBITDA between $75 million to $95 million. Improvements in price and mix are expected to add $5 million to $10 million, with stable volumes and a reduction in operational costs anticipated to contribute positively to the quarter’s outcomes. Nonetheless, planned maintenance outage expenses are forecasted to rise by $36 million.
The company underscored its robust balance sheet and noted that, over 90% of its raw materials are locally sourced, mitigating exposure to global market fluctuations. With a leverage ratio of 1.1x and no significant maturities until 2027, Sylvamo remains well-prepared to navigate the current economic landscape.
In leadership developments, CEO Jean-Michel Ribiéras announced his retirement at the end of 2025, with John Sims set to succeed as CEO on January 1, 2026. Sims, who has been with the company since its inception as Senior Vice President and Chief Financial Officer, will serve as Chief Operating Officer starting May 1, 2025.
Sylvamo remains committed to its strategy of prudent capital allocation, aiming to sustain a strong financial foundation, invest in business operations, and return capital to shareholders.
