Q2 2026 Sylvamo Corp Earnings Call Transcript
Key Points
- Adjusted EBITDA more than doubled sequentially to $60 million, with a margin of 7%.
- Price and mix improved by $32 million in Q2, driven by price increases across all regions.
- Expect $75-85 million benefit from better price and mix in the second half of 2026.
- Strategic investments at Eastover mill are on schedule and budget, expected to generate $55 million in annual benefits.
- Lean transformation initiatives are underway, aiming to drive cost savings and operational improvements.
- Free cash flow was negative $23 million in Q2, with most cash flow expected in the second half.
- Planned maintenance outage costs were unfavorable by $24 million due to scheduled outages in all regions.
- North American volumes are expected to decline in the second half due to the loss of Riverdale supply and extended Eastover outage.
- Tariff changes have made importing product from Brazil uneconomical, reducing volume and earnings benefits.
- European industry supply and demand remains challenging, with margins at unacceptable levels and ongoing cost pressures.
Good morning.
Thank you for standing by. Welcome to Sylvamo second quarter 2026 earnings call.
(Operator Instructions)
I would now like to turn the call over to Hans Bjorkman, Vice President of Investor Relations. Sir, the floor is yours.
Thank you, Lucas. Good morning, and thank you for joining our call.
Our speakers this morning are John Sims, Chief Executive Officer, and Don Devlin, Senior Vice President and Chief Financial Officer. Slides 2 and 3 contain important information, including certain legal disclaimers.
For example, during this call, we will make forward-looking statements that are subject to risks and uncertainties. We will also present certain non-U.S. GAAP financial information.
Reconciliations of those figures to U.S. GAAP financial measures are available in the appendix. Our website also contains copies of the earnings release as well as today's presentation.
With that, I would like to turn the call over to
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