Q4 2024 Sylvamo Corp Earnings Call Transcript
Key Points
- Sylvamo Corp (SLVM) achieved a 23% return on invested capital in 2024, demonstrating strong execution of their strategy.
- The company improved its financial position by repaying $154 million in debt, achieving a net debt to adjusted EBITDA ratio of 0.9 times.
- Sylvamo Corp (SLVM) generated $248 million in free cash flow and returned $130 million in cash to shareholders.
- The company exceeded its Project Horizon cost reduction goals by $34 million, achieving significant savings across manufacturing and supply chain operations.
- Sylvamo Corp (SLVM) is investing in high-return projects, such as those at the Luis Antonio mill, which are yielding internal rates of return of 25% and 40%.
- Pricing mix was unfavorable by $18 million in the fourth quarter, driven by lower pulp and paper pricing in Europe and a worse mix in North America.
- Input and transportation costs increased by $9 million due to higher energy prices and transportation costs.
- The company expects first-quarter EBITDA to be lower, between $85 million to $105 million, due to unfavorable pricing and volume projections.
- Sylvamo Corp (SLVM) anticipates increased maintenance costs in the first half of 2025, with 80% of planned maintenance outages occurring during this period.
- The company faces challenges in Europe with a cost curve that has increased due to higher energy and wood costs, impacting pricing and market share.
Good morning.
Thank you for standing by. Welcome to Sylvamo Fourth quarter 2024 Earnings call.
(Operator Instructions)
I would now like to turn the call over to Hans Bjorkman, Vice President, Investor Relations. Sir, the floor is yours.
Thanks, [Audra]. Good morning and thank you for joining our Fourth quarter and Full year 2024 Earnings call. Our speakers this morning are Jean-Michel Ribieras, Chairman and Chief Executive Officer, and John Sims, 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-US GAAP financial information.
Reconciliations of those figures to US GAAP financial measures are available in the appendix.
Our website also contains copies of the Earnings release as
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