TipRanks
Sylvamo Corp (MX:SLVM)
:SLVM
Mexico Market
EarningsQ2 2026 Earnings Report

Sylvamo Corp (SLVM) Q2 2026 Earnings Report

0 Followers

MX:SLVM Q2 2026 EPS Results

Actual EPS$0.51
Consensus EPS$0.31
Beat/MissBeat by +$0.21
One Year Ago EPS$6.34

MX:SLVM Q2 2026 Revenue Results

Actual Revenue$13.82B
Expected Revenue$13.91B
Beat/MissMissed by -$90.09M
YoY Revenue Growth+1.51%

Earnings Announcement Details

QuarterQ2 2026
Date08/07/2026
TimeBefore Open
Conference CallFriday, August 7, 2026
MX:SLVM Upcoming Earnings
Sylvamo Corp's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:SLVM Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 07, 2026|
% Change Since:
|
Earnings Call Sentiment|Neutral
The call conveyed a mixed but constructive tone: the company reported meaningful sequential improvement (adjusted EBITDA more than doubled to $60M, improved free cash flow trends, and successful implementation of price increases) and provided clear, quantified expectations for second-half price/mix benefits ($75M–$85M) and tangible progress on high-return Eastover investments that should drive multi-year benefits. However, material near-term challenges remain — including negative free cash flow in the quarter, an extended outage at Eastover, lost Riverdale volumes, persistent European market weakness (with a strategic review underway), tariff-related sourcing disruptions, and some input cost pressures — which create uncertainty before the second-half recovery. Given the balance of notable operational and financial improvements against significant headwinds and execution risk, the overall sentiment is Neutral.
Company Guidance
Management said 2026 is a transition year and expects materially stronger H2 results, calling for a $75–$85 million benefit from better price and mix versus H1 (about 70% of that from price) with most realization through Q3 and at run‑rate by end‑Q4; adjusted EBITDA was $60 million in Q2 (7% margin) versus $29 million in Q1, adjusted operating earnings were $0.03 per share, free cash flow was -$23 million (a $36 million sequential improvement) with the majority of FCF expected in H2 and working capital (including a ~50,000‑ton North America inventory build) to unwind by year‑end; they expect operations and other costs to improve in H2 (except the Nymölla debarking drum) but planed outages will be unfavorable ~ $5 million in H2 and Eastover’s extended outage will reduce North American production (compounded by the ~90k‑ton Riverdale supply loss, partially offset over time by a 60,000‑ton annual Eastover speed‑up for a net ~40k ton gap); strategic Eastover projects add ~60k tons capacity, ~$50 million of annual benefits (with ~$30–$40 million in 2027), the sheeter/PM speed‑up plus warehouse expansion contribute ~ $55 million/year and >$5 million/year savings respectively, and longer term Sylvamo targets >$300 million FCF annually and >15% ROIC while driving OME +400 bps, a 3–5x uplift to 2022–25 annual cash cost improvement, employee NPS >50 (currently 46), customer NPS +20 points and >90% perfect order.
Sequential Adjusted EBITDA Improvement
Adjusted EBITDA more than doubled sequentially from $29 million in Q1 to $60 million in Q2, representing a margin of 7%.
Improved Adjusted Operating Earnings and Free Cash Flow Trend
Adjusted operating earnings were $0.03 per share. Free cash flow was negative $23 million but improved by $36 million sequentially, with management expecting the majority of free cash flow to be generated in the second half of the year.
Price and Mix Gains Driving Earnings
Price and mix were favorable by $32 million in Q2 versus Q1 thanks to implemented uncoated freesheet price increases across all regions; management expects $75 million to $85 million incremental benefit from better price and mix in the second half vs the first half (about 70% of that benefit attributed to price).
Operational Improvements and Cost Savings
Operations and costs were favorable by $22 million in Q2 driven by green energy credits in Europe and lower overhead. Management has launched a lean transformation and cited targets such as improving overall machine efficiency by 400 basis points and materially accelerating cash cost improvement.
Eastover Strategic Investments Progress
Eastover investments progressing: woodyard hardwood line performing well; softwood woodyard line startup on schedule for Q1 next year; paper machine speed-up on schedule to be completed in Q4 (adds ~60,000 tons of annual uncoated freesheet capacity); new sheeter passed testing and arrived in the U.S. Management expects ~$50 million of annual benefits from the speed-up and sheeter (with ~$30M-$40M estimated in 2027) and expects the suite of projects to generate roughly $55 million of annual benefit.
Supply-Demand Dynamics Supporting North America
Industry supply/demand in North America improved after International Paper's Riverdale paper machine conversion removed about 7% of annual uncoated freesheet supply, supporting pricing and margin recovery (North America margin improved to 15% in Q2 from 10% in Q1).
Geographic Volume Tailwind in Latin America
Volume increased by $3 million in Q2 driven by seasonally stronger demand in Latin America, and management expects stronger seasonality in LATAM to support second-half volume and mix.
Long-term Cash Flow and ROIC Potential
Management reiterated long-term potential to generate over $300 million of free cash flow annually and greater than 15% return on invested capital as industry conditions normalize and strategic investments ramp.

MX:SLVM Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 05, 2026
2026 (Q3)
21.91 / -
24.688
2026 (Q2)
0.31 / 0.51
6.343-91.89% (-5.83)
2026 (Q1)
-5.66 / -9.09
11.658-177.94% (-20.74)
2025 (Q4)
18.17 / 18.52
33.603-44.90% (-15.09)
2025 (Q3)
25.20 / 24.69
41.832-40.98% (-17.14)
2025 (Q2)
6.98 / 6.34
33.946-81.31% (-27.60)
2025 (Q1)
11.78 / 11.66
18.345-36.45% (-6.69)
2024 (Q4)
30.52 / 33.60
19.88868.97% (+13.72)
2024 (Q3)
37.43 / 41.83
29.14643.53% (+12.69)
2024 (Q2)
27.09 / 33.95
19.54573.68% (+14.40)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed