Sylvamo (US:SLVM)2025-11-07 12:21Financial Performance - Sylvamo reported a 7% sales volume growth quarter-over-quarter in Q3 2025, with net sales reaching $846 million compared to $794 million in Q2 2025[6][21]. - Year-to-date net income for 2025 was $57 million, or $1.41 per diluted share, with adjusted EBITDA of $151 million, reflecting an 18% margin[6][21]. - Net sales for the three months ended September 30, 2025, were $846 million, a decrease of 12.3% compared to $965 million for the same period in 2024[35]. - Net income for the three months ended September 30, 2025, was $57 million, down 40% from $95 million in the same period last year[35]. - Adjusted EBITDA for the three months ended September 30, 2025, was $151 million, representing an adjusted EBITDA margin of 18%[52]. - Operating profit for North America segment was $84 million for the three months ended September 30, 2025, compared to $98 million in the same period of 2024[47]. - Latin America segment reported net sales of $228 million for the three months ended September 30, 2025, down from $247 million in the same period last year[46]. - Adjusted EBITDA for North America was $101 million for the three months ended September 30, 2025, down from $113 million in the same period of 2024, reflecting a decrease of 10.6%[53]. - Total Business Segment Net Sales decreased to $862 million for the three months ended September 30, 2025, compared to $973 million in the same period of 2024, a decline of 11.4%[53]. - Adjusted EBITDA Margin for Europe was negative 6% for the three months ended September 30, 2025, compared to a positive 6% in the same period of 2024[53]. - Net income for the nine months ended September 30, 2025, was $99 million, a decrease of 55% from $221 million in the same period of 2024[57]. Shareholder Returns - The company returned a total of $60 million to shareholders in Q3 2025, consisting of $42 million in share repurchases and $18 million in dividends[3][6]. - The company has authorized a new $150 million share repurchase program, emphasizing its commitment to disciplined capital allocation[8]. Cost and Expense Management - The company is focused on strategic initiatives to improve margins and reduce costs, including optimizing product and customer mix in response to changing market conditions[10][12]. - Total costs and expenses for the three months ended September 30, 2025, were $758 million, compared to $833 million for the same period in 2024[35]. - The company incurred a net special items expense of $1 million for the three months ended September 30, 2025[44]. Tax and Income Provisions - The effective tax rate for Q3 2025 was reported at 35%, an increase from 25% in Q2 2025, attributed to the mix of earnings across regions[26]. - Income tax provision for the three months ended September 30, 2025, was $31 million, compared to $37 million for the same period in 2024[52]. Cash Flow and Assets - Cash provided by operating activities for the nine months ended September 30, 2025, was $174 million, down from $305 million in the same period of 2024, a decrease of 43%[57]. - Free Cash Flow for the nine months ended September 30, 2025, was $6 million, significantly lower than $148 million in the same period of 2024[59]. - Cash and temporary investments decreased to $94 million as of September 30, 2025, from $205 million at the beginning of the period, a decline of 54%[56]. - Total assets increased to $2,703 million as of September 30, 2025, compared to $2,604 million as of December 31, 2024, an increase of 3.8%[55]. - The company reported a total equity of $977 million as of September 30, 2025, up from $847 million as of December 31, 2024, an increase of 15.4%[55]. Market Outlook - The fourth quarter outlook projects a decrease in price and mix by $20 million to $25 million, while volume is expected to improve by $15 million to $20 million[6]. - In Europe, uncoated freesheet demand decreased by 5% year-over-year through September, while supply fell by 7%, indicating challenging industry conditions[13]. Future Projections - The company plans to achieve an Adjusted EBITDA of $115 to $130 million for the fourth quarter of 2025[62].