Sylvamo (US:SLVM)2025-11-07 17:38Financial Performance - Third quarter 2025 net income was $57 million ($1.41 per diluted share), down from $95 million ($2.27 per diluted share) in Q3 2024, with net sales decreasing to $846 million from $965 million[90]. - Adjusted EBITDA for Q3 2025 was $151 million, representing an adjusted EBITDA margin of 18%, compared to $193 million and a margin of 20% in Q3 2024[90]. - Free cash flow for Q3 2025 was $33 million, significantly lower than $119 million in Q3 2024, with cash from operations at $87 million compared to $163 million last year[90][116]. - Total net sales for the nine months ended September 30, 2025, were $2,461 million, down from $2,803 million in the same period of 2024[115]. - Operating cash flow for the nine months ended September 30, 2025, was $174 million, down from $305 million for the same period in 2024, primarily due to lower net income and working capital cash flow timing[120]. Segment Performance - North America segment sales decreased by $82 million in Q3 2025, primarily due to a $90 million drop in volumes, partially offset by an $8 million increase in sales price and mix[110]. - Latin America segment sales fell by $19 million in Q3 2025, driven by lower volumes ($14 million) and a decrease in sales price and mix ($7 million)[105]. - Europe segment sales decreased by $10 million in Q3 2025, primarily due to unfavorable sales price and mix, which accounted for a $26 million decline[99]. - Business segment operating profit for North America was $84 million in Q3 2025, down from $98 million in Q3 2024, primarily due to lower volumes and higher input costs[111]. Capital Expenditures and Cash Flow - Total capital spending for the nine months ended September 30, 2025, was $168 million, representing 6.8% of net sales, compared to $157 million in 2024[123][126]. - Maintenance, regulatory, and reforestation capital expenditures for the nine months ended September 30, 2025, were approximately $124 million, or 5.0% of net sales[126]. - Cash used for financing activities for the nine months ended September 30, 2025, included $55 million in dividends and $82 million in share repurchases[124]. - The company expects annual maintenance, regulatory, and reforestation capital expenditures to be between $165 million and $190 million for the next several years[126]. - The company anticipates spending approximately $55 million to $65 million on high-return projects in 2025[126]. Market and Operational Outlook - Planned maintenance outage costs in Q4 2025 are expected to be unfavorable by $18 million due to one planned outage in North America[92]. - For Q4 2025, the company anticipates unfavorable price and mix primarily driven by paper prices in Europe, while volume is expected to be favorable due to Latin America and North America[92]. Accounting and Risk Management - The company has not made any changes to its critical accounting policies during the first nine months of 2025[130]. - There have been no material changes in the company's exposure to market risk since December 31, 2024[134].