Sylvamo Corporation (NYSE:SLVM) reported weaker-than-expected second-quarter earnings on Friday, with both profit and revenue missing Wall Street forecasts despite improvements in its North American operations.
Shares of the paper producer fell about 4.7% in pre-market trading following the announcement.
Earnings and Revenue Miss Estimates
The company posted adjusted earnings of $0.03 per share, well below analysts’ consensus estimate of $0.47.
Revenue totalled $806 million, falling short of the expected $815.63 million. Compared with the same period last year, revenue declined 1.5%.
Sylvamo reported a net loss of $11 million for the quarter, compared with net income of $15 million a year earlier.
Adjusted EBITDA also weakened, falling to $60 million from $82 million in the second quarter of 2025.
North America Improves While International Operations Weigh
Chief Executive Officer John Sims highlighted progress in pricing across the business.
“Our second quarter highlights include implementing uncoated freesheet price increases with our customers across all regions,” he said.
Sims added that 2026 remains “a transition year” as Sylvamo reshapes its North American operations while managing the termination of the Riverdale supply agreement with International Paper.
Operating profit in North America improved to $50 million from $25 million in the first quarter, supported by stronger pricing, a more favourable sales mix and lower operating costs.
However, the company’s international operations remained under pressure. Europe recorded an operating loss of $20 million, while Latin America posted a $16 million operating loss, largely reflecting the impact of planned maintenance outages.
Cash Flow Remains Under Pressure
Sylvamo generated $38 million in operating cash flow during the quarter but reported negative free cash flow of $23 million.
The board declared a third-quarter dividend of $0.45 per share, which was paid on 28 July.
Management Expects Stronger Second Half
Despite the disappointing quarterly performance, management remains optimistic about the remainder of the year.
Sims said the company expects “a much better earnings performance for the last six months of the year as price and mix, volume and operations should be better compared to the first half.”
The anticipated improvement reflects higher selling prices, stronger volumes and improved operational performance as the business progresses through its restructuring initiatives.
Sylvamo Corporation stock price
