Domtar Corporation reported a revenue of $7.154 billion for the fiscal year ending December 31, 2024, marking a 3% increase from $6.936 billion in 2023. The company’s operating income from continuing operations was $218 million, a decrease from $264 million in the previous year. This decline is attributed to a significant gain of $225 million recognized in 2023 from the acquisition of Resolute Forest Products, as well as a $63 million gain from a litigation settlement. The decrease in operating income was partially offset by lower input and freight costs, as well as the inclusion of 12 months of Resolute's results in 2024 compared to 10 months in 2023.
Domtar's strategic developments included the acquisition of Iconex Paper for $208 million, which is expected to enhance its position in the thermal paper market. The company also divested its El Dorado, Arkansas sawmill for $73 million, realizing a gain of $5 million from the sale. Additionally, the company completed the conversion of its Kingsport mill to produce recycled linerboard, which began operations in mid-2023. These acquisitions and divestitures reflect Domtar's ongoing efforts to optimize its operations and adapt to market demands.
Operationally, Domtar reported a total employee count of approximately 13,700, with 46% based in the U.S. and 54% in Canada. The company’s customer base remains diverse, with its ten largest customers accounting for about 27% of total sales. Domtar's sales distribution was primarily in the U.S. (72%), followed by Canada (11%), Asia (10%), and other regions (7%). The company continues to focus on enhancing its product offerings, particularly in the packaging segment, which has seen increased demand due to the conversion of its Kingsport facility.
Looking ahead, Domtar anticipates stable demand and pricing for paper products in 2025, with expectations of improved pulp demand and pricing. The company plans to maintain a close watch on inventory levels and align production with customer demand. Overall, Domtar aims to control costs and generate cash flow while navigating the competitive landscape of the fiber-based products market. The company’s financial outlook remains cautious, considering potential impacts from macroeconomic conditions and ongoing trade policies.
About Domtar CORP
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