Sylvamo Corporation reported a decline in financial performance for the first quarter of 2025, with net income falling to $27 million, or $0.65 per diluted share, compared to $43 million, or $1.02 per diluted share, in the same period of 2024. Net sales also decreased to $821 million from $905 million year-over-year. The company's cash from operations was $23 million, down from $27 million in the prior year, while adjusted EBITDA dropped to $90 million, reflecting an adjusted EBITDA margin of 11%, down from 13% in the first quarter of 2024.
The decrease in revenue and profitability was attributed to several factors, including lower volumes in North America due to the closure of International Paper’s Georgetown mill and operational challenges. Additionally, price and mix declines were noted in Europe, alongside increased input and transportation costs. The company faced higher planned maintenance outage costs, which were partially offset by improved operational efficiencies. Sylvamo continued to return cash to shareholders, paying $18 million in dividends and repurchasing $20 million in shares during the quarter.
In terms of operational metrics, Sylvamo's total assets increased slightly to $2.629 billion as of March 31, 2025, compared to $2.604 billion at the end of 2024. The company reported a total equity of $908 million, up from $847 million, driven by retained earnings growth. The company’s employee headcount remained stable, and it continues to focus on enhancing operational efficiencies across its business segments, which include Europe, Latin America, and North America.
Looking ahead, Sylvamo anticipates a more favorable pricing and mix in the second quarter of 2025, particularly in Latin America and North America. The company expects volume stability and improvements in operations and costs due to seasonal factors. However, it also projects a significant increase in planned maintenance outage costs by $36 million as it enters its heaviest outage quarter of the year across all regions. The company remains committed to managing its costs and working capital effectively to support its operational and capital spending needs.
About Sylvamo Corp
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