Sylvamo Corporation Reports $3 Million Net Loss in First Quarter of 2026

Sylvamo Corporation reported a net loss of $3 million, or $(0.08) per diluted share, for the first quarter of 2026, a significant decline from a net income of $27 million, or $0.66 per diluted share, in the same period last year. The company's net sales decreased to $755 million from $821 million year-over-year. The decline in revenue was attributed to lower volumes, particularly in North America, as the company adjusted inventory levels in response to the termination of the Riverdale supply agreement and an upcoming extended outage at the Eastover mill. Adjusted EBITDA also fell to $29 million, with an adjusted EBITDA margin of 4%, down from $90 million and 11% in the prior year.

In terms of operational performance, Sylvamo's cash used for operations totaled $10 million, contrasting with cash provided by operations of $23 million in the first quarter of 2025. The company experienced cash outflows related to working capital components, amounting to $28 million, compared to $50 million in the previous year. The decrease in cash flow was primarily due to lower net income, although the company noted a favorable change in accounts and notes receivable, which provided $54 million in cash.

The company’s business segments showed varied performance. In Europe, sales remained stable at $190 million, but operating losses increased to $44 million, driven by lower sales prices and higher operating costs. Latin America saw a decrease in sales to $187 million, with an operating profit of $4 million, down from $26 million, primarily due to lower volumes and higher costs. North America reported sales of $390 million, down from $438 million, with operating profit decreasing to $25 million from $42 million, largely due to lower volumes and increased input costs.

Strategically, Sylvamo is focusing on high-return investments at its Eastover mill, which are expected to enhance earnings and cash flow in the long term. The company completed a refinancing of its accounts receivable securitization facility and Term Loan F in May 2026, extending its debt maturity profile to maintain financial flexibility. Looking ahead, Sylvamo anticipates that 2026 will be a transition year as it navigates short-term capacity constraints while continuing to invest in its operations and improve customer experience. The company remains committed to returning cash to shareholders, having paid $18 million in dividends during the quarter.