Sylvamo Reports Q4 2025 Earnings, Outlines 2026 Transition

Paper producer sees challenges in Europe, plans major investments at Eastover mill

Published on Feb. 13, 2026

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Sylvamo (NYSE:SLVM) executives reviewed the company's fourth-quarter and full-year 2025 results, highlighting a 12% return on invested capital despite 'challenging industry conditions.' Management discussed market dynamics in Europe, Latin America and North America, and outlined plans for a major $145 million investment cycle centered on the Eastover mill that is expected to add capacity, reduce costs and improve product mix. Sylvamo also said it will no longer provide quarterly adjusted EBITDA outlook, aligning external communications with how the business is managed.

Why it matters

As a leading global producer of uncoated freesheet paper, Sylvamo's performance and strategic decisions provide insights into the broader industry dynamics and challenges facing paper manufacturers. The company's investment plans for its Eastover mill and shift away from quarterly earnings guidance reflect efforts to position the business for long-term success amid cyclical downturns and evolving customer needs.

The details

Sylvamo reported $448 million in adjusted EBITDA for the full year 2025, a 13% margin, and $44 million in free cash flow. The company ended the year with net debt to adjusted EBITDA of 1.6 times. In Q4, adjusted EBITDA declined to $125 million from $151 million in Q3 due to several factors, including a 'challenging' supply-demand environment in Europe, where paper prices exited 2025 €100 per ton below 2024 levels. Management said it has communicated price increases to European customers, with expected realization beginning in Q2 2026. For 2026, Sylvamo expects a $65 million negative adjusted EBITDA impact in North America related to capacity constraints, the Eastover mill investment, and sourcing paper from Europe. The company also anticipates a $10 million charge from International Paper due to high energy costs at the Riverdale mill. Overall, Sylvamo said 2025 and 2026 will be low points for free cash flow as it navigates cyclical downturns and completes the Eastover projects, but believes it can generate over $300 million in annual free cash flow long-term.

  • Sylvamo reported Q4 2025 and full-year 2025 results on February 13, 2026.
  • The Eastover mill paper machine optimization project is scheduled for completion during a 45-day planned maintenance outage in Q4 2026.
  • The Eastover mill woodyard modernization project's hardwood operation ramp is planned for Q2 2026, and the softwood operation startup is planned for Q1 2027.

The players

Sylvamo

A leading global producer of uncoated freesheet paper, established in 2021 through a spin-off from International Paper.

John Sims

CEO of Sylvamo.

Don Devlin

CFO of Sylvamo.

Eastover mill

One of Sylvamo's manufacturing facilities, the focus of a major $145 million investment cycle.

Riverdale mill

A mill operated by International Paper, from which Sylvamo is transitioning supply agreements.

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What they’re saying

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What’s next

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