Sylvamo Outlines 2026 Transition, Discontinues Quarterly Guidance

Paper producer cites European headwinds, Eastover mill investments, and supply agreement changes as key factors impacting near-term performance

Published on Feb. 14, 2026

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Sylvamo (NYSE:SLVM) executives used the company's fourth-quarter 2025 earnings call to review results, provide context on a major investment cycle at its Eastover mill, and discuss market conditions across Europe, Latin America and North America. Management also reiterated a long-term focus on capital allocation and said the company will no longer provide quarterly adjusted EBITDA outlook.

Why it matters

Sylvamo's strategic decisions and market commentary offer insights into the broader uncoated freesheet paper industry, which has faced headwinds from declining demand, rising costs, and regional market imbalances. The company's transition plans for 2026, including major capital investments and supply agreement changes, will impact its near-term financial performance and position it for the future.

The details

CEO John Sims said Sylvamo generated a 12% return on invested capital in 2025 while operating in 'challenging industry conditions.' For the full year, the company reported $448 million in adjusted EBITDA, representing a 13% margin, and $44 million in free cash flow. Adjusted operating earnings were $3.54 per share. Sylvamo ended the year with net debt to adjusted EBITDA of 1.6 times, which Sims described as a very strong financial position. The company returned $155 million of cash to shareholders during 2025 and reinvested $224 million across its manufacturing network and Brazil forest plans. CFO Don Devlin walked through the fourth-quarter adjusted EBITDA bridge versus the third quarter, noting a decline to $125 million from $151 million due to several factors, including a challenging European market environment.

  • Sylvamo reported its fourth-quarter and full-year 2025 results on February 14, 2026.
  • The company plans a 45-day planned maintenance outage at its Eastover mill in the fourth quarter of 2026, about 30 days longer than a typical outage.
  • A new 'state-of-the-art' sheeter at Eastover is scheduled to be installed during the fourth-quarter 2026 outage.
  • The Eastover woodyard modernization project's hardwood operation ramp is planned for the second quarter of 2026, and the softwood operation startup is planned for the first quarter of 2027.

The players

John Sims

CEO of Sylvamo Corporation.

Don Devlin

CFO of Sylvamo Corporation.

Sylvamo Corporation

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

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