Sylvamo (NYSE:SLVM) Releases Quarterly Earnings Results, Beats Expectations By $0.20 EPS

Sylvamo (NYSE:SLVM) released its quarterly earnings results on Friday. The company reported $1.33 EPS for the quarter, topping the consensus estimate of $1.13 by $0.20, FiscalAI reports. The firm had revenue of $645.00 million for the quarter, compared to analyst estimates of $817.79 million. Sylvamo had a return on equity of 8.36% and a net margin of 2.31%. Sylvamo’s revenue for the quarter was down 23.8% on a year-over-year basis. During the same period in the previous year, the company posted $1.44 EPS.

Here are the key takeaways from Sylvamo’s conference call:

• Adjusted EBITDA nearly doubled quarter over quarter to $128 million, with price and mix contributing $25 million and improved operations adding $6 million. The comparison also benefited from having no scheduled maintenance outages in the quarter.
• Sylvamo agreed to a binding offer for its European business, with closing expected by the end of Q1 2027 subject to employee consultations, regulatory approvals, and other conditions. After the sale, Sylvamo would retain a 20% interest in future distributions, while focusing on its North American and Latin American businesses.
• Higher input and transportation costs remain a headwind; management expects another roughly $6 million sequential increase in Q4 and said costs are up about $50 million in 2026 versus 2025. It expects the higher cost level to carry into 2027, while pursuing price, surcharge, mix, and productivity measures to offset it.
• Eastover’s paper-machine optimization remains on schedule and budget, with 60,000 tons of annual capacity expected to begin ramping early next year. Sylvamo also expanded its Sumter converting plan to add a fourth sheeter; despite an additional $25 million of infrastructure spending and a planned mid-2027 startup, management expects the combined investments to earn returns above 30%.
• Management reiterated its capital-allocation priorities: maintain a strong balance sheet, fund projects expected to earn well above the cost of capital, and return remaining cash to shareholders. It said dividends remain foundational and that share repurchases will be prioritized when opportunities arise.

Sylvamo Stock Performance

Shares of NYSE:SLVM traded up $6.63 during trading on Friday, reaching $39.70. 848,136 shares of the company’s stock traded hands, compared to its average volume of 324,193. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.47 and a quick ratio of 0.80. Sylvamo has a 12 month low of $30.40 and a 12 month high of $56.80. The company has a 50 day moving average of $34.01 and a 200-day moving average of $39.77. The stock has a market capitalization of $1.58 billion, a P/E ratio of 16.46, a price-to-earnings-growth ratio of 1.56 and a beta of 0.87.

Sylvamo Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Friday, October 2nd were issued a $0.45 dividend. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.80 annualized dividend and a dividend yield of 4.5%. Sylvamo’s payout ratio is 95.74%.

Key Stories Impacting Sylvamo

Here are the key news stories impacting Sylvamo this week:

• Positive Sentiment: Sylvamo reported third-quarter earnings of $1.33 per share, above analyst estimates of roughly $1.04–$1.13. The earnings surprise likely helped lift investor sentiment. Sylvamo Surpasses Q3 Earnings Estimates
• Positive Sentiment: The company entered a put option agreement for a potential sale of its European operations to Midas Atlantic Partners and The Najafi Companies. The proposed deal covers its mills in France and Sweden, plus related forestry and support operations; closing is expected in Q1 2027, subject to required processes. A divestiture could let Sylvamo focus its business, though terms and proceeds were not disclosed in the provided reports. Sylvamo Announces Plans to Sell Europe Business
• Negative Sentiment: Revenue was $645 million, well below the cited analyst estimate of $817.79 million and down 23.8% year over year. EPS also declined from $1.44 in the year-ago quarter, highlighting pressure on the business despite the estimate beat. Sylvamo Q3 Earnings Results

Wall Street Analysts Forecast Growth

SLVM has been the subject of several recent research reports. Bank of America lowered their price objective on shares of Sylvamo from $45.00 to $42.00 and set a “neutral” rating for the company in a research report on Wednesday, October 14th. Royal Bank Of Canada decreased their target price on shares of Sylvamo from $46.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday, October 16th. Truist Financial lowered their price target on shares of Sylvamo from $49.00 to $40.00 and set a “buy” rating for the company in a report on Monday, October 12th. Wall Street Zen raised shares of Sylvamo from a “sell” rating to a “hold” rating in a research report on Sunday, August 2nd. Finally, Wells Fargo & Company assumed coverage on Sylvamo in a research note on Wednesday, September 16th. They issued an “overweight” rating and a $47.00 price target on the stock. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $41.00.

About Sylvamo

Sylvamo Corporation is a global producer of uncoated paper products. The company manufactures papers used for printing, copying, writing, publishing, commercial applications, notebooks, envelopes and other everyday communication needs. Its portfolio includes branded and private-label products serving businesses, retailers, publishers, printers and consumers.

Sylvamo operates paper mills and related facilities in North America, Latin America and Europe, with products sold to customers in numerous markets worldwide.