Sylvamo Corporation (SLVM) Earnings
Sylvamo Corporation is expected to report next earnings on August 7, 2026 (in NaN days), with a consensus EPS estimate of $0.45. SLVM has beaten EPS estimates in 6 of its last 12 reported quarters (average surprise -34.7% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $-0.25 | $-0.53 | -112.0% | $755M | +1.9% |
| Feb 12, 2026 | $1.05 | $1.08 | +2.9% | $890M | +10.1% |
| Nov 7, 2025 | $1.57 | $1.44 | -8.3% | $846M | -1.5% |
| Aug 8, 2025 | $0.47 | $0.37 | -21.3% | $794M | -7.2% |
| May 9, 2025 | $0.70 | $0.68 | -2.9% | $821M | +0.6% |
| Feb 12, 2025 | $1.84 | $1.94 | +5.4% | $970M | +12.4% |
| Aug 9, 2024 | $1.58 | $1.98 | +25.3% | $933M | -2.7% |
| May 10, 2024 | $1.02 | $1.07 | +4.9% | $905M | +4.7% |
| Feb 15, 2024 | $0.84 | $1.16 | +38.1% | $964M | +6.7% |
| Nov 9, 2023 | $1.34 | $1.70 | +26.9% | $897M | -0.9% |
| Feb 10, 2023 | $2.19 | $1.97 | -10.0% | $927M | -12.6% |
| Nov 10, 2022 | $2.64 | $2.51 | -4.9% | $968M | +6.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 8, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Macro developments: U.S. Supreme Court invalidated IEPA tariffs and U.S. placed 10% tariffs on all trading partners; Middle East conflict led to higher energy, logistics, and input costs. - First quarter highlights: Implemented free sheet price increases; operational reliability issues in Europe and Brazil negatively impacted by ~$9 million; launched lean transformation journey in Latin American business and Moji Wasu mill; completed refinancing of 2027 debt. - Capital allocation: Philosophy unchanged, focus on improving competitive position and delivering shareholder returns; planned maintenance outage schedule by region and quarter. - Lean transformation: Long-term strategic transformation, objective to embed continuous improvement over 3 years, kicked off in Latin American business, value stream mapping underway at Moji-Watsu Mill, will roll out in North America and Europe later. - Eastover Mill investments: Paper machine optimization, new sheeter, woodyard modernization projects on track, hardwood line operating since May 1, softwood operation to start Q1 2027.
Guidance
- 2026 is a transition year with short-term capacity constraints. Free cash flow is heavily weighted to second half. - Full-year impact of North American footprint transition now estimated at around $65 million negative, $20 million improvement from prior estimate, mostly realized in second half. - Potential to generate greater than $300 million of free cash flow and greater than 15% returns on invested capital as industry conditions turn and investments materialize.
Segment performance
Adjusted EBITDA was $29 million with a margin of 4%. Adjusted operating earnings were negative $0.53 per share. European industry supply and demand remains challenging but pulp prices improved in Q1 and paper price increases are being realized. Latin America moved from seasonally weakest Q1 to expected increasing demand. North America saw improvement in industry supply and demand dynamics after Riverdale Mill conversion. Tariff changes led to bringing product from Brazil operations and ramping down from European operations, with full-year adjusted EBITDA impact estimate changing from $85 million negative to around $65 million negative.
Risks & headwinds
- U.S. Supreme Court invalidation of IEPA tariffs and subsequent U.S. tariffs on trading partners could change import/export plans. - Middle East conflict continuing to pressure costs across regions with increases in energy, chemicals, diesel, and ocean freight. - Operational reliability issues in Europe and Brazil, including digester, power, debarking issues, which negatively impacted first quarter results and may have additional costs in second quarter.
Analyst Q&A
Q: What was going on with operations reliability in the $9 million number?
A: Issues in Moji and Luis Antonio with power plant and digesters, Europe had CYOT turbine generator issue, Nirmala had boiler issues and debarking drum mechanical failure. -
Q: What was behind mix factors in North America in Q1?
A: Seasonally weaker Latin America volume, using third-party sheeting and buying volume to preserve customers for Eastover outage. -
Q: On pricing impact, what is the price benefit in 2Q vs 1Q?
A: Different regions have different pricing realization, North America realizing 5%-8% increase, Brazil and other Latin America markets have different realization and second increases, Europe has different realization of first and second price increases. -
Q: Speak to input and transportation cost pressures, ongoing cost impact of debarking drum?
A: Q2 input and transportation cost headwind ~$15 million, debarking drum issue incurs $1-2 million per quarter additional cost, no production impact. -
Q: Thoughts on stock valuation and tariff sensitivity?
A: Stock valuation undervalued, conservatively managing cash due to transition period; tariff on Brazil paper products expires July 24, uncertain what new tariffs will be. -
Q: Europe earnings path and lean transformation timing?
A: Europe business a bet on future consolidation, lean transformation to be a 3-year process, starting in Europe early next year. -
Q: Mix issue in North America Q1 to Q2, relationship with large shareholder?
A: Mix issue expected to continue in Q2, relationship with large shareholder positive, they support strategy and have confidence in management. -
Q: Eastover progress and reason for lean program now?
A: Eastover on track, 50 million benefit expected in 2027; lean program implemented now to tap into employee talent for continuous improvement. -
Q: Tariffs and import evolution in North America?
A: Will continue to import from Brazil into North America if tariffs right, industry imports into U.S. have decreased due to tariffs and other factors like mill idling.