Sylvamo (NYSE:SLVM) Posts Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Sylvamo (NYSE:SLVM) posted its quarterly earnings data on Friday. The company reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.13 by $0.20, FiscalAI reports. Sylvamo had a net margin of 2.31% and a return on equity of 8.36%. The business had revenue of $645.00 million during the quarter, compared to analysts’ expectations of $817.79 million. During the same period last year, the firm posted $1.44 earnings per share. The business’s revenue was down 23.8% on a year-over-year basis.

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 Price Performance

SLVM stock traded up $6.63 on Friday, hitting $39.70. 848,136 shares of the company’s stock traded hands, compared to its average volume of 324,193. The stock has a market cap of $1.58 billion, a price-to-earnings ratio of 21.12, a P/E/G ratio of 1.56 and a beta of 0.87. Sylvamo has a 1-year low of $30.40 and a 1-year high of $56.80. The company has a current ratio of 1.47, a quick ratio of 0.80 and a debt-to-equity ratio of 0.88. The stock has a fifty day moving average of $34.01 and a 200-day moving average of $39.77.

Sylvamo Dividend Announcement

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

Sylvamo News Roundup

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

Analyst Ratings Changes

A number of brokerages have issued reports on SLVM. Bank of America decreased their price target on Sylvamo from $45.00 to $42.00 and set a “neutral” rating for the company in a research note on Wednesday, October 14th. Royal Bank Of Canada lowered their price target on Sylvamo from $46.00 to $35.00 and set a “sector perform” rating on the stock in a research report on Friday, October 16th. Truist Financial dropped their price objective on Sylvamo from $49.00 to $40.00 and set a “buy” rating on the stock in a research note on Monday, October 12th. Weiss Ratings restated a “sell (d+)” rating on shares of Sylvamo in a report on Wednesday. Finally, Zacks Research upgraded Sylvamo from a “strong sell” rating to a “hold” rating in a report on Monday, October 12th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Sylvamo has a consensus rating of “Hold” and a consensus price target of $41.00.

Sylvamo Company Profile

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.