syl-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 10-Q

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☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to

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Commission File Number 001-40718

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SYLVAMO CORPORATION

(Exact Name of Registrant as Specified in its Charter)

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Delaware			86-2596371
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)


6077 Primacy Parkway Memphis, Tennessee			38119
(Address of Principal Executive Offices)			(Zip Code)

901-519-8000

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former name, former address and and former fiscal year if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	SLVM	New York Stock Exchange

________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (paragraph 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange

Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock, par value $1.00 per share, as of August 1, 2025 was 40,372,555.

INDEX


		PAGE NO.
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Statements of Operations - Three and Six Months Ended June 30 , 2025 and 2024	1
	Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and Six Months Ended June 30 , 2025 and 2024	2
	Condensed Consolidated Balance Sheets - June 30 , 2025 and December 31, 2024	3
	Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30 , 2025 and 2024	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	28
Item 6.	Exhibits	29
Signatures		30

ITEM 1. FINANCIAL STATEMENTS

SYLVAMO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
NET SALES	$	794	$	933	$	1,615	$	1,838
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)	640		684		1,302		1,400
Selling and administrative expenses	72		82		145		156
Depreciation, amortization and cost of timber harvested	45		37		85		76
Taxes other than payroll and income taxes	7		8		11		15
Interest (income) expense, net	10		9		19		18
INCOME BEFORE INCOME TAXES	20		113		53		173
Income tax provision	5		30		11		47
NET INCOME	$	15	$	83	$	42	$	126
EARNINGS PER SHARE
Basic	$	0.37	$	2.02	$	1.03	$	3.06
Diluted	$	0.37	$	1.98	$	1.02	$	3.00

The accompanying notes are an integral part of these condensed consolidated financial statements.

SYLVAMO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
NET INCOME	$	15	$	83	$	42	$	126
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Defined benefit pension and postretirement adjustments:
Amortization of pension and postretirement loss (less taxes of $0, $0, $0 and $0)	1		—		1		—
Pension and postretirement liability adjustments (less tax of $0,$0, $0 and $0)	(1)		—		(1)		—
Change in cumulative foreign currency translation adjustment	69		(98)		147		(136)
Net gains/losses on cash flow hedging derivatives:
Net gains (losses) arising during the period (less taxes of $0, $2, $3 and $2)	—		(4)		5		—
Reclassification adjustment for (gains) losses included in net earnings (less taxes of $1, $1, $2 and $2)	(2)		(2)		(5)		(5)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES	67		(104)		147		(141)
COMPREHENSIVE INCOME (LOSS)	$	82	$	(21)	$	189	$	(15)

The accompanying notes are an integral part of these condensed consolidated financial statements.

SYLVAMO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)


	June 30, 2025		December 31, 2024
	(unaudited)
ASSETS
Current Assets
Cash and temporary investments	$	113	$	205
Accounts and notes receivable, net	383		429
Contract assets	21		26
Inventories	396		361
Other current assets	64		42
Total Current Assets	977		1,063
Plants, Properties and Equipment, net	1,034		944
Forestlands	367		319
Goodwill	126		111
Right of Use Assets	57		58
Deferred Charges and Other Assets	107		109
TOTAL ASSETS	$	2,668	$	2,604
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	371	$	375
Notes payable and current maturities of long-term debt	46		22
Accrued payroll and benefits	53		79
Other current liabilities	165		206
Total Current Liabilities	635		682
Long-Term Debt	767		782
Deferred Income Taxes	151		152
Other Liabilities	156		141
Commitments and Contingent Liabilities (Note 11)
Equity
Common stock $1 par value, 200.0 shares authorized, 45.5 shares and 44.9 shares issued and 40.4 shares and 40.6 shares outstanding at June 30, 2025 and December 31, 2024, respectively	45		45
Paid-in capital	85		71
Retained earnings	2,460		2,455
Accumulated other comprehensive loss	(1,343)		(1,490)
	1,247		1,081
Less: Common stock held in treasury, at cost, 5.2 shares and 4.3 shares at June 30, 2025 and December 31, 2024, respectively	(288)		(234)
Total Equity	959		847
TOTAL LIABILITIES AND EQUITY	$	2,668	$	2,604

The accompanying notes are an integral part of these condensed consolidated financial statements.

SYLVAMO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)


	Six Months Ended
	June 30,
	2025		2024

OPERATING ACTIVITIES
Net income	$	42	$	126
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization, and cost of timber harvested	85		76
Deferred income tax provision (benefit), net	(5)		—
Stock-based compensation	13		12
Changes in operating assets and liabilities and other:
Accounts and notes receivable	77		(7)
Inventories	—		(20)
Accounts payable and accrued liabilities	(79)		(26)
Other	(46)		(19)
CASH PROVIDED BY OPERATING ACTIVITIES	87		142
INVESTMENT ACTIVITIES
Invested in capital projects	(114)		(113)
CASH USED FOR INVESTMENT ACTIVITIES	(114)		(113)
FINANCING ACTIVITIES
Dividends paid	(36)		(25)
Issuance of debt	48		16
Reduction of debt	(40)		(54)
Repurchases of common stock	(40)		(30)
Other	(8)		(2)
CASH USED FOR FINANCING ACTIVITIES	(76)		(95)
Effect of Exchange Rate Changes on Cash	11		(9)