syl-20250930

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 September 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 October 31, 2025 was 39,438,257.

INDEX


		PAGE NO.
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2025 and 2024	1
	Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and Nine Months Ended September 30, 2025 and 2024	2
	Condensed Consolidated Balance Sheets - September 30, 2025 and December 31, 2024	3
	Condensed Consolidated Statements of Cash Flows - Nine Months Ended Se ptember 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	27
Item 6.	Exhibits	28
Signatures		29

ITEM 1. FINANCIAL STATEMENTS

SYLVAMO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
NET SALES	$	846	$	965	$	2,461	$	2,803
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)	624		700		1,926		2,100
Selling and administrative expenses	68		74		213		230
Depreciation, amortization and cost of timber harvested	49		39		134		115
Taxes other than payroll and income taxes	8		6		19		21
Interest (income) expense, net	9		14		28		32
INCOME BEFORE INCOME TAXES	88		132		141		305
Income tax provision	31		37		42		84
NET INCOME	$	57	$	95	$	99	$	221
EARNINGS PER SHARE
Basic	$	1.43	$	2.32	$	2.45	$	5.37
Diluted	$	1.41	$	2.27	$	2.42	$	5.26

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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
NET INCOME	$	57	$	95	$	99	$	221
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Defined benefit pension and postretirement adjustments:
Amortization of pension and postretirement loss (less taxes of $0, $0, $0 and $0)	—		1		1		1
Pension and postretirement liability adjustments (less taxes of $0, $0, $0 and $0)	—		—		(1)		—
Change in cumulative foreign currency translation adjustment	18		37		165		(99)
Net gains/losses on cash flow hedging derivatives:
Net gains (losses) arising during the period (less taxes of $1, $2, $4 and $4)	1		(8)		6		(8)
Reclassification adjustment for (gains) losses included in net earnings (less taxes of $1, $1, $3 and $3)	(2)		(4)		(7)		(9)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	17		26		164		(115)
COMPREHENSIVE INCOME (LOSS)	$	74	$	121	$	263	$	106

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

SYLVAMO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)


	September 30, 2025		December 31, 2024
	(unaudited)
ASSETS
Current Assets
Cash and temporary investments	$	94	$	205
Accounts and notes receivable, net	393		429
Contract assets	18		26
Inventories	434		361
Other current assets	51		42
Total Current Assets	990		1,063
Plants, Properties and Equipment, net	1,045		944
Forestlands	378		319
Goodwill	128		111
Right of Use Assets	53		58
Deferred Charges and Other Assets	109		109
TOTAL ASSETS	$	2,703	$	2,604
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	383	$	375
Notes payable and current maturities of long-term debt	30		22
Accrued payroll and benefits	57		79
Other current liabilities	183		206
Total Current Liabilities	653		682
Long-Term Debt	778		782
Deferred Income Taxes	148		152
Other Liabilities	147		141
Commitments and Contingent Liabilities (Note 11)
Equity
Common stock $1 par value, 200.0 shares authorized, 45.6 shares and 44.9 shares issued and 39.4 shares and 40.6 shares outstanding at September 30, 2025 and December 31, 2024, respectively	45		45
Paid-in capital	89		71
Retained earnings	2,499		2,455
Accumulated other comprehensive loss	(1,326)		(1,490)
	1,307		1,081
Less: Common stock held in treasury, at cost, 6.1 shares and 4.3 shares at September 30, 2025 and December 31, 2024, respectively	(330)		(234)
Total Equity	977		847
TOTAL LIABILITIES AND EQUITY	$	2,703	$	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)


	Nine Months Ended September 30,
	2025		2024
OPERATING ACTIVITIES
Net income	$	99	$	221
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization, and cost of timber harvested	134		115
Deferred income tax provision (benefit), net	(10)		(4)
Stock-based compensation	17		17
Changes in operating assets and liabilities and other:
Accounts and notes receivable	69		(28)
Inventories	(34)		(21)
Accounts payable and accrued liabilities	(63)		16
Other	(38)		(11)
CASH PROVIDED BY OPERATING ACTIVITIES	174		305
INVESTMENT ACTIVITIES
Invested in capital projects	(168)		(157)
CASH USED FOR INVESTMENT ACTIVITIES	(168)		(157)
FINANCING ACTIVITIES
Dividends paid	(55)		(43)
Issuance of debt	67		250
Reduction of debt	(65)		(285)
Repurchases of common stock	(82)		(30)
Other	7		(6)
CASH USED FOR FINANCING ACTIVITIES	(128)		(114)
Effect of Exchange Rate Changes on Cash	11		(6)
Change in Cash, Temporary Investments and Restricted Cash	(111)		28
Cash, Temporary Investments and Restricted Cash
Beginning of the period	205		280
End of the period	$	94	$	308

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

SYLVAMO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of Sylvamo Corporation’s ("Sylvamo's", "the Company’s" or "our") financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first nine months of the year may not necessarily be indicative of full year results due to factors such as the Company’s planned maintenance outage schedule at its mills. All intercompany transactions have been eliminated. You should read these condensed consolidated financial statements in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the "Annual Report" or “2024 Form 10-K”), which have previously been filed with the Securities and Exchange Commission. These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States that require the use of management’s estimates. Actual results could differ from management’s estimates.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are described in Note 2 Significant Accounting Policies to the audited consolidated financial statements included in our 2024 Form 10-K. There have been no material changes to the significant accounting policies for the nine months ended September 30, 2025.

Recently Issued Accounting Pronouncements Not Yet Adopted

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This guidance requires disaggregated disclosure of certain income statement captions for public business entities into specified categories within the footnotes to the financial statements. Additional disclosures are required in tabular format for each relevant expense caption on the face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion and amortization recognized as part of oil-and gas-producing activities or other types of depletion expenses. This update does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the provisions of this guidance.

Income Taxes

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company plans to adopt the provisions of this guidance in conjunction with our Form 10-K for the annual period ending December 31, 2025.

NOTE 3 REVENUE RECOGNITION

External Net Sales by Product

External net sales by major products were as follows by business segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2025		2024		2025		2024
Europe
Uncoated Papers	$	161	$	168	$	493	$	534
Market Pulp	23		25		62		71
Europe	184		193		555		605
Latin America
Uncoated Papers	200		223		561		639
Market Pulp	12		17		38		44
Latin America	212		240

SEC Form 10-Q filed by Sylvamo Corporation