Sylvamo (NYSE:SLVM), the world's paper company, is releasing fourth quarter and full year 2025 earnings. The company will host an audio webcast at 10 a.m. EST at investors.sylvamo.com.

Management Summary from Chief Executive Officer John Sims

As Sylvamo's CEO, my vision is that Sylvamo will be legendary for the way we relentlessly pursue and achieve world-class excellence in all that we do. This will create substantial and lasting value for our employees, customers and shareowners and will enable us to be the employer, supplier and investment of choice.

I am committed to allocating capital wisely to create long-term value, communicating transparently, upholding our values and driving smart, data-driven decisions while operating safely with a focus on our customers and cost. We seek high-quality, long-term shareowners who share our vision of disciplined capital allocation and sustainable value-creation.

In 2025, we operated in a challenging environment, but our strategy did not change. We continued to deploy capital with discipline and take actions to strengthen Sylvamo's competitive position as we invest in our lowest‑cost, most advantaged assets. At the same time, we maintained a strong balance sheet and returned cash to shareowners.

-Financial Results

In the fourth quarter, Sylvamo generated net income of $33 million and adjusted EBITDA^*of $125 million, representing a 14% margin. Cash provided by operating activities was $94 million, and free cash flow^*was $38 million.

For the full year 2025, Sylvamo generated net income of $132 million and adjusted EBITDA of $448 million, representing a 13% margin. Cash provided by operating activities was $268 million, and free cash flow was $44 million. Despite the challenging environment, we generated 12% return on invested capital^*for the year.

-Capital Allocation

Keeping a strong financial position is the cornerstone of our capital allocation framework. This allows us to reinvest in our business, strengthen our competitive advantage through the cycle and increase future earnings and cash flow. In 2025, we maintained our strong financial position and balance sheet, achieving a net debt-to-adjusted EBITDA^*of 1.6x.

We reinvested $224 million across our manufacturing network and forestlands in Brazil to strengthen our low-cost position, while accelerating development of high-return capital investments.

Throughout 2025, we returned $155 million to shareowners through $82 million in share repurchases and $73 million in dividends. Our board of directors declared a $0.45 dividend for the first quarter, which we paid Jan. 23. As of Jan. 30, we still have the full $150 million remaining under our current share repurchase authorization.

*See "Non-GAAP Financial Measures" for definitions of non-GAAP financial measures. Reconciliations are included in the financial schedules below.

-Regional Business Conditions

Looking at our regional industry conditions, North America and Brazil remain positive, while Europe and other Latin American countries are challenged. In the first quarter compared to the fourth quarter, our regional businesses will be impacted by lower volumes, higher energy costs and the non-repeat of favorable one-time items.

In Europe, industry supply and demand conditions continue to be challenging, but market conditions have started to show signs of improvement as pulp prices began to rebound in the fourth quarter and improvement continues into the first quarter. Reflecting the challenging industry dynamics in Europe, our cutsize paper prices exited the year 100 euros per tonne below where we exited 2024. We have communicated paper price increases to our customers and expect the realization to begin in the second quarter.

In Latin America, we are moving from the fourth quarter where paper demand is seasonally the strongest to the first quarter where demand is seasonally the weakest. This also negatively impacts our geographic mix in the first quarter. In Brazil, we communicated paper price increases to our customers both domestically and for exports. We have started to see realization for Brazil in January and are starting to see some realization in our export regions in February.

In North America, we are seeing improvements in industry supply and demand. Imports have declined significantly since the summer. We communicated paper price increases to our customers and expect the realization to begin in the second quarter. 2026 will be a transition year in North America as we work through some short-term capacity constraints due to the termination of the Riverdale supply agreement with International Paper (NYSE:IP) and an upcoming extended outage at our Eastover, South Carolina, mill as we execute our strategic investments. To serve our most valuable customers, we will import from our mills in Europe, convert product using third-party vendors and build inventory to transition from the Riverdale volume exit to the completion of our Eastover strategic investments. As we build inventory for this transition, our sales volume in North America will be most impacted in the first quarter.

-Looking Ahead

Our capital spending will peak in 2026 as we execute the majority of our $145 million high-return strategic investments at our Eastover mill, including a paper machine optimization project, a new, state-of-the-art cutsize sheeter and a woodyard modernization project.

2025 and 2026 will be low points in free cash flow as we work through industry headwinds, particularly in Europe, and complete high‑return investments. As these conditions normalize and our investments begin to deliver, Sylvamo is well positioned to generate stronger, more sustainable results with the potential to generate annually:

> $300 million in free cash flow

> 15% return on invested capital

Our priorities remain unchanged: maintaining a strong financial position, reinvesting with discipline and returning cash to shareowners over time.

Earnings Webcast

The company will host an audio webcast at 10 a.m. EST at investors.sylvamo.com.

Those who want to participate should call 800-715-9871 (U.S.) or +1-646-307-1963 (international) and use access code 4562356.

Replays are available at investors.sylvamo.com for one year and by phone for one week. To listen by phone, call 800-770-2030 (U.S.) or +1-609-800-9909 (international) and use access code 4562356.

About Sylvamo

Sylvamo Corporation (NYSE:SLVM) is the world's paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We transform renewable resources into papers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, we employ more than 6,500 colleagues. Net sales for 2025 were $3.4 billion. For more information, please visit Sylvamo.com.

Select Financial Measures

(In millions)	Fourth Quarter 2025		Third Quarter 2025		Fourth Quarter 2024
Net Sales	$	890	$	846	$	970
Net Income		33		57		81
Business Segment Operating Profit		79		98		109
Adjusted Operating Earnings		43		58		82
Adjusted EBITDA		125		151		157
Cash Provided By Operating Activities		94		87		164
Free Cash Flow		38		33		100

Segment Information

Sylvamo uses business segment operating profit to measure the earnings performance of its businesses and is calculated as set forth in footnote (f) under the "Sales and Earnings by Business Segment" table (page 9). Fourth quarter 2025 net sales by business segment and operating profit by business segment compared with the third quarter of 2025 and the fourth quarter of 2024 are as follows:

Business Segment Results

(In millions)	Fourth Quarter 2025			Third Quarter 2025			Fourth Quarter 2024
Net Sales by Business Segment
Europe	$	186		$	184		$	194
Latin America		270			228			266
North America		447			450			514
Inter-segment Sales		(13	)		(16	)		(4	)
Net Sales	$	890		$	846		$	970
Operating Profit by Business Segment
Europe	$	(29	)	$	(21	)	$	3
Latin America		37			35			50
North America		71			84			56
Business Segment Operating Profit (Loss)	$	79		$	98		$	109

Operating profits in the fourth quarter of 2025:

Europe - $(29) million compared with $(21) million in the third quarter of 2025. Losses were higher due to lower price and mix and higher operating and input costs which more than offset higher volumes.

Latin America - $37 million compared with $35 million in the third quarter of 2025. Earnings were higher due to higher volumes which more than offset lower price and mix in our export regions and higher operating costs.

North America - $71 million compared with $84 million in the third quarter of 2025. Earnings were lower due to higher planned maintenance outages, and lower mix which more than offset higher volumes and lower operating costs.

Effective Tax Rate

The reported effective tax rate for the fourth quarter of 2025 was 43%, compared to 35% for the third quarter of 2025. The higher rate for the fourth quarter was due to the mix of earnings in our regions.

Excluding net special items, the effective tax rate for the fourth quarter of 2025 was 36%, compared with 35% for the third quarter of 2025.

The effective tax rate excluding net special items is a non-GAAP financial measure and is calculated by adjusting the income tax provision and rate to exclude the tax effect at the applicable statutory rate of net special items. Management believes that this presentation provides useful information to investors by providing a more meaningful comparison of the income tax rate between past and present periods.

Effects of Net Special Items

Net special items in the fourth quarter of 2025 amounted to a net after-tax charge of $11 million ($0.27 per diluted share), compared with a net after-tax charge of $1 million ($0.03 per diluted share) in the third quarter of 2025.

Non-GAAP Financial Measures

Adjusted Operating Earnings (non-GAAP) are net income (GAAP), net of tax, foreign exchange on a note receivable from our Brazilian subsidiary and net special items. Management uses this measure to focus on ongoing operations and believes it is useful to investors because it enables them to perform meaningful comparisons of past and present operating results. The Company believes that using this information, along with net income, provides for a more complete analysis of the results of operations. Net income is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release.

Adjusted EBITDA (non-GAAP) is net income (GAAP), net of tax, plus the sum of income taxes, net interest expense (income), depreciation, amortization and cost of timber harvested, stock-based compensation, foreign exchange on a note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, net special items. Management uses this measure in managing the operating performance of our business and believes that Adjusted EBITDA and Adjusted EBITDA Margin provide investors and analysts meaningful insights into our operating performance and Adjusted EBITDA is a relevant metric for the third-party debt. The Company believes that using this information, along with net income, provides for a more complete analysis of the results of its operations. Net income is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release.

Free Cash Flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operating activities. Management utilizes this measure in connection with managing our business and believes that Free Cash Flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet and service debt, and return cash to shareowners. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. Free Cash Flow also enables investors to perform meaningful comparisons between past and present periods.

Return on Invested Capital ("ROIC") is a non-GAAP measure presented as a supplemental measure of our performance. Management believes that ROIC is useful because it measures how effectively and efficiently we use the capital invested in our business. ROIC = Adjusted Operating Earnings Before Interest / Average Invested Capital. Invested Capital = Equity plus total debt minus cash and temporary investments. The Average Invested Capital is calculated as a simple average for the two most recent fiscal years.

Net Debt is a non‑GAAP measure defined as outstanding principal balance of current and long-term debt, less cash and temporary investments. Management uses Net Debt as an indicator of the Company's overall leverage and liquidity position, and believes it is useful to investors as it reflects the strength of our financial position.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the information under the heading "Management Summary from Chief Executive Officer John Sims." Any or all forward-looking statements may turn out to be incorrect, and our actual actions and results could differ materially from what they express or imply, because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. These risks, uncertainties, and other factors include those disclosed in the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2024, filed with the U.S. Securities and Exchange Commission (SEC) and in our subsequent filings with the SEC, available on our website, Sylvamo.com. These forward-looking statements reflect our current expectations, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.


SYLVAMO CORPORATION Consolidated Statement of Operations Preliminary and Unaudited (In millions, except per share amounts)

	Three Months Ended December 31,						Three Months Ended September 30,			Twelve Months Ended December 31,
		2025			2024			2025			2025			2024
NET SALES	$	890		$	970		$	846		$	3,351		$	3,773
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)		690			733			624			2,616	(b)		2,833	(g)
Selling and administrative expenses		68			81	(e)		68	(i)		281	(c)		311	(e)
Depreciation, amortization and cost of timber harvested		45			44	(f)		49			179			159	(f)
Taxes other than payroll and income taxes		7			5			8			26			26
Interest (income) expense, net		11			7			9			39	(d)		39	(h)
Impairment of goodwill		11	(a)		—			—			11	(a)		—
INCOME BEFORE INCOME TAXES		58			100			88			199			405
Income tax provision		25			19			31			67			103
NET INCOME	$	33		$	81		$	57		$	132		$	302
EARNINGS PER SHARE
Basic	$	0.84		$	1.98		$	1.43		$	3.29		$	7.35
Diluted	$	0.83		$	1.94		$	1.41		$	3.24		$	7.18
Average Shares of Common Stock Outstanding - Diluted		40			42			40			41			42

The accompanying notes are an integral part of this consolidated statement of operations.

Three and Twelve Months Ended December 31, 2025

(a)		Includes a pre-tax loss of $11 million ($11 million after taxes) related to the impairment of goodwill in our France reporting unit for the three and twelve months ended December 31, 2025.

(b)		Includes a pre-tax gain of $1 million ($1 million after taxes) for the twelve months ended December 31, 2025, to adjust the recognition of a foreign value-added tax refund in Brazil.

(c)		Includes a pre-tax loss of $1 million ($1 million after taxes) for certain severance costs related to our salaried workforce, a pre-tax loss of $1 million ($1 million after taxes) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after tax) related to environmental reserves in Brazil, all for the twelve months ended December 31, 2025.

(d)		Includes a pretax charge of $1 million ($1 million after tax) of interest expense related to tax settlements for the twelve months ended December 31, 2025.

Three and Twelve Months Ended December 31, 2024

(e)		Includes a pre-tax loss of $1 million ($0 million after taxes) and $3 million ($2 million after taxes) for certain severance costs related to our salaried workforce for the three and twelve months ended December 31, 2024, respectively, and a pre-tax gain of $1 million ($0 million after taxes) for the three and twelve months ended December 31, 2024 for other items. Also includes pre-tax loss of $2 million ($1 million after taxes) for the twelve months ended December 31, 2024, for integration costs related to the Nymölla acquisition, and a pre-tax loss of $2 million ($1 million after taxes) for legal fees related to the Brazil Tax Dispute for the twelve months ended December 31, 2024.

(f)		Includes pre-tax loss of $2 million ($1 million after taxes) and $3 million ($2 million after taxes) for the three and twelve months ended December 31, 2024, respectively, related to forest fires in Brazil.

(g)		Includes pre-tax gain of $1 million ($1 million after taxes) for the twelve months ended December 31, 2024, to adjust the recognition of a foreign value-added tax refund in Brazil. Also includes pre-tax loss of $1 million ($1 million after taxes) for the twelve months ended December 31, 2024, for other charges.

(h)		Includes pre-tax loss of $5 million ($4 million after taxes) for the twelve months ended December 31, 2024, related to debt extinguishment costs.

Three Months Ended September 30, 2025

(i)		Includes a pre-tax loss of $1 million ($1 million after taxes) for certain severance costs related to our salaried workforce.


SYLVAMO CORPORATION Reconciliation of Net Income to Adjusted Operating Earnings Preliminary and Unaudited (In millions, except per share amounts)

	Three Months Ended December 31,					Three Months Ended September 30,		Twelve Months Ended December 31,
		2025			2024		2025		2025			2024
Net Income	$	33		$	81	$	57	$	132		$	302
Add back: Net special items expense (income)		11			1		1		13			10
Add back: Foreign exchange on intercompany note		(1	)		—		—		(1	)		—
Adjusted Operating Earnings	$	43		$	82	$	58	$	144		$	312

	Three Months Ended December 31,					Three Months Ended September 30,		Twelve Months Ended December 31,
		2025			2024		2025		2025			2024
Diluted Earnings Per Common Share as Reported	$	0.83		$	1.94	$	1.41	$	3.24		$	7.18
Add back: Net special items expense (income)		0.27			0.02		0.03		0.32			0.24
Add back: Foreign exchange on intercompany note		(0.02	)		—		—		(0.02	)		—
Adjusted Operating Earnings Per Share	$	1.08		$	1.96	$	1.44	$	3.54		$	7.42


SYLVAMO CORPORATION Sales and Earnings by Business Segment Preliminary and Unaudited (In millions)

Net Sales by Business Segment

	Three Months Ended December 31,						Three Months Ended September 30,			Twelve Months Ended December 31,
		2025			2024			2025			2025			2024
Europe	$	186		$	194		$	184		$	741		$	801
Latin America		270			266			228			904			974
North America		447			514			450			1,754			2,029
Inter-segment Sales		(13	)		(4	)		(16	)		(48	)		(31	)
Net Sales	$	890		$	970		$	846		$	3,351		$	3,773


Operating Profit by Business Segment

	Three Months Ended December 31,							Three Months Ended September 30,				Twelve Months Ended December 31,
		2025				2024			2025				2025				2024
Europe	$	(29	)		$	3		$	(21	)		$	(112	)		$	10
Latin America		37				50			35				100				150
North America		71				56			84				263				293
Business Segment Operating Profit (Loss)	$	79			$	109		$	98			$	251			$	453

Income Before Income Taxes	$	58			$	100		$	88			$	199			$	405
Interest expense (income), net		11				7			9				39		(b)		39	(d)
Foreign exchange on intercompany note		(1	)			—			—				(1	)			—
Net special items expense (income)		11		(a)		2	(c)		1		(e)		14		(a)		9	(c)
Business Segment Operating Profit (f)	$	79			$	109		$	98			$	251			$	453

Three and Twelve Months Ended December 31, 2025

(a)		Includes a pre-tax loss of $11 million ($11 million after taxes) related to the impairment of goodwill in our France reporting unit for the three and twelve months ended December 31, 2025. Also includes a pre-tax loss of $1 million ($1 million after taxes) for certain severance costs related to our salaried workforce, a pre-tax gain of $1 million ($1 million after taxes) to adjust the recognition of a foreign value-added tax refund in Brazil, a pre-tax loss of $1 million ($1 million after tax) related to the termination of the Georgetown mill offtake agreement and a pre-tax loss of $1 million ($0 million after tax) related to environmental reserves in Brazil, all for the twelve months ended December 31, 2025.

(b)		Includes a pretax charge of $1 million ($1 million after tax) of interest expense related to tax settlements for the twelve months ended December 31, 2025.

Three and Twelve Months Ended December 31, 2024

(c)		Includes pre-tax loss of $2 million ($1 million after taxes) and $3 million ($2 million after taxes) for the three and twelve months ended December 31, 2024, respectively, related to forest fires in Brazil, a pre-tax loss of $1 million ($0 million after taxes) and $3 million ($2 million after taxes) for certain severance costs related to our salaried workforce for the three and twelve months ended December 31, 2024, respectively, and a pre-tax gain of $1 million ($0 million after taxes) for the three and twelve months ended December 31, 2024 for other items. Also includes pre-tax loss of $2 million ($1 million after taxes) for the twelve months ended December 31, 2024, for integration costs related to the Nymölla acquisition, a pre-tax loss of $2 million ($1 million after taxes) for legal fees related to the Brazil Tax Dispute for the twelve months ended December 31, 2024, a pre-tax gain of $1 million ($1 million after taxes) to adjust the recognition of a foreign value-added tax refund in Brazil for the twelve months ended December 31, 2024 and a pre-tax loss of $1 million ($1 million after taxes) for other charges for the twelve months ended December 31, 2024.

(d)		Includes pre-tax loss of $5 million ($4 million after taxes) for the twelve months ended December 31, 2024, related to debt extinguishment costs.

Three Months Ended September 30, 2025

(e)		Includes a pre-tax loss of $1 million ($1 million after taxes) for certain severance costs related to our salaried workforce.

(f)		As set forth in the chart above, business segment operating profit is defined as income before income taxes, but excluding net interest expense (income), foreign exchange on a note receivable from our Brazilian subsidiary and net special items. Business segment operating profit is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments.


Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin Preliminary and Unaudited (In millions)

	Three Months Ended December 31,						Three Months Ended September 30,			Twelve Months Ended December 31,
		2025			2024			2025			2025			2024
Net Income	$	33		$	81		$	57		$	132		$	302
Adjustments:
Income tax provision		25			19			31			67			103
Interest expense (income), net		11			7			9			39			39
Depreciation, amortization and cost of timber harvested		45			44			49			179			159
Stock-based compensation		1			6			4			18			23
Foreign exchange on intercompany note		(1	)		—			—			(1	)		—
Net special items expense (income)		11			—			1			14			6
Adjusted EBITDA	$	125		$	157		$	151		$	448		$	632
Net Sales	$	890		$	970		$	846		$	3,351		$	3,773
Adjusted EBITDA Margin		14	%		16	%		18	%		13	%		17	%


Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment

	Three Months Ended December 31,						Three Months Ended September 30,			Twelve Months Ended December 31,
		2025			2024			2025			2025			2024
Adjusted EBITDA
Europe	$	(22	)	$	14		$	(11	)	$	(78	)	$	47
Latin America		58			70			61			192			228
North America		89			73			101			334			357
Total Business Segment Adjusted EBITDA	$	125		$	157		$	151		$	448		$	632
Net Sales (excluding inter-segment sales eliminations)
Europe	$	186		$	194		$	184		$	741		$	801
Latin America		270			266			228			904			974
North America		447			514			450			1,754			2,029
Total Business Segment Net Sales	$	903		$	974		$	862		$	3,399		$	3,804
Adjusted EBITDA Margin
Europe		(12	)%		7	%		(6	)%		(11	)%		6	%
Latin America		21	%		26	%		27	%		21	%		23	%
North America		20	%		14	%		22	%		19	%		18	%


SYLVAMO CORPORATION Consolidated Balance Sheet Preliminary and Unaudited (In millions)

	December 31, 2025			December 31, 2024
ASSETS
Current Assets
Cash and temporary investments	$	135		$	205
Accounts and notes receivable (less allowances of $17 in 2025 and $21 in 2024)		424			429
Contract assets		19			26
Inventories		418			361
Other current assets		80			42
Total Current Assets		1,076			1,063
Plants, Properties and Equipment, net		1,047			944
Forestlands		364			319
Goodwill		114			111
Right of Use Assets		48			58
Deferred Charges and Other Assets		114			109
TOTAL ASSETS	$	2,763		$	2,604
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	381		$	375
Notes payable and current maturities of long-term debt		90			22
Accrued payroll and benefits		55			79
Other current liabilities		190			206
Total Current Liabilities		716			682
Long-Term Debt		763			782
Deferred Income Taxes		175			152
Other Liabilities		143			141
Equity
Common stock $1.00 par value, 200.0 shares authorized, 45.6 shares and 44.9 shares issued and 39.4 shares and 40.6 shares outstanding at December 31, 2025 and 2024, respectively		46			45
Paid-in capital		89			71
Retained earnings		2,514			2,455
Accumulated other comprehensive loss		(1,353	)		(1,490	)
		1,296			1,081
Less: Common stock held in treasury, at cost, 6.2 shares and 4.3 shares at December 31, 2025 and December 31, 2024, respectively		(330	)		(234	)
Total Equity		966			847
TOTAL LIABILITIES AND EQUITY	$	2,763		$	2,604


SYLVAMO CORPORATION Consolidated Statement of Cash Flows Preliminary and Unaudited (In millions)

	Twelve Months Ended December 31,
		2025			2024
OPERATING ACTIVITIES
Net Income	$	132		$	302
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and cost of timber harvested		179			159
Deferred income tax provision (benefit), net		7			(7	)
Stock-based compensation		18			23
Impairment of goodwill		11			—
Changes in operating assets and liabilities and other
Accounts and notes receivable		33			(47	)
Inventories		(14	)		25
Accounts payable and accrued liabilities		(52	)		42
Other		(46	)		(28	)
CASH PROVIDED BY OPERATING ACTIVITIES		268			469
INVESTMENT ACTIVITIES
Invested in capital projects		(224	)		(221	)
CASH USED FOR INVESTING ACTIVITIES		(224	)		(221	)
FINANCING ACTIVITIES
Dividends paid		(73	)		(62	)
Issuance of debt		229			250
Reduction of debt		(182	)		(407	)
Repurchases of common stock		(82	)		(69	)
Other		(17	)		(22	)
CASH USED FOR FINANCING ACTIVITIES		(125	)		(310	)
Effect of Exchange Rate Changes on Cash		11			(13	)
Change in Cash and Temporary Investments		(70	)		(75	)
Cash and Temporary Investments
Beginning of the period		205			280
End of the period	$	135		$	205


SYLVAMO CORPORATION Reconciliation of Cash Provided by Operations to Free Cash Flow Preliminary and Unaudited (In millions)

	Three Months Ended December 31,						Three Months Ended September 30,			Twelve Months Ended December 31,
		2025			2024			2025			2025			2024
Cash Provided By Operating Activities	$	94		$	164		$	87		$	268		$	469
Adjustments:
Cash invested in capital projects		(56	)		(64	)		(54	)		(224	)		(221	)
Free Cash Flow	$	38		$	100		$	33		$	44		$	248


SYLVAMO CORPORATION Reconciliation of Return on Invested Capital Preliminary and Unaudited (In millions)

		2025			2024
Net Income	$	132
Net special items expense (income)		14
Foreign exchange on intercompany note		(1	)
Interest expense (income), net		39
Adjusted Operating Earnings Before Interest	$	184
Total equity	$	966		$	847
Add: Long-term debt		763			782
Add: Notes payable and current maturities of long-term debt		90			22
Less: Cash, temporary investments and restricted cash		(135	)		(205	)
Total Invested Capital	$	1,684		$	1,446
Average Invested Capital	$1,565
Return on Invested Capital for the Twelve Months Ended December 31, 2025	12%


SYLVAMO CORPORATION Reconciliation of Net Debt-to-Adjusted EBITDA Preliminary and Unaudited (In millions)

		2025
Long-term debt	$	763
Notes payable and current maturities of long-term debt		90
Less: Financing lease obligations		(15	)
Less: Unamortized debt issuance costs		4
Gross Debt	$	842
Less: Cash and temporary investments		135
Net Debt	$	707
Adjusted EBITDA	$	448
Net Debt-to-Adjusted EBITDA for the Twelve Months Ended December 31, 2025		1.6	x

View source version on businesswire.com: https://www.businesswire.com/news/home/20260212739061/en/

Investor Contact: Hans Bjorkman, 901-519-8030, hans.bjorkman@sylvamo.com

Media Contact: Adam Ghassemi, 901-519-8115, adam.ghassemi@sylvamo.com

Sylvamo Releases Fourth Quarter, Full Year Earnings