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Jun 30, 2022
Sylvamo Q2 2022 Earnings Report
Sylvamo's second quarter results showcased increased earnings and operating margins, leading to an upward revision of the annual guidance.
Key Takeaways
Sylvamo reported strong second-quarter results, marked by increased earnings and operating margins. The company raised its full-year adjusted EBITDA and free cash flow guidance, driven by strong first-half performance and a positive outlook for the second half. Sylvamo remains focused on debt reduction, strategic investments, and returning value to shareholders.
Net income from continuing operations was $84 million ($1.89 per diluted share), up from $55 million ($1.25 per diluted share) in the first quarter of 2022.
Adjusted operating earnings (non-GAAP) reached $90 million ($2.02 per diluted share), exceeding the company’s guidance range by $0.12 per diluted share.
Adjusted EBITDA (non-GAAP) was $189 million (20.7% margin), compared to $146 million (17.8% margin) in the first quarter of 2022, surpassing the high end of guidance by $9 million.
Free cash flow (non-GAAP) amounted to $39 million, an increase from $32 million in the first quarter of 2022.
Sylvamo
Sylvamo
Sylvamo Revenue by Segment
Sylvamo Revenue by Geographic Location
Revenue by Segment
Europe Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.comRevenue by Geographic Location
Europe Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.com Forward Guidance
Sylvamo expects adjusted EBITDA to be between $205 million and $215 million. Price and mix are expected to improve by $40 million to $45 million compared to the second quarter, reflecting continued realization of prior increases in all regions.
Positive Outlook
- Price and mix are expected to improve by $40 million to $45 million compared to the second quarter, reflecting continued realization of prior increases in all regions
- Volume is expected to improve by $5 million to $10 million, with seasonally stronger volume in North America
- Operations and costs are expected to increase by $5 million to $10 million
Challenges Ahead
- Input and transportation costs are projected to rise by $35 million to $40 million, primarily due to higher chemicals, energy, fiber and transportation costs
- Total maintenance outage expenses are projected to decrease by $14 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income