Sylvamo Q2 2022 Earnings Report
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
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