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Sep 30, 2024
Sylvamo Q3 2024 Earnings Report
Sylvamo's Q3 2024 earnings surpassed expectations, driven by strong free cash flow generation.
Key Takeaways
Sylvamo reported strong Q3 2024 earnings with a 20% adjusted EBITDA margin and outstanding free cash flow, driven by solid operational performance, good commercial execution, and stable input costs. Net income was $95 million, or $2.27 per diluted share, and adjusted EBITDA was $193 million.
Net income reached $95 million ($2.27 per diluted share) compared to $83 million ($1.98 per diluted share) in the previous quarter.
Adjusted EBITDA stood at $193 million (20% margin) versus $164 million (18% margin) in the previous quarter.
Cash from operating activities amounted to $163 million compared to $115 million in the previous quarter.
Free cash flow reached $119 million compared to $62 million in the previous quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Sylvamo anticipates an adjusted EBITDA between $150 million and $165 million for the fourth quarter.
Positive Outlook
- Volume is projected to improve by $15 million to $20 million, with seasonally stronger volume in Latin America
- Operations costs are expected to increase by up to $5 million due to an $8 million operating expense for a planned ten-year turbine generator maintenance event at our Eastover, South Carolina, mill, which is partially offset by better fixed cost absorption from less economic downtime in North America
- Increase in industry demand across all regions
- Expect recent capacity reduction announcements to lead to more favorable supply and demand balance trends in 2025
- Confident in strategy to grow earnings and cash flow by continuing to invest in high-return projects in our mills and processes
Challenges Ahead
- Price and mix are expected to be unfavorable $20 million to $25 million due to pulp and paper price decreases in Europe, higher export mix in Latin America and customer mix in North America
- Input and transportation costs are projected to increase by $5 million to $10 million, mainly due to transportation and seasonally higher energy
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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