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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.
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 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
- Total planned maintenance outage expenses are expected to increase by $17 million
- Terminating a supply agreement for uncoated freesheet, bristols and specialty papers from International Paper’s Georgetown, South Carolina, mill, effective Dec. 31, 2024
- Share repurchases of $30 million of our shares and have $120 million remaining on our $150 million share repurchase authorization from September 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income