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Dec 31, 2022
Sylvamo Q4 2022 Earnings Report
Sylvamo reported strong earnings, free cash flow, and shareowner returns in its first full year.
Key Takeaways
Sylvamo's Q4 2022 earnings reveal a solid performance with a net income of $88 million and adjusted EBITDA of $170 million. The company successfully managed supply chain, inflation, and geopolitical challenges, while implementing its strategy of commercial excellence, operational excellence, and financial discipline.
Net income from continuing operations was $88 million ($1.99 per diluted share).
Adjusted operating earnings were $87 million ($1.97 per diluted share).
Adjusted EBITDA was $170 million (18% margin).
Free cash flow was $84 million.
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 provided its outlook for full year 2023 and first quarter 2023. Adjusted EBITDA for the year, including Nymolla, is expected to be $760 million to $840 million. Free cash flow is expected to be $300 million to $330 million.
Positive Outlook
- Adjusted EBITDA for the first quarter is expected to be $200 million to $215 million, which includes adjusted EBITDA for Nymolla of $15 million to $20 million.
- Operations and costs are expected to improve by $10 million to $15 million as unfavorable items in fourth quarter 2022 will not recur.
- Input and transportation costs are expected to improve by $5 million to $10 million, primarily due to favorable trends in natural gas and transportation costs.
- Total maintenance outage expenses are expected to improve by $29 million
- Acquired an uncoated freesheet mill in Nymolla, Sweden, for an attractive price.
Challenges Ahead
- Price and mix are expected to decrease by $15 million to $20 million, primarily reflecting a seasonal mix shift in Latin America.
- Volume is expected to decrease by $5 million to $10 million, reflecting the seasonally weakest demand quarter in Latin America.
- Nymolla is included in the first quarter results.
- Since Nymolla is not included in fourth quarter results, the sequential changes do not reflect the impact of Nymolla.
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income