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Dec 31, 2023

Sylvamo Q4 2023 Earnings Report

Sylvamo reported Q4 2023 earnings, demonstrating strong operating cash flow and returning $127 million in cash to shareowners for the full year.

Key Takeaways

Sylvamo's Q4 2023 results showed net sales of $964 million and a net income from continuing operations of $49 million. The company's adjusted EBITDA was $117 million with a 12% margin. They also generated $104 million in free cash flow during the quarter.

Net sales reached $964 million, up from $897 million in the previous quarter.

Net income from continuing operations was $49 million, compared to $58 million in the third quarter.

Adjusted EBITDA was $117 million with a 12% margin, down from $158 million with an 18% margin in Q3.

Free cash flow was $104 million, a decrease from $155 million in the prior quarter.

Total Revenue
$964M
Previous year: $927M
+4.0%
EPS
$1.16
Previous year: $1.97
-41.1%
Adjusted EBITDA
$117M
Previous year: $170M
-31.2%
Free Cash Flow
$104M
Previous year: $84M
+23.8%
Effective Tax Rate
27%
Previous year: 28%
-3.6%
Gross Profit
$164M
Previous year: $273M
-39.9%
Cash and Equivalents
$220M
Previous year: $360M
-38.9%
Free Cash Flow
$104M
Previous year: $84M
+23.8%
Total Assets
$2.87B
Previous year: $2.71B
+6.0%

Sylvamo

Sylvamo

Sylvamo Revenue by Segment

Sylvamo Revenue by Geographic Location

Forward Guidance

Sylvamo anticipates an adjusted EBITDA between $105 million and $125 million for Q1 2024.

Positive Outlook

  • Operations and other costs are expected to improve by $20 million to $25 million due primarily to lower economic downtime.

Challenges Ahead

  • Price and mix are expected to decrease slightly by $5 million to $10 million, primarily reflecting a seasonal, geographic mix shift in Latin America
  • Volume is projected to decrease by $10 million to $15 million, with seasonally weaker industry demand in Latin America
  • Input and transportation costs are projected to increase by $5 million to $10 million due to increased transportation costs, mainly in North America and higher fiber costs in Latin America

Revenue & Expenses

Visualization of income flow from segment revenue to net income