Sylvamo Corp

Sylvamo reported second-quarter 2026 financial results on August 7, with sequential adjusted EBITDA jumping to $60 million, more than double the prior quarter's total, though margin stayed thin at 7%. Free cash flow remained negative at $23 million, an improvement from the previous quarter, and CEO John Sims called 2026 a transition year shaped by the end of a supply agreement and an extended mill outage. Management expects $75 million to $85 million of price and mix benefit in the second half versus the first, driven by uncoated freesheet price increases across all regions and International Paper's Riverdale mill conversion pulling 7% of annual industry capacity offline. The company also projects $55 million a year in benefits from Eastover mill investments and a warehouse sale-leaseback deal, with $30 million to $40 million landing as soon as 2027, while adjusted operating earnings came in at $0.03 per share, weighed down by $24 million in planned maintenance outage costs.

Sylvamo Corporation detailed $55 million in total annual benefits from four Eastover projects, with $30 million to $40 million of that expected in 2027. CEO John Sims said the paper machine speed-up will add 60,000 tons of uncoated freesheet capacity annually and, together with a new sheeter, will deliver $50 million in annual benefits. A completed sale-leaseback of the Eastover sheet plant to expand warehousing by 300,000 square feet is expected to yield upwards of $5 million in savings per year. The company also quantified a second-half price and mix benefit of $75 million to $85 million versus the first half, with 70% of that coming from price. Second-quarter adjusted EBITDA more than doubled sequentially to $60 million, while free cash flow was negative $23 million.