NYSE$SLVM
Sylvamo Corp. · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Sylvamo's first quarter results were in line with guidance, with adjusted operating earnings per share up more than 85% compared to the first quarter of 2022.
Sylvamo's first quarter 2023 earnings showed a net income from continuing operations of $97 million, or $2.25 per diluted share, and an adjusted EBITDA of $208 million, representing a 22% margin. The company repurchased 80% of its outstanding notes, eliminating restrictive covenants and enabling increased cash returns to shareholders.
- Adjusted EBITDA was $208 million, consistent with the outlook of $205 million to $215 million, achieving a 22% adjusted EBITDA margin.
- The company maintained a strong balance sheet and repurchased 80% of its outstanding notes to eliminate restrictive covenants.
- Net income from continuing operations was $97 million ($2.25 per diluted share) compared to $88 million ($1.99 per diluted share) in the previous quarter.
- Adjusted operating earnings were $108 million ($2.51 per diluted share) compared to $87 million ($1.97 per diluted share) in the previous quarter.
Headline financials
Revenue & EPS history
Sylvamo · Revenue · Quarterly
$959M
Revenue by segment
Sylvamo · $975M total across 3 segments · Q1 2023
- North America$505M-0.6%51.8%
- Europe$248M+112.0%25.4%
- Latin America$222M+3.3%22.8%
Forward guidance
Sylvamo projects 2023 adjusted EBITDA of $720 million to $770 million and free cash flow of $250 million to $280 million. Second quarter adjusted EBITDA is expected to be $115 million to $125 million.
Tailwinds
- Seasonally stronger volume in Latin America is projected to improve volume by $10 million to $15 million compared to the first quarter.
- Input and transportation costs are projected to improve by $15 million to $20 million, with favorable trends in energy and chemicals compared to the first quarter.
- The integration of the new mill in Sweden is proceeding well and is expected to strengthen performance.
- Favorable trends in energy and chemical input costs are expected to improve financial performance.
- Channel inventory corrections are expected to continue, contributing to adjusted EBITDA.
Headwinds
- Price and mix are expected to decrease by $45 million to $50 million compared to the first quarter, reflecting the realization of prior price decreases for pulp in all regions and paper in Europe as well as less favorable product mix.
- Operations and costs are expected to increase by $10 million to $15 million primarily due to unabsorbed fixed costs compared to the first quarter.
- Total planned maintenance outage expenses are expected to increase by $59 million compared to the first quarter, with two-thirds of 2023 planned maintenance outage costs scheduled for the second quarter.
- Pulp price decreases will impact adjusted EBITDA.
- Continued channel inventory corrections will impact adjusted EBITDA.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
+1.2%
Avg return
Earnings day
+2.5%
Avg return
5 days after
+2.1%
Avg return
30 days after
59%
13 / 22 earnings
Positive
+23.3%
Q4 2023
Best reaction
-17.0%
Q2 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -3.2% | -12.5% | -12.3% | |
| Q4 2025 | +5.1% | -9.5% | -20.3% | |
| Q3 2025 | +0.1% | +8.7% | +13.1% | |
| Q1 2025 | -12.6% | -6.1% | -10.6% | |
| Q4 2024 | -7.3% | -5.2% | -14.1% | |
| Q3 2024 | -14.7% | -11.4% | -6.5% | |
| Q2 2024 | +11.3% | +13.0% | +10.3% | |
| Q1 2024 | +2.7% | +6.1% | +6.0% | |
| Q4 2023 | +23.3% | +20.8% | +24.7% | |
| Q3 2023 | +7.4% | +10.5% | +18.4% | |
| Q2 2023 | -17.0% | -16.4% | -15.6% | |
| Q1 2023 | -7.9% | -7.3% | -5.2% | |
| Q4 2022 | -1.3% | -1.1% | +2.9% | |
| Q3 2022 | +8.4% | +13.7% | +32.3% | |
| Q2 2022 | +3.0% | +4.9% | -8.0% | |
| Q1 2021 | +6.7% | +8.7% | +4.1% | |
| Q1 2022 | +14.4% | +20.7% | +19.4% | |
| Q2 2021 | -5.0% | -8.8% | +1.5% | |
| Q4 2019 | -5.0% | -8.8% | +1.5% | |
| Q4 2021 | +7.1% | +13.6% | -2.9% | |
| Q4 2020 | +6.5% | +10.1% | +1.3% | |
| Q3 2021 | +4.2% | +11.0% | +5.6% | |
| Q3 2020 | — | — | — | |
| Q2 2020 | — | — | — | |
| Q1 2020 | — | — | — |
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