NYSE$SLVM
Sylvamo Corp. · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Sylvamo's Q2 2023 earnings met guidance, but slower demand recovery drove a revised annual outlook.
Sylvamo's second quarter earnings per share and adjusted EBITDA objectives were achieved despite challenging market conditions and planned maintenance outages. The company returned $41 million of cash to shareowners through dividends and share repurchases. The adjusted EBITDA projection for 2023 was revised to $560 million to $600 million, and the free cash flow projection was revised to $220 million to $250 million.
- Net income from continuing operations was $49 million ($1.14 per diluted share).
- Adjusted operating earnings (non-GAAP) were $49 million ($1.14 per diluted share).
- Adjusted EBITDA (non-GAAP) was $124 million (13.5% margin).
- Cash provided by operating activities from continuing operations was $77 million.
Headline financials
Revenue & EPS history
Sylvamo · Revenue · Quarterly
$919M
Revenue by segment
Sylvamo · $934M total across 3 segments · Q2 2023
- North America$474M-13.7%50.7%
- Latin America$250M+0.4%26.8%
- Europe$210M+55.6%22.5%
Forward guidance
Sylvamo projects adjusted EBITDA of $130 million to $150 million for the third quarter. The company now projects adjusted EBITDA of $560 million to $600 million and free cash flow of $220 million to $250 million for 2023.
Tailwinds
- Volume is projected to improve by $15 million to $20 million, with seasonally stronger volume in Latin America and North America
- Input and transportation costs are projected to improve by $15 million to $20 million, with favorable trends in fiber and chemicals.
- Total planned maintenance outage expenses are expected to decrease by $54 million
- Sylvamo expects to reduce costs and working capital to maximize earnings and free cash flow in the second half of the year.
- The company will continue implementing its three-pronged strategy of commercial excellence, operational excellence and financial discipline.
Headwinds
- Price and mix are expected to decrease by $60 million to $65 million.
- Operations and other costs are expected to increase by $5 million to $10 million, mainly due to unabsorbed fixed costs while matching paper production with Sylvamo customer demand.
- Lower paper demand and inventory channel corrections in Europe and North America.
- Updated views on pulp and paper price and mix.
- Higher unabsorbed fixed costs.
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 Q2 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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