Overview

• Paper company's Q4 revenue beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Adjusted EBITDA for Q4 beat analyst expectations

Outlook

• Sylvamo expects paper price increases in North America to begin realization in Q2

• Company anticipates lower volumes and higher energy costs in Q1

• Sylvamo plans $145 mln strategic investments at Eastover mill in 2026

Result Drivers

• EUROPEAN CHALLENGES - Sylvamo faced higher losses in Europe due to lower prices and higher operating costs, despite increased volumes

• LATIN AMERICA VOLUMES - Higher volumes in Latin America offset lower prices and higher costs in export regions

• NORTH AMERICA MAINTENANCE - Planned maintenance and lower mix impacted North American earnings despite higher volumes

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the paper products peer group is "buy"

• Wall Street's median 12-month price target for Sylvamo Corp is $57.00, about 9.5% above its February 11 closing price of $52.06

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw9VRmyVa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)