Sylvamo Corporation reported a strong financial performance for the fiscal year ending December 31, 2024, with net income reaching $302 million, or $7.18 per diluted share, compared to $253 million, or $5.93 per diluted share, in 2023. The company's net sales increased to $3.8 billion from $3.7 billion in the previous year. Adjusted EBITDA also saw an uptick, rising to $632 million, up from $607 million in 2023, while the adjusted EBITDA margin improved to 16.8% from 16.3%. However, cash from continuing operations decreased to $469 million from $504 million in the prior year, and free cash flow fell to $248 million from $294 million.
The company experienced significant operational changes, including the acquisition of Stora Enso’s uncoated freesheet paper mill in Nymölla, Sweden, for approximately $167 million, which was completed on January 2, 2023. This acquisition is expected to enhance Sylvamo's production capacity by approximately 500,000 short tons of uncoated freesheet. Additionally, Sylvamo's divestiture of its Russian operations, completed in October 2022, has been classified as discontinued operations, allowing the company to focus on its core markets in Europe, Latin America, and North America.
In terms of operational metrics, Sylvamo's workforce consists of over 6,500 employees, with a significant portion located in Europe (25%), Latin America (49%), and North America (26%). The company has emphasized its commitment to employee safety, launching initiatives to enhance workplace safety and mental health support. Sylvamo's geographic diversification has allowed it to generate 46% of its revenues and 41% of its operating profit from Europe and Latin America, which are characterized by strong profitability in the uncoated paper industry.
Looking ahead, Sylvamo remains optimistic about its financial outlook for 2025, aiming to generate strong adjusted EBITDA and free cash flow while continuing to return cash to shareholders. The company plans to invest between $220 million and $240 million in capital expenditures across its mills and forestlands, focusing on high-return projects to strengthen its low-cost position. Sylvamo's management believes that its solid track record since the spin-off from International Paper in 2021 positions the company well to navigate industry challenges and create value for its customers and shareholders.
About Sylvamo Corp
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