Sylvamo Reports $11 Million Net Loss in Second Quarter 2026

Sylvamo reported a net loss of $11 million for the second quarter of 2026, compared with net income of $15 million in the same quarter a year earlier. Net sales increased to $806 million from $794 million, while adjusted EBITDA was $60 million, down from $82 million in the second quarter of 2025.

The paper manufacturer said it implemented uncoated freesheet price increases with customers across all regions during the quarter. It also continued its lean transformation program and advanced strategic investments at its Eastover, South Carolina, mill.

At Eastover, the hardwood line of the woodyard modernization project began operating in May, with improved reliability and chip quality, while the softwood operation remains scheduled for the first quarter of 2027. A paper machine optimization project remains on schedule and on budget for completion during a planned fourth-quarter maintenance outage. The project is expected to add 60,000 short tons of annual uncoated freesheet capacity.

Sylvamo said its new cutsize sheeter passed equipment acceptance testing in June and has arrived in the United States ahead of installation. The company is also expanding warehouse capacity at an existing sheeting plant through a sale-leaseback transaction, with completion expected in the first quarter of 2027.

Cash provided by continuing operations was $38 million, while free cash flow was negative $23 million. Sylvamo said it expects stronger earnings in the second half of 2026, supported by improvements in price and mix, volume and operations.

Regional operating results varied. North American operating profit rose to $50 million from $25 million in the first quarter, while Europe narrowed its operating loss to $20 million from $44 million. Latin America posted a $16 million operating loss, compared with a $4 million profit in the first quarter.

The company said Middle East conflict-related pressures on energy, chemical and transportation costs are expected to continue through the year.