Sylvamo reported third quarter results that exceeded analyst expectations for both top and bottom lines. While the company announced a strategic decision to divest its European operations, which are now classified as discontinued operations, the remaining business in North and Latin America showed improved profitability driven by price increases and lower maintenance costs.
Key Highlights
- Total revenue reached $823 million (including $178 million from discontinued European operations), surpassing the $817.8 million estimate.
- Adjusted operating earnings of $1.33 per share beat the consensus estimate of $1.13 per share.
- Announced a put option agreement to sell the European segment, including paper mills in France and Sweden, to Midas Atlantic Partners.
- Realized a $25 million sequential benefit from price and mix improvements, primarily due to paper price increases.
- Adjusted EBITDA margin for continuing operations stood at 20%, supported by $38 million in lower planned maintenance outage costs versus the second quarter.