Nov. 6, 2026 - Sylvamo today reported results for the third quarter of 2026.
As we announced earlier this morning, we entered into a put option agreement with Midas Atlantic Partners, in partnership with The Najafi Companies, for a binding offer to acquire our Europe business, including our uncoated freesheet paper mills in Saillat, France, and Nymolla, Sweden, as well as our forestry and supporting business operations.
We believe this potential transaction represents an important strategic step for our Europe business and Sylvamo. In Europe, it would create the opportunity to move forward with an owner experienced in corporate carve-outs and positioning businesses for long-term success.
After the proposed transaction, Sylvamo would be a more focused company, with greater ability to invest in our business, strengthen our performance and pursue world-class excellence. We believe that focus will make us a stronger company and better position us to create sustainable value for our employees, customers and investors.
Our long-term strategy and investment thesis is unchanged: we are focusing on uncoated freesheet, investing to strengthen our competitive advantages and leveraging our strengths to generate high returns on invested capital.
Our Europe business is now reported as discontinued operations. Unless otherwise noted, all results and comparisons are for continuing operations excluding Europe. Prior periods have been recast.
Our teams continue to make good progress on our high-return strategic investments at our Eastover mill. The paper machine optimization project is underway. The project, which remains on schedule and within budget, will add an additional 60,000 short tons of uncoated freesheet capacity annually.
We made a strategic decision to keep our three existing cutsize sheeters operational and add a new state-of-the-art sheeter rather than replacing one. The new sheeter will add approximately 200,000 short tons of cutsize converting capacity, with startup expected early in the third quarter of 2027.
In addition, the woodyard softwood line and the warehouse expansion at our sheeting plant remain on track to start up in the first quarter of 2027.
In Latin America, demand is seasonally stronger in the second half of the year. In September, Colombia canceled its antidumping duties on uncoated freesheet imports from Brazil, which restores access to a market we previously served.
In North America, the industry supply and demand balance remains healthy and our paper price increases are mostly implemented with our customers.
Imports in both regions continue to increase year over year.
Supply chain pressures are driving higher input and transportation costs. Lower supply availability and higher fuel costs affected ocean transportation, while elevated diesel prices and reduced driver availability increased trucking costs in the U.S. Input costs, including chemicals, energy and fiber, continue to be impacted by persistently high oil prices.
Mr. Sims continued, "In January, I committed that we would allocate capital wisely, focus on long-term value creation and communicate transparently. The proposed sale of our Europe business will make Sylvamo a more focused company, concentrated in Latin America and North America, where we see the greatest opportunities to create value. "Our Eastover strategic investments are progressing, our lean transformation is improving performance across our mills and our flagship growth strategy and disciplined capital allocation principles are unchanged. We will continue to invest in low-risk, high-return projects in uncoated freesheet, maintain a strong balance sheet and return cash to shareowners."
Sylvamo Corporation (NYSE: SLVM) is the world's paper company with mills in Europe, Latin America and North America. The company transforms renewable resources into papers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, Sylvamo employs more than 6,500 colleagues.
SOURCE: Sylvamo