Free cash flow has deteriorated to a negative $59.0 million in 2026Q1, highlighting a disconnect between internal cash generation and the $18.0 million in dividends paid during the same period.
| Cash from Operations | 235M | 268M | 469M | 504M | 438M | 549M | 359M | 524M |
| Operating CF Margin % | - | 8% | 12.43% | 13.54% | 12.07% | 19.41% | 15.05% | 13.04% |
| Operating CF Growth % | -277.13% | -42.86% | -6.94% | 15.07% | -20.22% | 52.92% | -31.49% | - |
| Net Income | 102M | 132M | 302M | 253M | 336M | 227M | 170M | 377M |
| Depreciation & Amortization | 180M | 179M | 128M | 143M | 106M | 109M | 154M | 192M |
| Stock-Based Compensation | 11M | 18M | 0 | 23M | 0 | 0 | 0 | 19M |
| Deferred Taxes | 3M | 0 | -7M | 0 | -7M | -6M | -49M | -7M |
| Other Non-Cash Items | -4M | 18M | 54M | -73M | 59M | 157M | 15M | 0 |
| Working Capital Changes | -57M | -79M | -8M | 158M | -56M | 62M | 69M | -57M |
| Change in Receivables | 57M | 33M | -47M | 104M | -45M | -99M | 65M | 18M |
| Change in Inventory | -74M | -14M | 25M | 6M | -99M | 12M | 71M | -47M |
| Change in Payables | -12M | -52M | 42M | 0 | 48M | 196M | -45M | -5M |
| Cash from Investing | -225M | -224M | -221M | -377M | 180M | 127M | -79M | -160M |
| Capital Expenditures | -225M | 0 | -221M | -210M | -149M | -69M | -75M | -118M |
| CapEx % of Revenue | 6.85% | 6.68% | 5.86% | 5.64% | 4.11% | 2.44% | 3.14% | 2.94% |
| Acquisitions | 0 | 0 | 0 | -167M | 324M | 0 | 0 | 3M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 224M | 0 | 0 | 0 | 5M | 196M | -4M | -42M |
| Cash from Financing | -41M | -125M | -310M | -219M | -470M | -589M | -350M | -387M |
| Debt Issued (Net) | 102M | 47M | -157M | -80M | -375M | 1.37B | -10M | -18M |
| Equity Issued (Net) | -62M | -82M | -69M | -70M | -80M | 0 | 0 | 0 |
| Dividends Paid | -73M | -73M | -62M | -57M | -10M | 0 | 0 | 0 |
| Share Repurchases | -62M | -82M | -69M | -70M | -80M | 0 | 0 | 0 |
| Other Financing | -8M | -17M | -22M | -12M | -5M | -1.96B | -340M | -369M |
| Net Change in Cash | -24M | -70M | -75M | -80M | 201M | 64M | -40M | -40M |
| Free Cash Flow | 10M | 44M | 248M | 294M | 289M | 480M | 284M | 406M |
| FCF Margin % | 0.3% | 1.31% | 6.57% | 7.9% | 7.97% | 16.97% | 11.91% | 10.11% |
| FCF Growth % | -96.09% | -82.26% | -15.65% | 1.73% | -39.79% | 69.01% | -30.05% | - |
| FCF per Share | 0.25 | 1.07 | 5.90 | 6.89 | 6.51 | 10.91 | 6.44 | 9.20 |
| FCF Conversion (FCF/Net Income) | 0.10x | 2.03x | 1.55x | 1.99x | 3.71x | 1.66x | 2.11x | 1.39x |
| Interest Paid | 0 | 0 | 0 | 68M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Negative Operating Leverage
According to recent quarterly filings, the OCF/NI ratio has exhibited extreme volatility, reaching 3.33 in 2026Q1, which suggests that reported net income is increasingly decoupled from actual cash generation as the company struggles to maintain operational efficiency amidst a broader secular decline in paper demand.
The wide variance between net income and operating cash flow indicates that non-cash charges and working capital swings are masking the underlying cash-generating capacity of the business. Investors should monitor this divergence closely, as it may imply that the company's accounting earnings are becoming less representative of its true liquidity position.
As reported in financial statements, Sylvamo's free cash flow trajectory has shifted from a peak margin of 12.3% in 2024Q3 to a negative 7.8% in 2026Q1, reflecting a rapid deterioration in the company's ability to fund operations and capital requirements through internal cash generation.
This sharp reversal in FCF margins highlights the vulnerability of the firm's capital-intensive model to volume deleveraging. The transition to negative FCF suggests that the current cost structure may be unsustainable if revenue contraction persists, potentially forcing a re-evaluation of capital allocation priorities.
Based on Sylvamo's reported figures, capital expenditures have remained stubbornly high, with CapEx/Revenue ratios hovering around 6.5% in 2026Q1, indicating that the company is continuing to reinvest heavily in its mill assets despite a clear and persistent downward trend in top-line performance.
Maintaining high capital intensity during a period of revenue contraction suggests that management is prioritizing asset longevity over immediate cash preservation. This strategy warrants further investigation to determine if these expenditures are truly maintenance-focused or if they represent an attempt to defend market share in a shrinking industry.
Data from recent quarterly reports indicates that working capital changes have become a significant drag on cash flow, with a $28.0 million outflow in 2026Q1, suggesting that the company is facing increasing difficulty in managing its inventory levels and collection cycles in a softening market.
The erratic nature of working capital movements appears to reflect the challenges of balancing production schedules with unpredictable customer demand. This volatility may indicate that the company is accumulating excess inventory, which could lead to future margin pressure if pricing power continues to erode.
As disclosed in financial statements, Sylvamo has continued to return capital through dividends and buybacks despite the recent shift to negative free cash flow, with $18.0 million paid in dividends during 2026Q1, which may indicate a disconnect between current cash reality and shareholder return policies.
The decision to maintain dividend payments while operating cash flow turns negative suggests a management commitment to shareholder returns that may be at odds with the company's deteriorating liquidity. Investors should monitor whether this capital allocation strategy remains viable if the current cash burn persists.
Quick answers to the most common questions about buying SLVM stock.
Sylvamo Corporation (SLVM) generated $268.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sylvamo Corporation (SLVM) generated $44.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sylvamo Corporation (SLVM) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sylvamo Corporation (SLVM) returned $73.0M to shareholders via cash dividends and spent $82.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.