Revenue contracted 11.2% year-over-year in 2025Q2, with gross margin falling from 27.5% in 2024Q3 to 11.1% in 2026Q1 before recovering to 16.4% in 2026Q2, reflecting volatile input costs and limited pricing power.
Sylvamo Corp (SLVM) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 3.1B | 3.35B | 3.77B | 3.72B | 3.63B | 2.83B | 2.38B | 4.02B |
| Revenue Growth % | -9.76% | -11.18% | 1.4% | 2.56% | 28.29% | 18.57% | -40.63% | - |
| Cost of Goods Sold | 2.56B | 2.62B | 2.83B | 2.81B | 2.62B | 2.14B | 1.93B | 2.64B |
| COGS % of Revenue | - | 78.07% | 75.09% | 75.49% | 72.19% | 75.78% | 80.88% | 65.67% |
| Gross Profit | 532M | 735M | 940M | 912M | 1.01B | 685M | 456M | 1.38B |
| Gross Margin % | 17.18% | 21.93% | 24.91% | 24.51% | 27.81% | 24.22% | 19.12% | 34.33% |
| Gross Profit Growth % | - | -21.81% | 3.07% | -9.61% | 47.3% | 50.22% | -66.93% | - |
| Operating Expenses | 354M | 486M | 496M | 509M | 473M | 358M | 365M | 880M |
| OpEx % of Revenue | - | 14.5% | 13.15% | 13.68% | 13.04% | 12.66% | 15.3% | 21.91% |
| Selling, General & Admin | 228M | 281M | 311M | 343M | 325M | 207M | 202M | 655M |
| SG&A % of Revenue | - | 8.39% | 8.24% | 9.22% | 8.96% | 7.32% | 8.47% | 16.31% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 205M | 185M | 166M | 148M | 151M | 163M | 225M |
| Operating Income | 178M | 249M | 444M | 403M | 536M | 327M | 91M | 499M |
| Operating Margin % | 5.75% | 7.43% | 11.77% | 10.83% | 14.77% | 11.56% | 3.82% | 12.42% |
| Operating Income Growth % | - | -43.92% | 10.17% | -24.81% | 63.91% | 259.34% | -81.76% | - |
| EBITDA | 343M | 428M | 603M | 546M | 642M | 453M | 226M | 691M |
| EBITDA Margin % | 11.08% | 12.77% | 15.98% | 14.67% | 17.7% | 16.02% | 9.48% | 17.2% |
| EBITDA Growth % | -31.81% | -29.02% | 10.44% | -14.95% | 41.72% | 100.44% | -67.29% | - |
| D&A (Non-Cash Add-back) | 165M | 179M | 159M | 143M | 106M | 126M | 135M | 192M |
| EBIT | 168M | 244M | 458M | 429M | 539M | 359M | 99M | 506M |
| Net Interest Income | -42M | -39M | -39M | -34M | -69M | 1M | 4M | 9M |
| Interest Income | 0 | 6M | 14M | 26M | 8M | 32M | 8M | 13M |
| Interest Expense | 42M | 45M | 53M | 60M | 77M | 31M | 4M | 4M |
| Other Income/Expense | -54M | -50M | -39M | -34M | -69M | 1M | 4M | 3M |
| Pretax Income | 124M | 199M | 405M | 369M | 467M | 328M | 95M | 502M |
| Pretax Margin % | 4.01% | 5.94% | 10.73% | 9.92% | 12.87% | 11.6% | 3.98% | 12.5% |
| Income Tax | 20M | 67M | 103M | 116M | 131M | 101M | 8M | 125M |
| Effective Tax Rate % | 16.13% | 33.67% | 25.43% | 31.44% | 28.05% | 30.79% | 8.42% | 24.9% |
| Net Income | -180M | 132M | 302M | 253M | 118M | 331M | 170M | 377M |
| Net Margin % | -5.81% | 3.94% | 8% | 6.8% | 3.25% | 11.7% | 7.13% | 9.39% |
| Net Income Growth % | -200% | -56.29% | 19.37% | 114.41% | -64.35% | 94.71% | -54.91% | - |
| Net Income (Continuing) | 104M | 132M | 302M | 253M | 336M | 227M | 87M | 377M |
| Discontinued Operations | -1000K | 0 | 0 | 0 | -218M | 104M | 83M | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.50 | 3.22 | 7.18 | 5.93 | 2.66 | 7.52 | 3.85 | 8.55 |
| EPS Growth % | -203.34% | -55.15% | 21.08% | 122.93% | -64.63% | 95.32% | -54.97% | - |
| EPS (Basic) | - | 3.29 | 7.35 | 6.02 | 2.68 | 7.52 | 3.85 | 8.55 |
| Diluted Shares Outstanding | 40M | 41M | 42M | 42.7M | 44.4M | 44M | 44.11M | 44.11M |
| Basic Shares Outstanding | 40M | 40.12M | 41.1M | 42.03M | 43.9M | 44M | 44.11M | 44.11M |
| Dividend Payout Ratio | - | 55.3% | 20.53% | 22.53% | 8.47% | - | - | - |
Quick answers to the most common questions about buying SLVM stock.
For fiscal year 2025, Sylvamo Corp (SLVM) reported total revenue of $3.35B. This represents a 16.6% decline compared to $4.02B in 2019.
Sylvamo Corp (SLVM) is profitable, generating $132.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.9%.
Sylvamo Corp (SLVM) reported an operating income of $249.0M, resulting in an operating profit margin of 7.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Sylvamo Corp (SLVM) generated $735.0M in gross profit for the year, representing a gross profit margin of 21.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Secular demand decline and negative operating leverage
Metrics are mathematically derived from official filings.
Revenue Slide Reflects Structural Demand Erosion
Sylvamo's revenue contracted 11.2% year-over-year in 2025Q2, with sequential declines persisting through 2026Q1. According to the latest quarterly report, the 2026Q2 uptick of 1.5% offers only a tentative stabilization signal.
The revenue trajectory shows a clear deceleration from the 7.6% growth in 2024Q3 to consistent negative growth through 2025 and early 2026. The 2026Q2 sequential increase of 6.8% from 2026Q1 may reflect price increases announced in Q2, but the year-over-year growth of 1.5% suggests that volume declines are largely offsetting pricing gains. The sustained decline in North American office occupancy, a key demand driver for uncoated freesheet, likely continues to pressure volumes, and the modest sequential recovery does not yet indicate a reversal of the secular trend.
Gross Margin Volatility Exposes Commodity Exposure
Gross margin swung from 27.5% in 2024Q3 to 11.1% in 2026Q1, reflecting volatile input costs and pricing power. As reported in financial statements, the 2026Q2 recovery to 16.4% remains well below the 2024 average of 24.9%.
The gross margin compression is severe, with the 2026Q1 margin of 11.1% representing a 16.4 percentage point decline from the 2024Q3 peak. This volatility suggests that Sylvamo's pricing power is insufficient to offset rising fiber, energy, and chemical costs, particularly in its European operations. The 2026Q2 improvement to 16.4% may indicate that announced price increases are beginning to take effect, but the margin remains far below historical levels, implying that cost pressures are persistent and that the company's integrated cost advantage in Latin America is not fully insulating it from global commodity swings.
Negative Operating Leverage Amplifies Downturn
Operating income swung from $191M in 2024Q3 to just $3M in 2026Q1, with operating margin collapsing from 19.8% to 0.4%. Based on the income statement data, fixed costs are not flexing downward with revenue.
The operating leverage is clearly negative: while revenue declined 11.2% year-over-year in 2025Q2, operating income fell 75.4% from the prior year quarter. The high fixed-cost structure of mill operations means that volume declines directly hit the bottom line, and SG&A expenses have not been reduced proportionally. The 2026Q2 operating margin of 1.7% is a slight improvement from the prior quarter, but it remains far below the 2024 average of 14.2%, indicating that the company has not yet regained the operating efficiency it enjoyed before the demand downturn.
Net Losses and SBC Cloud Earnings Quality
Sylvamo reported a net loss of $11M in 2026Q2, its first loss in the provided period, with EPS of -$0.28. According to the quarterly data, stock-based compensation of $3M adds to the drag, though it is not the primary driver.
The transition to a net loss in 2026Q2 is a significant deterioration in earnings quality, as the company had maintained positive net income throughout 2024 and 2025. The loss appears driven by operating weakness rather than one-time items, as operating income of $14M was insufficient to cover interest and taxes. Stock-based compensation, while modest at $3M, is a non-cash expense that reduces reported earnings, and its presence in a loss-making quarter suggests that management is not adjusting compensation to reflect the financial strain. Investors should monitor whether the loss is a temporary trough or the beginning of a sustained period of unprofitability.
COGS Pressures Outpace SG&A Discipline
COGS as a percentage of revenue rose to 83.6% in 2026Q2, up from 73.3% in 2024Q4, while SG&A remained relatively flat. As reported in the income statement, the cost of goods sold is the primary margin driver.
The cost structure analysis reveals that COGS is the main source of margin compression, with its share of revenue increasing by over 10 percentage points from the 2024 average. This suggests that input costs—fiber, energy, and chemicals—have risen faster than Sylvamo can pass through to customers. SG&A, on the other hand, has been relatively stable in absolute terms, indicating some discipline in overhead spending, but it is not enough to offset the COGS surge. The company's ability to manage costs will be critical to restoring profitability, and the recent price increases may help, but the persistence of high input costs remains a key risk.
2024Q3 Peak Marks Turning Point
The 2024Q3 quarter was the operational peak, with revenue of $965M, operating margin of 19.8%, and EPS of $2.27. According to the quarterly data, subsequent quarters show a sharp decline, indicating a structural shift.
The inflection point is clearly 2024Q3, after which revenue, margins, and earnings all deteriorated significantly. The 2024Q3 performance was likely supported by strong demand and favorable pricing, but the subsequent decline suggests that the industry entered a downturn, possibly due to inventory corrections and weakening office demand. The lasting impact is that Sylvamo has not been able to return to those levels, and the 2026Q2 revenue of $806M is 16.5% below the 2024Q3 peak. This inflection appears to mark the beginning of a new, lower revenue baseline, and the company's ability to adapt to this new reality will determine its future profitability.
Pricing Power May Be Illusory in Declining Market
Despite announced price increases, the 2026Q2 gross margin of 16.4% remains far below the 2024 average, suggesting that price hikes are not fully offsetting cost and volume pressures. Short-sellers could argue that the secular decline is accelerating.
The counter-argument to the bull case is that Sylvamo's pricing power is insufficient to counteract the structural decline in uncoated freesheet demand. The revenue growth of 1.5% in 2026Q2, despite price increases, implies that volumes are still falling, and the gross margin recovery is weak. If the secular decline is accelerating due to remote work and digitalization, the company may face a permanent reduction in its revenue base, making it difficult to achieve the operating leverage needed to restore margins. Furthermore, the negative EPS surprise in 2026Q2 and the reliance on cost cuts rather than growth suggest that the company is in a defensive position, which may not be sustainable in the long term.