Adjusted operating earnings were $0.37 per share, and free cash flow was negative $2 million, reflecting lower EBITDA and higher capital spending compared to the prior year.
Foreign exchange headwinds negatively impacted results by $13 million.
Operational improvements and cost savings totaled $23 million, including $18 million from better performance in North America and Europe and $18 million from green energy credits and lower overhead.
Price and mix contributed a favorable $12 million, while volume decreased by $9 million, mainly due to operational challenges and lower production at IP's Riverdale mill.
Sylvamo reported adjusted EBITDA of $82 million for Q2 2025, with a margin of 10%, in line with expectations despite the largest planned maintenance outages in over five years costing nearly $70 million.
Consumer & Specialties sales were $278 million, up 4% sequentially; Household & Personal Care sales were $127 million, up 3% sequentially.
Engineered Solutions sales were $251 million, up 12% sequentially; High-Temperature Technologies sales were $178 million, 3% below prior year but up 5% sequentially.
Free cash flow was $34 million in Q2; CapEx was $29 million with full-year projection of approximately $100 million.
Liquidity stood at nearly $700 million with net leverage ratio at 1.7x EBITDA, below the 2x target.
Operating income for Consumer & Specialties was $37 million, up 24% sequentially with margin at 13.4%.
Operating income for Engineered Solutions was $44 million, with margin improving 200 basis points sequentially to 17.4%, matching last year's record.
Operating income was $79 million, up 25% sequentially, with operating margin at 14.9%, up 200 basis points from Q1.
Sales reached $529 million, an 8% sequential increase driven by higher volumes and favorable pricing.
Second quarter EPS was $1.55, up 36% sequentially and second only to last year's stronger Q2.
Strong cash conversion maintained at around 7% of sales, consistent with historical averages.
Dafinchi