Sylvamo Reports Q3 Results, Sells Europe Unit
The paper company posted third-quarter 2026 results from continuing operations and entered a put option agreement to sell its European business.
Updated on Nov. 6, 2026 in Corporate Finance
Sylvamo reported third-quarter 2026 net income from continuing operations of $85 million, or $2.13 per diluted share, on net sales of $645 million. The company also entered a put option agreement with Midas Atlantic Partners, in partnership with The Najafi Companies, for a binding offer to acquire its Europe business.
Why it matters
The proposed sale would remove the Europe business, which includes uncoated freesheet paper mills in Saillat, France, and Nymolla, Sweden, from Sylvamo's portfolio. The results also show a $284 million loss from discontinued operations, driven mainly by a noncash impairment charge.
Sylvamo's third-quarter 2026 filing shows adjusted EBITDA of $128 million from continuing operations, a 20% margin, and free cash flow of $16 million. The filing does not state whether the proposed Europe sale will close or on what terms beyond the put option agreement.
The players
Sylvamo
Sylvamo is a paper company headquartered in Memphis, Tennessee, that produces uncoated freesheet paper.
Midas Atlantic Partners
Midas Atlantic Partners is an investment firm that entered a put option agreement with Sylvamo for its Europe business.
The Najafi Companies
The Najafi Companies is a private investment firm that is partnering with Midas Atlantic Partners on the proposed acquisition.
The details
Price and mix improved by $25 million, primarily from previously communicated paper price increases. Cash provided by operating activities from continuing operations was $70 million, and the company declared a $0.45 per share dividend payable October 16.
Timeline
October 16, 2026: Sylvamo pays its $0.45 per share dividend.
September 2026: Colombia cancels antidumping duties on Brazilian uncoated freesheet imports.
January 2026: Sims commits to capital allocation and transparency.
Q1 2027: Woodyard softwood line and warehouse expansion expected to start up.
Early Q3 2027: New cutsize sheeter expected to start up at Eastover.
Market Dynamics
Colombia's September 2026 cancellation of antidumping duties on Brazilian uncoated freesheet imports opens its market to lower-priced competition from Brazil. That change adds pressure to paper producers selling into Latin America as Sylvamo weighs the future of its European operations.
The proposed Europe sale could change the mix of Sylvamo's business, but the source does not say how it would affect customers or prices. Investors tracking the company's cash flow should note the $70 million operating cash flow and $16 million free cash flow reported for the quarter.
The takeaway
Sylvamo's quarter combined strong adjusted EBITDA margins with a large impairment in discontinued operations, and the outcome of the Europe sale will determine how much of that business remains. Readers following the company should watch whether the put option agreement moves to a binding sale.
What happens next
The new cutsize sheeter at Eastover is expected to start up in early third quarter 2027, and the woodyard softwood line and warehouse expansion are expected to start up in the first quarter of 2027.
Further reading
For related coverage, see Corporate Finance reporting on earnings and deal activity in Memphis.
