Sylvamo Corporation

Good morning. Thank you for standing by. Welcome to Silvamu's fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, you will have an opportunity to ask questions. To ask a question, please press star followed by the number one on your telephone keypad. To withdraw a question, press star one again. As a reminder, your conference is being recorded. I'd now like to turn the call over to Hans Bjorkman, Vice President, Investor Relations. Sir, the floor is yours.

Thanks, Kate. Good morning, and thank you for joining our fourth quarter and full year 2025 earnings call. Our speakers this morning are John Sims, Chief Executive Officer, and Don Devlin, Senior Vice President and Chief Financial Officer. Slides two and three contain important information, including certain legal disclaimers. For example, during the call, we will make forward-looking statements that are subject to risks and uncertainties. We will also present certain non-U.S. GAAP financial information. Reconciliations of those figures to U.S. GAAP financial measures are available in the appendix. Our website also contains copies of the earnings release as well as today's presentation. With that, I'd like to turn the call over to John.

Thank you, Hans, and good morning, everyone. I'm glad that you are joining our call. For your reference, I'm on slide four. Before we begin discussing full year and quarterly results, I want to start by sharing with you my vision for Savamo, a vision that is fully embraced by our board and our leadership team. My vision is Savamo will be legendary. Yes, legendary. To be legendary is to defy expectations, create lasting value, and inspire others. And what we'll be legendary for? We will be legendary for the way we relentlessly pursue and achieve world-class excellence in all that we do. This will create substantial and lasting value for our employees, customers, and shareholders, and will enable us to be the employer, supplier, and investment of choice. Let's move to slide five. We will strive to achieve world-class standards in the areas that define our success, and these are Safety and wellbeing. We will foster resilient safety and wellbeing culture in which serious injuries are eliminated and every team member returns home safe every day. Employee engagement. We will be admired for cultivating a workplace where employees feel valued, empowered, and inspired. Inspirational leaders at every level of Sabama will unite their teams around our vision and amplify each individual employee's talent by listening to them and engaging them to drive continuous improvement. We are passionate about making paper that educates, connects, and enriches lives, and we will set high standards to achieve world-class performance together. Customer centricity. We will set a new standard for customer experience and loyalty, striving to be truly outstanding. Our commitment is to deliver superior value and service to our customers, earning their trust and loyalty. This is critical to our strategy. Operational excellence, we will achieve best-in-class levels of efficiency, reliability, performance in our mills and supply chains, ensuring that our operations consistently deliver to the highest standards. Cost leadership will attain industry-leading cost effectiveness. through discipline management and continuous improvement, strengthening our competitive position, and ensuring sustainable results. Finally, sustainability. We will operate responsibly, protecting enhancing forests, uplifting communities, and improving our planet's future through sustainable practices. Let's go to slide six. As Savamo's CEO, my commitment to you is to allocate capital widely and to focus on long-term value creation. I'll communicate transparently, providing context, rationale, and honest assessment of our decisions and performance while making disciplined, data-driven decisions that position the company for sustainable success and strengthen Savamo for decades to come. We seek to attract and retain high-quality long-term shareholders who share our vision for disciplined capital allocation and sustainable value creation. In 2024, following extensive dialogue with our long-term shareholders, we discontinued providing four-year adjusted EBITDA and free cash flow guidance. That decision reflected our belief that long-term value creation is best supported by disciplined capital allocation rather than focusing on short-term earning targets. After careful consideration, we decided to discontinue providing quarterly adjusted EBITDA outlooks. We believe this change further aligns our external communications with how we manage the business, and our goal is to attract and retain high-quality, long-term shareholders who share our vision of long-term value creation. Importantly, this decision does not represent a reduction in transparency. As you will see, we will provide a lot of detail throughout this call. We also will continue to provide selected financial metrics as outlined on slide 25 in the appendix. Now, let's discuss the four-year results. Turning to slide seven, you can see that in 2025, we generated 12% return on invested capital as we executed our strategy during challenging industry conditions. We maintained a very strong financial position and balance sheet. achieving a net debt to adjusted EBITDA of 1.6 times. We earned $448 million in adjusted EBITDA, generated $44 million in free cash flow, and returned $155 million in cash to shareholders. We reinvested $224 million across our manufacturing network and our Brazil forest lands to strengthen our low-cost position. We also accelerated development of high-return capital investments. We are committed to being the investment of choice and believe we can generate significant shareholder returns in the future by executing our strategy. Slide 8 highlights our 2025 four-year key financial metrics. Our adjusted EBITDA was $448 million with a 13% margin. We generated $44 million of free cash flow, and our adjusted operating earnings were $3.54 per share. Let's move to slide nine. Our fourth quarter highlights include commercial success, with our uncoded free sheet sales volume increasing quarter over quarter by 9%. Our operational teams also executed well, and our paper machines' productivity continued to improve. We took advantage of a planned maintenance outage at our East River mill to begin the upgrades to our paper machine project and significantly advance the work on our wood yard project. Let's move to the next slide. Slide 10 shows our fourth quarter key financial metrics. In the fourth quarter, we earned adjusted EBITDA 125 million with a margin of 14% and free cash flow was 38 million. And we generated adjusted operating earnings of $1.08 per share. Now I'll turn the call over to Don to review our performance in more detail.