UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________

FORM 10-K


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended

December 31, ~~2024~~2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from - to –

Commission File No. 001-40718

_______________________

SYLVAMO CORPORATION

(Exact Name of Registrant as Specified in its Charter)

_______________________


Delaware			86-2596371
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)


6077 Primacy Parkway Memphis, Tennessee			38119
(Address of Principal Executive Offices)			(Zip Code)

901-519-8000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

SLVM

New York Stock Exchange

Preferred Stock Purchase Rights

SLVM

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ~~x No~~ ☐ No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

As of June 30, ~~2024~~2025, the aggregate market value of the registrant’s common stock held by non-affiliates was $2,~~793~~008,~~952~~755,~~188~~141 based on the closing price of a share of the common stock on the New York Stock Exchange on such date.

The number of shares outstanding of the registrant’s common stock, par value $1.00 per share, as of February 1413, ~~2025~~2026 was 4039,~~546~~508,~~877~~287.

Documents incorporated by reference:

Portions of the registrant’s proxy statement filed within 120 days of the close of the registrant’s fiscal year in connection with the registrant’s ~~2025~~2026 annual meeting of shareholders are incorporated by reference into Part III of this Form 10-K.

SYLVAMO CORPORATION

INDEX TO ANNUAL REPORT ON FORM 10-K

FOR THE YEAR ENDED DECEMBER 31, 2025

PART I.		1
ITEM 1.	BUSINESS.	1
	Our Company	1
	Competition	1
	Marketing and Distribution	1
	Description of Principal Products	21
	Raw Materials	21
	Human Capital	21
	Environmental and Other Regulations	4
	Sustainability	7
	Available Information	9
	Forward-Looking Statements	9
ITEM 1A.	RISK FACTORS.	11
ITEM 1B.	UNRESOLVED STAFF COMMENTS.	3126
ITEM 1C.	CYBERSECURITY.	3126
ITEM 2.	PROPERTIES.	3328
	Forestlands	3328
	Mills and Plants	3328
	Capital Investments and Dispositions	3428
ITEM 3.	LEGAL PROCEEDINGS.	3429
ITEM 4.	MINE SAFETY DISCLOSURES.	3429
PART II.		3530
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY.	3530
ITEM 6.	RESERVED.	3631
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	3732
	Executive Summary	3732
	Results of Operations	3832
	Description of Business Segments	3833
	Business Segments Results	3934
	Non-GAAP Financial Measures	4136
	Liquidity and Capital Resources	4237
	Pillar Two Directive	4439
	Critical Accounting Policies and Significant Accounting Estimates	4439
	Recent Accounting Developments	4540
	Foreign Currency Effects	4540
	Market Risk	4641
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	4641
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.	4742
	Report of Management on Financial Statements, Internal Control Over Financial Reporting and Internal Control Environment and Board of Directors Oversight	4742
	Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)	4944
	Consolidated Statements of Operations	5247
	Consolidated Statements of Comprehensive Income (Loss)	5348
	Consolidated Balance Sheets	5449
	Consolidated Statements of Cash Flows	5550
	Consolidated Statements of Changes in Equity	5651

	Notes to Consolidated Financial Statements	5752
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.	8578
ITEM 9A.	CONTROLS AND PROCEDURES.	8578
ITEM 9B.	OTHER INFORMATION.	8678
ITEM 9C.	DISCLOSURES REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.	8679
PART III.		8679
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.	8679
ITEM 11.	EXECUTIVE COMPENSATION.	8679
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.	8679
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.	8679
ITEM 14.	PRINCIPAL ACCOUNTANT FEES AND SERVICES.	8679
PART IV.		8780
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.	8780
ITEM 16.	FORM 10-K SUMMARY	8982
	SIGNATURES	9083
APPENDIX I	~~2024~~2025 LISTING OF FACILITIES	9285
APPENDIX II	~~2024~~2025 CAPACITY INFORMATION	9386

PART I.

ITEM 1. BUSINESS

OUR COMPANY

Sylvamo Corporation (the “Company” or “Sylvamo”, which may also be referred to as “we” or “us”) is a global uncoated papers company with a broad portfolio of top-tier brands and low-cost, large-scale paper mills located in and serving the most attractive geographies, including Europe, Latin America and North America, which are our business segments. We produce uncoated freesheet (“UFS”) for paper products such as cutsize and offset paper, as well as market pulp. With roots going back to 1898, we have a long history of offering premium quality papers to meet the needs of our customers and end-users. Our mills in North America and Latin America predominantly rank in the lowest quartile on global and regional UFS cost curves, and we believe our low-cost operations enable us to serve our customers with the highest quality products at attractive margins. Our industry-leading brands, known for their long-standing reputation in their respective markets for product quality and performance, allow us to maintain our long-term relationships with top-tier customers throughout economic cycles. Our international reach and strong positioning across retail, merchant and e-commerce channels optimally positions us to meet the paper needs of our end-users around the world. This also provides geographical diversification of our revenue and profits. From ~~2022~~2023 to ~~2024~~2025, on average, we generated 4648% of our revenues and 4128% of our Business Segment Operating Profit in Europe and Latin America. Each region in which we operate exhibits different supply and demand characteristics. Both Latin America and North America have strong profitability for the uncoated paper industry relative to other geographies. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Business Segment Results - Results of Operations for a definition of Business Segment Operating Profit.

During the second quarter of 2022, we committed to a plan to sell our Russian operations (which were sold on October 2, 2022). Our operations in Russia included a paper mill in Svetogorsk, Russia and long-term harvesting rights on 860,000 acres of government-owned forestland. As this divestiture was a strategic shift away from the Russian markets, we have presented the historical operating results of the Russian operations as “discontinued operations” as applicable (see Note 8 Divestiture and Impairment of Business to the Consolidated Financial Statements included in Item 8 in this Annual Report on 10-K for additional discontinued operations information). As a result, the narrative discussion in this Item 1 relates only to our continuing operations, and all other financial results, disclosures and discussions of the Company’s continuing operations appearing elsewhere in this Annual Report on Form 10-K exclude our Russian operations, unless otherwise noted.

In January 2023, the Company completed the previously announced acquisition of Stora Enso’s uncoated freesheet paper mill in Nymölla, Sweden, for €157 million (approximately $167 million), subject to customary purchase price adjustments. The integrated mill has the capacity to produce approximately 500,000 short tons of uncoated freesheet on two paper machines. The Nymölla mill’s results of operations are included in Sylvamo’s consolidated financial statements from the date of acquisition. See Note 7 Acquisitions to the Consolidated Financial Statements included in Item 8 in this Annual Report on 10-K for further details.

COMPETITION

The markets in which we operate are highly competitive with well-established domestic and foreign manufacturers. For instance, in North America, the four largest manufacturers of UFS, including Sylvamo, represent approximately 80% of the total annual production capacity. As the use of electronic mediums and alternative products increases, and because paper production does not generally rely on proprietary processes, except for highly specialized papers or products, the areas into which Sylvamo sells its principal products are increasingly competitive. Furthermore, the level of competitive pressure Sylvamo may face is dependent, in part, upon exchange rates, particularly the rate between the U.S. dollar and the Euro and the U.S. dollar and the Brazilian real. Some of our competitors have shut down or converted mills or paper machines at their mills to linerboard, pulp and boxboard capacity, which reduced the supply of UFS and other printing papers.

MARKETING AND DISTRIBUTION

Sylvamo sells products directly to end users and converters, as well as through agents, resellers and paper distributors.

DESCRIPTION OF PRINCIPAL PRODUCTS

The Company’s principal products are described in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

RAW MATERIALS

Raw materials essential to our businesses include wood fiber, chemicals, water and energy. Information about our sources and the availability to us of raw materials, particularly wood, the principal raw material from which our products are made, is included in Item 1A. Risk Factors - “~~Changes~~Increased incosts ~~the cost~~ or decreased availability of raw materials and energy ~~used to manufacture our products~~ could ~~have~~adversely aaffect ~~material adverse effect on~~ our business~~, financial condition and results of operations~~.” and Item 7. Managements’s Discussion and Analysis of Financial Condition and Results of Operations.

HUMAN CAPITAL

In this Human Capital section and elsewhere in this Annual Report on Form 10-K, we refer in various contexts to our website and to sustainability performance reviews, other reports, policies, and other information published by us or on our website. The information on our website and in the referenced sustainability performance reviews, other reports, policies and other information, and that is otherwise connected to our website, is not incorporated by reference into this Annual Report on Form 10-K, and should not be considered part of this or any other report that we file with or furnish to the SEC.

information, and that is otherwise connected to our website, is not incorporated by reference into this Annual Report on Form 10-K, and should not be considered part of this or any other report that we file with or furnish to the SEC.

Employees

Sylvamo’s capabilities and potential are delivered through our dedicated, talented and diverse workforce, which we believe is among the best in the industry. WeAs ~~employ~~of ~~over~~December 631,~~500~~ ~~people globally~~2025, ~~with~~our ~~25%,~~global ~~49%~~workforce ~~and~~of ~~26%~~over of6,500 ~~our~~people ~~workforce~~was located ~~primarily~~approximately in25% ~~13 countries~~ in Europe, 49% in Latin America and 26% in North America~~, respectively~~. A portion of our workforce is represented by unions in Brazil, France, Sweden and, in the United States, at our mill in Ticonderoga, New York. We believe that our relationships with our unions are constructive.

We strive to be the employer of choice. We aim to attract, retain and develop talented ~~and diverse~~ employees that reflect our diverse communities and global end-users of our paper. To that end, we work to foster a safe and inclusive workplace where all employees feel safe, welcomed, valued, engaged, fairly compensated and have opportunities for professional development.

Health and Safety

Our priority is people before paper -- the health and safety of our employees, contractors and visitors to our facilities are paramount. We strive to design and operate injury-free workplaces for our employees and everyone who enters our facilities. As responsible stewards of people and their communities, we have emphasized safety at our Company and strictly complied with national regulations such as, in the United States, the Occupational Safety and Health Administration’s regulations. Based on our safety record and our comparison of it against publicly available industry safety information, we are an industry-leading company in employee safety.

We track our safety record. Information about our safety record is available on our website, sylvamo.com, and in our annual sustainability performance review. Our Sustainability Performance Review for ~~2023~~2024 is available on our website, sylvamo.com. We will post our Sustainability Performance Review for ~~2024~~2025 on our website when it is completed, which is expected in the first half of ~~2025~~2026.

We take precautions to protect the health and safety of our employees and comply with applicable government requirements and safety guidance in the three regions where we operate. We continue to promote safety through our “People Before Paper” program, which we first introduced in 2022. This program promotes increasing safety, especially in the manufacturing setting, by emphasizing focus on one safe task at a time and stopping work if work conditions appear unsafe. It further emphasizes mental health and overall well-being as important to increasing safety. Since we introduced the program, we have consistently worked to increase safety through initiatives developed and implemented under the program. These initiatives included ongoing communications and training, as well as our leadership’s insistence that employees put people’s safety before operations, always.

As part of our ongoing evaluation of safety performance, we undertook expanded and sustained initiatives under our safety program in 2024, continuing in 2025, to further strengthen our safety culture and outcomes. These initiatives included leadership communications emphasizing safety; regular company‑wide meetings focused on safety performance and improvement efforts; targeted safety training at our facilities addressing specific areas for improvement; safety “stand‑downs” to reinforce the expectation that employees speak up and stop work when conditions appear unsafe; recognition of employees who identify or address potential safety issues; and opportunities for employees to share safety improvements at periodic company‑wide meetings.

In addition, we continue to emphasize the importance of employees’ physical and mental health and well‑being and provide opportunities and resources to support them, including our Employee Assistance Program and other benefit resources available in all regions where we operate.

Notwithstanding our efforts to ensure a safe workplace and support the physical and mental health of our employees, we cannot guarantee that our efforts will always be successful. Success is subject to risks and uncertainties, both known and unknown, including risks noted in Item 1A. Risk Factors and elsewhere in this Annual Report on Form 10-K. A failure to keep our employees and others safe on our premises could disrupt our operations, result in losses associated with liability or potential liability to the harmed individual and to applicable governmental agencies responsible for regulation of safety, and cause us reputational harm.

As we have promoted safety and tracked our safety performance, we have found it challenging to ensure that injuries are avoided. Therefore, in 2024, we ramped up efforts under our safety program, including: adding even more frequent communications from our leadership emphasizing safety; implementing further safety training at our facilities with a focus on specific areas for safety improvements; conducting an organization-wide safety “stand-down,” ceasing work, to emphasize that we want employees to speak up and stop work if conditions seem unsafe; providing recognition to employees who have improved safety, such as by seeing and bringing attention to a potentially unsafe issue or proposing safety improvements; and having employees who have contributed to safety improvements share how they improved safety, at periodic company-wide safety meetings. Additionally, we frequently communicate and emphasize to employees the importance of, and have provided opportunities for them to enhance, their physical and mental health and well-being. We have Employee Assistance Programs and additional benefit resources available in all regions where we operate to support our employees’ health and well-being.

Notwithstanding our efforts to ensure a safe workplace and support the physical and mental health of our employees, we cannot guarantee that our efforts will always be successful. Success is subject to risks and uncertainties, both known and unknown, including risks noted in Item 1A. Risk Factors, including A public health crisis could have a material adverse effect on our business, financial condition, results of operations and cash flows and elsewhere in this Annual Report on Form 10-K. A failure to keep our employees and others safe on our premises could disrupt our operations, result in losses associated with liability or potential liability to the harmed individual and to applicable governmental agencies responsible for regulation of safety, and cause us reputational harm.

Attraction and Retention

Compensation, Benefits and Talent Development

Our talent strategy focuses on attracting and retaining the best employee talent from the diverse backgrounds of the communities where we operate. We aim to foster for employees a work culture where employees from those diverse backgrounds work well together, are treated fairly, and are valued for their talents and the viewpoints that they bring to the table. We aim to provide competitive compensation and benefits, reward individual, team and company performance, provide professional development opportunities, promote employee health and well-being, and encourage engagement by showing our employees that we value their commitment to our company objectives, to each other and to their communities.

To provide our employees globally competitive and fair compensation and benefits, we periodically review, adjust and align our compensation practices with best practices around the material elements of our compensation structure.

Our employee recruiting includes developing talent through lateral and promotional moves and recruiting new talent through ~~lateral~~external and college recruiting efforts. As an example of such college recruiting efforts, in the United States, Brazil and Europe, we have programs that include internships and trainee programs to attract college hires, with a special focus on preparing early career engineers and safety professionals to be future leaders at Sylvamo. We believe that these efforts help develop a strong, talented and diverse workforce at Sylvamo.

WeTo ~~support,~~strengthen ~~encourage and provide~~ our ~~employees~~recruitment ~~with opportunities to strengthen their connection~~ and ~~commitment~~retention ~~to Sylvamo and the communities where they work and live~~efforts, ~~because~~we arecently ~~highly~~launched ~~engaged~~Sylvamo’s ~~workforce~~Global isEmployee ~~important~~Value toProposition ~~our business success~~(“EVP”). In 2024, we ~~launched~~conducted aresearch ~~global~~engaging ~~engagement~~a ~~survey.~~large ~~Through~~sample ~~the~~of ~~survey~~our workforce, weto ~~determined~~better ~~that~~understand ~~engagement~~the ~~levels~~attributes atthat make Sylvamo inthe ~~all~~Employer ~~regions~~of ~~where~~Choice. weThis ~~have~~research ~~employees~~surfaced ~~are~~five ~~fairly~~core ~~high,~~pillars ~~and~~that wedefine ~~established~~our aEVP ~~baseline~~and ~~for~~reflect ~~engagement~~what ~~levels~~our toemployees ~~consistently~~have ~~work~~said tothey ~~improve~~value ~~upon.~~most: ~~Also~~Total ~~in 2024~~Rewards, weSafety ~~provided~~& ~~multiple~~Well‑being, ~~opportunities~~Development, inCompany ~~the various regions where we operate~~Performance, ~~for~~and ~~our~~Work ~~employees~~Environment toand ~~engage~~Relationships. Beginning in ~~and~~2026, ~~help~~we ~~their~~will ~~communities.~~focus Weon ~~share~~communicating ~~information~~and ~~about~~embedding ~~some of~~ these ~~engagement~~pillars ~~opportunities~~in ~~at the~~our ~~“Why~~business weto ~~Care”~~enhance ~~tab~~talent onattraction ~~our~~and ~~website, sylvamo~~retention.~~com.~~

We ~~develop~~support ~~the~~and ~~capabilities~~encourage of our employees ~~through~~by ~~our~~providing ~~continuous~~opportunities ~~learning,~~to ~~development~~strengthen their connection and ~~performance~~commitment ~~management~~to ~~programs.~~Sylvamo Weand ~~invest~~to the communities in ~~their~~which ~~growth~~they work and ~~development~~live, byas ~~providing~~we believe that a ~~multi-dimensional~~highly ~~approach~~engaged workforce is important to ~~learning~~our business success. ~~This~~In ~~approach~~2024, ~~includes~~we ~~various~~conducted ~~learning~~a ~~journeys~~global toemployee ~~help~~engagement ~~employees~~survey, ~~grow~~which ~~personally~~indicated that employee engagement levels are fairly high across all regions in which we operate. The survey also established a baseline against which we intend to measure and ~~professionally~~improve engagement over time, based on the most impactful business need in each location and ~~advance~~region. ~~within~~With over 80 engagement action plans across our ~~organization~~locations, ~~including~~our ~~for~~teams ~~specific~~focused ~~positions~~on improvements ranging from safety and well-being, ~~for~~employees’ ~~specific~~connection ~~development~~to ~~targets~~our strategy, ~~and~~collaboration, ~~for~~employee development ofand ~~competencies~~fostering ~~and~~a ~~Sylvamo’s~~stronger “speak your mind” culture. ~~These~~By ~~learning~~2025 ~~resources~~year-end, ~~are~~progress ~~intended~~was made on nearly all of these action plans, and this will continue to ~~provide~~be ~~employees~~a ~~with~~focus for the ~~skills~~organization. ~~they~~In ~~need~~addition, during 2025 we offered employees in our various operating regions multiple opportunities to ~~achieve~~engage with and support their ~~career~~communities. ~~goals,~~We ~~build~~share ~~management~~information ~~skills~~about ~~and~~our beemployee ~~leaders~~engagement opportunities on the “Why We Care” section of our website at ~~Sylvamo~~sylvamo. com.

We develop the capabilities of our employees through our continuous learning, development and performance management programs. We invest in their growth and development by providing a multi-dimensional approach to learning. This approach includes various learning journeys to help employees grow personally and professionally and advance within our organization, including for specific positions, for specific development targets, and for development of competencies and Sylvamo’s culture. These learning resources are intended to provide employees with the skills they need to achieve their career goals, build management skills and be leaders at Sylvamo. With tools in place to support meaningful development discussions and global development sessions and resources available, employees are encouraged to own their development.

Inclusion and Diversity

A component of our overall effort to attract and retain exceptional employee talent, supporting our objective to be the employer of choice, is to cultivate a workforce where employees from diverse backgrounds are represented, engaged and empowered to inspire innovative ideas and decisions, where employees feel welcome, included and valued, and where all employees are treated fairly.

To ensure we advance and create a more inclusive work environment, we follow a model that includes: (1) our Global I&D Council, (2) employee inclusion networks open to all employees, and (3) regional action plans. The Global I&D Council provides feedback, sponsorship and support to our inclusion and diversity strategy and helps identify and implement means for

~~inspire~~our ~~innovative~~strategy ~~ideas~~to succeed. They meet quarterly and ~~decisions,~~membership ~~where~~includes a range of employees ~~feel~~at ~~welcome,~~various ~~included~~levels ~~and~~of ~~valued~~leadership, ~~and~~who are from the regions where ~~all~~we ~~employees~~operate and are ~~treated~~of ~~fairly~~diverse races, ~~regardless~~genders ofand ~~background.~~cultural backgrounds.

~~Our~~We ~~senior~~believe ~~management~~that ~~team~~education is ~~internationally~~essential ~~diverse~~to ~~with~~strengthening ~~global~~an ~~experience,~~inclusive ~~hailing from all of the geographies in which we operate — Europe, Latin America and North America~~culture. We ~~have~~offer ~~a Global I&D Council that develops our I&D strategy~~ and ~~helps~~encourage ~~identify and implement means for our strategy to succeed. The Global I&D Council meets quarterly and includes a range of~~ employees ~~at various levels of leadership, who are from the regions where we operate~~ and ~~are of diverse races, genders and cultural backgrounds. In 2024, the efforts of the Global I&D Council resulted in initiatives that included training managers on strengthening the ability of our~~ leaders to ~~facilitate~~participate ~~inclusive~~in ~~work~~learning ~~teams, providing employee mentoring and networking~~ opportunities, ~~and~~designed ~~facilitating means for employees~~ to ~~identify~~increase ~~and leverage opportunities for their career growth and advancement. Our employee inclusion networks~~awareness, ~~which~~foster wemore ~~started~~inclusive ~~in 2022~~behaviors, ~~continued~~and tohelp ~~meet~~create ina ~~2024.~~workplace ~~All~~where ~~initiatives~~everyone ~~and~~feels ~~employee~~valued ~~inclusion networks are voluntary~~ and ~~open to all employees~~respected.

Management keeps our senior leadership and board of directors aware of our I&D initiatives and progress through periodic reports. The Management Development and Compensation Committee of our board of directors is responsible for oversight of I&D matters.

Challenges and Risks

Our hiring and retention efforts are ~~challenged~~impacted by competition for ~~labor having a high level of~~ the ~~various~~highly ~~skills~~skilled labor needed in our industry, particularly at our mills, which makes our cost of labor high compared to industries that require less skilled labor. We have not experienced any material shortage of labor, but if the labor supply were to contract substantially in any of the regions where we operate, it could impede our ability to attract and retain employee talent and further increase our cost of labor. For more information regarding our risks relating to the labor market, see Item 1A. Risk Factors, particularly – “Our business ~~and~~depends ~~business~~on ~~prospects~~our ~~could~~ability ~~be materially adversely affected if we fail~~ to attract, ~~and~~ retain ~~senior management~~ and ~~other~~develop ~~key~~skilled employees and management.”

Our hiring and retention efforts focus on ensuring equal opportunities in hiring and promotion, enhanced by our inclusion and diversity efforts that value employees of all backgrounds and talents and that, without regard to their backgrounds, provide employees with access to the support we provide for career growth and success. There is risk, particularly in the United States, that such efforts could expose us to legal challenges relating to such efforts. There is also risk that, despite our efforts, we will not achieve our aspirational goals or adequately foster the work culture described above.

In 2023 and 2024, we conducted “Project Horizon” to streamline our organization and reduce costs, based upon an evaluation of our needs at all levels of the organization. We eliminated a number of salaried positions and reorganized job responsibilities. We believe that the streamlining resulted in a leaner, stronger organization.

ENVIRONMENTAL AND OTHER REGULATIONS

Sylvamo is subject to a wide range of general and industry-specific laws and regulations that are complex and changing in the regions, countries, states and other jurisdictions where we operate. They include, but are not limited to, laws pertaining to: environmental, health and safety; climate change; tax; privacy and data security; antitrust; product liability; intellectual property ownership and infringement; labor and employment; anti-corruption; import, export and trade; and foreign exchange controls and foreign ownership and investment. In addition, new laws or regulations affecting our facilities are routinely passed or proposed.

We have procedures in place to stay informed about developments concerning possible new legislation and laws in the countries where we operate. We regularly assess whether such legislation or laws may have a material effect on us, our operations and financial condition.

Environmental and Climate Change Regulation

Current or proposed environmental laws (by “laws,” we also mean regulations and other governmental rules) include those governing wood harvesting, air emissions, climate change, ~~waste~~wastewater ~~water~~ discharges, storage, management and disposal of hazardous substances and wastes, contaminated sites, landfill operation and closure obligations, and health and safety matters. Compliance with these laws in all jurisdictions where we operate, therefore, is a significant factor in the operation of our business and may result in capital expenditures as well as additional operating costs. For example, our United States mills are in compliance with the U.S. Environmental Protection Agency’s (“EPA”) maximum achievable control technology (“MACT”) standards that require owners of specified pulp and paper process equipment and boilers to meet air emissions standards for certain substances. However, as required by the Clean Air Act, the EPA is expected to conduct a Risk and Technology Review (“RTR”) after the application of the MACT standards to determine if the standard was protective enough for human health. It is possible that such review could result in future MACT and RTR regulations that necessitate our making future capital project expenditures to comply with such regulations.

We are subject to the European Union Deforestation Regulation (“EUDR”), which has a compliance deadline of December 30, 2026. The EUDR will require companies trading in wood, cattle, cocoa, coffee, oil palm, rubber and soya, as well as products derived from these commodities such as paper, to conduct extensive diligence on the value chain to ensure the goods do not result from recent deforestation, forest degradation or breaches of local laws in order to trade such products in or from the

~~standards~~European ~~that~~Union ~~require~~market. ~~owners~~We ofhave ~~specified~~incurred ~~pulp~~costs and ~~paper~~devoted ~~process~~significant ~~equipment~~time and ~~boilers~~effort to ~~meet~~assess ~~air~~how, ~~emissions~~and ~~standards~~to ~~for certain substances. However~~prepare, asto ~~required~~comply bywith the ~~Clean Air Act~~EUDR, ~~the~~and ~~EPA~~will iscontinue ~~expected~~ to ~~conduct~~incur acosts ~~Risk~~ and ~~Technology~~devote ~~Review~~time ~~(“RTR”)~~and ~~after~~effort ~~the application of the MACT standards~~ to ~~determine~~comply ifafter ~~the~~its ~~standard~~requirements ~~was~~go ~~protective~~into ~~enough for human health~~effect. ItThe isEUDR ~~possible~~may ~~that~~also ~~such~~reduce ~~review~~the ~~could~~availability ~~result~~of ~~in future MACT~~ and ~~RTR~~increase ~~regulations~~the ~~that~~price ~~necessitate~~of ~~our~~goods ~~making~~supplied ~~future~~to ~~capital~~us ~~project~~that ~~expenditures~~are subject to ~~comply~~its ~~with such regulations~~rules.

WeSeveral ~~are~~Canadian ~~subject~~provinces, toall countries in the European Union ~~Deforestation Regulation (“EUDR”)~~, ~~which~~and ~~has~~some astates ~~compliance~~in ~~deadline~~the ofUnited ~~December~~States 30have adopted, ~~2025.~~and ~~The~~more ~~EUDR~~jurisdictions ~~will~~may ~~require~~adopt, ~~companies~~extended ~~trading~~producer ~~in wood~~responsibility, ~~cattle,~~or ~~cocoa~~“EPR,” ~~coffee,~~laws. ~~oil~~EPR ~~palm,~~laws ~~rubber~~assign ~~and~~producers ~~soya,~~of asthe ~~well~~materials ascovered ~~products~~by ~~derived~~the ~~from~~laws ~~these~~some ~~commodities~~financial ~~such~~responsibility asfor ~~paper,~~the toend-of-life ~~conduct~~management ~~extensive~~of ~~diligence~~those onmaterials within the ~~value~~adopting ~~chain~~jurisdiction. toThese ~~ensure~~laws ~~the~~can ~~goods~~apply doto ~~not~~various ~~result~~types ~~from~~of ~~recent deforestation~~materials, ~~forest~~and ~~degradation~~some ~~or breaches~~ of ~~local~~them ~~laws~~apply ~~in order~~ to ~~trade~~packaging ~~such~~and paper products. inWe are, or ~~from~~in ~~the~~2026 ~~European~~will ~~Union~~be, ~~market.~~subject Weto ~~have~~EPR ~~incurred~~laws ~~costs~~in ~~and~~various ~~devoted~~European ~~significant~~countries, ~~time~~Canadian provinces and ~~effort~~states toin ~~assess~~the ~~how~~United States, ~~and~~including, toamong ~~prepare~~others, toCalifornia, ~~comply~~Colorado, ~~with~~Maine, ~~the~~Minnesota, ~~EUDR~~Maryland, Washington and ~~will~~Oregon, ~~continue~~where towe ~~incur~~may ~~costs~~be ~~and~~required ~~devote~~to ~~time~~pay ~~and~~fees ~~effort~~ to ~~comply~~manage ~~after~~the ~~its~~end-of-life ~~requirements~~cost goof ~~into~~our ~~effect~~products. ~~The~~EPR ~~EUDR~~laws also may ~~also~~cause ~~reduce~~us ~~the~~to ~~availability~~pay ofhigher ~~and~~prices ~~increase~~for the ~~price~~packaging ofand ~~goods~~other ~~supplied~~materials tothat uswe ~~that~~purchase ~~are~~from suppliers subject to ~~its~~EPR ~~rules~~laws, who may pass through to their customers some of their increased costs resulting from such laws.

Several Canadian provinces, most countries in Europe, and some states in the United States have adopted, and more jurisdictions may adopt, extended producer responsibility, or “EPR,” laws. EPR laws assign producers of the materials covered by the laws some financial responsibility for the end-of-life management of those materials within the adopting jurisdiction. These laws can apply to various types of materials, and some of them apply to packaging and paper products. We are, or in 2025 will be, subject to EPR laws in various European countries, Canadian provinces and states in the United States, including, among others, California, Colorado, Maine, Minnesota and Oregon, where we are or will be required to pay fees to manage the end-of-life cost of our products. EPR laws also may cause us to pay higher prices for the packaging and other materials that we purchase from suppliers subject to EPR laws, who may pass through to their customers some of their increased costs resulting from such laws.

Some of the foregoing and various other environmental and health and safety laws applicable to us provide for substantial fines or penalties and other civil and criminal sanctions for failure to comply. Certain environmental laws provide for strict liability and, under certain circumstances, joint and several liability; for example, for investigation and remediation of the release of hazardous substances into the environment.

We are committed to avoiding adverse impacts on the environment, including, but not limited to, by controlling emissions and discharges from our facilities and by the responsible sourcing of materials to produce our paper, both as an environmental steward and to maintain our compliance with applicable laws. However, we may encounter situations in which our operations failed to maintain full compliance with applicable requirements, or we may learn that previous owners of our property failed to comply with applicable requirements for which responsibility may be imposed on us by law (for example, if they released substances in violation of environmental laws), which could possibly lead to civil or criminal fines, fees, penalties or enforcement actions against us. These could include governmental or judicial orders that stop or interrupt our operations or that require us to take corrective measures at substantial costs, such as installation of additional pollution control equipment or environmental remediation. See Item 1A. Risk Factors – “WeEnvironmental ~~are subject to extensive environmental laws and~~ regulations ~~and~~ could ~~incur substantial costs as a~~ result ofin significant compliance ~~with~~costs, ~~violations~~operational ofconstraints orand liabilities ~~under~~for ~~these laws and regulations~~non-compliance.” An environmental clean-up matter in Brazil, which has been ongoing since prior to our spin-off from International Paper, and which has not had, but could have, a material financial impact on us, is described in Note 1311 Commitments and Contingent Liabilities to the Consolidated Financial Statements included in Item 8 in this Annual Report on 10-K.

In ~~2024~~2025, we spent approximately $2.5.4 million, and over the course of ~~2025~~2026 and ~~2026,~~2027 we expect to spend $~~14-~~10 to $1512 million, on capital projects in the aggregate for our mills in the three regions where we operate to control environmental releases into the air and water and to assure environmentally sound management and disposal of waste. Depending on how project timelines develop, we expect to spend about $6- to $128 million of such amount in ~~2025~~2026.

Multiple laws have been passed in various jurisdictions addressing climate change that apply to us and may have a material impact on us.

The Paris Agreement, an international treaty on climate change, went into effect in November 2016 and continues international efforts and voluntary commitments toward reducing greenhouse gas (“GHG”) emissions. Consistent with this objective, participating countries aim to balance GHG emissions generation and sequestration in the second half of this century or, in effect, achieve net zero global GHG emissions. Although the United States has withdrawn from the Paris Agreement, our mill in New York will be subject to a newly-adopted state GHG reporting rule that will require reporting starting in June 2027 for the 2026 year, which may result in additional expense for us to monitor and report. Our two mills in Europe and our three mills in Brazil are impacted by GHG reduction commitments made by member countries under the Paris Agreement. In the EU, there is a GHG Emissions Trading System ("EU ETS"). Our Saillat and Nymolla mills are under Phase IV of the EU ETS that established a trading period ending in 2030,. ~~during~~Until ~~which~~ the ~~two~~end ~~mills~~of such period, our Saillat mill may benefit from participation in free allocation of GHG emission allowances, but our Nymolla mill’s eligibility to participate terminated on December 31, 2025. The Saillat mill’s continued participation is subject to various factors, including potential changes to the EU ETS system. The termination of Nymolla’s eligibility to participate is not expected to have a material financial impact on us. The Paris Agreement and EU ETS may have a material impact on us depending on, among other factors, how binding the GHG emissions reduction commitments made by Paris Agreement member countries are, how market prices for GHG emissions credits evolve under applicable rules over the coming years, and the extent to which our mills are subject to requirements of member countries imposed in connection with the Paris Agreement.

free allocation of GHG emission allowances. However, the mills’ continued participation is subject to various factors, including potential changes to the EU ETS system, and our Nymölla mill’s eligibility to participate will terminate on December 31, 2025, absent any governmental action that would allow continued participation. The financial impact on us of such termination will depend in part on factors not within our control, including any governmental action ameliorating the impact of termination. The Paris Agreement and EU ETS may have a material impact on us depending on, among other factors, how binding the GHG emissions reduction commitments made by Paris Agreement member countries are, how market prices for GHG emissions credits evolve under applicable rules over the coming years, and the extent to which our mills are subject to requirements of member countries imposed in connection with the Paris Agreement.

In the United States, the EPA manages regulations to: (i) control GHG emissions from mobile sources by adopting transportation fuel efficiency standards; (ii) control GHG emissions from new Electric Generating Units ("EGUs"); (iii) control emissions from new oil and gas processing operations; and (iv) require reporting of GHG emissions from sources of GHG emissions greater than 25,000 tons per year. Several U.S. states have enacted or are considering legal measures to require the reduction of GHG emissions by companies and public utilities. These federal and state regulations have not had a material impact on us. We monitor proposed programs, but it is unclear what impacts, if any, future GHG rules would have on our operations. Although not required by current regulations, we aim to reduce our Scope 1, 2 and 3 GHG emissions by 35% and define a pathway to net zero emissions by 2030 against a 2019 baseline, although we cannot provide assurance that we will be successful in these efforts.

Furthermore, governments may enact additional laws to protect the environment and address climate change, which could expose us to the costs of additional compliance and the risks of potential noncompliance. Environmental and climate change regulation continues to evolve in the various countries and U.S. states where we do business. For example, some U.S. states in which we have manufacturing operations, including New York, are taking measures to reduce GHG emissions, such as by developing a cap-and-trade program. While it is likely that governmental action and legislation regarding environmental protection and climate change (including GHG emissions) will continue or increase in the future, it is not possible to predict what additional laws relating to environmental protection and climate change may be implemented, which countries, U.S. states or other jurisdictions may adopt such laws, or the extent to which such laws may impact our business; nor is it possible to predict how existing or future laws will be administered or interpreted. In addition to possible direct impacts, such as our costs of compliance and risk of penalties and corrective measures in the event of violations, future laws could impact us indirectly, such as causing us higher prices for transportation, energy and other inputs, as well as generating more protracted air permitting processes, and causing delays and higher costs to implement capital projects.

If and as regulators increase their focus on climate change and other sustainability issues, we have been, or may become, subject to new disclosure frameworks and regulations. For example, the European Parliament adopted the Corporate Sustainability Reporting Directive (“CSRD”), and EU sustainability reporting standards are being developed by the European Financial Reporting Advisory Group, with such standards to be tailored to EU policies building on and contributing to international standardization initiatives. Such reporting will apply not only to local operations in the EU, but under certain circumstances, to entire global companies that have EU operations. The CSRD will require us to begin reporting for European operations in ~~2026~~2027 and for the entire Company globally in 2029, with the option to voluntarily commence reporting for the entire Company earlier than 2029. As ~~another~~Compliance ~~example,~~with the ~~State~~CSRD ~~of California~~ has ~~adopted~~required ~~new~~and ~~climate change disclosure rules that~~ will ~~apply~~continue to us because we conduct business in California. Reporting by us under the rules will be required starting in 2026. The SEC announced proposed climate change disclosure rules in March 2021 that are the subject of litigation challenging them. The SEC deferred their effectiveness as a result of such litigationrequire, and ~~the~~compliance ~~future status of such rules is uncertain, particularly in view of the new U.S. presidential administration. The SEC’s rules were initially proposed to become effective in 2026. Compliance~~ with ~~the~~any ~~CSRD,~~future ~~the~~climate ~~California~~disclosure ~~rules~~regulations ~~and, if implemented, the SEC rules, has required and~~ may ~~continue to~~ require, us to incur costs and devote significant resources, time and attention by our management and other personnel. While we fully comply, or expect to fully comply, with all such ~~rules~~regulations as they apply to us, if we fail to comply, it would subject us to potential penalties and fines.

Other ~~Regulation~~Regulations

Regional, national, state and local regulations apply to us in Europe, Latin America and North America that regulate the licensing and inspection of our facilities, including, in the United States, compliance with the Occupational Safety and Health Act that sets health and safety standards to protect our employees from accidents, and Department of Labor regulations that set employment practice standards for workers.

We are subject to highly complex tax laws in various countries in Europe, Latin America and North America, most notably in the countries where we have significant operations – Brazil, France, Sweden and the United States – that if violated, could result in significant fines, interest charges and costs associated with litigation. In Brazil, our business is subject to various tax proceedings, including those discussed in Note 11 Commitments and Contingent Liabilities and Note 10 Income Taxes to the Consolidated Financial Statements included in Item 8 in this Annual Report on 10-K.

Our global operations subject us to complex and evolving privacy and information security laws and regulations such as the EU General Data Protection Regulation, Brazil's Lei Geral de Proteçāo de Dados Pessoais, the California Consumer Privacy Act of 2018 and the California Privacy Rights Act. These laws require us to comply with a range of obligations regarding the handling of personal data. There are significant penalties for non-compliance including monetary fines, disruption of operations and reputational harm. Moreover, governmental authorities around the world are considering, or are in the process of implementing, new data protection regulations. We identify various risks associated with privacy and information security laws and regulations in Item 1A. Risk Factors.

result in significant fines, interest charges and costs associated with litigation. In Brazil, our business is subject to various tax proceedings, including those discussed in Note 13 Commitments and Contingent Liabilities and Note 12 Income Taxes to the Consolidated Financial Statements included in Item 8 in this Annual Report on 10-K.

Our operations around the world are subject to anti-corruption laws and regulations, such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010.

For further information about the regulatory risks of our business, see Item 1A. Risk Factors – “~~Our~~Compliance ~~business~~with ~~is subject to~~ a ~~wide~~broad ~~variety~~range of ~~other~~complex ~~laws, regulations~~ and ~~other~~changing ~~government~~regulations ~~requirements~~could ~~that~~increase ~~may~~our ~~change~~costs inor ~~significant~~limit ~~ways~~our operations, and ~~the~~failure ~~cost~~to ofcomply ~~compliance with such requirements~~ could ~~have~~result ain ~~material~~liabilities ~~adverse~~and ~~effect~~harm on our business~~, financial condition, results of operations and cash flows~~. ”

SUSTAINABILITY

Sylvamo remains committed to operating responsibly and sustainably, and incorporates this into our strategies and everyday processes as we seek to seize opportunities, address risks and create long-term value for our shareholders. Our commitment to sustainability spans our value chain, from the safety of our employees, to the responsible sourcing of raw materials, to using renewable energy and ensuring the recyclability of our products. Our commitment is part of our Code of Conduct and it requires us to operate as responsible stewards for our communities and the environment. We believe that operating in this manner creates healthy communities, enhances our competitive position with our customers, increases our desirability as an investment and helps engender employee pride in the Company, thereby helping us achieve our vision to be the world’s paper company: the employer, supplier and investment of choice.

Our ~~2023~~2024 Sustainability Performance Review (available at sylvamo.com/us/en/sustainability) illustrates our ~~2023~~2024 contributions to the circular, low-carbon economy, to our employees’ safety, well-being and success, and to supporting our communities. It reflects our goal to operate as a sustainable company that generates profits for our shareholders, protects the environment, and improves people’s lives. In the ~~2023~~2024 Sustainability Performance Review, we highlight and report on our key initiatives for achieving that goal. We plan to report on our 2025 initiatives ~~for 2024~~ in our ~~2024~~2025 Sustainability Performance Review, to be published in ~~2025~~2026. Our annual sustainability reporting includes disclosures aligned with the Global Reporting Initiative (“GRI”) and the Task Force On Climate Related Financial Disclosures (“TCFD”) frameworks (available at sylvamo.com/us/en/sustainability/reporting). We cannot guarantee that we will achieve our goals and initiatives described in our Sustainability Performance Reviews and in this Annual Report on Form 10-K. Our ability to achieve them is subject to risks and uncertainties both known and unknown, including various risks noted in Item 1A. Risk Factors and elsewhere in this Annual Report on Form 10-K.

Sustainable Sourcing and Forest Management

Sylvamo recognizes the environmental, social and economic values of forested landscapes. We seek to play an active role in preventing deforestation and forest degradation, promoting and increasing the use of responsibly managed forests, and meeting market demand for sustainably certified products, through our efforts described below.

In addition to our Code of Conduct, our Environmental, Health, Safety and Sustainability Policy sets forth the principles we follow to ensure the health and safety of all employees, contractors and visitors, improve our environmental impact and our stewardship of natural resources. Our Global Fiber Procurement Policy sets forth requirements for the wood we accept, including requirements intended to protect the environment and rights of indigenous peoples and local communities. Our Third Party Code of Conduct requires the parties with which we do business to comply with all laws and encourages them to reduce their impact on the environment. We make these policies available on our website.

Our operations strive to incorporate responsible forest stewardship to ensure healthy and productive forest ecosystems for generations to come. For example, we promote healthy and productive forest ecosystems by committing to source 100% of our fiber from sustainably managed forests and aiming to conserve, enhance or restore 250,000 acres of ecologically significant forestland globally by 2030. Towards this goal, we continue investing in forest restoration and enhancement in the Atlantic Forest region of Brazil and the Appalachians of the United States, through joint efforts with international and local organizations.

We maintain longstanding partnerships with several of the world’s largest and most respected environmental and conservation organizations to restore and protect forests and advance the understanding of the role of forests as natural climate solutions, including the National Fish and Wildlife Foundation, the Nature Conservancy, the World Wildlife Fund and various local environmental organizations in the communities where we live and work. We also help our suppliers with their efforts to develop actions that improve forest management and fiber procurement practices. We believe that these strategic informal partnerships are essential to achieve the scale necessary for positive long-term impact and to develop sustainable solutions that address critical regional and global forestry issues.

~~Our~~We ~~operations~~support ~~strive~~and touse ~~incorporate~~third-party ~~responsible~~certification of sustainable forest ~~stewardship~~management tothrough ~~ensure~~forest ~~healthy~~certification and ~~productive~~chain-of-custody ~~forest~~systems, ~~ecosystems~~and ~~for~~we ~~generations~~work to ~~come.~~continue ~~For~~to ~~example,~~meet weour ~~promote~~customer’s ~~healthy~~demand ~~and~~for ~~productive~~certified-fiber ~~forest~~products. ~~ecosystems~~Sylvamo byfollows ~~committing~~these tocredible ~~source~~certification ~~100%~~systems: ofForest ~~our~~Stewardship ~~fiber~~Council® ~~from~~(FSC®); ~~sustainably~~the ~~managed~~Sustainable ~~forests~~Forestry Initiative® (SFI®); and ~~aiming~~the toProgramme ~~conserve,~~for ~~enhance~~the orEndorsement ~~restore~~of ~~250~~Forest Certification (PEFC). In 2025,~~000~~ ~~acres~~all of ~~ecologically~~our ~~significant~~fiber ~~forestland~~sourced globally bycomplied ~~2030.~~with ~~Towards~~Forest ~~this~~Stewardship ~~goal~~Council® standards, inmitigating ~~2024~~the werisks ~~continued~~of ~~investing~~using infiber ~~reforestation~~from inunacceptable sources, and based on the ~~Atlantic~~latest ~~Forest~~figures ~~region~~available, approximately 50% of ~~Brazil~~our ~~and~~sourced ~~the~~fiber ~~Appalachians~~was offrom forests certified to the ~~United~~FSC®, ~~States~~SFI® or PEFC Forest Management Standards. Additionally, ~~through~~nearly ~~joint~~all ~~efforts~~of ~~with~~our ~~international~~owned ~~and~~forestland ~~local~~is ~~organizations~~certified to the FSC® (C101761) Forest Management Standard.

We maintain longstanding partnerships with several of the world’s largest and most respected environmental and conservation organizations to restore and protect forests and advance the understanding of the role of forests as natural climate solutions, including the Arbor Day Foundation, the Nature Conservancy, the World Wildlife Fund and various local environmental organizations in the communities where we live and work. We also help our suppliers with their efforts to develop actions that improve forest management and fiber procurement practices. We believe that these strategic informal partnerships are essential to achieve the scale necessary for positive long-term impact and to develop sustainable solutions that address critical regional and global forestry issues.

We support and use third-party certification of sustainable forest management through forest certification and chain-of-custody systems, and we work to continue to meet our customer’s demand for certified-fiber products. Sylvamo follows these credible certification systems: Forest Stewardship Council® (FSC®); the Sustainable Forestry Initiative® (SFI®); and the Programme for the Endorsement of Forest Certification (PEFC). In 2024, all of our sourced fiber followed the FSC® Controlled Wood Standard, and based on the latest figures available, approximately 60% of our sourced fiber was from forests certified to the FSC®, SFI® or PEFC Forest Management Standards. Additionally, nearly all of our owned forestland is certified to the FSC® (C101761) Forest Management Standard.

Reduction of Water Usage

Sylvamo is working to reduce our total water usage. byIn an2025, ~~incremental~~we ~~25%~~assessed ~~compared~~our water usage goals and determined to afocus ~~2019~~our ~~baseline.~~efforts Toon ~~that~~creating ~~end,~~context-based inwater ~~2024~~reduction weplans ~~conducted~~and afocus ~~thorough~~our ~~internal~~efforts on reducing overall water ~~study~~usage atin our high-risk operations off of our 2019 baseline. Our mill in ~~Saillat~~Tres Lagoas, ~~France~~Brazil, ~~and~~is ~~shared~~the ~~best~~first ~~practices~~in ~~with~~Sylvamo’s ~~our~~system ~~other~~to ~~mills~~achieve ~~based~~a on25% ~~the~~reduction ~~results~~in ofwater ~~the~~use ~~study~~against a 2019 baseline. We intend to update our progress reducing water usage at least annually on our Company website or in our Sustainability Performance Reviews.

Climate ~~Change~~Impact and Reduction of GHGs

Sylvamo recognizes that the climate is changing. The GHGs carbon dioxide and methane trap higher amounts of heat in the atmosphere than many other atmospheric gasses and remain in the atmosphere for years; therefore, we believe it is prudent to reduce those emissions. We seek to reduce our GHG emissions by working to reduce our Scope 1, 2 and 3 emissions, and by advancing a lower-carbon economy by designing 100% reusable, recyclable or compostable papers that people depend on for education, communication and entertainment. Additionally, various jurisdictions where we operate have passed laws to address climate change that have an impact on us and our work to reduce GHG emissions, as described above in “-Environmental and Other Regulations - Environmental and Climate Change Regulation.”

We seek to achieve an incremental 35% reduction in our mills’ Scope 1, 2 and 3 GHG emissions by 2030, as compared against a 2019 baseline, and continue efforts to further decarbonize our operations by defining a pathway to net zero. Our GHG emissions reduction targets were validated by the Science Based Targets Initiative (SBTi) in April ~~2023~~2024 and are consistent with a well below 2 degrees Celsius scenario and the Paris Agreement. The Paris Agreement impacts our mills in Europe and Brazil, due to GHG emissions reduction commitments in accord with the Paris Agreement that have been made by the respective countries in which those mills are located. Our mills in Europe may benefit from free allocation of GHG emission allowances under the EU ETS to meet GHG emissions reduction targets, subject to various factors, including that our Nymölla mill’s eligibility to participate in allocations isterminated ~~expected to terminate~~ at the end of 2025, as described in “- Environmental and Other Regulations - Environmental and Climate Change Regulation.”

Based on the most recent available data, Sylvamo’s mills generated at least 85% of the energy used in the mills from carbon-neutral biomass residuals, which minimizes the use of fossil fuels that our company would otherwise use in its operations. Our mill in Nymölla, Sweden, has EU Ecolabel and Nordic Swan Ecolabel certification, which are third party certifications of products that meet high environmental standards and, in the case of EU Ecolabel certification, contribute to the EU’s goal of climate neutrality by 2050.

Sylvamo participates in the Carbon Disclosure Project (“CDP”) questionnaires concerning climate change, forests and water, to quantify and provide transparency on our environmental practices and progress. We also participate in the EcoVadis rating platform that assesses supply chain environmental, social and ethical practices. Our responses to CDP questionnaires and our EcoVadis performance overview are published at www.sylvamo.com/us/en/sustainability.

The long-term effects of climate change on the global economy, our industry and us are unclear, especially in view of the political significance and uncertainty around regulatory actions proposed or being taken to address climate change. Changes in climate where we, our customers and our suppliers operate could have an adverse impact on our business, results of operations, and financial condition, as could regulatory actions to address climate change. More information about risks related to climate change and climate change regulation is available in Item 1A. Risk Factors – “We are exposed to risks associated with adverse climate and weather conditions and evolving climate-related regulations, obligations and stakeholder expectations.”

platform that assesses supply chain environmental, social and ethical practices. Our responses to CDP questionnaires and our EcoVadis performance overview are published at www.sylvamo.com/us/en/sustainability.

The long-term effects of climate change on the global economy, our industry and us are unclear, especially in view of the political significance and uncertainty around regulatory actions proposed or being taken to address climate change. Changes in climate where we, our customers and our suppliers operate could have an adverse impact on our business, results of operations, and financial condition, as could regulatory actions to address climate change. More information about risks related to climate change and climate change regulation is available in Item 1A. Risk Factors – “We are subject to physical, financial and reputational risks associated with climate conditions and climate change, including global, regional and local weather conditions, the availability of wood fiber, water and fuel, and the impact of increasing regulatory and investor focus on climate change.”

Management and Board Oversight

We have aseveral ~~steering~~working ~~team~~teams ~~for~~that focus on sustainability matters consisting of a cross functional group of employees and commercial leaders. The ~~team~~teams ~~guides~~guide the company’s sustainability and community engagement strategies and ~~monitors~~monitor ~~progress. It is chaired by our Senior Vice President, Chief Administrative~~ and ~~Legal~~report ~~Officer (“SVP CA&LO”), the highest-ranking non-board company executive with direct oversight of climate-related issues, who reports to our CEO~~progress. We have a Chief Sustainability Officer (“CSO”) who oversees ~~another~~a team of employees who report to the CSO. The CSO’s team is responsible for our global sustainability strategy and initiatives, which are intended to protect the environment and improve the lives of those we interact with, while creating profit for ~~shareowners~~shareholders. Our CSO reports to our ~~SVP~~Senior ~~CA&LO~~Vice President, Chief Administrative and Legal Officer. Our CSO provides regular reports to our board’s Nominating and Corporate Governance Committee, which is the board committee responsible for oversight of sustainability matters, including oversight of climate-related matters.

Our sustainability efforts are carried out in all of the regions where we operate, by multiple business teams into whose responsibilities sustainability concepts have been integrated. In addition to the dedicated sustainability team of employees led by our CSO, our human resources and sourcing teams handle various aspects of sustainability programs in their respective areas. Also, designated staff at our corporate, business and facility levels help identify, prioritize and manage sustainability-related risks and opportunities, and we have a responsible operations working group made up of global manufacturing and technical experts who are focused on key operational issues related to water and GHG emissions.

AVAILABLE INFORMATION

Sylvamo’s internet address is www.sylvamo.com. We make available, free of charge, on or through our internet website, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, as soon as ~~reasonable~~reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains information that includes or is based upon forward-looking statements. Forward-looking statements forecast or state expectations concerning future events. These statements often can be identified by the fact that they do not relate strictly to historical or current facts. They typically use words such as “anticipate,” “assume,” “could,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “should,” “will” and other words and terms of similar meaning, or they are tied to future periods in connection with discussions of the Company’s performance. Some examples of forward-looking statements include those relating to our business and operating outlook, future obligations and anticipated expenditures.

Forward-looking statements are not guarantees of future performance. Any or all forward-looking statements may turn out to be incorrect, and actual results could differ materially from those expressed or implied in forward-looking statements. Forward-looking statements are based on current expectations and the current economic environment. They can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors that are difficult to predict. Although it is not possible to identify all of these risks, uncertainties and other factors, the impact of the following factors, among others, on us or on our suppliers or customers, could cause our actual results to differ from those in the forward-looking statements: ~~deterioration~~ of global ~~and~~or regional economic, civil, ~~and~~ political conditions ~~and~~or trade ~~relations~~developments; ~~physical,~~adverse ~~financial and reputational risks associated with~~ climate ~~conditions~~ and ~~climate~~weather ~~change~~conditions, including ~~adverse~~risks ~~environmental~~to ~~events~~our ~~such~~forestlands asand ~~floods~~mills ~~and~~from drought, fires or floods; reduced demand for our products due to the cyclical nature of the paper industry, the industry-wide secular decline in paper demand, or competition from other businesses; increased costs or reduced availability of the raw materials, energy, transportation (truck, rail and ocean) and labor needed to manufacture and deliver our products; a material disruption at any of our manufacturing facilities; information technology risks including potential cybersecurity breaches affecting us or third parties with which we do business; extensive environmental, tax and other laws and regulations in Brazil, Europe, the United States and other jurisdictions to which we are subject, including our compliance costs and risk of liability and loss for violations; our reliance on a small number of customers; and the factors disclosed in Item 1A. Risk Factors, as such disclosures may be amended, supplemented or superseded from time to time by other reports we file with the U.S. Securities and Exchange Commission (the “SEC”), including subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q.

our manufacturing facilities; information technology risks including potential cybersecurity breaches affecting us or third parties with which we do business; extensive environmental, tax and other laws and regulations in the Brazil, Europe, the United States and other jurisdictions to which we are subject, including our compliance costs and risk of liability and loss for violations; our reliance on a small number of customers; and the factors disclosed in Item 1A. Risk Factors, as such disclosures may be amended, supplemented or superseded from time to time by other reports we file with the U.S. Securities and Exchange Commission (the “SEC”), including subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q.

We assume no obligation to update any forward-looking statements made in this Annual Report on Form 10-K to reflect subsequent events or circumstances or actual outcomes.

Our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, along with all other reports and any amendments thereto filed with or furnished to the SEC, are publicly available free of charge on the Investors section of our website at www.sylvamo.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The information contained on or connected to our website is not incorporated by reference into this Annual Report on Form 10-K and should not be considered part of this or any other report that we filed with or furnished to the SEC.

section of our website at www.sylvamo.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The information contained on or connected to our website is not incorporated by reference into this Annual Report on Form 10-K and should not be considered part of this or any other report that we filed with or furnished to the SEC.

ITEM 1A. RISK FACTORS

Sylvamo faces risks in the normal course of business and through global, regional and local events. In addition to the risks and uncertainties discussed elsewhere in this Annual Report on Form 10-K, including in Item 1. Business, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Item 1C. Cybersecurity, the following are some important risk factors that we face. The occurrence of any of the following risk factors, or of additional risks and uncertainties not presently known to us or that we currently believe to be immaterial, could cause a material adverse effect on our business, financial condition, results of operations and cash flows. In any such case, the trading price of our common stock could decline. In addition, many of these risks are interrelated and could occur under similar business and economic conditions, and the occurrence of certain of them could in turn cause the emergence or exacerbate the ~~effect~~effects of others.

This Annual Report on Form 10-K also contains forward-looking statements and estimates that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of specific factors, including the factors described below. See Item 1. Business - Forward-Looking Statements.

SUMMARY RISK FACTORS

Our business is subject to numerous risks and uncertainties, including those described in “Risk Factors” below. The principal risks and uncertainties affecting our business include the following:

•global and regional economic and political conditions and trade relations;

•physical, financial and reputational risks associated with climate conditions and climate change;

•a public health crisis;

•the fluctuating and cyclical nature of paper and pulp supply and demand that periodically results in declines in prices for paper and pulp;

•changes in the cost or availability of raw materials and energy needed to manufacture our products;

•reduced truck, rail and ocean freight availability;

•industry-wide decline in demand for paper and related products;

•competition from other businesses and consolidation within the paper industry;

•material disruptions at one or more of our manufacturing facilities;

•information technology risks, including risk of cybersecurity breaches;

•extensive laws, regulations and government requirements, including those related to the environment and climate change, including costs of compliance and any liabilities under such laws;

•our reliance on a small number of significant customers;

•the significant capital needed for our operations;

•our failure to attract and retain senior management and other key employees;

•a significant write-down of our goodwill or other intangible assets;

•failure to achieve expected investment returns on pension plan assets or regulatory or other factors affecting the plans’ funded level;

•labor disputes;

•inability to achieve expected benefits from strategic corporate actions;

•inability to protect our intellectual property and other proprietary rights;

•loss of commercial agreements with International Paper;

•failure of transactions in connection with our spin-off from International Paper to qualify for non-recognition treatment for U.S. federal income tax purposes;

•satisfaction of indemnification obligations between us and International Paper;

•our indebtedness having a material adverse effect on our financial condition, or our inability to generate sufficient cash to service our indebtedness;

•future offerings of debt or equity securities senior to our common stock, depressing its price;

•if we do not continue to declare dividends, repurchase shares of our common stock or otherwise return capital to shareholders, shareholders must rely on appreciation in our stock’s value for investment returns;

•future issuances of equity, diluting our outstanding common stock;

•a shareholder’s sale of a substantial number of shares of our common stock, causing its price to decline;

•actions of activist shareholders that cause us to incur costs and adversely affect our stock price; and

•provisions in our certificate of incorporation and bylaws that could hinder a change in control of our company, cause a reduction in the price of our stock and limit the forum for actions against, and the liability of, our directors and officers.

RISKS RELATING TO OUR BUSINESS

~~Risks Relating to~~ Economic, ~~and~~Trade, Political, ~~Conditions~~Civil and ~~Other~~Environmental ~~External Factors~~Risks

Our ~~operations~~business ~~and~~can ~~performance~~be ~~depend~~adversely ~~significantly~~affected onby global ~~and~~or regional economic, civil ~~and political conditions and stable trade relations; and adverse economic~~, ~~civil or~~ political ~~conditions,~~ or ~~deterioration in~~ trade ~~relations, could materially adversely affect our business, financial condition, results of operations and cash flows~~developments.

We operate in three primary regions~~, each of which contributes significantly to our financial performance~~: Europe, Latin America and North America. Five of ~~the~~our seven mills ~~that we own~~ are located outside the United States:, including three in Brazil, one in France and one in Sweden. ~~Deterioration~~Adverse of economic, civil or political ~~conditions~~developments, ~~either~~whether globally or in aany ~~region~~of ~~where~~these ~~we operate~~regions, could have a material adverse effect on our business, financial condition, results of operations and cash flows. As examples, a recession could reduce demand for our products, impact capacity utilization, and erode our profits; significant inflation could increase our costs, reduce demand for our products if we increase prices, and erode our profits; and an unstable economic environment could disrupt our business strategies and destabilize demand for our products. Such conditions could also generally affect industrial non-durable goods production, consumer spending, commercial printing and advertising activity, white-collar employment levels, and consumer confidence, all of which could impact our costs of operating and demand for our products.

~~Also~~Elevated, ~~civil~~persistent orglobal ~~political~~inflation ~~unrest or conflict~~has, ~~including~~and ~~military conflict,~~ could ~~hinder~~continue ~~the supply~~ to ~~us of~~, ~~and~~ increase ~~the~~our ~~cost~~operating ~~of,~~and ~~materials~~input ~~needed for our operations~~costs. ~~Military~~Our ~~conflicts~~ability ~~that~~to ~~were~~increase ~~ongoing~~prices into ~~2024~~offset ~~could~~those ~~have~~costs awithout ~~material~~reducing ~~adverse~~demand ~~effect~~is onconstrained. ~~us in the future; for example~~Thus, ifinflation ~~the~~has ~~war~~and incould ~~Ukraine were to spread~~ further innegatively ~~Europe,~~impact orour ~~if,~~profitability. ~~notwithstanding~~If aan ~~recent~~economic ~~ceasefire,~~recession ~~armed conflict in and near the Middle East~~ were to ~~spread~~occur, orit ~~Houthis~~could ~~attacks~~reduce ~~affecting~~demand ~~Red~~for ~~Sea~~our ~~shipping~~products, ~~were~~lower toour ~~recommence~~capacity utilization and ~~increase~~compress ~~in severity~~margins. ~~With respect to these specific conflicts~~Furthermore, insignificant ~~2024 we experienced~~ inflation inor ~~transportation~~a ~~costs~~recession ~~due~~could tonegatively ~~shipping~~affect ~~disruptions~~industrial innon-durable ~~and~~goods ~~around the Red Sea that~~production, inconsumer ~~turn~~spending, ~~resulted~~commercial inprinting ~~global increases in shipping~~ and ~~container~~advertising ~~costs~~activity, ~~and~~white ~~supply~~collar ~~chain~~employment ~~disruptions. However~~levels, weand ~~believe~~overall ~~that,~~consumer ~~generally~~confidence, ~~our~~which ~~operations~~also incould ~~Europe~~reduce ~~are~~demand atfor ~~more risk than~~ our ~~operations~~products. ~~in Latin America and North America from potential~~

Civil or political unrest, including military conflict, has the ability to disrupt the availability of, and increase the cost of, raw materials, energy, transportation and other inputs critical to our operations. Examples of conflicts and unrest that have in the past caused, and still have the potential to cause, these impacts are the war in Ukraine and armed conflicts (and related security concerns) in and near the Middle East. With respect to these specific examples, in 2025 they did not have a material adverse impact on us, but they could if they were to worsen and spread. We believe that, generally, our operations in Europe are at more risk than our operations elsewhere from the potential expansion of these conflicts, because geographic proximity to such conflicts elevates the risk of transportation network, energy and supply chain disruptions and related price increases.

Other unfavorable economic, political or civil conditions in the regions where we operate, such as strikes, lack of availability and high cost of credit, and fluctuations in the value of local currency versus the U.S. dollar, could adversely affect our costs and ability to manufacture and deliver our products to customers, obtain credit on favorable terms and maintain profit margins. Fluctuations in local currencies versus the U.S. dollar impact the translation of our results in Latin America and Europe into U.S. dollars, and, for example, in 2025 had a negative impact on our operating results.

We are exposed to risks from the imposition, expansion or removal of trade protection measures, including tariffs, anti-dumping or countervailing duties, governmental subsidies and tax incentives.

Trade policies that favor locally produced competing products, without providing comparable protection to our products, could place us at a competitive disadvantage, as could the elimination or reduction of trade protection measures that currently benefit our products. For example, our mills in Brazil have historically benefited from Brazil’s policies that favor Brazilian domestic producers. We cannot predict whether such policies will remain in effect,

whether they will be modified or repealed, or whether future trade or industrial policies may adversely affect us. Any material change in these policies could reduce the competitive position or profitability of our operations in that region.

Increased trade friction between countries or disruptions to existing trade agreements have resulted, and may further result, in the imposition of protective trade measures such as tariffs. Tariffs also could disrupt the cross border flow and availability of raw materials, energy or finished goods, negatively affecting our supply chain and distribution capabilities. As of December 31, 2025, the United States has imposed tariffs on imported goods from various countries. Resulting changes in trade flows have introduced additional competing products into some countries where we sell, putting downward pressure on the pricing of our products. Also, the tariffs have increased, directly or indirectly, the costs of certain equipment and other goods that we purchase for our operations, constrained our ability to import and sell in the United States various products that we produce outside the United States, and caused, and could cause future, volatility in ocean shipping prices as demand for ocean transport increases or decreases in response to the tariffs’ impact on the volume of goods to be transported to and from affected areas. We cannot predict how long these impacts will continue or if new tariffs or other protective trade measures will be introduced in the future. Any new or increased tariffs or other protective trade measures could add to these impacts.

To offset increased costs resulting from tariffs or other protective trade measures, we may implement price increases, cost reductions and operational efficiencies, but we are limited in our ability to mitigate higher costs through price increases without decreasing demand for our products. The ultimate impact of continuing or new tariffs or other protective trade measures on our business is uncertain and depends on a number of factors, including which jurisdictions are affected by the tariffs or other measures, the scope and duration of the measures, the volume and nature of the goods affected, the extent to which we can pass any increased costs on to customers, changes in competitive dynamics resulting from the measures, and whether we obtain any competitive advantage from the measures and such advantage is sufficient to offset any higher costs we incur as a result of the measures.

We are exposed to risks associated with adverse climate and weather conditions and evolving climate-related regulations, obligations and stakeholder expectations.

Climate related physical conditions, including those typically associated with climate change, could disrupt our operations and supply chain and result in financial losses. If average temperatures increase, it may contribute to changes in weather patterns, including precipitation variability and more frequent or severe extreme weather events and natural disasters. Events such as hurricanes, tornadoes, hailstorms, wildfires, floods, droughts, heatwaves, snow, ice storms and lightening strikes could damage or destroy our facilities and other assets, interrupt operations, increase operating and repair costs and adversely affect demand for our products. If any such event were to damage infrastructure at our mills or disrupt water and energy availability, it could cause us reduced throughput, temporary shutdowns or costly repairs. For example, periodic drought conditions in Mogi Guaçu, Brazil have at times in the past reduced water flow needed for our mill operations there. In addition, our mills located near rivers are exposed to the risk of flooding that could significantly damage facilities. If severe enough, any of these types of events could result in a suspension of operations at a mill for an extended period or mill closure.

Our business relies on a steady and reliable supply of timber and other forest-based inputs. Reduced timber availability and quality and poor timber harvesting conditions can be caused by climate-related problems, such as the spread of pests or disease, increased drought, wildfires, altered growing seasons, flooding and other extreme weather. Any reduction in the availability, density or quality of virgin timber fiber could increase manufacturing costs or disrupt operations. For example, in Brazil, our owned and managed forestlands have been producing sub-optimal yields, partly due to weather events, of mature virgin fiber for our operations, and if there were additional adverse weather-related events affecting virgin timber availability in Brazil, it could further increase the costs we have been incurring to replenish trees on such forestlands (and, in the meantime, our costs to source virgin fiber from third parties). Drought conditions in Brazil in 2024 caused weather- and fire- related decreases in the supply of virgin fiber and thus inflated its cost, which inflation continued into 2025. While these events did not have a material impact in 2025, if we become unable to procure wood supplies in Brazil, or third party wood costs significantly elevate, or droughts increase in frequency or severity, then our wood fiber costs in Brazil would further increase. If adequate fiber supply could not be obtained, production at our Brazil mills could be reduced or interrupted.

Energy and fuel are critical to our manufacturing processes, our suppliers’ transportation of materials to us and our transportation of finished products to customers. Climate related disruptions of or constraints on energy and fuel sources could increase their costs, cause shortages or cause delivery disruptions. Such events could increase our manufacturing and logistics costs or require us to curtail or suspend operations.

~~expansion~~Severe ofor ~~these~~unpredictable ~~conflicts,~~weather ~~because~~may ~~geographic~~disrupt ~~proximity~~our tosuppliers’ ~~such~~and ~~conflicts~~customers’ ~~elevates~~operations, ~~the~~impair ~~risk~~logistics ofnetworks, ~~transportation~~or ~~network~~reduce end market demand, ~~energy~~which ~~and~~could ~~supply~~increase ~~chain~~our ~~disruptions~~input ~~and~~costs, ~~related~~delay ~~price~~production ~~increases.~~or reduce sales volumes.

~~Other~~While ~~unfavorable~~we ~~economic,~~maintain ~~political~~disaster orpreparedness, ~~civil~~response ~~conditions~~and inbusiness ~~the~~continuity ~~three~~plans, ~~regions~~these ~~where~~measures wemay ~~operate,~~not ~~such~~fully asmitigate ~~strikes,~~the ~~lack~~adverse effects of ~~availability~~all ~~and~~climate-related ~~high~~events. ~~cost of credit~~Also, ~~and~~we ~~fluctuations~~may innot ~~the~~be ~~value~~able ofto ~~local~~offset ~~currency~~increased ~~versus~~costs ~~the~~resulting ~~U.S.~~from ~~dollar~~climate-related ~~could~~events ~~adversely~~through ~~affect~~pricing ~~our~~or ~~cost~~other ~~and~~measures. ~~ability~~Attempts to ~~manufacture~~pass ~~and~~such ~~deliver~~costs ~~our~~on ~~products~~ to customers, ~~obtain~~could ~~credit~~reduce ondemand ~~favorable~~for ~~terms,~~our products and ~~maintain~~adversely ~~profit~~affect ~~margins~~our competitive position.

~~The~~We ~~imposition~~are ofexposed ~~trade~~to ~~protection~~risks ~~measures,~~associated ~~such~~with asclimate-related ~~governmental~~regulatory ~~subsidies~~developments. ~~and~~The ~~tax~~introduction ~~benefits,~~of ~~favoring~~carbon ~~locally~~taxes ~~produced~~or ~~products~~new ~~that~~or ~~compete~~more ~~with~~stringent ~~ours~~environmental regulations, ~~but~~such ~~which~~as dothose ~~not~~addressing ~~also~~GHG ~~protect our products~~emissions, ~~could~~energy ~~have~~use aor ~~material~~permitting ~~adverse~~requirements, ~~effect~~could onincrease our ~~results~~compliance, ~~of operations and business prospects. Conversely~~monitoring, ~~the~~reporting ~~removal~~or ofcapital ~~trade~~expenditure ~~protection~~costs ~~measures~~(references ~~that~~to ~~protect~~“regulations” ~~our~~in ~~products~~these ~~could~~Risk ~~have~~Factors ainclude ~~material~~all ~~adverse~~governmental ~~effect~~and onquasi-governmental ~~our~~requirements, ~~results~~including, ofwithout ~~operations~~limitation, ~~and~~laws, ~~business~~rules, ~~prospects.~~regulations, ~~For example~~ordinances, ~~our~~governmental ~~mills~~agency inrequirements ~~Brazil~~and ~~have~~court ~~historically~~orders). ~~benefited~~The ~~from~~scope, ~~policies~~timing, ~~favoring~~and ~~domestic~~impact ~~producers.~~of Wefuture ~~cannot~~regulatory ~~guarantee~~developments ~~that~~is ~~any~~uncertain ~~such~~and ~~policies~~may ~~will~~vary ~~continue~~by orjurisdiction. ~~that~~See weItem ~~will~~1. ~~continue~~Business to– ~~benefit~~Environmental ~~from~~and ~~existing~~Other orRegulations ~~future~~for ~~policies,~~additional ~~nor~~information. ~~can~~Compliance wewith ~~guarantee~~evolving ~~that~~regulations wecould ~~will~~increase ~~not~~our beadministrative ~~harmed~~and bycompliance ~~future policies~~costs.

~~Disruption~~A inpublic ~~existing~~health ~~trade~~crisis ~~agreements, or increased trade friction between countries,~~ could ~~result~~adversely inaffect protective measures such as tariffs and anti-dumping and countervailing duties. Protective trade measures could skew markets and disrupt the cross-border flow of globally traded materials needed to make our ~~products~~operations and ~~the distribution of our products~~results. For example, tariffs imposed or proposed by the United States on items that we import into the United States could increase our costs for such items. If we were to increase our products’ prices to mitigate the increase in our costs, it could decrease demand for our products. Also, protective trade measures taken by other countries in response to tariffs imposed by the United States could make our exported products more expensive and less desirable to customers in those countries. The impact on us of tariffs imposed or proposed by the United States or other countries is currently uncertain and depends upon various factors, including the extent to which we would import or export the items subject to the tariffs, the impact of the tariffs on the pricing, distribution and availability of items we import, the impact on demand for products that we export, and whether the negative impact on us of any tariffs imposed on products that we import is ameliorated by the positive impact of any competitive advantage conferred on products that we produce and sell within the same country. One of our significant imports into the United States is energy from Canada, and we export products from the United States to various locations globally, including Mexico. Our products sold within the United States compete with similar imported products and may benefit from tariffs imposed by the United States.

WeIf ~~are~~a ~~subject~~public health crisis were to ~~physical~~curtail business activities or result in the imposition of governmental restrictions on the general public or on business activities, ~~financial~~or ~~and~~were ~~reputational~~to ~~risks~~cause ~~associated~~widespread ~~with~~illness ~~climate~~among ~~conditions~~our ~~and~~or ~~climate~~our ~~change~~customers’ or suppliers’ employees, ~~including~~it ~~the~~could, ~~impact~~in ofturn, ~~global~~have a material adverse effect on our business, ~~regional~~financial condition, results of operations and ~~local~~cash ~~weather~~flows. ~~conditions~~For example, ~~the~~a ~~availability~~public health crisis could: reduce demand for our paper as a result of ~~wood~~school ~~fiber~~and business closures and increased remote work among the general public; disrupt operations at our mills due to employee attrition, ~~water~~illness, quarantines, government actions or other restrictions; and ~~fuel~~cause labor shortages, supply chain disruptions and ~~the~~inflation ~~impact~~that ofconstrain ~~increasing~~our ~~regulatory~~operations and ~~investor~~increase ~~focus~~our oncosts ~~climate~~to ~~change~~operate.

~~Climate conditions~~Industry, ~~including~~Competition ~~those that may be associated with climate change, have the potential to disrupt our business~~ and ~~cause~~Customer us financial loss. Increases in global average temperatures, which can be caused by increased concentrations of carbon dioxide and other GHGs in the atmosphere, could significantly change weather patterns, including precipitation patterns and growing seasons. An increase in global temperature could also lead to an increase in the frequency and severity of severe weather events and other natural disasters. Changes in weather patterns, severe weather events and other natural disasters pose significant risks for our operations and the operations of our suppliers and customers, including, without limitation, that hurricanes, tornados, hail, fire, extreme precipitation, flooding, snow, ice storms, extreme heatwaves and drought could cause heavy damage to or destruction of our valuable assets and have multiple adverse impacts on our business: Risks

~~•Decreased~~Paper ~~productivity of forests, increased frequency~~ and ~~severity~~pulp ofsupply ~~wildfires, heavy rain or drought, inadequate distribution~~ and ~~abundance~~demand ofare ~~tree~~cyclical ~~species,~~ and ~~the spread of disease or insect epidemics in forestlands~~fluctuate, ~~could adversely affect timber production and harvesting, thereby reducing the availability to us of, or reducing the density and quality of, the virgin fiber upon~~ which wecan rely to manufacture our products. Thus, any one or more of these events could significantly increase the costs to manufacture our products and potentially delay or interrupt our manufacturing operations (see “ – Changes in the cost or availability of raw materials and energy used to manufacture our products could have a material adverse effect on our business, financial condition and results of operations”). If occurring in Brazil, such events could further increase the costs that we have been incurring to replenish the trees on our owned and managed Brazil forestlands and to source virgin fiber from third parties for our mills in Brazil, because such forestlands have been producing sub-optimal yields of mature virgin fiber for our operations. Also, as a result ~~of drought~~ in ~~Brazil,~~declines in ~~2024 wildfires burned approximately 1% of~~ our ~~Brazil~~products’ ~~forestlands~~prices. ~~The 2024 wildfires did not have a material impact on us, but if drought and wildfires in Brazil worsen, we could incur further increased costs to source~~

The paper and pulp industry, including the demand for products like ours, is cyclical. Historically, economic and market shifts, fluctuations in capacity and changes in foreign currency exchange rates have created cyclical changes in prices, sales volume and margins for our products. The length and magnitude of industry cycles have varied over time and by product, but generally reflect changes in macroeconomic conditions and levels of industry capacity. Also, the supply of paper and pulp products fluctuates, as changing industry conditions have and will continue to influence producers to idle or permanently close individual machines or entire mills or convert them to different products to offset a decline in demand. Any such closure by us would result in significant cash and non-cash charges. Some producers, to avoid substantial cash costs in connection with idling or closing a mill, may choose to continue operating at a loss, which could prolong weak pricing environments due to oversupply.

As a result of this cyclicality and fluctuation, prices for our products are driven by many factors outside of our control, and we have little influence over the timing and extent of price changes, which are often volatile. Our profitability with respect to our products depends significantly on managing our cost structure to the extent that we can, particularly wood fiber, chemicals, transportation and energy costs, which represent some of the largest components of our operating costs and which also can fluctuate based upon factors beyond our control. If the prices or demand for our paper or pulp products decline, or if wood fiber, chemicals, transportation or energy costs increase, or both, our business, financial condition, results of operations and cash flows could be materially adversely affected.

Demand for the types of products that we sell is in a secular decline.

We rely heavily on the sale of paper products, an industry expected to continue experiencing a secular decline in demand. This may put pressure on our future revenue, profit margin and growth opportunities. The global demand for uncoated freesheet (“UFS”) decreased at 2.1% CAGR from 2019 to 2025 (which includes the COVID-19 pandemic’s atypical impact in 2020 of a 10.2% decline year-over-year) and 1.1% CAGR from 2021 (the year we became a public company) to 2025, based on third party RISI industry data reporting as of December 2025. This secular decline in

~~more~~demand ~~wood~~is due in ~~Brazil~~large ~~from~~part ~~third~~to ~~parties~~competing technologies and materials, ifincluding wethe ~~were~~increased ~~unable~~use toof ~~source~~e-mail, anmessaging ~~adequate~~and ~~supply~~other electronic forms of ~~suitable~~communication, ~~wood~~increased and permanent product substitution, ~~production~~including atless print advertising, more electronic billing, more e-commerce, fewer catalogs and a reduced volume of mail. This decline can have a material adverse effect on our ~~mills~~business, infinancial ~~Brazil~~condition, ~~could~~results ~~decrease~~of operations and cash flows as the use of non-paper alternatives continues to grow. Demand for paper products is likely to decline further.

•AOur ~~steady~~products ~~supply~~face ofstrong ~~significant~~competition ~~volumes of water are necessary to the manufacturing operations at our mills, and weather events interrupting such supply could slow or interrupt our mill operations. For example,~~as acommodities ~~result of periodic drought conditions in Mogi Guaçu, Brazil, water flow sometimes slows~~ and isfrom ~~interrupted~~industry ~~to our mill, slowing operations~~consolidation. Although this has not had a material adverse impact in the past,if there were a severe, extended drought, it could cause production at the mill to be suspended for an unknown period of time. Also, because of the need for a steady supply of water, our mills are located near rivers, exposing them to the risk of floods. A flood at any of our mills could result in severe damage to our assets, require costly repairs and cause the mill to suspend operations.

~~•Our~~We ~~manufacturing~~operate ~~operations~~in ~~rely~~a ~~significantly~~competitive onenvironment ain ~~steady~~Europe, ~~supply~~Latin America and North America. Most of ~~energy,~~our ~~and~~products ~~fuel~~are iscommodities ~~critical~~that toare ~~the~~available ~~transport~~from toother usproducers. ofWe ~~inputs~~believe our brand recognition and ~~the~~service ~~distribution~~levels byimpact usthe ofdemand for our products., ~~Energy~~but orbecause ~~fuel~~commodity ~~shortages~~products orhave ~~delivery~~few ~~disruptions~~other ~~caused~~distinguishing byqualities ~~climate-related~~from ~~events~~producer to producer, orcompetition ~~the~~for ~~transition~~these toproducts ais ~~lower-carbon~~significantly ~~economy~~based on price, ~~could~~which ~~increase~~is ~~the~~determined ~~price~~by supply relative to demand. The overall levels of ~~energy~~demand ~~needed~~for tothe products that we manufacture, and consequently our ~~products~~sales and profitability, ~~the~~reflect ~~cost~~fluctuations toin uslevels of ~~having~~end-user ~~inputs~~demand, ~~transported~~which todepend ~~us,~~in ~~and~~part ~~costs~~on ofgeneral ~~delivering~~macroeconomic ~~our~~conditions ~~products~~and tocompetition, ~~customers~~including from electronic substitution. ~~Disruptions~~Additionally, ~~have~~product ~~the~~innovations, ~~potential~~manufacturing toand ~~cause~~operating usefficiencies, toand ~~suspend~~marketing, ordistribution ~~stop~~and ~~operations~~pricing ~~until~~strategies ~~energy~~pursued or ~~fuel~~achieved ~~again~~by ~~become~~our ~~available~~competitors could reduce demand for our products and place downward pressure on our pricing.

~~•Unpredictable~~There ~~weather~~has ~~patterns~~been ora ~~extended~~trend ~~periods~~toward ofconsolidation ~~severe~~in ~~weather~~the paper industry. Consolidation could ~~impact~~result ~~our~~in ~~suppliers~~the emergence of competitors with greater resources and ~~disrupt~~scale than ours, which could adversely impact our ~~supply~~competitive ~~chain~~position. Further, ~~and~~actual ~~thus~~or ~~increase~~speculated ~~our~~consolidation ~~material~~among ~~costs~~competitors, ~~and~~or ~~potentially~~the ~~delay~~acquisition by, or ~~stop~~of, our ~~operations.~~third ~~They~~party ~~also~~service providers and business partners by competitors could ~~impact~~increase ~~our~~the competitive pressures faced by us as customers ~~and~~could ~~result~~delay inspending ~~decreased~~decisions ~~demand~~or ~~for~~not purchase our products byat ~~affected customers~~all.

~~•Our~~We ~~ability~~rely tosignificantly ~~mitigate~~on ~~the~~a ~~adverse~~few ~~physical~~customers ~~impacts of severe weather events~~ and ~~other~~are ~~natural~~exposed ~~disasters~~to ~~depends~~risks inassociated ~~part~~with ~~upon~~their ~~our~~financial ~~disaster~~viability ~~preparedness~~ and ~~response and business continuity planning, but we cannot guarantee that our disaster preparedness and business continuity planning would adequately mitigate such impacts~~consolidations.

~~•The~~We ~~introduction~~rely ofon a ~~carbon~~small ~~tax~~number orof ~~government~~significant ~~mandates~~customers. If we were to ~~reduce~~lose ~~GHG~~one ~~emissions~~or more of such customers, ~~and~~it ~~more~~could ~~stringent~~have ora ~~complex~~material ~~environmental~~adverse effect on our sales and ~~other~~profitability. ~~permitting~~Our ~~requirements~~top ten customers represent approximately 41% of our net sales, ~~could~~including ~~result~~one incustomer ~~costs~~that torepresents ~~meet~~approximately ~~such~~15% ~~requirements~~of our net sales; see Note 15 Financial Information by Business Segment and ~~other~~Geographic ~~additional~~Area ~~costs~~to ofthe ~~compliance.~~Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

~~•There~~Generally, isour nocustomers ~~assurance~~are not contractually required to purchase any product minimums from us. We are exposed to the risk that weour ~~can~~customers ~~recover,~~might ~~through~~purchase ~~increased~~our ~~prices,~~products ~~any~~in ~~increased~~significantly ~~costs~~lower quantities than they have in the past. We are also exposed to usrisks associated with the ability of ~~fiber,~~our ~~energy,~~customers ~~other~~to ~~materials,~~meet ~~manufacturing~~their ~~stoppages~~financial orobligations ~~delays,~~to ~~regulatory~~us. ~~compliance,~~The orfinancial ~~any~~viability ~~other~~of ~~factor~~our ~~related~~customers is key to ~~climate~~maintaining ~~conditions~~our orsales ~~climate~~to ~~change,~~those customers and iftheir weability ~~were~~ to ~~pass~~pay ~~these~~for ~~costs~~those onsales. Any threat to the financial viability of our customers could result in the reduction, itdelay ~~could~~or ~~reduce~~cancellation ~~demand~~of ~~for~~customer ~~our~~orders ~~products~~and their ability to pay their outstanding receivables with us.

~~•There~~In ~~has~~addition, ~~been~~consolidation anamong ~~increased~~our ~~focus,~~customers ~~including~~could ~~from~~result ~~investors,~~in ~~customers,~~changes ~~regulators~~to their purchasing habits and ~~other~~volumes ~~stakeholders~~and ~~regarding~~could ~~climate~~affect ~~change,~~our ~~which~~relationship ~~has~~with ~~resulted~~them. orIf one of our competitors’ customers acquires any of our customers, we could ~~result~~lose inthat ~~more~~business, ~~prescriptive~~which ~~reporting~~could ~~requirements~~have ~~with~~a ~~respect~~material toadverse ~~climate~~impact ~~change-related~~on ~~topics~~our business and ~~increased~~financial ~~expectations~~results ~~and~~if ~~pressure~~the toacquired ~~voluntarily~~customer ~~disclose~~were ~~such~~one ~~topics~~of our primary customers. Additionally, ~~all~~as ofour ~~which~~customers ~~increase~~become ~~compliance~~larger ~~costs.~~and ~~Additional~~more ~~details~~concentrated, ~~are~~they ~~available~~could inexert ~~Item~~pricing 1pressure on all suppliers, including us. ~~Business~~As “—a ~~Environmental~~result, ~~and~~we ~~Other~~could ~~Regulations”~~be ~~and~~forced “—to ~~Sustainability~~reduce the prices of our products.”

~~•We~~Operational ~~have established~~ and ~~publicly~~Supply ~~disclosed~~Chain targets, and our progress towards achieving targets, related to certain sustainability matters, including to reduce Scope 1, 2 and 3 GHG emissions. Our sustainability targets are subject to assumptions, risks and uncertainties, many of which are outside of our control. If we cannot meet these targets by 2030, or if they are perceived negatively, including the perception that they are not sufficiently robust or, conversely, are too costly, our reputation could be harmed. Risks

~~The~~Increased ~~impact~~costs ~~of events resulting from any one~~ or ~~more~~decreased ofavailability ~~these climate-related risks could, directly or indirectly, have a material adverse effect on our business, financial condition, results~~ of ~~operations~~raw ~~and~~materials ~~cash flows. We are assessing our climate-related risks~~ and ~~determining~~energy ~~the~~could ~~best~~adversely ~~strategies~~affect ~~to address identified risks and increase~~ our business~~’s climate resilience~~.

~~Additional~~We ~~discussion~~rely heavily on the use of ~~our~~certain ~~environmental~~raw ~~regulatory~~materials ~~risk~~(principally isvirgin ~~included~~wood ~~in –~~fiber, ~~“We~~caustic ~~are~~soda, ~~subject~~starch toand ~~extensive~~water) ~~environmental~~and ~~laws~~energy sources (principally biomass, natural gas, electricity and ~~regulations~~fuel oil) to manufacture our products. Our profitability has been, and ~~could~~will ~~incur~~continue ~~substantial~~to ~~costs~~be, asaffected aby ~~result~~changes in the cost and availability of ~~compliance~~the ~~with~~raw materials and energy sources we use, ~~violations~~including inflation that we experienced in 2025. Future inflation in the costs of orand ~~liabilities~~decreases ~~under~~in ~~these~~the ~~laws~~availability of raw materials and ~~regulations”~~energy is not within our control and ~~Item~~could 1.increase ~~Business~~our –costs ~~Environmental~~of production and ~~Other~~slow ~~Regulations~~or stop our production.

AWe ~~public~~rely ~~health~~on ~~crisis~~a steady supply of quality virgin wood fiber for our products. The market price of virgin wood fiber varies based upon demand, availability, source, and the costs of labor and the fuels used in harvesting and transporting the fiber. The cost and availability of wood fiber can also be affected by weather, climate variations, natural disasters, general logging conditions, geography, human activity and regulatory activity. An example of regulatory activity that has the potential to decrease the supply of wood fiber available to us are carbon sequestration regulations. Such regulations limit the availability of forestlands for harvest and could ~~have~~increase aour ~~material~~cost ~~adverse~~of ~~effect~~wood fiber and potentially create shortages having an impact on our ~~business~~operations. In particular, ~~financial~~the ~~condition~~EUDR in the European Union, ~~results~~which will become effective on December 30, 2026, prevents companies trading in certain goods and products derived from such goods, such as paper, from selling those products in Europe unless they conduct extensive diligence on the value chain to ensure that the products do not result from recent deforestation, forest degradation or breaches of ~~operations~~local regulations. The EUDR could decrease the volume of wood supplied in the European Union and ~~cash~~increase ~~flows~~prices there for wood generally.

IfAlso ain ~~public~~Europe, ~~health~~there ~~crisis~~is ~~were~~a toheightened ~~curtail~~level ~~business~~of ~~activities~~sensitivity ~~or result~~ in the ~~imposition~~pricing ofand ~~governmental~~availability ~~restrictions~~of onraw ~~the~~materials ~~general~~and ~~public~~energy orfrom onthe ~~business~~geopolitical ~~activities,~~conflicts orin ~~were~~Europe toand ~~cause widespread illness among our or our customers’ or suppliers’ employees, it could,~~ in ~~turn,~~and ~~have~~near athe ~~material~~Middle ~~adverse effect on our business, financial condition, results of operations and cash flows~~East. ~~For~~We ~~example,~~cannot apredict ~~public~~whether ~~health~~these ~~crisis~~geopolitical ~~could~~conflicts ~~reduce~~will ~~demand~~cause ~~for~~future ~~our~~increases ~~paper~~in asthe acosts ~~result~~ of ~~school~~raw ~~and~~materials ~~business closures~~ and ~~increased~~energy ~~remote~~for ~~work~~our ~~among the general public~~mills, ~~disrupt~~particularly ~~operations at~~ our mills ~~due~~in toSweden ~~employee attrition, illness, quarantines, government actions or other restrictions,~~ and ~~cause labor shortages, supply chain disruptions and inflation that constrain our operations and increase our costs to operate~~France.

Risks Relating to Our Industry, the Products We Offer and Product Distribution

Demand for and prices of paper and pulp products fluctuate and are cyclical, and fluctuations or cycles that result in decreased demand and lower prices could cause us to have lower sales volumes and smaller profit margins.

The paper and pulp industry, including the demand for our products, is cyclical. Historically, economic and market shifts, fluctuations in capacity and changes in foreign currency exchange rates have created cyclical changes in prices, sales volume and margins for our products. The length and magnitude of industry cycles have varied over time and by product, but generally reflect changes in macroeconomic conditions and levels of industry capacity. Most of our products are commodities that are available from other producers. While brand recognition and service levels impact the demand for products, because commodity products have few other distinguishing qualities from producer to producer, competition for these products is significantly based on price, which is determined by supply relative to demand. The overall levels of demand for the products that we manufacture, and consequently our sales and profitability, reflect fluctuations in levels of end-user demand, which depend in part on general macroeconomic conditions, competition, including from electronic substitution, and other factors also described in this Item 1A. Risk Factors in “—The industry-wide decline in demand for paper and related products could have a material adverse effect on our business, financial condition, results of operations and cash flows.”

Industry supply of paper and pulp products is also subject to fluctuation, as changing industry conditions have and will continue to influence producers to idle or permanently close individual machines or entire mills or convert them to different products to offset a decline in demand. Any such closures by us would result in significant cash and non-cash charges. In addition, to avoid substantial cash costs in connection with idling or closing a mill, some producers will choose to continue to operate at a loss, sometimes even a cash loss, which could prolong weak pricing environments due to oversupply. As a result, prices for our products are driven by many factors outside of our control, and we have little influence over the timing and extent of price changes, which are often volatile. Our profitability with respect to our products depends on managing our cost structure, particularly wood fiber, chemicals, transportation and energy costs, which represent some of the largest components of our operating costs and can fluctuate based upon factors beyond our control. If the prices or demand for our paper or pulp products decline, or if wood fiber, chemicals, transportation or energy costs increase, or both, our business, financial condition, results of operations and cash flows could be materially adversely affected. See “—Changes in the cost or availability of raw materials and energy used to manufacture our products could have a material adverse effect on our business, financial condition, results of operations and cash flows.”

Changes in the cost or availability of raw materials and energy used to manufacture our products could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We rely heavily on the use of certain raw materials (principally virgin wood fiber, caustic soda, starch and water) and energy sources (principally biomass, natural gas, electricity and fuel oil) to manufacture our products. Our profitability has been, and will continue to be, affected by changes in the cost and availability of the raw materials and energy sources we use. Future inflation in the costs of and decreases in the availability of raw materials and energy is not within our control and could increase our costs of production and slow or stop our production.

In 2024, as compared to 2023, we did not experience significant inflation in the costs of raw materials and energy, except for inflation in the cost of virgin wood fiber, driven primarily by tight wood supply in Europe and high wood demand in Latin America. The market price of virgin wood fiber varies based upon demand, availability, source, and

the costs of labor and the fuels used in harvesting and transporting the fiber. The cost and availability of wood fiber can also be affected by weather, climate variations, natural disasters, general logging conditions, geography, human activity and regulatory activity.

An example of regulatory activity that has the potential to decrease the supply of wood fiber available to us are carbon sequestration regulations. Such regulations limit the availability of forestlands for harvest and could increase our cost of wood fiber and potentially create shortages having an impact on our operations. In particular, the EUDR in the European Union, to become effective on December 30, 2025, will prevent companies trading in certain goods and products derived from such goods, such as paper, from selling those products in Europe unless they conduct extensive diligence on the value chain to ensure that the products do not result from recent deforestation, forest degradation or breaches of local laws. The EUDR could decrease the volume of wood supplied in the European Union and increase prices there for wood generally.

Also in Europe, there is a heightened level of sensitivity in the pricing and availability of raw materials and energy from the geopolitical conflicts in Europe, the Middle East and the Red Sea. We cannot predict whether these geopolitical conflicts will cause future increases in the costs of raw materials and energy for our mills, particularly our mills in Sweden and France.

If we were to experience increases in our operating costs for any of the reasons described above, we might be unable to pass on the increases to customers. The commodity nature of our products means that supply and demand primarily determine our ability to increase our prices. Any sustained increase in the prices of raw materials and energy required for our manufacturing operations without any corresponding increase in our product pricing would reduce our operating margins and could have a material adverse effect on our business, financial condition, results of operations and cash flows.

~~Reduced~~Disruptions ~~truck,~~at ~~rail~~our ~~and~~facilities ~~ocean~~or ~~freight~~in ~~availability~~transportation ~~could~~and ~~lead~~logistics tocould ~~higher~~increase our costs ~~or poor service, resulting in lower earnings,~~ and ~~could~~impair ~~affect~~ our ability to ~~deliver~~operate ~~the~~and ~~products~~serve ~~we manufacture in a timely manner~~customers.

WeOur ~~rely~~business depends on ~~third~~the ~~parties~~continuous ~~to transport materials to us used in our operations~~ and toefficient ~~deliver~~operation ~~our~~of ~~products to~~ our ~~customers,~~manufacturing ~~including transport by third party rail~~facilities, ~~trucks~~the ~~and~~reliable ~~ships.~~performance ~~If any~~ of ~~these~~the ~~providers~~equipment ~~fail~~within tothose ~~deliver materials to us in a timely manner~~facilities, weand ~~could~~the ~~experience delays in our~~ ability to ~~manufacture~~process ~~our products~~ and befill ~~unable to meet~~ customer ~~demand~~orders. IfA ~~any~~material ofdisruption ~~our~~at ~~transportation providers fail to deliver~~ our ~~products~~corporate toheadquarters ~~customers~~or inat a timely manner, it could result in additional costs to us in order to remedy the untimely delivery. Further, reduced availability of transportation causes inflationary pressure on the prices charged by our transportation providers, increasing our costs of production and delivery to customers. If any of our ~~transportation~~mills ~~providers~~-- ~~were~~whether toaffecting ~~cease~~an ~~operations~~entire ~~or cease doing business with us~~facility, weoperations ~~could be unable to replace them~~ at amultiple ~~reasonable~~facilities, ~~cost.~~or ~~Any~~one ofor ~~the~~more ~~circumstances~~key ~~described~~machines in-- ~~this paragraph~~ could ~~result~~interrupt ~~in lost sales~~production, ~~increased~~delay ~~supply~~product ~~chain~~deliveries, ~~costs~~limit ~~and~~our ~~damage~~ability to ~~our~~meet ~~reputation,~~customer ~~and have a material adverse effect on our business~~demand, ~~financial condition, results of operations~~ and ~~cash~~reduce ~~flows~~sales.

InOur ~~2024,~~facilities weor ~~experienced~~equipment ~~significant~~could ~~inflation~~experience inunexpected ~~ocean~~downtime ~~freight~~or ~~rates~~cease ~~and,~~operations inas ~~the~~a ~~second~~result ~~half~~ of ~~the~~a ~~year,~~variety ~~supply~~of ~~chain~~events. ~~disruptions~~Examples ~~due~~are tonatural ~~the~~disasters ~~global~~or ~~impact~~severe onweather; ~~shipping~~disruptions ofto ~~attacks~~water, byenergy ~~the~~or ~~Houthis~~other onutility ~~and~~supplies; ~~near~~shortages ~~the~~of ~~Red~~raw ~~Sea~~materials, ~~which~~such ~~reduced~~as ~~container~~wood fiber, and ~~ship~~other ~~availability~~critical ininputs; ~~all~~interruptions ~~three~~in ~~regions~~transportation ~~where~~infrastructure we(including ~~operate~~roads, ~~and also~~bridges, ~~with~~railways ~~respect~~or toports); ~~our~~unscheduled ~~Latin~~maintenance ~~American~~outages; ~~operations,~~equipment ~~due~~failures or damage to ~~congested~~paper‑making ~~ports~~or ~~that~~other ~~increased~~important ~~demand~~equipment; ~~for~~prolonged ~~space~~power onoutages; ~~ships.~~or Weinformation ~~cannot~~technology ~~predict~~or ~~whether~~operational ~~continued~~technology ~~disruption~~system infailures, ~~ocean~~including ~~freight~~those onresulting ~~and~~from ~~near~~cybersecurity ~~the~~incidents ~~Red~~affecting ~~Sea~~us or ~~demand~~third atparties ~~Brazilian~~with ~~ports~~whom ~~will~~we ~~continue~~do orbusiness. inIn ~~the~~addition, ~~future~~spills ~~cause~~or usreleases toof ~~experience~~chemicals ~~disruptions~~or inother ~~our~~hazardous ~~supply chain~~substances, ~~increases~~explosions inor ~~our~~damage ~~transportation~~involving ~~costs~~boilers or ~~difficulty~~other ~~supplying~~equipment, ~~our~~or ~~customers.~~damage ~~Although~~caused ~~such~~by ~~events~~third inparties ~~2024~~operating ~~caused~~on ~~increases~~or innear our ~~costs,~~facilities itcould ~~did~~result ~~not~~in ~~have a material adverse effect on our business~~shutdowns, ~~financial~~repairs ~~condition,~~or ~~results~~corrective ~~of operations~~ or ~~cash~~punitive ~~flows~~regulator actions.

~~The~~Disruptions ~~industry~~may also result from other third-~~wide~~party ~~decline~~events inthat ~~demand~~impact ~~for~~us, ~~paper~~such ~~and~~as ~~related~~failures ~~products~~or ~~could~~delays ~~have~~by our third‑party service providers or a ~~material~~business ~~adverse~~partner’s ~~effect~~labor ondisputes or workforce availability issues, or regulations or governmental action applicable to our or our business, ~~financial~~partners’ ~~condition~~businesses. The frequency, ~~results~~severity or duration of any such disruptions could affect our production volumes, increase operating or repair costs, cause missed deliveries or require capital expenditures to restore operations. While we maintain maintenance programs, contingency plans and ~~cash~~insurance ~~flows.~~coverage for certain risks, these measures may not prevent all disruptions or fully offset their financial impact.

We rely ~~heavily~~ on ~~the~~third ~~sale~~parties offor ~~paper~~transport, ~~products~~including by rail, antruck ~~industry~~and ship, of materials that ~~has~~we ~~experienced,~~purchase for our operations and isproducts ~~expected~~that we deliver to ~~continue~~customers. ~~experiencing,~~If a ~~decline~~transporter does not deliver materials to us in ~~demand~~a timely manner, ~~which~~we could ~~put~~experience ~~pressure~~delays onin our ~~future~~ability ~~revenue,~~to ~~profit~~manufacture ~~margin~~products and ~~growth~~be ~~opportunities.~~unable ~~The~~to ~~global~~meet customer demand. ~~for~~If ~~uncoated~~a ~~freesheet~~transporter ~~(“UFS”)~~does ~~decreased~~not atdeliver ~~2.4%~~our ~~CAGR~~products ~~from 2019~~ to ~~2024~~customers ~~(which~~in ~~includes~~a ~~the~~timely ~~COVID-19~~manner, ~~pandemic’s~~it ~~atypical~~could ~~impact~~result in ~~2020~~additional ofcosts ato ~~10.2%~~us ~~decline~~to ~~year-over-year),~~remedy ~~based~~the onuntimely ~~third~~deliveries ~~party~~and ~~RISI~~a ~~industry~~potential ~~data~~loss ~~reporting~~of asbusiness ofwith ~~December~~affected ~~2024~~customers. ~~This~~If ~~secular~~any ~~decline~~of inour ~~demand~~transportation isproviders ~~due~~were into ~~large~~cease ~~part~~operations toor ~~competing~~cease ~~technologies~~doing ~~and~~business ~~materials~~with us, ~~including~~we ~~the~~could ~~increased~~be ~~use~~unable ofto ~~e-mail~~replace ~~and~~them ~~other~~at ~~electronic~~a ~~forms~~reasonable ofcost. ~~communication,~~If ~~increased~~the ~~and~~availability ~~permanent~~of ~~product~~transportation ~~substitution~~by rail, ~~including~~truck ~~less~~or ~~print~~ship ~~advertising,~~were ~~more~~to ~~electronic~~become ~~billing~~constrained, ~~more~~it e-could cause inflationary pressure on

1615

~~commerce,~~the ~~fewer~~prices ~~catalogs~~charged ~~and~~by aour ~~reduced~~transportation ~~volume~~providers, ofincreasing ~~mail.~~our ~~The~~costs ~~secular~~to ~~decline~~produce inand ~~demand~~deliver ~~historically~~our ~~has~~product ~~had~~to acustomers. ~~material~~In ~~adverse~~2025, ~~effect~~transportation onmarkets ~~our~~remained ~~business,~~relatively ~~financial~~stable ~~condition,~~and ~~results~~we ofdid ~~operations~~not ~~and~~experience ~~cash~~any ~~flows.~~material Asincreased ~~the~~transportation ~~use~~costs ofor ~~non-paper~~disruptions, ~~alternatives~~but ~~continue~~we tocannot ~~grow,~~predict ~~demand~~whether ~~for~~this ~~paper~~stability ~~products~~will iscontinue. ~~likely~~Any toof ~~decline~~the ~~further,~~circumstances ~~which~~described ~~could~~in ~~have~~this aparagraph ~~further~~could ~~material~~cause ~~adverse~~us ~~effect~~increased onsupply ~~our~~chain ~~business~~costs, ~~financial~~increased ~~condition,~~costs ~~results~~to ofsupply ~~operations~~customers and ~~cash~~loss ~~flows~~of customers.

~~Competition~~Failures ~~from~~or ~~other~~security ~~businesses~~breaches ~~and~~of ~~consolidation~~our ~~within~~information ~~the~~technology ~~paper~~systems ~~industry~~ could ~~have~~disrupt ~~a material adverse effect on~~ our ~~competitive position~~operations, ~~financial~~harm ~~condition,~~our ~~results~~business ofand ~~operations~~result ~~and~~in ~~cash~~regulatory ~~flows~~non-compliance.

WeOur ~~operate~~business inoperations arely ~~competitive~~upon ~~environment~~secure ininformation ~~Europe,~~technology ~~Latin~~systems ~~America~~for ~~and~~data ~~North America. Product innovations~~capture, ~~manufacturing and operating efficiencies~~processing, ~~and~~storage ~~marketing, distribution~~ and ~~pricing strategies pursued or achieved by competitors could have a material adverse effect on our business, financial condition, results of operations and cash flows.~~

~~In addition, there has been a trend toward consolidation in the paper industry~~reporting. ~~Consolidation~~Despite ~~could~~careful ~~result~~security inand ~~the~~controls ~~emergence~~design, ofimplementation, ~~competitors~~updating ~~with greater resources~~ and ~~scale~~independent ~~than~~third-party ~~ours~~verification, ~~which could adversely impact~~ our ~~competitive~~information ~~position.~~technology ~~Further,~~systems ~~actual~~could orbecome ~~speculated~~subject ~~consolidation~~to ~~among~~employee ~~competitors,~~error or ~~the~~malfeasance, ~~acquisition by~~cyber-attacks, orgeopolitical ofevents, ~~our~~natural ~~third~~disasters, ~~party~~failures ~~service~~or ~~providers~~impairments ~~and~~of ~~business~~telecommunications ~~partners~~networks ~~by competitors could increase the competitive pressures faced by us as customers could delay spending decisions~~ or ~~not~~other ~~purchase~~catastrophic ~~our products at all~~events.

Risks Relating to Our Operations

Material disruptions at one of our manufacturing facilities could have a material adverse effect on our business, financial condition, results of operations and cash flows.

A material disruption at our corporate headquarters or one of our manufacturing facilities, or involving any of our machines within such facilities, could prevent us from meeting customer demand and reduce our sales, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. Any of our manufacturing facilities, or any of our machines within an otherwise operational facility, could cease operations unexpectedly due to a number of events, including:

• fires, floods, earthquakes, hurricanes or other catastrophes;

• the effect of a drought, reduced rainfall or a flood on any of our mills’ water supply;

• the effect of severe weather conditions on equipment and facilities;

• disruption in the supply of raw materials, including wood fiber, or other manufacturing inputs;

• information system disruptions or failures due to any number of causes, including cyber-attacks on us or third parties with which we do business;

• domestic and international laws and regulations applicable to our business and our business partners around the world;

• unscheduled maintenance outages;

• prolonged power failures;

• an equipment failure or damage to any of our paper-making equipment;

• a chemical spill or release of pollutants or hazardous substances;

• explosion of or damage to a boiler or other equipment;

• damage or disruptions caused by third parties operating on or adjacent to one of our manufacturing facilities;

• disruptions in the transportation infrastructure, including roads, bridges, railroad tracks and tunnels;

• a widespread outbreak of an illness or any other communicable disease, such as a viral pandemic or other public health crisis;

• failure of our third-party service providers and business partners to satisfactorily fulfill their commitments and responsibilities in a timely manner and in accordance with agreed upon terms;

• labor difficulties; and

• other operational problems.

We are subject to information technology risks, including risks related to breaches of security pertaining to sensitive company, customer, employee and vendor information, and breaches in the technology used to manage our operations and other business processes, and the increasing use of artificial intelligence.

Our business operations rely upon secure information technology systems for data capture, processing, storage and reporting. Despite careful security and controls design, implementation, updating and independent third-party verification, our information technology systems could become subject to employee error or malfeasance, cyber-attacks, geopolitical events, natural disasters, failures or impairments of telecommunications networks or other catastrophic events.

Also, third parties with which we do business are potential sources of cybersecurity risks. For example, we outsource certain information technology functions that allow access to our information technology systems, which could lead to a compromise of our systems or the introduction of vulnerable or malicious code, resulting in security breaches adversely affecting us or our customers. We have in place third-party cyber risk management to reduce this risk, and many of our agreements with third parties include relevant indemnification provisions. However, we cannot guarantee that our efforts to minimize third-party cyber risk will prevent a third-party cyber incident from occurring that has a material adverse impact on us. Additionally, if we were to experience loss as a result of a third-party cyber incident, we cannot guarantee that we would be able to recover any or all of such loss under any relevant contractual indemnity.

Although in ~~2024~~2025 we did not experience any significant breaches of our information technology systems from cybersecurity attacks, we cannot be certain that the security measures we maintain to protect our information technology systems are able to prevent, contain or detect cyber-attacks, cyber terrorism or security breaches from known or future cyber-attacks. We expect cyber-attacks to continue to increase in sophistication and frequency for a number of reasons, including increases in technology-based products and services used by us and our customers, the growing use of mobile, cloud, and other emerging technologies such as artificial intelligence, and the increasing sophistication and activities of organized crime, hackers, terrorists, nation-states, activists and other external parties. If a cyber-attack against us successfully resulted in network, system, application or data breaches, it could cause us harm, including, but not limited to, interruption of our systems’ availability, cyber criminals’ misuse of our applications, our inability to access applications required for our operations (such that we may be delayed or unable to source materials, manufacture and ship finished goods and account for orders and deliveries), theft of our intellectual property and trade secrets, inappropriate disclosure of confidential company, employee, customer and vendor information, including disclosures in violation of laws, including privacy laws, and our contractual obligations. The loss to us could be significant, including financial losses resulting from remediating damages to our systems, loss from our inability to operate or delays in our operations, lost sales, negative publicity, litigation and government penalties. As a result, such incidents could have a material adverse effect on our business, financial condition, results of operations and cash flows.

We have processes and controls in place to prevent, detect, respond to and mitigate potential cybersecurity breaches. Nonetheless, we could experience significant cybersecurity breaches.

For additional pertinent information, see Item 1C. Cybersecurity.

Artificial Intelligence (“AI”) is increasingly being integrated into applications and systems used by us and third parties with which we do business. The development, adoption and use of AI is in its early stages. We use only limited AI-enhanced tools at the Company, which are approved after review by our information security team. Yet, our employees could use unauthorized AI tools on our systems, notwithstanding that we require only approved software be used, and our vendors and third-party partners could incorporate AI tools into their software or systems with or without disclosing it to us. AI tools not vetted by us may not meet existing or rapidly evolving regulatory or industry standards concerning privacy and data protection, and may result in a loss of intellectual property or confidential information, resulting in fines, litigation, harm to our reputation, and diminished public perception of the effectiveness of our security measures. Additionally, unapproved AI tools that are faulty or inadequate for the use to which they are put could harm our Company systems or data. We also could incur substantial costs to address and mitigate privacy and data protection violations, to correct errors and data corruption or loss, and to resolve other resulting issues for affected

third parties (for example, customers or other business partners who rely on our systems). Additionally, cyber criminals are increasingly using AI to enhance the sophistication and effectiveness of their cyber attacks, which increases our risk of cybersecurity incidents and our cost to protect ourselves against cybersecurity incidents.

Labor disputes could disrupt our operations and increase our labor and operating costs.

A portion of our workforce is represented by unions and operate under various collective bargaining agreements, including some of our employees that are represented by six unions in Brazil, three unions in France, four unions in Sweden, and a union with two branches representing the hourly employees at our mill in Ticonderoga, New York. We must negotiate to renew or extend any union contracts near or upon their expiration. We may not be able to successfully negotiate new agreements without work stoppages or labor difficulties in the future or renegotiate them on favorable terms. If we are unable to successfully or favorably renegotiate the terms of any of these agreements, or if we experience any extended interruption of operations at any of our facilities as a result of strikes or other work stoppages, this could have a material and adverse effect on our business, financial condition, results of operations and cash flows.

Our business depends on our ability to attract, retain and develop skilled employees and management.

We are led by a strong senior management team that has extensive experience in the paper industry, and we rely upon an extensive and skilled workforce. Our ability to successfully operate our business and our future growth depends, to a significant degree, on the ability to continue to attract and retain senior management with strong leadership experience and relevant knowledge and skills. There is no guarantee that we will be able to continue to attract and retain strong senior management.

Many employees at our mills are near retirement. When they retire, we will lose operators and other members of our skilled workforce with 30+ years’ experience, and many of the employees replacing them will have much less tenure. This is due to a large extent on workforce preferences; that is, employee interest in manufacturing jobs with shifts covering 24 hours, seven days per week, has declined, and employees also are more open to voluntarily leaving their positions and having multiple employers over their career than was historically the case in our industry. We provide our employees with training programs that target the skills needed for their positions, but it is difficult to replace the years of experience our retiring operators and skilled workforce possessed. Although the labor market generally is not as tight as it was a few years ago, it does remain tight for labor with the specialized technical and trade skills and experience needed for manufacturing operations at our mill locations. These factors drive up our cost of labor and, further, there is no guarantee that we will be able to attract and retain the skilled employees needed to successfully operate our business in the future.

Loss of the services of any members of our senior management team or other key or skilled employees without a suitable transition, or significant attrition in our workforce and retirements as our workforce ages combined with failure to attract and retain qualified persons to serve in those positions, could have a material adverse effect on our business and business prospects.

Legal Risks

Environmental regulations could result in significant compliance costs, operational constraints and liabilities for non-compliance.

We are subject to extensive environmental regulation (including laws, rules, regulations and other governmental requirements) in the jurisdictions in which we operate -- Europe, Latin America and North America. Such regulations govern, among other things, air emissions, water discharges, waste management, land use and remediation obligations. Environmental regulations continue to evolve, and regulatory authorities may adopt or more actively enforce environmental regulations, including those affecting air quality, water use and quality, emissions, permitting, reporting or facility operations. Compliance with existing environmental requirements, or with new or more stringent standards that may be adopted, could increase our operating and capital costs or restrict certain aspects of our manufacturing operations.

We have incurred, and expect that we will continue to incur, significant costs complying with applicable environmental regulations, including expenditures related to air and water quality, waste disposal and the cleanup of contaminated soil and groundwater.

We anticipate continued or increased activity by local, state, federal and international regulators regarding environmental matters and policies affecting our operations. Changes in regulatory frameworks or enforcement practices could require us to modify or install additional controls, make capital investments, change operating practices, obtain permits or take other required actions. In certain circumstances, compliance obligations could result in production constraints, temporary shutdowns or the curtailment of operations at facilities.

We are required to comply with multiple environmental permits in the jurisdictions where we manufacture paper, including permits imposing performance-based requirements for effluent and air emissions. For example, in the United States, federal, state and local regulations require us to routinely obtain authorizations from and comply with evolving permit terms over which governmental authorities have considerable discretion. If we cannot maintain or renew existing permits, it could materially adversely affect our business.

As the owner and operator of real property, we may be liable for investigation, cleanup, closure and other costs and damages resulting from hazardous substances on, or released from, our properties or operations, including properties that we no longer own or operate. For example, at our Mogi Guaçu mill in Brazil, we are working with environmental regulators to establish the work necessary to address historic contamination on areas owned near the mill. See Note 1 1 Commitments and Contingent Liabilities to the Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

We are subject to sustainability regulations, such as the EUDR in the European Union, which will become effective on December 30, 2026, and EPR regulations in various European countries, Canadian provinces and states in the United States that increase our costs of operating and, if we fail to be fully compliant, could result in fines, penalties and reputational harm.

We may be subject to liabilities, fines, penalties or other enforcement actions, as well as third-party litigation, arising from alleged violations of current or future environmental regulations, permits or other regulatory requirements, including obligations relating to cleanup, remediation or other corrective actions at our facilities or sites for which we may be responsible. The cost of compliance, remediation or other corrective action, litigation or penalties associated with environmental matters could be material. The amount and timing of environmental expenditures is difficult to predict. In some cases, liability may be imposed without regard to contribution or whether we knew of or caused the environmental issue. Liability could exceed forecasted amounts or the value of the property itself. There can be no assurance that our existing reserves for specific matters will be adequate to cover our future costs.

For more information about risks related to environmental regulations and governmental requirements, see I t em 1. Business – Environmental and Other Regulations .

Compliance with a broad range of complex and changing regulations could increase our costs or limit our operations, and failure to comply could result in liabilities and harm our business.

In addition to environmental regulations, our operations are subject to a wide range of other regulations and governmental requirements in the jurisdictions in which we operate, including Europe, Latin America and North America. These requirements relate to, among other areas, health and safety, labor and employment, data privacy and cybersecurity, taxation, antitrust and competition, trade and customs and other regulatory matters. Changes in these regulations, or in their interpretation or enforcement, could require us to modify certain operations and incur additional costs to maintain compliance, including costs to modify policies, processes, systems and controls, and to enhance monitoring and reporting capabilities. Regulatory authorities may also interpret applicable regulations in ways that differ from our interpretations or expectations. If our efforts to comply with existing or future regulations are deemed inadequate, we could be subject to investigations, enforcement actions, remediation obligations, fines or penalties, criminal prosecution, private litigation and restrictions on our operations.

Compliance obligations in certain regulatory areas are complex and actively evolving. For example, we are subject to data‑protection and privacy regulations in multiple jurisdictions, including the European Union’s General Data Protection Regulation (“GDPR”), Brazil’s Lei Geral de Proteção de Dados Pessoais (“LGPD”), and state‑level privacy regulations in the United States, such as the California Consumer Privacy Act, as amended by the California Privacy Rights Act (“CCPA/CPRA”). These regulations impose requirements related to the collection, use, processing, storage, security and transfer of personal data, and provide regulators with enforcement authority that includes the ability to impose significant fines and other remedies for noncompliance. There is no assurance that our security controls over

~~concerning~~personal ~~privacy and~~ data ~~protection~~, ~~and~~our ~~may~~training ~~result in a loss~~ of ~~intellectual~~employees ~~property or confidential information, resulting in fines, litigation, harm to our reputation,~~ and ~~diminished~~vendors ~~public~~on ~~perception of the effectiveness of our security measures. Additionally, unapproved AI tools that are faulty or inadequate for the use to which they are put could harm our Company systems or~~ data. ~~We also could incur substantial costs to address and mitigate~~ privacy and data ~~protection~~security ~~violations, to correct errors~~ and ~~data corruption or loss, and to resolve other resulting issues for affected third parties (for example, customers or other business partners who rely on~~ our ~~systems). Additionally~~policies, ~~cyber~~procedures ~~criminals~~and ~~are~~practices ~~increasingly~~will ~~using~~prevent ~~AI to enhance~~ the ~~sophistication~~improper ~~and~~disclosure ~~effectiveness~~ of ~~their~~personal ~~cyber~~data ~~attacks,~~in ~~which~~violation ~~increases~~of ~~our~~current ~~risk~~or offuture ~~cybersecurity~~data ~~incidents~~protection and ~~our~~privacy ~~cost to protect ourselves against cybersecurity incidents~~regulations.

We are subject to ~~extensive~~income, ~~environmental~~payroll, ~~laws~~indirect and other taxes in the jurisdictions in which we operate. These regulations are complex and subject to interpretation and change, and ~~could~~administrative ~~incur~~guidance ~~substantial~~may ~~costs~~be asincomplete or applied inconsistently by taxing authorities. As a result, the application of ~~compliance~~certain ~~with~~tax regulations to our business is uncertain, ~~violations~~and oftax orauthorities ~~liabilities~~may ~~under~~challenge ~~these~~our ~~laws~~interpretations, ~~and~~positions ~~regulations.~~or methodologies.

We are regularly subject to ~~extensive~~audits, ~~environmental~~examinations, ~~laws~~ and ~~regulations~~inquiries by tax authorities in ~~Europe~~multiple jurisdictions, ~~Latin~~particularly ~~America~~Brazil. ~~and~~Although ~~North~~we ~~America.~~believe ~~Environmental~~our ~~laws~~tax positions are appropriate and ~~regulations~~are ~~continue~~reported toin ~~evolve~~accordance with applicable regulations, ~~and~~tax weauthorities could ~~become~~reach ~~subject~~different toconclusions. ~~increasingly~~Adverse ~~stringent~~outcomes ~~environmental~~from ~~standards~~tax audits, litigation or changes in ~~the~~regulation ~~future,~~or ~~particularly~~interpretation ~~under~~could ~~air~~result ~~quality~~in ~~and~~additional ~~water~~tax ~~quality~~liabilities, ~~laws~~higher ~~and~~effective ~~standards~~tax rates, ~~including~~interest, ~~those~~penalties ~~intended~~or toother ~~address~~charges, ~~climate~~some ~~change~~of ~~discussed~~which ~~at “—~~could be material. We are ~~subject~~currently toinvolved ~~physical,~~in ~~financial~~ongoing ~~and~~tax ~~reputational~~controversy ~~risks~~matters, ~~associated~~including ~~with~~a ~~climate~~dispute ~~change,~~in ~~including~~Brazil relating to the ~~impact~~deductibility of ~~global,~~goodwill ~~regional~~amortization ~~and~~arising ~~local~~from ~~weather~~a ~~conditions~~2007 acquisition by our Brazilian subsidiary, Sylvamo do Brasil Ltda. Assessments for the ~~availability~~tax ofyears ~~wood~~2007 ~~fiber,~~through ~~water~~2015 total approximately $106 million in tax and ~~fuel~~$289 million in interest, penalties and ~~the~~fees, ~~impact~~which ofincreased ~~increasing~~in ~~regulatory~~2025 ~~and~~due ~~investor~~to ~~focus~~currency onfluctuations. ~~climate~~We ~~change~~would share liability in this matter with our former parent, International Paper, pursuant to a tax matters agreement entered into in connection with our spin-off from International Paper in 2021 (the “Tax Matters Agreement”). ~~and~~Although ~~Item~~Sylvamo 1do Brasil Ltda. ~~Business~~prevailed -in ~~Sustainability~~October 2024 -in ~~Climate~~Brazilian ~~Change~~federal ~~and~~court ~~Reduction~~proceedings covering approximately two‑thirds of ~~GHGs~~the disputed amounts, the Brazilian tax authorities have appealed the favorable ruling. WeThe ~~anticipate~~remaining ~~continued~~one-third orof ~~increased~~the ~~regulatory~~assessments ~~activity~~is also under active challenge. A ruling at the ~~local,~~Brazilian ~~state,~~administrative ~~federal~~court ~~and~~level ~~international~~in ~~levels~~November ~~regarding~~2025 ~~environmental~~upheld ~~matters~~this one-third of the assessments, and ~~environmental~~Sylvamo ~~public~~do ~~policies~~Brasil ~~that~~Ltda. ~~have~~filed ana ~~impact~~defense onagainst ~~our~~the ~~manufacturing~~upheld ~~operations~~assessments in the Brazilian federal court system in January 2026. ~~Compliance~~A ~~with~~description ~~regulations~~of ~~that~~this ~~implement~~matter ~~new,~~is ~~more~~set ~~stringent~~forth ~~requirements~~in orNote 10 Income ~~new~~Taxes ~~public~~to ~~policy~~the ~~could~~Consolidated ~~require~~Financial ~~significant~~Statements ~~expenditures~~included in Item 8 of this Annual Report on ~~our~~Form 10‑K. ~~part~~The oroutcome ~~even~~and timing of the ~~curtailment~~Brazil ofTax ~~certain~~Dispute ofand ~~our~~other ~~manufacturing~~tax ~~operations~~matters are uncertain and could extend for many years.

We ~~have~~maintain ~~incurred,~~defined benefit pension plans for some current and ~~expect~~former ~~that~~employees wein ~~will~~the ~~continue~~United toStates ~~incur,~~and ~~significant~~United ~~costs~~Kingdom, ~~complying~~along with ~~applicable~~immaterial ~~environmental~~plans ~~laws~~in certain other jurisdictions. These plans are subject to extensive and evolving regulations and regulatory interpretations. ~~Our~~Changes ~~environmental~~in ~~expenditures~~applicable ~~include~~pension requirements, ~~among~~or ~~others~~in how existing requirements are interpreted or enforced, ~~those~~could ~~related~~increase our compliance obligations, funding requirements or administrative costs. Developments in the United Kingdom have introduced uncertainty regarding our historical pension plan amendments. A 2024 U.K. court decision (Virgin Media Ltd v. NTL Pension Trustees II) held that certain pension plan amendments dating back to ~~air~~the late 1990s were invalid because statutory notification and ~~water~~actuarial ~~quality~~confirmation requirements were not properly followed. As a result of this decision, ~~waste~~U.K. ~~disposal~~pension ~~and~~plans generally, including our U.K. pension plan, may face the ~~cleanup~~risk ofthat ~~contaminated~~historical ~~soil~~amendments ~~and~~could ~~groundwater~~be deemed void if required statutory processes were not properly completed or adequately documented. ~~See~~If ~~Note~~one 13or ~~Commitments~~more amendments were determined to be invalid, we could be required to reassess past benefit calculations and ~~Contingent~~make ~~Liabilities~~backdated benefit payments to ~~the~~plan ~~Consolidated~~members. ~~Financial~~Any ~~Statements~~such ~~included~~outcome could result in ~~Item~~a 8material increase in ~~this~~our ~~Annual~~U.K. ~~Report~~pension onplan ~~10-K~~liabilities ~~for~~and require increased contributions or additional ~~information~~funding. The timing, scope and financial impact on ~~environmental~~us ~~matters~~of any required remedial actions or increased funding obligations are uncertain.

~~Further,~~We we are ~~required~~subject to ~~comply~~anti‑corruption ~~with environmental laws~~ and ~~the~~anti‑bribery ~~terms~~regulations ~~and~~in ~~conditions of multiple environmental permits. In~~ the ~~countries~~jurisdictions ~~where~~in which we ~~manufacture paper~~operate, ~~our~~including ~~industry~~the isU.S. ~~subject~~Foreign toCorrupt ~~various~~Practices ~~performance-based~~Act ~~rules~~(“FCPA”), ~~associated~~the ~~with effluent and air emissions~~U.K. ~~For~~Bribery ~~example~~Act, inFrance’s ~~the~~Sapin II ~~United States~~Act, ~~federal,~~and ~~state~~similar ~~and~~regulations ~~local~~in ~~laws~~other ~~and~~countries. These regulations ~~require~~generally prohibit us toand ~~routinely~~our ~~obtain~~directors, ~~authorizations~~officers, ~~from~~employees, agents and ~~comply~~business ~~with~~partners ~~the~~acting ~~evolving~~on ~~standards~~our ofbehalf ~~the~~from ~~appropriate~~offering, ~~governmental authorities~~promising, ~~which~~authorizing ~~have~~or ~~considerable~~providing ~~discretion~~improper ~~over~~payments ~~the~~or ~~terms~~things of ~~permits.~~value ~~Failure~~ to ~~comply~~government ~~with~~officials ~~environmental~~or ~~laws~~others ~~and~~for ~~permit~~the ~~requirements~~purpose ~~imposed~~of byinfluencing aofficial ~~governmental~~actions, ~~authority~~obtaining ~~having jurisdiction over our operations could result in civil~~ or ~~criminal~~retaining ~~fines~~business or ~~penalties~~securing orother ~~enforcement~~improper ~~actions,~~advantages. ~~including~~We ~~regulatory~~are oralso ~~judicial~~subject ~~orders~~to ~~enjoining~~regimes orfor ~~curtailing~~economic ~~our~~and ~~operations~~trade orsanctions, ~~requiring~~export uscontrols toand ~~take~~other ~~corrective~~restrictions ~~measures,~~administered ~~install pollution control equipment,~~ or ~~take~~enforced ~~other~~by ~~remedial~~governmental ~~actions~~authorities, ~~such~~including asthe ~~product~~U.S. ~~recalls~~Department orof ~~labeling~~the ~~changes.~~Treasury’s ~~There~~Office ~~can~~of beForeign noAssets ~~assurance~~Control, ~~that~~the ~~future~~U.S. ~~environmental~~Department ~~permits~~of ~~will~~State, bethe ~~granted~~U.S. orDepartment ~~that~~of weCommerce, ~~will~~the beUnited ~~able~~Nations ~~to maintain~~ and ~~renew~~other ~~existing~~applicable ~~permits,~~authorities. ~~and~~These ~~the~~regimes ~~failure~~restrict toor doprohibit sotransactions ~~could~~with ~~have~~certain apersons, ~~material~~countries ~~adverse~~or ~~effect~~regions onand ~~our~~impose ~~business,~~complex ~~financial~~compliance ~~condition,~~obligations ~~results~~that ofmay ~~operations~~change ~~and~~over ~~cash flows~~time.

InBecause ~~addition,~~we asoperate ~~the~~internationally ~~owner~~ and ~~operator~~work ofwith ~~real~~third‑party ~~property~~agents, ~~we could be liable under environmental laws for investigation~~distributors, ~~cleanup,~~suppliers ~~closure~~ and other ~~costs~~business ~~and damages resulting from the presence and release of hazardous substances on or from our properties or operations~~partners, ~~including properties that~~ we ~~no longer own or operate. For example, at our Mogi Guaçu mill in Brazil, we~~ are ~~working~~exposed ~~with environmental regulators~~ to ~~determine~~ the ~~work~~risk ~~necessary to address historic contamination on areas~~ that weour ~~own~~employees ~~near~~or ~~the~~third ~~mill.~~parties ~~See~~may Note 13 Commitments and Contingent Liabilities to the Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K for additional information. The amount and timing of environmental expenditures is difficult to predictviolate, ~~and,~~or ~~in some cases, our liability may~~ be ~~imposed~~alleged ~~without regard~~ to ~~contribution~~have ~~or to whether we knew of~~violated, orapplicable ~~caused,~~anti‑corruption ~~the release of hazardous substances and may exceed forecasted amounts~~ or ~~the~~sanctions ~~value~~regulations, ofeven ~~the~~if ~~property~~such ~~itself.~~conduct ~~The~~was ~~discovery~~not ofauthorized ~~additional~~by ~~contamination or the imposition of additional cleanup obligations at our or third-party sites may result in significant additional costs~~us. ~~Any~~We ~~material~~have ~~liability~~implemented wepolicies, ~~incur~~procedures, ~~could~~training ~~preclude us from making capital expenditures that would otherwise benefit our business~~ and ~~have~~internal acontrols ~~material~~designed ~~adverse~~to ~~effect~~promote oncompliance ~~our~~with ~~business,~~applicable ~~financial conditions, results of operations and cash flows.~~

We are subject to regulatory sustainability laws, such as the EUDR in the European Union and EPR laws in various European countries, Canadian provinces and states in the United States, as described in Item 1. Business –

~~Environmental~~anti‑corruption and ~~Other~~sanctions ~~Regulations~~regulations. However, ~~that~~these ~~increase~~measures ~~our~~may ~~costs~~not ofprevent ~~operating~~all ~~and~~violations, ifand we ~~fail~~may tonot be ~~fully~~able ~~compliant,~~to detect improper conduct or third‑party non‑compliance in a timely manner. Violations or alleged violations could result in ~~fines~~expensive and disruptive investigations or enforcement actions by authorities in the U.S. or other jurisdictions, ~~penalties~~require significant management time and ~~reputational~~resources, ~~harm~~and lead to criminal or civil fines or penalties, disgorgement, sanctions, injunctions, exclusions from government contracts or other remedial measures.

~~Our~~Failure ~~compliance with existing and new environmental laws, and any future remediation requirements relating~~ to ~~discharges~~protect under environmental laws, including, potentially, with respect to an ongoing environmental matter in Brazil (see Note 13 Commitments and Contingent Liabilities to the Consolidated Financial Statements included in Item 8 in this Annual Report on 10-K), could require significant expenditures by us, and there is no assurance that our ~~existing~~intellectual ~~reserves~~property ~~for~~or ~~specific~~defend ~~matters~~against ~~will~~infringement beclaims ~~adequate to cover our future costs. We also~~ could ~~incur~~harm ~~substantial fines or sanctions, enforcement actions (including orders limiting~~ our operations or requiring corrective measures), natural resource damages claims, investigation, cleanup and closure costs, and third-party claims for property damage and personal injury as a result of violations of, or liabilities under, environmental laws, regulations, codes and common lawbusiness. The amount and timing of environmental expenditures is difficult to predict, and, in some cases, liability may be imposed without regard to contribution or to whether we knew of, or caused, a release of hazardous substances.

~~For~~We ~~more~~rely ~~information~~on ~~about~~a ~~risks~~combination ~~related~~of tocontractual ~~environmental~~rights ~~laws~~with third parties and copyright, trademark, patent and trade secret regulations to establish and ~~governmental~~protect ~~requirements~~our intellectual property. Although we endeavor to protect our rights, ~~see Item~~third 1parties may infringe or misappropriate our intellectual property. ~~Business~~We –may ~~Environmental~~have to litigate to enforce and ~~Other~~protect ~~Regulations~~our copyrights, trademarks, patents, trade secrets and know-how or to determine their scope, validity or enforceability. This would require a diversion of resources that may be significant, and our efforts may not prove successful. The inability to secure or protect our intellectual property assets could harm our reputation and have a material adverse effect on our business and our ability to compete with other companies in our industry. In addition, we have a license from HP Inc. for the right to produce and sell HP branded copy paper in almost all geographies globally. If we were to lose such license, our production volumes could decline and our business could be materially adversely affected.

~~Our~~Furthermore, ~~business~~third isparties ~~subject~~could toclaim athat ~~wide~~we ~~variety~~(i) ofinfringed ~~other~~their ~~laws~~patent, ~~regulations~~trademark ~~and~~or ~~other~~copyright, ~~government~~(ii) ~~requirements~~breached ~~that~~patent, ~~may~~trademark ~~change~~or copyright license usage rights or (iii) misappropriated trade secrets. Any such claims or resulting litigation could result in significant ~~ways,~~expense and ~~the~~liability ~~cost~~for ofdamages. ~~compliance~~If ~~with~~we ~~such~~were ~~requirements~~found ~~could~~to have infringed or misappropriated a ~~material~~third-party ~~adverse~~patent ~~effect~~or onother intellectual property right, we could in some circumstances be enjoined from providing certain products or services to our ~~business~~customers or from utilizing and benefiting from certain patents, ~~financial~~copyrights, ~~condition~~trademarks, ~~results~~trade secrets or licenses. Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement a costly alternative. Any of ~~operations~~these scenarios could harm our reputation and ~~cash~~have ~~flows.~~a material adverse effect on our business.

InStrategic ~~addition to environmental laws~~ and ~~regulations,~~Transaction as discussed immediately above and in Item 1 Business – Environmental and Other Regulations, our operations are subject to regulation under a wide variety of other laws, regulations and government requirements in Europe, Latin America and North America, including those relating to health and safety, labor and employment, data privacy, taxes, antitrust and competition, trade, and health care. There can be no assurance that laws, regulations and government requirements will not be changed, applied or interpreted in ways that will require us to modify our operations and objectives, affect our returns on investments by restricting existing activities and products or subjecting them to escalating costs, or require us to spend significant amounts to comply.Risks

~~For~~We example, we are subject to complex and evolving U.S. and international privacy laws and regulations, including those pertaining to the handling of personal data, such as the EU General Data Protection Regulation (“GDPR”), Brazil’s Lei General de Proteção de Dados Pessoais (“LGPD”), and the California Consumer Privacy Act of 2018 (“CCPA”), as amended and expanded by the California Privacy Rights Act (“CPRA”). The GDPR, which applies with respect to all member states of the European Union, and Brazil’s LGPD both establish rules for the collection, use, processing, storage and transfer of personal data and impose significant penalties for noncompliance. The GDPR gives European Union citizens and residents, and the LGPD gives Brazilian data subjects, expanded rights to control their personal data and access to it, and includes requirements with respect to maintaining the security of personal data, limiting the processing of personal data, reporting data breaches and cross-border data transfers. The CCPA, as amended by the CPRA, affords California residents and households expanded privacy protections. Additionally, governmental authorities in these and other jurisdictions may ~~implement~~not ~~new~~achieve ~~data~~expected ~~protection~~benefits ~~laws~~from ~~and~~strategic ~~regulations~~capital ~~that~~investments ~~apply~~or ~~to us~~transactions.

~~Improper~~Our ~~disclosure~~business ofstrategy ~~personal~~includes ~~data~~investing capital in ~~violation~~our ofcompany’s assets expected to produce the ~~GDPR,~~highest ~~LGPD~~returns on investment. Additionally, in the ~~CCPA~~future, we could determine to pursue strategic acquisitions, joint ventures, divestitures or other ~~current~~transactions. The benefits of strategic investments and transactions potentially include cost savings, business growth, synergies and access to new markets (or ~~future~~a ~~personal~~combination ~~data~~thereof), ~~protection~~and ~~laws~~in ~~could~~the ~~harm~~case ~~our~~of ~~reputation~~divestitures, ~~cause~~the ~~loss~~realization of ~~consumer~~proceeds ~~confidence,~~from ~~subject~~the ussale of assets to ~~government~~purchasers ~~enforcement~~who ~~actions~~place ~~and~~high ~~fines~~strategic value on such assets. We may not achieve the expected benefits associated with an investment or transaction. In addition, ~~and~~if ~~result~~we inwere ~~private~~to ~~litigation~~pursue ~~against~~a uscorporate transaction, ~~which~~we would face a number of other special risks, insuch ~~turn~~as diversion of management’s attention to the transaction, ~~could~~failure ~~result~~to inintegrate ~~loss~~an ofacquired ~~revenue~~business into our operations, ~~increased~~significant ~~costs~~demands on our financial, ~~liability~~operational ~~for~~and ~~monetary~~information ~~damages~~technology systems resulting from an acquired business, ~~fines~~and the possibility that we may become responsible for substantial contingent or ~~criminal~~unanticipated ~~prosecution,~~legal ~~all~~liabilities as the result of ~~which~~acquisitions or other corporate transactions. Realization of any of these risks could have aan ~~material~~ adverse ~~effect~~financial impact on ~~our business~~us, ~~financial~~including ~~condition,~~the ~~results~~failure to achieve the expected benefits of ~~operations~~a ~~and~~transaction ~~cash~~could ~~flows.~~require us to record an impairment charge for goodwill or fixed assets.

~~Additionally,~~Transactions asinvolving ~~new~~our ~~privacy~~Brazil ~~laws~~eucalyptus ~~and~~forest ~~regulations~~plantations are ~~passed~~subject to the terms of an agreement between us and International Paper. Except for certain exceptions for immaterial transfers, weif ~~could~~any ~~incur~~portion ~~additional~~of the Brazil eucalyptus forest plantations owned by Sylvamo as of October 1, ~~potentially~~2021 ~~significant~~are directly or indirectly transferred, ~~compliance~~the ~~costs~~Company will be required to make a payment to International Paper. The payment amount starts at a maximum of $100 million, ~~including~~reduced ~~costs~~in increments over time starting September 1, 2026, as set forth in the First Amendment to ~~modify~~the ~~our~~Brazil ~~business~~Payment ~~practices~~Agreement, ~~data~~which ~~processing~~was entered into between affiliates of the Company and ~~security~~International ~~systems~~Paper in October 2025. ~~Regulatory~~For ~~authorities~~these ~~could~~purposes, ~~determine~~a ~~that~~transfer ~~our~~will ~~data~~include ~~handling~~any ~~practices~~sale, ~~fail~~pledge toor ~~address~~transfer ~~all~~of any legal or beneficial interest in the ~~requirements~~Brazil lands, including any grant of an option or other right or interest or entry into any ~~new~~contract ~~laws~~that would result in a reduction or ~~regulations~~diminution of Sylvamo’s economic ownership in the Brazil lands. A change of control of Sylvamo would also result in the payment becoming due and payable. As a result, we would not realize the full value of any transfer of the Brazil eucalyptus forest plantations, which ~~could~~may ~~subject~~make usany such transaction less attractive to ~~penalties~~us, ~~litigation~~ and the ~~other~~provision ~~fallout~~requiring ~~from~~payment ~~violating~~upon ~~privacy~~a ~~laws~~change ~~and~~in ~~regulations~~control ~~that~~of ~~are~~Sylvamo ~~noted~~would ~~above.~~be a pricing consideration in any potential strategic transaction.

There is no assurance that our security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we implement will prevent the improper disclosure of personal data in violation of any privacy laws or regulations.

WeIf ~~are~~the ~~subject~~transaction toseparating ~~tax~~us ~~laws~~from inInternational ~~Europe,~~Paper ~~Latin~~in ~~America~~2021 ~~and~~fails ~~North America that are subject~~ to ~~interpretation~~qualify byfor ~~taxing~~non-recognition ~~authorities,~~treatment ~~and~~for ~~we are subject to audit by taxing authorities~~U. ~~Additionally, administrative guidance can be incomplete or vary from legislative intent, and therefore the application of some tax law is uncertain~~S. ~~While we believe the positions reported by Sylvamo comply with relevant~~ tax ~~laws and regulations~~purposes, ~~taxing~~it ~~authorities~~ could interpret our application of certain laws and regulations differently. We are currently subject to tax audits in the United States, Brazil and other taxing jurisdictions around the world. In some cases, International Paper appealed and we have continued to appeal, certain assessments by taxing authorities in the court system, particularly in Brazil. As such, tax controversy matters may result in ~~previously~~significant ~~unrecorded~~ tax ~~expenses, higher future tax expenses or the assessment of interest and penalties~~liabilities. ~~See Note 13 Commitments and Contingent Liabilities and Note 12 Income Taxes to the Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.~~

~~For~~Our ~~example,~~separation ~~the~~spin-off ~~Brazilian~~from ~~Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by~~ International Paper ~~do Brasil Ltda., now named Sylvamo do Brasil Ltda.~~ (~~“Sylvamo Brasil”), a wholly-owned subsidiary of Sylvamo (~~the “~~Brazil~~Separation ~~Tax Dispute~~Transaction”). ~~Sylvamo~~was ~~Brasil’s~~generally ~~assessments~~deemed ~~for the~~ tax ~~years 2007~~-~~2015 total approximately $95 million in tax and $235 million in interest, penalties and fees (adjusted for variation in currency exchange rates)~~free. ~~After a previous favorable ruling challenging the basis for these assessments~~However, ~~Sylvamo~~until ~~Brasil received other subsequent unfavorable decisions from~~ the ~~Brazilian~~fifth ~~Administrative~~anniversary ~~Council~~ of ~~Tax~~the ~~Appeals.~~Separation ~~These~~Transaction ~~decisions~~on ~~are being appealed. The appeal involves several separate cases. In~~ October ~~2024~~1, ~~at the first level of appeal in the Brazilian federal court system~~2026, ~~the~~or ~~court~~later ~~ruled~~until inany ~~favor~~audit of ~~Sylvamo~~International ~~Brasil~~Paper’s in2021 ~~cases~~tax ~~covering~~year ~~approximately~~is ~~two~~closed, ~~thirds of~~ the ~~disputed amounts~~U.S. ~~The~~Internal ~~remaining~~Revenue ~~one~~Service ~~third of~~ (the ~~disputed~~“IRS”) ~~amounts~~with iscourt ~~still~~confirmation ~~under~~could ~~challenge~~determine atthat the ~~Brazilian~~Separation ~~administrative~~Transaction ~~court~~did ~~level and was~~ not ~~part~~qualify offor ~~the~~such ~~ruling~~treatment. ~~The~~If ~~Brazilian tax authorities have appealed~~ the ~~October~~IRS ~~2024~~ultimately ~~ruling~~determines, and ~~there is no assurance that Sylvamo Brasil will ultimately prevail. The Brazilian government may enact~~ a ~~tax~~court ~~amnesty~~confirms, ~~program~~ that ~~would~~any ~~allow~~aspect ~~Sylvamo~~of ~~Brasil to resolve~~ the ~~Brazil~~Separation ~~Tax~~Transaction ~~Dispute for less than the assessed amount. There~~ is ~~no assurance that any such amnesty program will be enacted or that we will participate. Pursuant to a tax matters agreement between Sylvamo and International Paper~~taxable, ~~Sylvamo’s~~then ~~payments for any liability in this matter are capped at 40% of the first $300 million of any final settlement amount~~ (~~up to $120 million~~i). All decisions concerning the conduct of the litigation related to the Brazil Tax Dispute, including as to strategy, settlement, pursuit, abandonment and participation in any tax amnesty program, are and will continue to be made by International Paper. ~~Sylvamo~~could ~~will~~incur ~~thus~~significant ~~have no control over any decision related to the ongoing litigation~~U.S. ~~As legally required by the Brazilian~~ federal ~~court,~~income ~~Sylvamo~~tax ~~Brasil~~liabilities ~~has provided surety bonds in connection with the Brazil Tax Dispute. Sylvamo Corporation~~ and/or (ii) International Paper ~~have~~shareholders ~~indemnified~~that ~~the~~received ~~provider~~Sylvamo ofstock ~~the surety bonds for their respective portions of potential liability during the pendency of the appeal~~ in the ~~Brazilian~~distribution federal court. If Sylvamo Brasil were unable to renew the surety bonds upon their expiration, or if Sylvamo Brasil were unable to provide additional surety bonds as and when required by the Brazilian federal court, Sylvamo Brasil could be required to ~~post~~include ~~acceptable~~taxable ~~collateral~~income inor ~~order~~gain towith ~~continue~~respect ~~the litigation. International Paper has agreed~~ to ~~provide~~their ~~such~~receipt ~~additional collateral in respect~~ of ~~its portion of the potential liability, on behalf of~~ Sylvamo ~~Brasil~~stock. If Sylvamo ~~Brasil~~may ~~were~~be ~~unable~~required to ~~secure~~indemnify ~~any required surety bond, or if~~ International Paper ~~and Sylvamo were unable to provide acceptable collateral~~ for such ~~surety bond, such that we are not able to continue our appeals, or if the Brazil Tax Dispute is resolved unfavorably, the~~ tax ~~and~~liability ~~related~~in ~~costs~~certain ~~could have a material adverse effect on our business~~circumstances, ~~financial~~pursuant ~~condition,~~to ~~results of operations and cash flows. We cannot predict when resolution of~~ the ~~Brazil~~ Tax ~~Dispute~~Matters ~~through~~Agreement ~~the~~with ~~Brazilian~~International ~~courts will occur, but estimate that it could take up to an additional nine years~~Paper.

~~The~~We ~~pension~~have ~~plans~~ongoing ~~that~~potential weliabilities ~~maintain for employees~~ in ~~the~~connection ~~United~~with ~~States and former employees in the United Kingdom (“U.K.”) are heavily regulated, and changes in the applicable laws and regulations, or interpretations that impact us, could increase~~ our ~~costs~~2021 ofseparation ~~compliance~~from orInternational ~~negatively impact funding~~Paper. For example, in a 2024 pension plan case in the U.K. (Virgin Media Ltd v. NTL Pension Trustees II), the presiding court invalidated certain pension plan amendments, the earliest being in 1999, on grounds that the U.K.’s statutory process required that any amendments materially changing plan benefits must undergo certain regulatory notifications and actuarial confirmation. As a result of this ruling, all U.K. pension plans (including our U.K. pension plan) are subject to the risk that any plan amendment made since the late 1990s may be void if such statutory process was not followed. The Company is reviewing its archival U.K. pension files to verify that such process was followed and documented for its U.K. pension plan amendments. If for any amendment to our U.K. pension plan the process was not followed, or if we cannot document that it was followed, and if the amendment is void as a result, we may have to revisit benefits paid out under the Company’s U.K. pension plan and make backdated payments to plan members. In such event, there could be a material increase in the Company’s U.K. pension plan liabilities that requires increased Company contributions to make up the difference.

Pursuant to various agreements entered into by us and International Paper in connection with the Separation Transaction, we and International Paper have indemnity obligations to each other with respect to certain liabilities. Payments that we may be required to make under our indemnity of International Paper are not subject to any cap, may be significant and could negatively impact our business, particularly with respect to indemnities provided in the Tax Matters Agreement. Also, we may incur significant costs related to environmental liabilities that may arise at our mills, or other sites that were not owned by International Paper at the time of separation but were primarily operated or used by International Paper’s former printing papers business. Furthermore, third parties could seek to hold us responsible for any of the liabilities that International Paper agreed to retain. Indemnities from International Paper may not be sufficient to protect us against the full amount of such liabilities if, for example, International Paper is not able to fully satisfy its indemnification obligations. Moreover, even if we ultimately succeed in recovering from International Paper amounts for which we are indemnified by it, we may be temporarily required to bear these losses ourselves, requiring us to divert cash that would otherwise have been used in furtherance of our operating business.

Financial Risks

Our operations require substantial capital, and significant capital investments could negatively affect our cash flows.

Our operations require substantial capital. We make capital investments, sometimes substantial, primarily to expand and replace existing facilities and equipment, improve our operations, and comply with changes in environmental regulations. Key pieces of equipment in our various manufacturing facilities may, perhaps unexpectedly, need to be repaired or replaced. Increased fixed costs from capital investments or large one-time capital investments could negatively affect our cash flows. In 2026, we will make significant capital investments to enhance and upgrade our manufacturing operations, including a large capital project at our Eastover, South Carolina, mill. We expect our capital spend in 2026 for all of our mills to be between approximately $230 and $250 million. We expect our capital investments to result in favorable returns, but there is no guarantee that they will have the levels of return that we expect.

We may be required to recognize impairments of goodwill or other intangible assets.

We review our goodwill balance for impairment at least once a year using the qualitative assessment and, when necessary, the quantitative goodwill impairment test allowed in accordance with current accounting standards. Future changes in the cost of capital, expected cash flows, or other factors could cause our goodwill and other intangible assets to be impaired, resulting in a non-cash charge against results of operations to write down these assets for the amount of the impairment. As of December 31, 2025, we recorded a goodwill impairment charge of $11 million for our France reporting unit, as described in Note 9 Goodwill to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10‑K. In addition, changes in our business strategy or external conditions adversely affecting our operations could require an impairment charge for goodwill or intangibles. An impairment charge leads to decreased assets and reduced net operating results and, potentially, a material adverse effect on our results of operations.

~~Increases~~Pension toplan ~~income~~investment ~~tax~~performance ~~rates~~ and ~~other~~actuarial ~~tax~~changes ~~rates in the jurisdictions in which we operate~~ could ~~have~~adversely anaffect ~~adverse effect on~~ our ~~business,~~ financial ~~condition and~~ results ~~of operations. Tax laws, regulations~~ and administrative practices in various jurisdictions may be subject to significant change, with or without advance notice, due to economic, political and other conditions, and significant judgment is required in evaluating and estimating our provision and accruals for these taxes. There are many transactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain. Our effective tax rates could be affected by numerous factors, such as changes in tax laws, regulations, administrative practices, principles and interpretations, the mix and level of earnings in a given taxing jurisdiction or our ownership or capital structures. It is difficult to predict whether and when tax law changes will be enacted that would have a material adverse effect on our business, financial condition, results of operations and cash flows.

~~Our~~We ~~operations~~sponsor ~~are~~various ~~subject~~defined tobenefit ~~anti-corruption~~pension ~~laws~~plans ~~and~~in ~~regulations, such as~~ the U.S. ~~Foreign~~and ~~Corrupt Practices Act (“FCPA”), the~~ U.K. ~~Bribery~~The ~~Act~~assets of ~~2010~~the ~~(“Bribery~~pension ~~Act”),~~plans ~~France’s~~are ~~Sapin~~diversified ~~II Act, and other anti-corruption laws~~ in ~~various~~an ~~jurisdictions~~attempt ~~where we operate. These laws prohibit us and our officers, directors, employees, and agents acting on our behalf from corruptly offering, promising, authorizing, or providing anything of value~~ to ~~foreign~~mitigate ~~officials for~~ the ~~purposes~~risk of ~~influencing~~a ~~official~~large ~~decisions or obtaining or retaining business or otherwise obtaining favorable treatment~~loss. ~~Our~~Required ~~operations~~funding ~~are~~for ~~also~~our ~~subject to economic and trade sanctions laws and regulations, such as those administered and enforced by the~~ U.S. ~~Department~~defined ofbenefit ~~Treasury’s~~pension ~~Office~~plan ofis ~~Foreign~~determined ~~Assets~~in ~~Control,~~accordance ~~the~~with ~~U.S.~~guidelines ~~Department~~set offorth ~~State,~~in the ~~U.S.~~federal ~~Department~~Employee ofRetirement ~~Commerce,~~Income ~~the United Nations~~ Security ~~Council~~Act ~~and other relevant sanctions authorities. Our global operations may expose us to the risk~~ of ~~violating~~1974, oras ~~being~~amended ~~accused~~(“ERISA”) ofand ~~violating,~~ the ~~foregoing~~U.K. ~~laws~~pension ~~and~~plan ~~regulations,~~is orfunded ~~other~~in ~~anti-corruption~~accordance orwith ~~economic~~local ~~and~~statutes ~~trade~~or ~~sanctions laws~~practice. ~~Such~~Additional ~~violations~~contributions ~~could expose us~~ to ~~reputational~~enhance ~~harm~~the ~~and~~funded ~~could~~status ~~be punishable by criminal fines, imprisonment, civil penalties, disgorgement~~ of ~~profits,~~the ~~injunctions,~~pension ~~and~~plans ~~exclusion from government contracts, as well as other remedial measures. Investigations of alleged violations~~ can be ~~expensive~~made ~~and~~at ~~disruptive~~our discretion.

~~Although~~As weof ~~have~~December ~~implemented~~31, ~~anti-corruption policies~~2025, ~~procedures~~the Sylvamo U.S. and ~~training~~U.K. ~~measures~~pension plans were fully funded with respect to statutory requirements. However, ~~there~~if underfunding were to exist in the future, we may be required to make contributions to reduce the underfunding. There can be no ~~guarantee~~assurance that ~~these~~the ~~policies,~~value ~~procedures~~of the pension plan assets, ~~and~~or ~~training~~the investment returns on those plan assets, will ~~effectively~~be ~~prevent~~sufficient ~~violations~~to byretain ~~our~~the ~~employees~~current orpercentage ~~representatives~~funding inlevels and meet the future benefit obligations of such plans. ~~Additionally~~Particularly during periods of adverse market conditions and declining interest rates, we ~~face~~may abe ~~risk~~required to make additional cash contributions to the pension plans that could reduce our ~~business~~financial ~~partners~~flexibility. ~~may~~Changes ~~violate~~in ~~the~~plan ~~FCPA~~demographics, including an increase in the ~~Bribery~~number ~~Act~~of retirements or increases in life expectancy assumptions, may also increase the ~~Sapin~~costs IIand ~~Act~~funding requirements of the plans. Additionally, interpretations of or ~~similar~~changes ~~laws~~in regulations applicable to our U.S. or ~~regulations~~U.K. ~~Such~~pension ~~violations~~plan could ~~expose~~cause us to ~~liability,~~have ~~and~~to ~~our~~increase ~~reputation~~funding ~~could~~of bethe ~~harmed~~plan; byfor ~~their~~example, ~~violations.~~see ~~Despite~~the ~~our~~disclosure ~~compliance~~concerning ~~efforts~~our ~~and~~U.K. ~~activities~~pension weplan ~~cannot~~under ~~assure~~the ~~compliance~~Risk byFactors ~~our~~heading ~~employees~~“Compliance orwith ~~representatives~~a ~~for~~broad ~~which~~range weof ~~may~~complex ~~be held responsible,~~ and ~~any~~changing ~~such~~regulations ~~violation~~ could ~~materially~~increase ~~adversely~~our ~~affect~~costs or limit our ~~reputation~~operations, ~~business,~~and ~~financial~~failure ~~condition,~~to ~~results~~comply ofcould ~~operations~~result in liabilities and ~~cash~~harm ~~flows~~our business.”

WeOur ~~rely~~indebtedness ~~heavily~~could onconstrain aour ~~small~~business ~~number~~and use of ~~significant~~cash, ~~customers~~ and ~~are~~a ~~exposed~~default tounder ~~risks~~our ~~associated~~debt ~~with~~agreements ~~the~~could ~~financial~~adversely ~~viability~~impact of our ~~customers and consolidation among our customers~~business.

We ~~rely~~have ~~heavily~~outstanding onindebtedness athat ~~small~~includes ~~number~~the offollowing ~~significant~~amounts ~~customers,~~as ~~and if we were to lose one or more~~ of ~~such~~December ~~customers~~31, it2025: ~~could have~~ a ~~material~~revolving ~~adverse~~credit ~~effect~~facility onwith ~~our~~$67 ~~sales~~million ~~and~~outstanding; ~~profitability.~~a ~~For~~Term ~~example,~~Loan ~~our~~A ~~top~~maturing ~~ten~~in ~~customers~~2029 ~~represent~~with ~~approximately~~$208 ~~41%~~million ~~of our net sales, including one customer that represents approximately 13% of our net sales~~outstanding; ~~see~~a ~~Note~~Term 17Loan ~~Financial~~F ~~Information~~maturing ~~by Business Segment and Geographic Area to the Consolidated Financial Statements included~~ in ~~Item~~2027 8with in$257 ~~this~~million ~~Annual~~outstanding; ~~Report~~a onTerm ~~Form~~Loan ~~10-K.~~F‑2 Inmaturing ~~particular, because our business operates~~ in a2031 ~~highly~~with ~~competitive~~$220 ~~industry,~~million weoutstanding; ~~regularly~~and ~~bid~~an ~~for~~accounts ~~new~~receivable ~~business~~finance orfacility ~~for~~maturing ~~renewal of existing business. Generally, our customers are not contractually required to purchase any minimum amount of products. Should our customers purchase products~~ in ~~significantly~~2027 ~~lower~~with ~~quantities~~$90 ~~than~~million ~~they have in the past, such decreased purchases could have a material adverse effect on our business, financial condition and results of operations~~outstanding.

WeAlthough ~~are~~we ~~also~~have ~~exposed~~significantly toreduced ~~risks~~our ~~associated~~indebtedness ~~with~~over the ~~ability~~past offew years, our ~~customers~~indebtedness tononetheless ~~meet~~could ~~their~~adversely ~~financial~~affect ~~obligations~~us, such as by necessitating cash to ~~us.~~be ~~The~~used ~~financial~~for ~~viability~~debt service instead of ~~our~~for ~~customers~~other isbusiness ~~key~~objectives. toTo ~~maintaining~~the extent our ~~sales~~borrowings are subject to ~~those~~variable ~~customers~~interest ~~and~~rates, ~~their~~increases ~~ability~~in tointerest ~~pay~~rates ~~for~~would ~~those~~further ~~sales~~increase our interest expense. ~~Any~~Our ~~threat~~ability to ~~the~~make ~~financial~~scheduled ~~viability~~payments ofon or refinance our ~~customers~~debt ~~could~~obligations ~~result~~will independ ~~the~~on ~~reduction~~our financial condition and operating performance, ~~delay~~which orare ~~cancellation~~subject ofto ~~customer~~prevailing ~~orders~~economic and ~~their~~competitive ~~ability~~conditions and to ~~pay~~financial, ~~their~~business, ~~outstanding~~legislative, ~~receivables~~regulatory ~~with~~and usother ~~which~~factors ~~could~~beyond ~~have~~our control. There is no assurance that we will maintain a ~~material~~level ~~adverse~~of ~~effect~~cash onflows ~~our~~sufficient ~~business~~to permit us to pay the principal, ~~financial~~premium, ~~condition~~if any, and ~~results~~interest ofon ~~operations~~our indebtedness.

~~In addition~~Additionally, ~~consolidation~~the ~~among~~agreements governing our ~~customers~~indebtedness ~~could~~contain ~~result~~restrictive incovenants ~~changes~~that tolimit ~~the~~our ~~purchasing~~ability ~~habits~~to ~~and~~conduct ~~volumes among~~ our ~~customers~~business, ~~and~~including ~~could~~certain ~~affect~~limitations ~~our~~on ~~relationship with~~ our ~~customers.~~ability Ifto ~~one~~dispose of ~~our~~assets ~~competitors’~~and ~~customers~~the ~~acquires~~use ~~any~~ of ~~our~~the ~~customers,~~proceeds wefrom ~~could~~those ~~lose that business. Additionally~~dispositions, ascertain ~~our~~requirements ~~customers~~that ~~become~~we ~~larger~~use ~~and~~the ~~more~~proceeds ~~concentrated,~~from ~~they~~future ~~could~~incurrences ~~exert~~of ~~pricing~~debt ~~pressure~~or onissuances ~~all~~of ~~suppliers,~~equity ~~including~~to ~~us.~~repay Asexisting ~~a result~~indebtedness, weand ~~could~~limit beour ~~forced~~ability to ~~reduce~~incur ~~the~~additional ~~prices of our products~~indebtedness. ~~The~~We ~~loss~~may ornot ~~reduction~~be ofable ~~business~~to ~~from~~consummate ~~our~~dispositions ~~larger customers,~~ or ~~the~~to ~~renewal~~obtain ofproceeds ~~business~~in onan ~~less~~amount ~~favorable~~sufficient ~~terms,~~to ~~could~~meet ~~have~~any adebt ~~material~~service ~~adverse~~obligations ~~effect~~then ~~on our business, financial condition and results of operations~~due.

A failure to make scheduled payments on our debt, or a breach of any of the covenants under the agreements governing our indebtedness, if not waived by the lenders, or, to the extent applicable, not cured within specified periods, would result in an event of default under those agreements. Lenders under the agreements governing our indebtedness could declare all outstanding principal and interest to be due and payable, and lenders could further terminate their commitments to loan money under our existing revolving credit facility or foreclose against the assets securing their borrowings, which could force us to file for bankruptcy protection and either restructure or liquidate. Any of these events could result in our shareholders losing some or all of the value of their investments. Further, an event of default may result in the acceleration of any other debt to which a cross-acceleration or cross-default provision applies. In the event the lenders accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness.

~~Our~~Equity ~~operations require substantial capital,~~ and ~~any~~Capital ~~significant~~Market ~~capital investments could negatively affect our cash flows.~~Risks

~~Our~~Dividends ~~operations~~and ~~require~~share ~~substantial~~repurchases ~~capital.~~are Wesubject ~~make capital investments, sometimes substantial, primarily~~ to ~~expand~~board ~~and~~discretion ~~replace existing facilities~~ and ~~equipment, improve our operations, and comply with changes in environmental laws and regulations. Key pieces of equipment in our various manufacturing facilities~~ may, ~~perhaps unexpectedly, need to~~ be ~~repaired~~reduced or ~~replaced~~discontinued. Increased fixed costs from capital investments or large one-time capital investments could negatively affect our cash flows. In 2025, we will make significant capital investments to enhance and upgrade our manufacturing operations, including a large capital project at our Eastover mill. Additionally, while we expect such projects to result in favorable returns on the capital invested in them, there is no guarantee that they will have the levels of return that we expect. We expect our capital spend in 2025 for all of our mills to be between approximately $220 and $240 million. We also may incur significant costs associated with capital investments that we make to ensure compliance with environmental laws and regulations; see Item 1. Business - Environmental and Other Regulations - Environmental and Climate Change Regulation.

Since 2022, we have paid quarterly dividends and have been opportunistically repurchasing shares of our common stock. Our ~~business~~continued declaration and ~~business~~payment ~~prospects~~of ~~could~~quarterly dividends, continued repurchases of shares, and institution of any other return of cash to our shareholders, including payment of any special dividends, will nonetheless be ~~materially~~at ~~adversely~~the ~~affected~~discretion ifof weour ~~fail~~board of directors and will depend on many factors, including our earnings, financial condition and results of operations, capital requirements, level of indebtedness, covenants contained within our debt agreements, contractual restrictions with respect to ~~attract~~payment of dividends and ~~retain~~the ~~senior~~repurchase ~~management~~of shares, ability to obtain cash or other assets from our subsidiaries, restrictions imposed by applicable law, general business conditions and other ~~key~~factors ~~employees~~that our board of directors may deem relevant. As of December 31, 2025, we have repurchased $300 million of the total $450 million currently authorized by our board of directors for repurchases of our common stock. Any repurchases in excess of the remaining amount authorized for repurchases would require further authorization by our board of directors.

WeAmong ~~are~~the ~~led~~covenants byin aour ~~strong~~debt ~~senior~~agreements, ~~management~~prior ~~team~~to ~~that~~the ~~has~~Brazil ~~extensive~~Tax ~~experience~~Dispute (as defined in ~~the~~this ~~paper~~Form ~~industry~~10-K) being resolved, ~~and~~if we ~~rely~~do ~~upon~~not anmaintain ~~extensive~~the ~~and~~minimum ~~skilled~~level ~~workforce.~~of ~~Our~~liquidity ~~ability~~specified toin ~~successfully~~such ~~operate~~agreements, ~~our~~or, ~~business~~if ~~and~~there ~~our~~are ~~future~~adverse ~~growth~~rulings ~~depends,~~in tothe aBrazil ~~significant~~Tax ~~degree,~~Dispute onand we do not maintain the ~~ability~~specified tominimum ~~continue~~level toof ~~attract~~liquidity and ~~retain~~deposit ~~senior~~$60 ~~management~~million ~~with~~into ~~strong~~escrow, ~~leadership~~then ~~experience~~we ~~and~~would ~~relevant~~be ~~knowledge~~limited ~~and~~in ~~skills.~~the ~~There~~amount isof no“restricted ~~guarantee~~payments,” ~~that~~including wedividends ~~will~~and beshare ~~able~~repurchases, tothat ~~continue~~we tomay ~~attract~~make ~~and~~while ~~retain~~our ~~strong~~indebtedness ~~senior~~remains ~~management~~outstanding.

~~Also,~~There ascan ~~our~~be ~~workforce~~no atassurance ~~our~~that ~~mills ages and retires,~~ we will ~~lose~~continue ~~operators~~to ~~and~~pay ~~other~~dividends ~~members~~or ofrepurchase ~~our~~shares ~~skilled workforce with 30+ years’ experience, and many~~ of ~~the~~our ~~employees~~common ~~replacing~~stock ~~them will have much less tenure. This is due to a large extent on workforce preferences; that is, employee interest~~ in manufacturing jobs with shifts covering 24 hours, seven days per week, has declined, and employees also are more open now to voluntarily leaving their positions and having multiple employers over their career than has historically been the ~~case in our industry~~future. ~~Our training programs are tailored to accelerate training~~Therefore, ~~but~~the itsuccess isof ~~difficult~~an toinvestment ~~replace~~in ~~the~~shares ~~number~~ of ~~years of experience~~ our ~~retiring~~common ~~operators~~stock ~~and~~may ~~skilled~~in ~~workforce possessed. Although~~ the ~~labor~~future ~~market~~depend ~~generally~~only isupon ~~not~~any asfuture ~~tight~~appreciation ~~as it was~~ in ~~recent~~their ~~years, the market remains tight for labor having the specialized technical and trade skills and experience needed for manufacturing operations at our mill locations~~value. ~~All~~Shares of ~~these~~our ~~factors~~common ~~drive~~stock uplost ~~our~~value ~~cost~~in ~~of labor and~~2025, ~~further, there is no guarantee that we will be able to attract~~ and ~~retain~~could ~~the~~further ~~skilled~~lose ~~employees needed to successfully operate our business in the future~~value.

~~Additionally,~~Future weissuances ~~could experience labor shortages if a public health crisis were to affect the supply~~ of ~~labor~~securities orcould ~~ability~~rank ofsenior ~~employees~~ to ~~work (see “—A public health crisis could have a material adverse effect on~~ our ~~business,~~common ~~financial condition~~stock, ~~results~~dilute ofshareholders ~~operations and cash flows”)~~ or ifadversely ~~our~~affect ~~relationships with~~ our ~~employees~~common ~~represented~~stock’s ~~by unions were to deteriorate (see “—We could experience disruptions in operations and increased labor costs due to labor disputes”)~~value.

~~Loss~~In of the ~~services~~future, ofwe ~~any~~may ~~members~~decide ofto ~~our~~issue senior ~~management~~or ~~team~~subordinated debt securities or ~~other~~preferred ~~key~~stock or ~~skilled~~other ~~employees,~~equity ~~significant~~securities ~~attrition~~that inrank senior to our ~~workforce~~common stock, ~~retirements~~including, aswithout ~~our~~limitation, ~~workforce~~to ~~ages~~finance ongoing operations or ~~the~~as ~~failure~~consideration tofor ~~attract~~future ~~and~~strategic ~~retain~~investments ~~qualified~~or ~~persons~~transactions. Also, we grant stock-based equity awards to ~~serve~~our indirectors ~~management~~and certain officers and other ~~positions~~employees as partial compensation for their services for us. Such potential future issuances may, ~~could~~and ~~have~~our aongoing ~~material~~awards ~~adverse~~of ~~effect~~stock-based oncompensation will, dilute our ~~business~~other ~~and~~shareholders’ ~~business~~equity ~~prospects~~ownership of us.

AThe ~~significant~~instruments ~~write-down~~governing ofsecurities ~~goodwill~~that orwe issue in the future may include covenants restricting our operating flexibility and ability to pay dividends and make other ~~intangible~~distributions ~~assets~~to our shareholders. Additionally, any convertible or exchangeable securities issued in the future could have arights, ~~material~~preferences ~~adverse~~and ~~effect~~privileges more favorable than those of our common stock and could result in dilution to owners of our common stock. We and, indirectly, our shareholders, will bear the cost of issuing and servicing such securities. Because our decision to issue debt or equity securities in the future will depend on market conditions and other factors beyond our ~~financial~~control, ~~condition~~we cannot predict or estimate the amount, timing or nature of our future issuances. Thus, holders of our common stock will bear the risk of our future issuances reducing the market price of our common stock and ~~results~~diluting the value of ~~operations~~their common stock holdings in us.

WeSale review our goodwill balance for impairment at least once a year using the qualitative assessment and, when necessary, the quantitative goodwill impairment test allowed in accordance with current accounting standards. Future changes in the cost of ~~capital, expected cash flows, or other factors could cause our goodwill and other intangible assets to be impaired, resulting in~~ a ~~non-cash~~substantial ~~charge~~number ~~against results~~ of ~~operations~~shares ~~to write down these assets for the amount~~ of ~~the impairment. In addition, if we make changes in~~ our ~~business~~common ~~strategy~~stock orcould ifcause ~~external~~its ~~conditions~~market ~~adversely~~price ~~affect our business operations, we may be required~~ to ~~record an impairment charge for goodwill or intangibles, which would lead to decreased assets and reduced net operating results~~decline. ~~If a significant write down is required, the charge could have a material adverse effect on our results of operations.~~

Sales of a substantial number of shares of our common stock in the public market could occur at any time. These sales (or the possibility that these sales may occur), or speculation that a holder of a large number of shares of our common stock intends to sell its shares, could reduce the market price of our common stock. Our two largest shareholders have reported, on Schedule 13Ds filed with the SEC, ownership of approximately 16% and 15%, respectively, of our outstanding common stock.

Actions of activist shareholders could increase our costs, divert management attention and resources, adversely affect our business and cause volatility in our stock price.

We may be the subject of activity by activist shareholders. Responding to shareholder activism can be costly and time-consuming, disrupt our operations and divert the attention of management and our employees from executing our

~~Failure~~business toplans. ~~achieve~~We ~~expected~~may ~~investment~~not ~~returns~~be onable ~~pension~~or ~~plan~~willing ~~assets,~~to asrespond ~~well~~to asthe ~~changes~~activist shareholder’s requests, which could result in ~~interest~~a ~~rates~~proxy contest or ~~plan~~other ~~demographics,~~actions by the shareholder and disrupt our operations. Activist campaigns could ~~adversely~~create ~~impact~~perceived uncertainties as to the future direction of the Company, its leadership and strategic plans and result in lost potential business opportunities, harm our ability to attract qualified personnel and business partners and cause us to incur associated legal, financial ~~condition~~advisory and other costs. Any activist shareholder activity, ~~results~~the expectation of ~~operations~~such ~~and~~activity ~~cash~~or ~~flows.~~the mere presence of an activist shareholder among our investor base could cause periods of significant volatility in the market price for our common stock.

WeGovernance sponsor various defined benefit pension plans. The assets of the pension plans are diversified in an attempt to mitigate the risk of a large loss. Required funding for our domestic defined benefit pension plan is determined in accordance with guidelines set forth in the federal Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and foreign defined benefit pension plans are funded in accordance with local statutes or practice. Additional contributions to enhance the funded status of the pension plans can be made at our discretion. As of December 31, 2024, the Sylvamo U.K. pension plan was fully funded, and the Sylvamo United States pension plan was 96% funded. We may need to make future contributions to reduce any underfunding and, with respect to the U.K. pension plan, we have agreed with U.K. regulators to contribute to the plan approximately $4 million per year through 2029 to enhance the plan’s self-sufficiency. There can be no assurance that the value of the pension plan assets, or the investment returns on those plan assets, will be sufficient to meet the future benefit obligations of such plans. In addition, during periods of adverse market conditions and declining interest rates, we may be required to make additional cash contributions to the pension plans that could reduce our financial flexibility. Changes in plan demographics, including an increase in the number of retirements or increases in life expectancy assumptions, may also increase the costs and funding requirements of the obligations related to the company’s pension plans. Additionally, interpretations of or changes in laws applicable to our United States or U.K. pension plan could cause us to have to increase funding of the plan; for example, see the disclosure concerning our U.K. pension plan in “— Our business is subject to a wide variety of other laws, regulations and other government requirements that may change in significant ways, and the cost of compliance with such requirements could have a material adverse effect on our business, financial condition, results of operations and cash flows.” An increase in costs or funding requirements could adversely impact our business, financial condition, results of operations and cash flows.Risks

WeAnti-takeover ~~could~~provisions ~~experience~~in ~~disruptions~~our ingoverning ~~operations~~documents and ~~increased~~a ~~labor~~shareholder ~~costs~~rights ~~due~~plan toadopted ~~labor~~in ~~disputes.~~2025 may discourage, delay or prevent a change of control of our company.

AOur ~~portion~~certificate of ~~our~~incorporation ~~workforce~~and isbylaws ~~represented~~contain bycertain ~~unions~~provisions ~~and~~that ~~operate~~may ~~under~~discourage, ~~various~~delay ~~collective~~or ~~bargaining~~prevent ~~agreements,~~a ~~including~~change ~~some~~in of our ~~employees~~management ~~that~~or ~~are~~change ~~represented~~of bycontrol, ~~six~~including ~~unions~~that ~~in Brazil~~they, ~~three~~collectively: ~~unions~~authorize inthe ~~France,~~issuance ~~four~~of ~~unions~~“blank incheck” ~~Sweden,~~preferred ~~and~~stock athat ~~union~~could ~~with~~be ~~two~~issued ~~branches~~by ~~representing~~our ~~the~~board ~~hourly~~of ~~employees~~directors atto ~~our~~thwart ~~mill~~a intakeover ~~Ticonderoga,~~attempt; ~~New~~provide ~~York.~~that Wevacancies ~~must~~on ~~negotiate~~our toboard ~~renew~~of ordirectors, ~~extend~~including ~~any~~vacancies ~~union~~resulting ~~contracts~~from ~~near~~an orenlargement ~~upon~~of ~~their~~our ~~expiration.~~board Weof directors, may ~~not~~ be ~~able~~filled toonly ~~successfully~~by ~~negotiate~~a ~~new~~majority ~~agreements~~vote ~~without~~of ~~work~~directors ~~stoppages~~then ~~or labor difficulties~~ in ~~the~~office; ~~future~~prohibit orshareholder ~~renegotiate~~action ~~them~~by onwritten ~~favorable~~consent, ~~terms.~~thereby Ifrequiring weall ~~are~~actions ~~unable~~ to ~~successfully~~be ortaken ~~favorably~~at ~~renegotiate~~a ~~the~~meeting ~~terms~~ of ~~any~~the ofshareholders; ~~these~~and ~~agreements,~~establish oradvance ifnotice werequirements ~~experience~~for ~~any~~nominations ~~extended interruption~~ of ~~operations~~candidates atfor ~~any~~election ~~of our facilities~~ as adirectors ~~result~~or ofto ~~strikes~~bring or other ~~work~~business ~~stoppages,~~before ~~this~~an ~~could~~annual ~~have~~meeting aof ~~material and adverse effect on~~ our ~~business, financial condition, results of operations and cash flows~~shareholders.

WeAdditionally, ~~may~~in ~~not~~November ~~achieve~~2025, ~~the~~we ~~expected~~adopted ~~benefits~~a ~~from~~shareholder ~~strategic~~rights ~~acquisitions~~plan, ~~joint~~pursuant ~~ventures~~to which we issued a dividend of one preferred share purchase right (a “Right”) for each share of our common stock then outstanding. In the event of certain takeover events not authorized by our board of directors, ~~divestitures~~the holders of Rights may purchase additional shares of preferred stock at a discount, ~~capital~~diluting ~~investments~~the ownership stake of any potential acquirer and ~~other~~making ~~corporate~~a ~~transactions~~takeover ~~that~~more weexpensive ~~may~~and ~~pursue~~difficult.

WeThese ~~may~~provisions ~~pursue~~in ~~strategic~~our ~~acquisitions,~~certificate ~~joint~~of ~~ventures,~~incorporation ~~divestitures,~~and ~~capital~~bylaws ~~investments~~ and ~~other~~the ~~corporate~~Rights ~~transactions,~~could ~~such~~prevent as our ~~acquisition~~shareholders infrom ~~January~~receiving ~~2023 of our paper mill in Nymölla, Sweden. We may not achieve~~ the ~~expected~~benefit ~~benefits~~from ~~associated with~~ any ~~such~~premium ~~transactions in which we engage. Failure~~ to ~~achieve~~ the ~~expected~~market ~~benefits~~price of aour ~~transaction~~common ~~could~~stock ~~require~~offered usby toa ~~record~~bidder anin ~~impairment~~a ~~charge~~takeover ~~for goodwill or fixed assets~~context. ~~Among~~Their ~~the~~impact ~~benefits~~that ~~we would expect from potential acquisitions and joint ventures are synergies~~delays, ~~cost savings~~deters, ~~growth~~renders ~~opportunities~~more ~~and~~difficult ~~access to new markets (~~or prevents a ~~combination~~change ~~thereof), and~~ in ~~the~~our ~~case~~control ofin ~~divestitures,~~a ~~the~~takeover ~~realization~~attempt ofmay ~~proceeds~~not ~~from~~be in the ~~sale~~best interests of ~~assets~~our toshareholders. ~~purchasers~~Even ~~who~~in ~~place~~the ~~higher~~absence ~~strategic value on such assets than we do. Corporate transactions~~ of ~~this nature which we may pursue involve~~ a ~~number~~takeover ~~of special risks~~attempt, ~~including our inability to realize our business goals with respect to such transactions as noted above,~~ the ~~focus~~existence of ~~our management’s attention on~~ these ~~transactions~~provisions and the ~~integration~~Rights ofcould ~~acquired~~adversely ~~businesses~~affect ~~into~~the ~~our~~prevailing ~~operations,~~market ~~the~~price ~~demands~~of on our ~~financial,~~common ~~operational~~stock ~~and~~if ~~information~~their ~~technology~~impact ~~systems~~is ~~resulting~~perceived ~~from~~by ~~acquired~~investors ~~businesses,~~as ~~and~~detrimental. ~~the~~Also, ~~possibility~~they ~~that~~could wemake ~~may~~it ~~become~~more ~~responsible~~difficult for ~~substantial~~shareholders ~~contingent~~to replace or ~~unanticipated~~remove ~~legal~~our ~~liabilities~~management asand ~~the~~thus ~~result~~facilitate ofmanagement ~~acquisitions or other corporate transactions~~entrenchment.

InAn ~~addition,~~exclusive ~~subject~~forum toprovision ~~certain~~in ~~exceptions~~our ~~for~~Certificate ~~immaterial transfers, if any portion~~ of ~~the~~Incorporation ~~Brazil~~may ~~eucalyptus~~limit ~~forest~~shareholders’ ~~plantations~~ability ~~owned by Sylvamo as of October 1, 2021 are directly or indirectly transferred, Sylvamo will be required~~ to ~~make~~bring aclaims ~~payment of $100 million to International Paper. For these purposes, a transfer includes any sale, pledge or transfer of any legal or beneficial interest~~ in ~~the~~some ~~Brazil lands, including any grant of an option or other right or interest or entry into any contract that would result in a reduction or diminution of Sylvamo’s economic ownership in the~~ forums.

24Our certificate of incorporation provides that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware will be the exclusive forum for derivative actions, claims for breach of fiduciary duty, claims arising under the Delaware General Corporation Law (“DGCL”), our certificate of incorporation or bylaws, or other claims governed by the internal affairs doctrine. In addition, to the fullest extent permitted by law, the federal district courts of the United States will be the exclusive forum for claims arising under the Securities Act of 1933, the Securities Exchange Act of 1934, and the rules and regulations thereunder. These forum selection provisions may limit a stockholder’s ability to bring certain claims against the Company, or against current or former directors, officers or other shareholders, in a judicial forum that the shareholder perceives to be favorable and may discourage litigation with respect to such claims. If a court were to find any portion of these provisions inapplicable or unenforceable, we could incur additional costs associated with resolving such matters in other jurisdictions.

~~Brazil~~Our ~~lands.~~certificate ~~A change~~ of ~~control~~incorporation oflimits ~~Sylvamo would also result in~~ the ~~payment~~liability ~~becoming due and payable. As a result, we would not realize the full value~~ of ~~any~~our ~~transfer~~directors ~~of the Brazil eucalyptus forest plantations, which may make any such transaction less attractive to us,~~ and ~~the provision requiring payment upon a change in control of Sylvamo would be a pricing consideration in any potential strategic transaction~~officers.

We may not be able to adequately protect our intellectual property and other proprietary rights that are material to our business, or to defend successfully against intellectual property infringement claims by third parties.

We rely on a combination of contractual rights with third parties and copyright, trademark, patent and trade secret laws to establish and protect our intellectual property. Although we endeavor to protect our rights, third parties may infringe or misappropriate our intellectual property. We may have to litigate to enforce and protect our copyrights, trademarks, patents, trade secrets and know-how or to determine their scope, validity or enforceability. This would represent a diversion of resources that may be significant and our efforts may not prove successful. The inability to secure or protect our intellectual property assets could harm our reputation and have a material adverse effect on our business and our ability to compete with other companies in our industry. In addition, we have a license from HP Inc. for the right to produce and sell HP branded copy paper in almost all geographies globally. If we were to lose such license, our production volumes could decline and our business, financial condition and results of operations could be materially adversely affected.

In addition, we may be subject to claims by third parties for (i) patent, trademark or copyright infringement, (ii) breach of patent, trademark or copyright license usage rights or (iii) misappropriation of trade secrets. Any such claims or resulting litigation could result in significant expense and liability for damages. If we were found to have infringed or misappropriated a third-party patent or other intellectual property right, we could in some circumstances be enjoined from providing certain products or services to our customers or from utilizing and benefiting from certain patents, copyrights, trademarks, trade secrets or licenses. Alternatively, we could be required to enter into costly licensing arrangements with third parties or implement a costly alternative. Any of these scenarios could harm our reputation and have a material adverse effect on our business, financial condition, results of operations and cash flows.

Risks Related To Our Agreements with International Paper

We rely on commercial agreements with our former parent company, International Paper, whereby a substantial amount of our production in the United States is outsourced, and the loss of such agreements or the inability to recoup the fixed costs of such agreements, could have an adverse effect on our business, financial condition, results of operations and cash flows.

In connection with our separation from International Paper on October 1, 2021, we and International Paper entered into agreements that govern certain commercial relationships following the separation, including related to the supply and purchase of certain raw materials and finished products, and licenses of certain intellectual property and technology. For example, we entered into offtake agreements related to International Paper’s Georgetown, South Carolina, and Riverdale, Alabama, mills, to provide us with UFS products important to our business.

As of December 31, 2024, we and International Paper, by mutual consent, have terminated the agreement pursuant to which the Georgetown mill supplied the Company with products. The Georgetown mill supplied approximately 250,000 tons to the Company in 2024. After termination of the agreement, we will exit approximately 150,000 tons and, assuming 2024 margins, termination of this agreement is expected to negatively impact the Company’s earnings by $40 million. We retained and qualified approximately 100,000 tons of the most profitable products at our other North American mills.

International Paper has had the right to terminate the offtake agreement related to the Riverdale mill since January 1, 2024, on six months’ advance notice to us, and termination of such agreement could significantly reduce our UFS production capacity in the United States. Such right has not been exercised as of the date of this Annual Report on Form 10-K, but we are preparing for the possibility that the agreement may be terminated. We believe that the Riverdale mill, as a paper mill, is subject to the same or similar economic, external, industry and operational risks that our own mills face (as described in these “Risk Factors”). The expiration or termination of the Riverdale offtake agreement, or the inability of the Riverdale mill to produce our products at a reasonable cost to us or at all, could have an adverse effect on our business, financial condition, results of operations and cash flows if we are unable to acquire or sell the raw materials or finished products to third parties on at least similar terms, or at all.

Moreover, we are required to pay certain fixed costs under the Riverdale offtake agreement regardless of the level of orders received, and we will not be able to terminate the Riverdale offtake agreement until January 1, 2026, even if demand has decreased such that we are no longer able to sell the UFS and other products produced at the Riverdale facility. As a result, until the January 1, 2026 early termination date, we will not be able unilaterally to reduce or eliminate the costs associated with the Riverdale offtake agreement, which may have an adverse effect on our business, financial condition, results of operations and cash flows.

If the distribution of shares of Sylvamo and certain related transactions in connection with our separation from International Paper were to fail to qualify for non-recognition treatment for U.S. federal income tax purposes, then International Paper, Sylvamo and International Paper’s shareholders may be subject to significant U.S. federal income tax.

International Paper received a private letter ruling from the U.S. Internal Revenue Service (the “IRS”), and an opinion of a nationally recognized tax counsel, regarding certain aspects of our separation from International Paper, the distribution of shares of Sylvamo and certain related transactions, confirming that such transactions are generally tax-free for U.S. federal income tax purposes to International Paper, Sylvamo and International Paper shareholders. A tax opinion is not binding on the IRS or the courts, and there can be no assurance that the IRS or a court will not take a contrary position. If any of the representations or covenants relied upon for the tax opinion or the private letter ruling are or become inaccurate, are incomplete or are not complied with by International Paper, Sylvamo or any of their respective subsidiaries, the private letter ruling or tax opinion may be invalid in whole or in part, and the conclusions reached therein could be jeopardized.

If the IRS ultimately determines, and a court confirms, that any aspect of the separation, the distribution or any related transaction is taxable, then (i) International Paper could incur significant U.S. federal income tax liabilities and/or (ii) International Paper shareholders that received Sylvamo stock in the distribution could be required to include taxable income or gain with respect to their receipt of Sylvamo stock. Sylvamo may be required to indemnify International Paper for such tax liability in certain circumstances, pursuant to the tax matters agreement; however, there can be no assurance that Sylvamo would have the resources or liquidity needed to satisfy any claim under the indemnity.

Satisfaction of indemnification obligations to International Paper could have a material adverse effect on our financial condition, results of operations and cash flows.

Pursuant to the distribution and separation agreement, tax matters agreement and certain other agreements we entered into with International Paper in connection with our separation from International Paper, International Paper agreed to indemnify us for certain liabilities, and we agreed to indemnify International Paper for certain liabilities. Payments that we may be required to make under our indemnity of International Paper are not subject to any cap, may be significant and could negatively impact our business, particularly with respect to indemnities provided in the tax matters agreement.

We may also incur significant costs related to environmental liabilities that may arise at our mills, or other sites that were not owned by International Paper at the time of separation but were primarily operated or used by International Paper’s former printing papers business.

Third parties could also seek to hold us responsible for any of the liabilities that International Paper has agreed to retain. Indemnities from International Paper may not be sufficient to protect us against the full amount of such liabilities if, for example, International Paper is not able to fully satisfy its indemnification obligations. Moreover, even if we ultimately succeed in recovering from International Paper any amounts for which we are indemnified by it, we may be temporarily required to bear these losses ourselves, requiring us to divert cash that would otherwise have been used in furtherance of our operating business. Each of these risks could have a material adverse effect on our financial condition and results of operations.

Risks Relating To Our Indebtedness

Our indebtedness could have a material adverse effect on our financial condition and cash flows.

In 2024, we refinanced our indebtedness to extend its maturity profile and reduce the total amount of our debt facilities. As of December 31, 2024, we have a $400 million cash flow-based revolving credit facility, a $219 million

Term Loan A maturing in 2029, a $257 million Term Loan F maturing in 2027, a $232 million Term Loan F-2 maturing in 2031, and a $110 million accounts receivable finance facility maturing in 2027. As of December 31, 2024, the aggregate principal amount of all of our outstanding debt was approximately $796 million. Our strategy has included a reduction of our outstanding debt obligations, by nearly 48% since 2021, but nonetheless our debt is a risk that could have important consequences to our shareholders, including:

• limiting our ability to obtain additional financing to fund future working capital, capital expenditures, product development, acquisitions or other general corporate requirements;

• requiring a portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, product development, acquisitions, returning cash to shareowners and other general corporate purposes;

• increasing our vulnerability to general adverse economic and industry conditions;

• increasing our effective tax rate;

• exposing us to the risk of increased interest rates to the extent that our borrowings are at variable rates of interest or upon incurring new debt at maturity at new interest rates;

• limiting our ability to deduct the full amount of the interest payments on any debt from our taxable income;

• limiting our flexibility in planning for and reacting to changes in the industry in which we compete;

• placing us at a competitive disadvantage compared to other, less leveraged competitors or competitors with comparable debt and more favorable terms; and

• increasing our cost of borrowing.

We and our subsidiaries may incur significant additional indebtedness in the future. If new indebtedness is added to our current indebtedness levels, these risks would increase.

We may not be able to generate sufficient cash to service our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.

Our ability to make scheduled payments on or refinance our anticipated debt obligations will depend on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to financial, business, legislative, regulatory and other factors beyond our control, including those discussed under “—Risks Related to Our Industry, the Products We Offer and Product Distribution.” We may not be able to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness. If our cash flows and capital resources are insufficient to fund our debt service obligations, which would trigger default under the credit agreement, we could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to dispose of material assets or operations, seek additional debt or equity capital or restructure or refinance our indebtedness. We may not be able to affect any such alternative measures on commercially reasonable terms or at all and, even if successful, those alternative actions may not allow us to meet our scheduled debt service obligations.

The agreements governing our indebtedness contain restrictive covenants that limit our ability to conduct our business, including certain limitations on our ability to dispose of assets and the use of the proceeds from those dispositions, certain requirements that we use the proceeds from future incurrences of debt or issuances of equity to repay existing indebtedness, and limit our ability to incur additional indebtedness. We may not be able to consummate dispositions or to obtain proceeds in an amount sufficient to meet any debt service obligations then due. Our inability to generate sufficient cash flows to satisfy our debt obligations, or to refinance our indebtedness on commercially reasonable terms or at all, could have a material adverse effect on our financial condition and results of operations and our ability to satisfy our obligations under our indebtedness.

periods, would result in an event of default under those agreements. Lenders under the agreements governing our indebtedness could declare all outstanding principal and interest to be due and payable, and lenders could further terminate their commitments to loan money under our existing revolving credit facility or foreclose against the assets securing their borrowings, which could force us to file for bankruptcy protection and either restructure or liquidate. Any of these events could result in our shareholders losing some or all of the value of their investments. Further, an event of default may result in the acceleration of any other debt to which a cross-acceleration or cross-default provision applies. In the event the lenders accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness.

Risks Relating To Our Common Stock

Future offerings of debt or equity securities ranking senior to our common stock could adversely affect the market price of our common stock.

In the future, we may decide to issue senior or subordinated debt securities or preferred stock or other equity securities that rank senior to our common stock. Indentures or other instruments governing such securities may include covenants restricting our operating flexibility and ability to pay dividends and make other distributions to our shareholders. Additionally, any convertible or exchangeable securities that we issue in the future could have rights, preferences and privileges more favorable than those of our common stock and could result in dilution to owners of our common stock. We and, indirectly, our shareholders, will bear the cost of issuing and servicing such securities. Because our decision to issue debt or equity securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, holders of our common stock will bear the risk of our future offerings, reducing the market price of our common stock and diluting the value of their common stock holdings in us.

Continued payment of dividends on, and repurchases of, our common stock are subject to the continued discretion of our board of directors and, consequently, shareholders’ ability to achieve a return on their investment could become limited to appreciation in the price of our common stock.

Since 2022, we have paid quarterly dividends and have been opportunistically repurchasing shares of our common stock. Our continued declaration and payment of quarterly dividends, continued repurchases of shares, and institution of any other return of cash to our shareholders, including payment of any special dividends, will nonetheless be at the discretion of our board of directors and will depend on many factors, including our earnings, financial condition and results of operations, capital requirements, level of indebtedness, covenants contained within our debt agreements, contractual restrictions with respect to payment of dividends and the repurchase of shares, ability to obtain cash or other assets from our subsidiaries, restrictions imposed by applicable law, general business conditions and other factors that our board of directors may deem relevant. As of December 31, 2024, we have repurchased $218 million of the total $300 million authorized thus far by our board of directors for repurchases of our common stock. Any repurchases in excess of the remaining amount authorized for repurchases would require further authorization by our board of directors.

Among the covenants in our debt agreements, prior to the Brazil Tax Dispute (as defined this Form 10-K) being resolved, if we do not maintain the minimum level of liquidity specified in such agreements, or, if there are adverse rulings in the Brazil Tax Dispute and we do not maintain the specified minimum level of liquidity and deposit $60 million into escrow, then we would be limited in the amount of “restricted payments,” including dividends and share repurchases, that we may make while our indebtedness remains outstanding. For more information about the Brazil Tax Dispute and the terms of our indebtedness, see “ – Our business is subject to a wide variety of other laws, regulations and other government requirements that may change in significant ways, and the cost of compliance with such requirements could have a material adverse effect on our business, financial condition, results of operations and cash flows,” and Note 14 Long-Term Debt and Note 12 Income Taxes to the Consolidated Financial Statements included in Item 8 in this Annual Report on Form 10-K.

There can be no assurance that we will continue to pay dividends or repurchase shares of our common stock in the future. Therefore, the success of an investment in shares of our common stock may in the future depend only upon any future appreciation in their value. There is no guarantee that shares of our common stock will appreciate or even maintain their value.

Shareholders’ percentage ownership in Sylvamo will be diluted by equity compensation and potential use of our shares as consideration for any future acquisitions, strategic investments or financing of ongoing operations.

We grant stock-based equity awards to our directors and certain officers and other employees as partial compensation for their services for us. Equity awards dilute shareholders’ ownership in Sylvamo. In addition, we may issue equity as all or part of the consideration paid for acquisitions and strategic investments that we may make in the future or to finance our ongoing operations.

If any of our shareholders sells a substantial number of shares of our common stock, the market price of our common stock could decline.

Sales of a substantial number of shares of our common stock in the public market could occur at any time. These sales (or the possibility that these sales may occur), or speculation that a holder of a large number of shares of our common stock intends to sell its shares, could reduce the market price of our common stock. As of February 11, 2025, we have approximately 40.6 million shares of common stock outstanding, of which approximately 6.3 million are subject to certain restrictions on transfer imposed by contract or the U.S. federal securities laws.

We may be subject to the actions of activist shareholders, which could cause us to incur substantial costs, divert management's attention and resources, and adversely affect our business and stock price.

We may be the subject of increased activity by activist shareholders. Responding to shareholder activism can be costly and time-consuming, disrupt our operations and divert the attention of management and our employees from executing our business plans. If faced with an activist shareholder in the future, we may not be able or willing to respond to the activist shareholder’s requests, which could result in a proxy contest and disrupt our operations. Activist campaigns could create perceived uncertainties as to the future direction of the Company or its leadership and strategic plans and may also result in the loss of potential business opportunities, harm our ability to attract qualified personnel and business partners and cause us to incur additional legal, financial advisory and other costs. Activist shareholder activity, or the mere presence of an activist shareholder among our investor base, could adversely impact the market price for our common stock or cause periods of significant price volatility.

Anti-takeover provisions in our certificate of incorporation and bylaws could discourage, delay or prevent a change of control of our company and could affect the trading price of our common stock.

Our certificate of incorporation and bylaws contain certain provisions that may discourage, delay or prevent a change in our management or change of control, including that they, collectively:

• authorize the issuance of “blank check” preferred stock that could be issued by our board of directors to thwart a takeover attempt;

• provide that vacancies on our board of directors, including vacancies resulting from an enlargement of our board of directors, may be filled only by a majority vote of directors then in office;

• prohibit shareholder action by written consent, thereby requiring all actions to be taken at a meeting of the shareholders; and

• establish advance notice requirements for nominations of candidates for election as directors or to bring other business before an annual meeting of our shareholders.

These provisions could prevent our shareholders from receiving the benefit from any premium to the market price of our common stock offered by a bidder in a takeover context. Even in the absence of a takeover attempt, the existence of these provisions could adversely affect the prevailing market price of our common stock if the provisions are viewed as discouraging takeover attempts in the future.

Our certificate of incorporation and bylaws could also make it difficult for shareholders to replace or remove our management. Furthermore, the existence of the foregoing provisions could limit the price that investors might be willing to pay in the future for shares of our common stock. These provisions could facilitate management entrenchment that could delay, deter, render more difficult or prevent a change in our control, which may not be in the best interests of our shareholders.

Our certificate of incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain litigation that may be initiated by our shareholders, which could limit our shareholders’ ability to obtain a favorable judicial forum for disputes with us or our current or former directors, officers or shareholders.

Our certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for any (1) derivative action or proceeding brought on our behalf, (2) action asserting a claim of breach of a fiduciary duty owed to us or our shareholders by any of our directors, officers, employees or agents, (3) action asserting a claim arising out of or pursuant to the Delaware General Corporation Law (the “DGCL”) or our certificate of incorporation or bylaws, or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware or (4) action asserting a claim governed by the internal affairs doctrine. Unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America will, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended (the “Securities Act”), the Exchange Act, and the rules and regulations thereunder. Neither this provision nor the exclusive forum provision will mean that shareholders have waived our compliance with federal securities laws and the rules and regulations thereunder, but it does mean that our shareholders are deemed to have notice of and have consented to these provisions concerning choice of forum. The choice of forum provision in our certificate of incorporation may limit our shareholders’ ability to bring a claim in a judicial forum that they find favorable for disputes with us or any of our current or former directors, officers or shareholders, which may discourage lawsuits with respect to such claims. Additionally, a court could determine that the exclusive forum provision is unenforceable. If a court were to find the choice of forum provision contained in our certificate of incorporation to be inapplicable or unenforceable to an action in which we assert the choice of forum, we could incur additional costs associated with resolving the action in other jurisdictions, which could have a material adverse effect on our business, financial condition and results of operations.

Our certificate of incorporation limits the personal liability of our directors and officers for breaches of fiduciary duty.

Our certificate of incorporation contains provisions permitted under the DGCL relating to the liability of directors and officers. These provisions eliminate a director’s or officer’s personal liability to the fullest extent permitted by the DGCL for monetary damages resulting from a breach of fiduciary duty, except in circumstances involving:

• any breach of the director’s or officer’s duty of loyalty;

• acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law;

• any transaction from which the director or officer derives an improper personal benefit;

• with respect to directors only, Section 174 of the DGCL (unlawful dividends); or

• with respect to officers only, any action by or in the right of the Company.

The principal effect of the limitation on liability provision is that a shareholder cannot prosecute an action for monetary damages against a director or officer unless the shareholder is able to demonstrate a basis for liability for which indemnification is not available under the DGCL. These provisions, however, should not limit or eliminate our rights or any shareholder’s rights to seek non-monetary relief, such as an injunction or rescission~~, in the event of a breach of a director’s or officer’s fiduciary duty~~. These provisions do not alter a director’s or officer’s liability under federal securities laws. ~~The~~This ~~inclusion of this~~ limitation on liability ~~in our certificate of incorporation~~ could discourage or deter shareholders or management from bringing a lawsuit against directors or officers for a breach of their fiduciary duties, even though such an action, if successful, might otherwise have benefited us and our shareholders.

3025

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

RISK MANAGEMENT AND STRATEGY

Our overall cybersecurity strategy is to:

•Cultivate a security-embedded organization and culture within the Company

•Extend security from technology throughout the Company’s organization, practices and processes (we call this our cybersecurity mesh)

•Evolve our cyber resiliency.

To that end, we have robust cybersecurity risk management processes that include technical security controls, policy enforcement mechanisms, monitoring systems, contractual arrangements, tools and services and management oversight to assess, monitor, identify, detect and manage risks from cybersecurity threats, and to respond to, conduct forensic analysis of, escalate appropriately and report cybersecurity incidents. We proactively obtain intelligence about potential cybersecurity threats, hunt for cybersecurity threats and consistently work to enhance our cybersecurity operations.

We have adopted cybersecurity control principles based on the National Institute of Standards and Technology Cybersecurity Framework (NIST), the Center for Internet Security (CIS) and ISO 27001. Further, our cybersecurity controls are designed to comply with applicable laws concerning protection of private information, including the EU General Data Protection Regulation (GDPR), Brazil’s Lei General de Proteção de Dados Pessoais (LGPD) and the California Consumer Privacy Act, ofas ~~2018~~amended by the California Privacy Rights Act (CCPA/CPRA).

In developing and implementing measures to assess, identify and manage cybersecurity risk, our approach is to evaluate the possible operational and financial effects of those measures and take that information into consideration in conducting a risk-based analysis of the appropriate cybersecurity protections for the Company. We strive to protect the Company with cost-effective, efficient and non-disruptive measures, while robustly protecting the Company against cybersecurity threats.

Our cybersecurity protections include physical, administrative and technical safeguards that cover both our information systems (also referred to herein as “information technology” or “IT” systems) and the people with access to our IT systems. We develop, maintain, test and periodically update detailed plans and procedures that are designed to help us prevent, and if necessary, timely and effectively respond to, cybersecurity incidents, which provide for the appropriate Company personnel and management to be involved depending on the type and severity of the incident.

Our IT systems architecture is embedded with cybersecurity features. We utilize a range of third-party software providing layers of defense against cyberattacks, and we have employees and consultants whose jobs are to continually assess and reduce the potential attack surface, to monitor, detect and respond in near real time to incidents to minimize damage, and to enhance the security environment and scale with business needs as they evolve. We conduct continuous monitoring of our potential cybersecurity vulnerabilities and attack vectors.

Our IT systems are accessible by our employees and certain third parties as necessary and appropriate to perform services for or otherwise do business with us. We strictly limit access to our IT systems, including ~~that~~using ~~we use~~ authentication controls and ~~conduct~~conducting real-time monitoring of access.

We address the cybersecurity threat risk posed by employees and third parties with access to our IT systems, including ~~that~~integrating ~~we integrate~~ cybersecurity risk management into the culture of our organization by: maintaining policies addressing various aspects of security necessary to protect our IT assets and data; requiring cybersecurity awareness and training programs for persons with access to our IT systems to build their cybersecurity skills and knowledge; consistent messaging to our employees (including from our top leadership) of the importance of managing cybersecurity risk, participating in our cybersecurity training and following our cybersecurity policies; routinely testing responses by our employees to mock efforts to breach our cybersecurity protections; and policies and procedures to follow in the event a cyber breach were to occur at the Company, including in response to the breach and to evaluate the level and materiality of the breach.

3126

We partner with and build relationships with third parties who have access to our IT systems to support an overall ecosystem around cybersecurity that we believe helps reduce third party cybersecurity risk affecting our level of cybersecurity risk. We assess cybersecurity risk from our suppliers and service providers and have in place oversight processes to identify and manage such risks, including ~~that~~having ~~we have~~ systems that constantly monitor each third party with access to our systems and that allow such third parties to see and resolve their risks while we continue to monitor. Our processes to protect against third party cybersecurity risk are cross-functional and form part of our enterprise risk management program, and they are supported by our security, compliance and sourcing organizations. We require suppliers and service providers identified as potential cybersecurity risks to adopt security-control principles based on NIST or similar global standards, and our form contracts for them include provisions drafted to reduce the cybersecurity risk that they may pose for us. We obtain various Service Organization Control 1 and 2 reports from third parties relating to physical security, information security, account administration, transactional processing and reconciliation, client reporting and layers of electronic security controls. Notwithstanding our cybersecurity controls that cover third parties, because it is more difficult to control and mitigate risk associated with third parties than risk internal to our own organization, we believe that these relationships with third parties create additional exposure to cyber risk.

In the event of a cybersecurity breach, our readiness, responsiveness and resiliency are critical. As part of our continuing efforts to assess and enhance our readiness and responsiveness, we conduct periodic mock practice scenarios in which participants at various levels of the Company — including employees responsible for responsive actions in the event of a breach, IT technical personnel and members of senior management — play out responses to various cybersecurity breach scenarios. Thereafter, we debrief and identify areas of improvement, to continually develop response capabilities and processes that are as efficient and that operate as quickly as possible in the event of a breach, to reduce potential harm that could be caused by inefficiencies and delay. Additionally, we regularly assess our systems’ resiliency and recovery capabilities in case of a cybersecurity breach, both self-managed as well as by qualified third parties.

Furthermore, our approach to improving readiness for potential cybersecurity breaches is designed to be integrated and coordinated among all aspects of the cybersecurity incident management lifecycle, including ~~that~~assessing ~~we assess~~ and consistently ~~work~~working to improve our site-level emergency response, our technology and cyber incident response, our executive-level crisis management, our business and operational continuity, our IT resilience and our disaster recovery. These efforts also take into account and balance against cybersecurity risk our Company’s business needs and operations, and to inform ourselves in conducting this balancing, we obtain input from appropriate employees from our affected business operations, enterprise risk management, business continuity, business operations, information technology and cybersecurity organizations.

To enhance our cybersecurity risk management, we leverage industry associations, third-party benchmarking, audits, threat intelligence feeds and other similar resources, which inform our cybersecurity efforts and help us determine how best to allocate resources. We utilize third-party service providers to assist us in assessing, enhancing, implementing, monitoring and testing our cybersecurity program, areas of cyber risk and cyber risk management.

A cybersecurity threat resulting in a material cybersecurity incident could materially affect us and our business strategy, results of operations and financial condition, especially if it causes one or more of the following to occur: our incurring substantial costs to resolve the incident and address legal, reputational and other fallout from the incident; one or more of our IT systems become unavailable to operate our business; unauthorized third parties gain access to our sensitive and confidential business information; we lose access to information on our IT systems necessary to operate our business; and our customers’ and suppliers’ trust in our ability to protect their information is damaged to the extent that it impairs our ability to do business with them.

While we have a cybersecurity program designed to protect and preserve the integrity of our information systems, there is no guarantee that our cybersecurity program will be sufficient to prevent or mitigate the risk of a cyberattack or the potentially serious reputational, operational, legal or financial impacts that may result. We have experienced cybersecurity incidents in the past that were not material, but future incidents could have a material impact on our business strategy, results of operations, financial condition, cash flows and reputation. See “WeFailures ~~are~~or ~~subject~~security ~~to information technology risks related to~~ breaches of ~~security~~our ~~pertaining to sensitive company, customer, employee and vendor~~ information, ~~breaches in the~~ technology ~~used~~systems tocould ~~manage~~disrupt our operations, ~~and~~harm ~~other~~our business ~~processes,~~ and ~~the~~result ~~increasing~~in ~~use~~regulatory ~~of artificial intelligence~~non-compliance” in Item 1A, “Risk Factors” in this Annual Report on Form 10-K.

GOVERNANCE

Our board of directors has overall responsibility for risk management oversight, with its committees assisting the board in performing this function based on their respective areas of expertise. Our board oversees cybersecurity matters and risk, and the Audit Committee also oversees risk that includes cybersecurity risk. The board periodically reviews our processes for assessing

3227

~~the Audit Committee also oversees risk that includes cybersecurity risk. The board periodically reviews our processes for assessing~~ and addressing key strategic, operational, compliance and risk management matters concerning cybersecurity, and as part of such assessment receives briefings on such matters from our Chief Information Security Officer (“CISO”). These briefings include reports on the threat landscape, our strategies, efforts and investments to address threats, and updates on incidents. The Audit Committee also receives reports from the Company’s Vice President of Internal Audit assessing internal controls that include cybersecurity controls. Furthermore, our cybersecurity risk management processes are integrated into our enterprise risk management program and our compliance risk management program, both of which are also overseen by our board.

Our CISO has approximately 21 years of experience in the cybersecurity industry. She is responsible for developing, coordinating and overseeing our cybersecurity strategy, policy, program and solutions, and for providing cybersecurity guidance to key management and internal company oversight bodies. Our CISO manages our cybersecurity organization, which covers all regions in which we operate and which is staffed with employees dedicated full-time to cybersecurity. Our CISO reports directly to our Chief Information Officer (“CIO”) and reports on cybersecurity at least quarterly to senior management and semi-annually to the full board of directors, or more often as needed.

Our CISO is a standing member of our Enterprise Risk Council, which seeks to strengthen our company’s processes with respect to the identification, assessment, management and monitoring the risks most likely to impact our strategic success, including cybersecurity risk. The council is chaired by our VP, Internal Audit, and its members are employees drawn from various areas of our organization. The council meets at least quarterly or more often as needed, to further strengthen risk management activities across the Company, including the risk of cybersecurity incidents.

Cybersecurity threats and incidents are monitored and addressed through the processes described above in “- Risk Management and Strategy” and, as part of such processes, cybersecurity incidents are evaluated by the company’s cybersecurity organization, which escalates information about incidents, as appropriate for the severity of the incident, to the CISO and by the CISO to senior leadership.

The CISO informs, as appropriate, the Enterprise Risk Council, the CIO, the Company’s senior leadership and, as noted above, the board of directors and its Audit Committee, on safeguards to prevent, detect, mitigate and remediate cybersecurity incidents. The CIO and CISO both report directly on a regular basis to the Company’s senior leadership on progress towards specific IT risk management objectives, with the CISO focusing on cybersecurity objectives.

ITEM 2. PROPERTIES

FORESTLANDS

As of December 31, ~~2024~~2025, the Company owned or managed approximately 250,000 acres of forestlands in Brazil. All owned lands in Brazil are independently third-party certified for sustainable forestry under the Brazilian National Forest Certification Program (“CERFLOR”) and the Forest Stewardship Council (“FSC”). As of ~~December~~October 3117, ~~2023~~2025, a third party estimated the fair value of our owned forestlands at 4.89 billion reais (approximately $~~800~~900 million ~~adjusted~~converted ~~for~~using ~~variation~~the inDecember ~~currency~~31, 2025 exchange ~~rates~~rate).

MILLS AND PLANTS

Our portfolio of properties spans three continents and includes six vertically-integrated mills and one non-integrated mill with an aggregate annual paper and pulp production capacity of 3.3 million short tons. We have two mills in our North America segment in the United States (Ticonderoga, New York and Eastover, South Carolina), three mills in our Latin America segment in Brazil (Três Lagoas, Mato Grosso do Sul, and Luís Antônio and Mogi Guaçu, São Paulo), and two mills in our Europe segment (Saillat, France and Nymölla, Sweden). ~~Our~~Also, our paper manufacturing operations ~~are~~have ~~further~~historically been supported by an offtake agreement with International Paper ~~(subject to their earlier termination)~~ for paper production at the North American Riverdale, Alabama, mill ~~for~~with annual capacity of 350,000 short tons of uncoated freesheet. AIn ~~listing~~October of2025, ~~our~~we ~~production~~agreed ~~facilities~~with byInternational ~~segment,~~Paper that supply under the ~~vast~~offtake ~~majority~~agreement ofwill ~~which~~wind wedown ~~own~~after April 30, 2026 and terminate on May 30, 2026. A listing of our production facilities by segment can be found in Appendix I hereto, which is incorporated herein by reference.

CAPITAL INVESTMENTS AND DISPOSITIONS

Capital spending primarily consists of purchases of machinery and equipment and reforestation related to our global mill operations. A discussion about the level of planned investments for ~~2025~~2026 is included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

ITEM 3. LEGAL PROCEEDINGS

The Company may be involved in legal proceedings arising from time to time in the ordinary course of business. The Company is not involved in any legal proceedings, individually or in the aggregate, that we expect to result in a material adverse effect upon our financial condition or results of operations. See Note 12 10 Income Taxes and Note 1311 Commitments and Contingent Liabilities of the Notes to our Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K, which notes are incorporated into this Item 3, Legal Proceedings, by reference.

Item 103 of Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions, unless we reasonably believe the monetary sanctions will not equal or exceed a threshold of $1 million (which is the threshold we elected to use as permitted by this regulation). The environmental matters set forth in Note 1311 Commitments and Contingent Liabilities to the Consolidated Financial Statements included in Item 8 in this Annual Report on 10-K are disclosed in accordance with such requirement and incorporated herein by reference.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

3429

PART II.

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY

The Company’s common stock is traded on the New York Stock Exchange (NYSE: SLVM). As of February 1413, ~~2025~~2026, there were approximately 54,~~010~~640 record holders of common stock of the Company. This number does not include an indeterminate number of “street” holders whose shares of common stock of the Company are held of record by banks, brokers and other financial institutions.

Our Board of Directors approved a quarterly cash dividend of $0.3045 per share of the Company’s common stock payable for ~~our~~each ~~first quarter~~ of ~~2024. They increased~~ the ~~quarterly~~four ~~dividend~~quarters toduring $02025.45 ~~per share beginning with the dividend payable for our second and continuing though the fourth quarter of 2024.~~ We expect to continue to pay regular quarterly cash dividends in the foreseeable future, though each dividend payment (regular or special) is subject to review and approval by our Board of Directors in its sole discretion. Our ability to pay dividends is, and in the future will continue to be, dependent on the then existing conditions, including our financial condition, results of operations, capital requirements, legal and contractual limitations (including covenants in our agreements governing our indebtedness) and other factors our Board of Directors deems relevant.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Period	Total Number of Shares Purchased (a)	Average Price Paid Per Share		Total Number of Shares (or Units) Purchased as Part of the Publicly Announced Program	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Program (in millions)
October 1, 2024 - October 31, 2024	956	$	85.85	—	$	120
October 1, 2025 - October 31, 2025	399	$	44.22	—	$	150
November 1, 2024 - November 30, 2024	398,601	$	87.98	397,767	$	85
November 1, 2025 - November 30, 2025	1,731	$	40.60	—	$	150
December 1, 2024 - December 31, 2024	32,306	$	79.67	31,844	$	82
December 1, 2025 - December 31, 2025	774	$	47.37	—	$	150
Total	~~431~~2,~~863~~904			~~429,611~~—

(a) 2,~~252~~904 shares were acquired from employees from share withholdings under the Company’s long term incentive compensation program.

On May 18, 2022, the Board approved a share repurchase program under which the Company may purchase up to an aggregate amount of $150 million of shares of its common stock (the “Repurchase Program”). In 2023 and again in the third quarter of ~~2023~~2025, the Board authorized an additional $150 million for the Repurchase Program, bringing the total program capacity to $~~300~~450 million,. As of ~~which~~December 31, 2025, $82150 million remains available for repurchases. Pursuant to the Repurchase Program, the Company may repurchase in amounts, at prices and at such times as it deems appropriate, subject to market conditions and other considerations, including all applicable legal requirements. Repurchases may include purchases on the open market or privately negotiated transfers, under Rule 10b5-1 trading plans, under accelerated share repurchase programs, in tender offers and otherwise. The Repurchase Program does not obligate the Company to acquire any particular amount of shares of its common stock and may be modified or suspended at any time at the Company’s discretion. The Company repurchased $6882 million of shares during the year ended December 31, ~~2024~~2025.

3530

PERFORMANCE GRAPH

The following performance graph compares a $100 investment in Company stock on October 1, 2021 with a $100 investment in our Peer Group and the S&P SmallCap 600 Index also made at market close on October 1, 2021. The graph portrays total return, October 1, 2021 - December 31, ~~2024~~2025, assuming reinvestment of dividends. The performance graph shall not be deemed “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Exchange Act nor shall such information be incorporated by reference into any other filings under the Exchange Act or the Securities Act.

Return on $100 Investment at December 31, ~~2024~~2025

1.The Peer Group represents all companies within the Materials sector of the S&P SmallCap 600 Index.

2.Returns are calculated in $USD.

ITEM 6 . RESERVED

3631

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and related notes included in Item 8. Financial Statements and Supplementary Data of this Annual Report on Form 10-K. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those stated and implied in any forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and elsewhere in this Annual Report on Form 10-K, particularly under the headings “Risk Factors” and “Forward-Looking Statements.”

The following generally discusses ~~2024~~2025 and ~~2023~~2024 items and year-to-year comparisons between ~~2024~~2025 and ~~2023~~2024. Discussion of historical items in ~~2022~~2023, and year-to-year comparisons between ~~2023~~2024 and ~~2022~~2023, can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2023~~2024, filed with the SEC on February 21, ~~2024~~2025, under Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The consolidated financial statements have been prepared in United States (“U.S.”) dollars and in conformity with accounting principles generally accepted in the United States (‘‘U.S. GAAP’’) and may not be indicative of the Company’s future performance.

EXECUTIVE SUMMARY

Full-year ~~2024~~2025 net income was $~~302~~132 million ($73.1824 per diluted share) compared with $~~253~~302 million ($57.9318 per diluted share) for ~~2023~~2024. Net sales ~~increased~~decreased to $3.84 billion in the current year compared with $3.78 billion in ~~2023~~2024. Cash from continuing operations was $~~469~~268 million in the current year compared to $~~504~~469 million in the prior year. Adjusted EBITDA was $~~632~~448 million in ~~2024,~~2025 ~~which~~compared ~~represents~~with ~~an increase of~~ $25632 million ~~from~~in ~~the prior year adjusted EBITDA of $607 million~~2024. Additionally, our ~~2024~~2025 adjusted EBITDA margin was ~~16.8~~13% compared to ~~16.3~~17% in the prior year and free cash flow was $~~248~~44 million compared to $~~294~~248 million last year.

Comparing our performance in ~~2024~~2025 to ~~2023~~2024, ~~higher~~challenging ~~volumes~~industry ~~were~~conditions ~~driven~~contributed byto ~~stronger~~lower ~~demand~~volumes ~~for~~of uncoated freesheet across all three of our regions. ~~Unabsorbed~~Price ~~fixed~~and ~~costs~~mix ~~due~~were tounfavorable ~~economic manufacturing downtime~~ in Europe and ~~North~~Latin America ~~declined~~but ~~significantly~~improved in ~~2024~~North America. ~~These~~Planned ~~factors,~~maintenance inoutages ~~addition~~were significantly higher due to ~~more~~two ~~favorable~~outages ~~input~~in ~~costs~~Europe compared with one in the previous year. Europe and North America benefited from lower ~~planned~~unabsorbed ~~maintenance~~fixed ~~outages,~~costs ~~were~~due ~~partially~~to ~~offset~~reduced byeconomic ~~lower~~manufacturing ~~price~~downtime ~~and~~in ~~mix~~2025. ~~and~~Input ~~less~~costs ~~favorable~~and operations. Wewere ~~generated~~unfavorable ~~solid~~in ~~free~~all ~~cash~~of ~~flow~~our ~~again~~regions ~~this~~compared ~~year~~to 2024. We generated $~~248~~44 million in free cash flow, ~~repaid~~this ~~$154~~year ~~million in debt,~~ and returned $~~130~~155 million in cash to ~~shareholders~~shareowners. ~~Additionally,~~ weWe also reinvested $~~221~~224 million across our manufacturing network and ~~our~~ Brazil forestlands to strengthen our low-cost position. ~~We also accelerated the development of high-return capital project investments.~~

Looking ahead, to2026 ~~2025,~~will be a transition year for North America as we ~~remain~~work ~~committed~~through toshort-term ~~generating~~capacity ~~strong~~constraints ~~adjusted~~with ~~EBITDA~~the Riverdale supply agreement exit and ~~free~~the ~~cash~~execution ~~flow~~of ~~while~~investments ~~returning~~at ~~cash~~our toEastover ~~shareowners~~mill. ~~Our~~We ~~financial~~are ~~results~~prioritizing ~~for~~strategic projects with the ~~three~~fastest ~~full~~payback ~~years~~so ~~since~~that ~~spin-off~~2027 ~~have~~and ~~established~~beyond areflects ~~solid~~lower ~~track~~costs, ~~record~~higher efficiency, and ~~are~~stronger ~~indicative~~cash ofconversion ~~our~~potential. ~~ability~~We strive to ~~navigate~~create ~~industry~~long-term ~~conditions,~~shareowner ~~geopolitical~~value ~~events~~by executing our strategy and ~~other~~delivering ~~uncertainty~~on ~~that~~our weinvestment ~~may~~thesis. ~~face~~Keeping a strong financial position is the cornerstone of our capital allocation framework. WeThis ~~are~~allows ~~confident~~us to reinvest in our ~~ability~~business to ~~continue~~strengthen toour ~~create~~competitive ~~value~~advantages ~~for~~through ~~our~~the ~~customers~~cycle and ~~shareowners~~to increase future earnings and cash flow.

Acquisition of Nymölla

On January 2, 2023, the Company completed the previously announced acquisition of Stora Enso’s uncoated freesheet paper mill in Nymölla, Sweden. Sylvamo accounted for the acquisition under ASC 805, “Business Combinations” and the Nymölla mill’s results of operations are included in Sylvamo’s consolidated financial statements from the date of acquisition. See Note 7 Acquisitions to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for further details.

Divestiture of Russian Operations

During the second quarter of 2022, management committed to a plan to sell the Company’s Russian operations (which were sold on October 2, 2022). As a result, all historical operating results of the Company’s Russian operations have been classified as “Discontinued operations, net of taxes” in the consolidated statements of operations and the notes to the consolidated financial statements. In October 2022, the Company completed the sale of its Russian operations to Pulp Invest Limited Liability Company, a company incorporated in the Russian Federation. See Note 8 Divestiture and Impairment of Business to our financial statements included elsewhere in this Annual Report on Form 10-K for further details.

RESULTS OF OPERATIONS

When reading our financial statements and the information included in this Annual Report on Form 10-K, it should be considered that we have experienced, and continue to experience, several material trends and uncertainties that have affected our financial condition and results of operations and that could affect future performance. We believe that the following material trends and uncertainties are important to understanding our business.

Macroeconomic Conditions

The Company’s operating results are typically closely tied to changes in the general economic conditions in Europe, Latin America and North America, as well as general global economic conditions. The Company’s profitability and operating results are dependent on the price of our products and the market price of raw materials (primarily wood fiber and chemicals), energy sources and third-party transport of our goods. Historically, economic and market shifts, inflationary pressures, fluctuations in ~~capacity and changes in foreign currency exchange rates have created changes in prices, sales volume and margins for our products.~~

capacity and changes in foreign currency exchange rates have created changes in prices, sales volume and margins for our products.

Consumer Behavior

Factors that impact the demand for our products include general macroeconomic conditions, consumer preferences, movements in currency exchange rates, consumer spending, commercial printing and advertising activity, adoption of electronic mediums, and white-collar employment and the shift to hybrid work models.

DESCRIPTION OF BUSINESS SEGMENTS

The Company’s reportable business segments, Europe, Latin America and North America, are organized by geography and are consistent with the internal structure used to manage these businesses. Each of our segments derive their revenue from the manufacture and sale of paper and pulp products. The following summary describes the products and services offered in each of the segments as of December 31, ~~2024~~2025:

Europe

Our Europe segment produces a broad portfolio of uncoated freesheet papers for numerous uses and applications, and market pulp. We operate two integrated mills in the region, one in Saillat, France and one in Nymölla, Sweden. Located in the Limousin region of France, the Company’s Saillat mill produces both paper and market pulp. It is the only mill in France to cover the entire production process from wood harvesting to paper, and is one of the leading cutsize producers in France and Western Europe. The Saillat mill produces UFS papers, such as copy paper, and value-added products such as tinted paper and colored laser printing paper under leading brands such as REY. ~~Adagio~~In ~~and~~2025, ~~Pro-Design.~~we Wemade investments in our finished roll production capabilities to improve our product mix and also ~~produce~~allow us to enhance our business in graphic and high-speed inkjet printing papers under the brand ~~Jetstar~~Berga. The Saillat mill has some of the highest environmental credentials for our products. In January 2023, the Company acquired a paper mill in Nymölla, Sweden. The integrated mill has two pulp lines and the capacity to produce approximately 500,000 short tons of uncoated freesheet on two paper machines. The mill produces several brands, including Multicopy, and paper used for office printing, business forms, digital printing, offset for printing books and much more. The Nymölla mill has an excellent environmental footprint, which complements Sylvamo’s purpose to produce paper in the most responsible and sustainable ways.

Latin America

Our Latin American ~~operations~~segment ~~focus~~focuses on uncoated freesheet paper and market pulp, supported by the management of approximately 250,000 acres of certified eucalyptus forestlands in Brazil. With a total uncoated freesheet paper capacity exceeding 1.1 million short tons, our three mills in Brazil serve both regional and international markets, being a key supplier in Latin America and a solid global exporter, reaching customers ~~in over 130 countries~~worldwide. Our portfolio includes market-leading brands such as Chamex and Chamequinho copy papers, widely recognized by consumers and distribution channels for their superior quality. Additionally, Chambril offset papers are trusted by printers and converters for their versatility and reliability across various applications. Chambril is available in a wide range of basis weights and specifications to meet the demands of books, notebooks, inserts, leaflets, and industrial end-use requirements. All the products are primarily made from sustainably sourced eucalyptus, which is cultivated and harvested in less than seven years. Latin America operations combine sustainable forestry practices, operational excellence, strong brands and global distribution network.

North America

~~The~~Our North American ~~paper~~segment ~~business~~ manufactures uncoated freesheet papers at its mills in Eastover, South Carolina and Ticonderoga, New York and has an offtake agreement to purchase the uncoated papers produced by International Paper’s Riverdale mill in Selma, Alabama. This offtake agreement is expected to terminate in May 2026. The North American papers business comprises three product lines, Imaging Papers, Commercial Printing Papers and Converting Papers. The imaging papers business, which comprises roughly half of the North American segment’s volume, produces copy paper for use in copiers, desktop and laser printers and digital imaging. These products are important for office use, home office use and in businesses such as education, healthcare and financial services. The commercial printing business comprises about 1317% of the North American segment’s volume, and end-use applications in the commercial printing business include advertising and promotional materials such as brochures, pamphlets, greeting cards, books, annual reports and direct mail. The converting business manufactures a variety of grades that are converted by our customers into envelopes, tablets, business forms, file folders and several specialty grades. ~~Uncoated papers are sold under private label and brand names that include Hammermill®, Springhill®, Williamsburg, Accent®, DRM® and Postmark®.~~

Uncoated papers are sold under private label and brand names that include Hammermill®, Springhill®, Williamsburg, Accent®, DRM® and Postmark®.

BUSINESS SEGMENT RESULTS

Management provides business segment operating profit, a non-GAAP financial measure, to supplement our GAAP financial information, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management believes that business segment operating profit provides investors and analysts useful insights into our operating performance. Business segment operating profit is reconciled to Income from continuing operations before income taxes, the most directly comparable GAAP measure. Business segment operating profit may be determined or calculated differently by other companies and therefore may not be comparable among companies.

The following table presents a comparison of income from continuing operations before income taxes to business segment operating profit:

In millions for the years ended December 31	~~2024~~2025		~~2023~~2024
Income From Continuing Operations Before Income Taxes	$	~~405~~199	$	~~369~~405
Interest expense (income), net	39		3439
Other special items, net (b)	9		38
Foreign exchange on intercompany note	(1)		—
Business Segment Operating Profit (a)	$	453	$	441
Corporate special items, net (b)	1		—
Europe	$	10	$	(25)
Other special items, net (b)	13		9
Latin America	150		197
Business Segment Operating Profit (a)	$	251	$	453
North America	293		269
Europe	$	(112)	$	10
Business Segment Operating Profit (a)	$	453	$	441
Latin America	100		150
North America	263		293
Business Segment Operating Profit (Loss) (a)	$	251	$	453

(a) We define business segment operating profit as our income from continuing operations before income taxes calculated in accordance with GAAP, excluding net interest expense (income), foreign exchange on a note receivable from our Brazilian subsidiary and net special items. We believe that business segment operating profit is an important indicator of operating performance as it is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments.

(b) Net special items represent income or expenses that are incurred periodically, rather than on a regular basis. Net special items in the periods presented primarily include ~~legal~~the ~~fees~~impairment ~~related~~of togoodwill ~~the~~in ~~Brazil~~our ~~Tax~~France ~~Dispute~~reporting unit, acharges ~~loss~~ related to ~~forest~~the ~~fires~~termination inof ~~Brazil,~~the ~~foreign~~Georgetown ~~VAT~~mill ~~refunds~~offtake agreement, ~~transaction~~environmental ~~and~~reserves ~~integration~~in ~~costs~~Brazil, legal fees related to the ~~Nymölla~~Brazil ~~acquisition~~Tax Dispute, ~~professional~~a ~~and~~loss ~~legal fees~~ related to ~~negotiations~~forest ~~resulting~~fires in aBrazil, ~~shareholder~~foreign ~~cooperation~~VAT ~~agreement~~refunds, ~~the~~transaction ~~impact~~and ofintegration ~~the~~costs ~~step-up~~related ofto ~~acquired~~the Nymölla ~~inventory~~acquisition ~~sold during the first quarter of 2023~~ and certain severance costs related to our salaried workforce.

3934

The following tables present Sales and Operating profit (loss), which is the Company’s measure of segment profitability, for each of the Company’s segments. See Note 1715 Financial Information by Business Segment and Geographic Area to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for more information on the Company’s segments.

Europe

In millions for the years ended December 31

~~2024~~2025

~~2023~~2024

Sales

~~801~~741

~~821~~801

Operating Profit (Loss)

10(112)

~~(25)~~10

For the year ended December 31, ~~2024~~2025, our Europe segment sales decreased $2060 million compared to the same period in ~~2023~~2024, primarily due to lower sales price and mix ($5874 million) ~~which~~and ~~more~~lower ~~than offset higher~~ volumes ($3928 million), partially offset by significant favorable foreign exchange impacts.

Europe operating profit for the year ended December 31, ~~2024~~2025 was $35122 million ~~higher~~lower than the same period in ~~2023~~2024 as lower ~~planned~~sales ~~maintenance~~price ~~outages~~and mix ($2673 million), ~~lower~~higher ~~unabsorbed~~planned ~~costs~~maintenance ~~due~~outages ~~to economic downtime~~ ($2739 million), ~~lower~~higher operating costs ($1116 million), ~~lower~~and higher input costs ($168 million), primarily for ~~chemicals~~wood, ~~and higher volumes ($13 million)~~ more than offset ~~the~~lower ~~impact~~unabsorbed ofcosts ~~lower~~due ~~sales~~to ~~price~~economic downtime ($10 million) and ~~mix~~higher volumes ($584 million).

Latin America

In millions for the years ended December 31	~~2024~~2025		~~2023~~2024
Sales	$	~~974~~904	$	~~1,006~~974
Operating Profit (Loss)	$	150	$	197
Operating Profit	$	100	$	150

For the year ended December 31, ~~2024~~2025, our Latin America segment sales decreased $3270 million compared to the same period in ~~2023~~2024, primarily driven by lower sales price and mix ($3527 million), ~~and~~lower ~~significant~~volumes ($36 million) and unfavorable foreign exchange impacts ~~which were partially offset by higher volumes ($39 million)~~.

Operating profit for Latin America for the year ended December 31, ~~2024~~2025 was $4750 million lower than the same period in ~~2023~~2024, primarily driven by the impact of lower sales price and mix ($3426 million), higher operating costs ($1824 million), ~~and~~ higher planned maintenance outages ($93 million) ~~which~~and ~~more~~lower ~~than offset higher~~ volumes ($9 million) ~~and~~which more than offset lower input costs ($12 million), primarily for ~~chemicals~~energy, ~~and~~ pulp ~~($5~~and ~~million)~~distribution costs.

4035

North America

In millions for the years ended December 31	~~2024~~2025		~~2023~~2024
Sales	$	21,~~029~~754	$	12,~~951~~029
Operating Profit (Loss)	$	293	$	269
Operating Profit	$	263	$	293

For the year ended December 31, ~~2024~~2025, our North America segment sales ~~increased~~decreased $78275 million, compared to the same period in ~~2023~~2024, ~~primarily~~ driven by ~~higher~~lower volumes ($~~145~~292 million) primarily due to the termination of the Georgetown mill offtake agreement which more than offset ~~lower~~higher sales price and mix ($6819 million).

Operating profit for North America for the year ended December 31, ~~2024~~2025 was $2430 million ~~higher~~lower than the same period in ~~2023~~2024 as ~~higher~~lower ~~volume~~volumes ($4571 million), ~~lower~~and ~~unabsorbed~~higher input costs ~~due to economic downtime~~ ($5621 million) ~~and lower input costs~~, primarily for energy and chemicals, ~~wood~~more ~~and~~than ~~distribution~~offset lower unabsorbed costs due to economic downtime ($2026 million), ~~more~~higher ~~than offset lower~~ sales price and mix ($6819 million), ~~higher~~lower operating costs ($2812 million) and ~~slightly~~lower ~~higher~~ planned maintenance outages ($15 million).

NON-GAAP FINANCIAL MEASURES

Management provides Adjusted EBITDA, a non-GAAP financial measure, to supplement our GAAP financial information, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Management uses this measure in managing the operating performance of our business and believes that Adjusted EBITDA provide investors and analysts meaningful insights into our operating performance and is a relevant metric for the third-party debt. Adjusted EBITDA is reconciled to Net income, the most directly comparable GAAP measure. Adjusted EBITDA may be determined or calculated differently by other companies and therefore may not be comparable among companies.

In millions for the years ended December 31,	2024			2023
In millions for the years ended December 31	2025			2024
Net Income	$	~~302~~132		$	~~253~~302
Income tax provision	~~103~~67			~~116~~103
Interest expense (income), net	39			3439
Depreciation, amortization and cost of timber harvested	~~159~~179			~~143~~159
Stock-based compensation	2318			23
Net special items expense (income) (a)	6			38
Foreign exchange on intercompany note	(1)			—
Adjusted EBITDA (b)	$	632		$	607
Net special items expense (income) (a)	14			6
Net Sales	$	3,773		$	3,721
Adjusted EBITDA (b)	$	448		$	632
Adjusted EBITDA Margin	16.8		%	16.3		%
Net Sales	$	3,351		$	3,773
Adjusted EBITDA Margin	13		%	17		%

(a) Net special items represent income or expenses that are incurred periodically, rather than on a regular basis. Net special items in the periods presented primarily include ~~legal~~the ~~fees~~impairment ~~related~~of togoodwill ~~the~~in ~~Brazil~~our ~~Tax~~France ~~Dispute,~~reporting ~~foreign VAT refunds~~unit, ~~transaction~~charges ~~and~~related ~~integration~~to ~~costs~~the ~~related~~termination toof the ~~Nymölla~~Georgetown ~~acquisition~~mill offtake agreement, ~~professional~~environmental ~~and~~reserves in Brazil, legal fees related to ~~negotiations~~the ~~resulting~~Brazil inTax aDispute, ~~shareholder~~foreign ~~cooperation~~VAT ~~agreement~~refunds, ~~the~~transaction ~~impact~~and ofintegration ~~the~~costs ~~step-up~~related ofto ~~acquired~~the Nymölla ~~inventory~~acquisition ~~sold during the first quarter of 2023~~ and certain severance costs related to our salaried workforce.

(b) We define Adjusted EBITDA (non-GAAP) as net income (GAAP) ~~excluding discontinued operations~~, net of taxes plus the sum of income taxes, net interest expense (income), depreciation, amortization and cost of timber harvested, stock-based compensation, foreign exchange on a note receivable from our Brazilian subsidiary, and, when applicable for the periods reported, special items.

Free cash flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operating activities ~~from continuing operations~~. Management believes that free cash flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet and service debt, and return cash to ~~shareholders~~shareowners. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. By adjusting for certain items that are not indicative of the Company’s ongoing performance, free cash flow also enables investors to perform meaningful comparisons between past and present periods.

4136

The following are reconciliations of cash provided by operating activities ~~from continuing operations~~ to free cash flow:

In millions for the years ended December 31	~~2024~~2025		~~2023~~2024
Cash provided by operating activities from continuing operations	$	469	$	504
Cash provided by operating activities	$	268	$	469
Adjustments:
Cash invested in capital projects	(~~221~~224)		(~~210~~221)
Free Cash Flow	$	~~248~~44	$	~~294~~248

The non-GAAP financial measures presented in this Annual Report on Form 10-K as referenced above have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies utilize identical calculations, the Company’s presentation of non-GAAP measures in this Annual Report on Form 10-K may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as the Company.

LIQUIDITY AND CAPITAL RESOURCES

Overview

Our ability to fund the Company’s cash needs depends on our ongoing ability to generate cash from operations and obtain financing on acceptable terms. Based upon our history of generating strong operating cash flow, we believe we will be able to meet our short-term liquidity needs. We believe we will meet known or reasonably likely future cash requirements through the combination of cash flows from operating activities, available cash balances and available borrowings through the issuance of third-party debt, as needed.

A major factor in our liquidity and capital resource planning is our generation of operating cash flow, which is highly sensitive to changes in the pricing and demand for our products. While changes in key operating cash costs, such as raw materials, energy, mill outages and distribution expenses do have an effect on operating cash generation, we believe that our focus on commercial and operational excellence, as well as our ability to manage costs and working capital, will provide sufficient cash flow generation to meet our operational and capital spending needs.

The terms of the agreements governing our debt contain customary limitations as well as other provisions. These provisions may also restrict our business and, in the event we cannot meet the terms of those provisions, may adversely impact our financial condition, results of operations or cash flows.

Operating Activities

Cash provided by operating activities ~~from continuing operations~~ totaled $~~469~~268 million for the year ended December 31, ~~2024~~2025, compared with cash provided by operating activities ~~from continuing operations~~ of $~~504~~469 million for the year ended December 31, ~~2023~~2024. The decrease in cash provided by operating activities ~~from continuing operations~~ in ~~2024~~2025 relates primarily to ~~changes~~lower innet ~~working~~income ~~capital~~and ~~which~~timing ~~was~~of ~~partially~~cash ~~offset~~flows byrelated ~~higher~~to ~~net~~working ~~income~~capital.

Cash used for working capital components (accounts and notes receivable, inventories, accounts payable and accrued liabilities, and other) was $879 million for the year ended December 31, ~~2024~~2025, compared with cash ~~provided~~used byfor working capital components of $858 million for the year ended December 31, ~~2023~~2024. Working capital components for the year ended December 31, ~~2024~~2025 ~~primarily~~ reflect $4733 million of cash ~~used~~provided ~~for~~by accounts and notes receivable ~~and $28 million cash used for other operating activities~~. This activity was offset by $2514 million, of$52 million ~~cash provided by inventories~~ and $42 46 million of cash ~~provided~~used byfor inventories, accounts payable and accrued liabilities, and other operating activities, respectively.

Investment Activities

The total cash outflow from investing activities ~~from continuing operations~~ for the year ended December 31, ~~2024~~2025 ~~decreased~~increased from the year ended December 31, ~~2023~~2024, ~~primarily~~ due to ~~the~~increased ~~purchase~~capital ~~of the Nymölla mill which occurred in the prior year~~spending.

~~The following table shows capital spending by business segment, which represents the most significant portion of our recurring investment activities.~~ 37

42The following table shows capital spending by our business segments and corporate:

In millions for the years ended December 31	~~2024~~2025		~~2023~~2024
Europe	$	2736	$	3127
Latin America	~~140~~116		~~112~~140
North America	5471		6753
Total	$	221	$	210
Corporate	1		1
Total	$	224	$	221

Capital spending primarily consists of purchases of machinery and equipment and reforestation related to our global mill operations. As a percentage of depreciation, amortization and cost of timber harvested, capital spending totaled ~~139~~125% and ~~147~~139% for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

Financing Activities

Cash used for financing activities ~~from continuing operations~~ for the year ended December 31, ~~2024~~2025 primarily reflects the payments of $~~218~~11 million, $4945 million, $35111 million, ~~$10 million,~~ and $312 million on our outstanding principal debt balances for Term Loan ~~F, Term Loan~~ A, the AR Securitization, Revolving Credit Facility, and Term Loan F-2, respectively. Additionally, payments of $93 million were made to redeem, at a premium, the full value of our 7.00% Senior Notes and pay $5 million in debt issuance costs in connection with the debt refinancing in the third quarter of 2024. These amounts are primarily offset by ~~the issuance of Term Loan F-2,~~ draws on our Revolving Credit Facility, and AR Securitization of $~~235~~178 million, ~~$10 million,~~ and $647 million, respectively. During the year ended December 31, ~~2024~~2025, the Company also paid $6273 million in dividends and paid $6982 million to repurchase shares pursuant to our share repurchase program.

Cash used for financing activities ~~from continuing operations~~ for the year ended December 31, ~~2023~~2024 primarily reflects the payments of $70218 million, $3649 million, $2635 million, $10 million, and $313 million on our outstanding principal debt balances for ~~the~~Term ~~Revolving~~Loan ~~Credit~~F, ~~Facility~~Term Loan A, the AR Securitization, ~~Term~~Revolving ~~Loan~~Credit FFacility, and Term Loan AF-2, respectively. Additionally, payments of $~~360~~93 million ~~was~~were ~~paid~~made to ~~bond~~redeem, ~~holders~~at asa ~~part~~premium, the full value of our ~~tender~~7.00% ~~offer~~Senior Notes and pay $5 million in debt issuance costs in connection with the debt refinancing in the third quarter of 2024. These amounts are primarily offset by the issuance of Term Loan AF-2, draws on our Revolving Credit Facility, and AR Securitization of $~~300~~235 million, $7010 million, and $786 million, respectively. During the year ended December 31, ~~2023~~2024, the Company also paid $5762 million in dividends and paid $7069 million to repurchase shares pursuant to our share repurchase program.

Contractual Obligations

Contractual obligations for future payments at December 31, ~~2024~~2025 primarily relate to lease commitments, raw material purchase obligations and principal debt payments. Operating and financing leases represent minimum required lease payments during the noncancelable lease term. Most real estate leases also require payment of related operating expenses such as taxes, insurance, utilities, and maintenance, which are not included in our estimated capital lease obligation. Our total estimated ~~finance~~ lease obligations total $227 million in ~~2025~~2026, an average of $211 million from ~~2025~~2027 to ~~2029~~2031 and $711 million thereafter.

~~Purchase~~At ~~obligations~~December ~~for~~31, ~~commercial~~2025, ~~commitments~~contractual ~~include inventory~~ obligations tofor ~~purchase~~future ~~raw~~payments ~~materials,~~of ~~including~~long-term ~~starch,~~debt ~~electricity,~~maturities ~~fuel~~by ~~oil,~~calendar ~~corrugated~~year ~~boxes,~~were ~~wood~~as ~~and~~follows: ~~Precipitated~~2026 ~~Calcium~~- ~~Carbonate~~$20 ~~(“PCC”).~~million; ~~Our~~2027 ~~total~~- ~~estimated~~$370 ~~commercial~~million; ~~commitments~~2028 ~~include~~- $~~305~~ 23 million; in2029 ~~2025,~~- $~~168~~ 189 million; in2030 ~~2026~~- ~~and~~$12 ~~average~~million; thereafter - $58161 million. ~~annually~~In ~~from~~addition, ~~2027~~at toDecember ~~2029~~31, ~~with~~2025 there is an outstanding balance of $~~109~~ 67 million ~~thereafter~~related to a cash flow-based revolving credit facility which matures in 2029.

AtPurchase ~~December~~obligations ~~31,~~for ~~2024,~~commercial ~~contractual~~commitments ~~obligations~~include ~~for~~inventory ~~future~~obligations ~~payments~~to ofpurchase ~~debt~~raw ~~maturities~~materials, (including ~~finance~~starch, ~~lease~~electricity, ~~liabilities~~fuel ~~disclosed~~oil, incorrugated ~~Note~~boxes, 10wood ~~Leases)~~and byPrecipitated ~~calendar~~Calcium ~~year~~Carbonate ~~were~~(“PCC”). asOur ~~follows:~~total ~~2025~~estimated -commercial ~~$22~~commitments ~~million;~~include ~~2026 -~~ $25 406 million; ~~2027~~in -2026, $~~370~~ 175 million; ~~2028~~in -2027 ~~$25~~and average $35 million; ~~2029~~annually -from ~~$191~~2028 ~~million;~~to ~~thereafter~~2030, -with $~~180~~172 million thereafter.

Capital Expenditures

For the year ended December 31, ~~2024~~2025, we have invested approximately $~~221~~224 million, or 56.97% of net sales in total capital expenditures. Of that amount, we spent approximately $~~195~~162 million, or 54.28% of net sales, on maintenance, regulatory and reforestation capital expenditures, and approximately $2762 million, or 01.79% of net sales, on high-return capital projects. Our annual maintenance, regulatory and reforestation capital expenditures are expected to be in the range of approximately $~~175~~165 to $190 million per year (before inflation) for the next several years, which we believe will be sufficient to maintain our operations and productivity. In addition, we expect to invest approximately $50 to $70 million in high-return projects in 2025.

4338

$190 million per year (before inflation) for the next several years, which we believe will be sufficient to maintain our operations and productivity. In addition, we expect to invest approximately $95 million in high-return projects in 2026.

PILLAR TWO DIRECTIVE

The ~~Organization~~OECD ~~for~~Pillar ~~Economic~~Two ~~Co-Operation~~global ~~and~~minimum ~~Development~~tax ~~(“OECD”)~~rules ~~has~~have been ~~working~~enacted onin anumerous ~~project~~jurisdictions toin ~~act~~which tothe ~~prevent~~Group ~~what~~operates, itwith ~~refers~~effective todates asbeginning ~~base~~January ~~erosion~~1, 2024 and ~~profit~~continuing ~~shifting~~through ~~(“BEPS”)~~2025. ~~Most~~Management ~~recently,~~has assessed the ~~OECD,~~potential ~~through~~impact ~~an association~~ of ~~almost 140 countries known as~~ the ~~“inclusive~~rules ~~framework,”~~on ~~has announced a consensus to address, among other things, perceived challenges presented by global digital commerce (“Pillar 1”) and~~ the ~~perceived~~Group’s ~~need~~2025 ~~for a minimum global effective~~ tax ~~rate of 15% (“Pillar 2”)~~obligations. OnBased ~~December~~on ~~15,~~currently ~~2022,~~available ~~the European Union formally adopted the Pillar Two Directive~~information, ~~and~~no amaterial ~~majority~~top‑up ~~of EU~~tax ~~member~~liabilities ~~states~~are ~~have~~expected ~~enacted~~for the ~~directive~~year ~~into~~ended ~~domestic law as of~~ December 31, ~~2023~~2025. ~~Other~~However, ~~countries~~the ~~are~~Group ~~taking~~continues ~~similar~~to ~~actions.~~monitor Weevolving ~~have~~administrative ~~evaluated~~guidance ~~the developments~~ and dodata ~~not anticipate any material impact on our financial position~~requirements, ~~results~~which ofmay ~~operations,~~affect orfuture ~~cash~~reporting ~~flows~~periods.

CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with U.S. GAAP requires the Company to establish accounting policies and to make estimates that affect both the amounts and timing of the recording of assets, liabilities, revenues and expenses. Some of these estimates require subjective judgments about matters that are inherently uncertain.

Accounting policies whose application may have a significant effect on the reported results of operations and financial position of the Company, and that can require judgments by management that affect their application, include the accounting for impairment or disposal of long-lived assets and goodwill, income taxes and commitments and contingencies.

Impairment of Long-Lived Assets and Goodwill

An impairment of a long-lived asset exists when ~~the~~an asset group’s carrying amount exceeds its fair value and is recorded when the carrying amount is not recoverable through undiscounted cash flows from future operations or disposals. A goodwill impairment exists when the carrying amount of a reporting unit with goodwill exceeds its fair value. Assessments of possible impairments of long-lived assets and goodwill are made when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable or may, if a business is classified as held for sale, exceed the sales price less costs to dispose. Additionally, evaluation for possible impairment of goodwill is required annually. The amount and timing of any impairment charges based on these assessments may require the estimation of future cash flows or the fair market value of the related assets based on management’s best estimates of certain key factors, including future selling prices and volumes, operating, raw material, energy and freight costs, various other projected operating economic factors and other intended uses of the assets. As these key factors change in future periods, the Company will update its impairment analysis to reflect its latest estimates and projections.

Our policy around goodwill impairment testing permits us to perform a qualitative assessment or a quantitative goodwill impairment test. If a qualitative assessment is performed, an entity is not required to perform the quantitative goodwill impairment test unless the entity determines that, based on that qualitative assessment, it is more likely than not that its fair value is less than its carrying value.

The Company performed its annual testing of goodwill impairment by applying the qualitative assessment to its ~~France~~Brazil reporting unit as of October 1, ~~2024~~2025. For the current year evaluation, the Company assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting unit under the qualitative assessment. The results of the qualitative assessment indicated that it is not more likely than not that the fair ~~values~~value of its ~~France~~Brazil reporting unit was less than its carrying value.

The Company also performed its annual testing of goodwill impairment by applying the quantitative goodwill impairment test to its ~~Brazil~~France reporting unit due to ~~the~~continued ~~length~~challenging ofmarket ~~time~~conditions ~~lapsed~~in ~~since the previous quantitative goodwill impairment test~~Europe. The Company calculated the estimated fair value of the ~~Brazil~~France reporting unit using a ~~probability-~~weighted approach based on discounted future cash flows, market multiples and transaction multiples~~. As a result~~, ~~the~~and ~~Company~~determined ~~concluded~~ that ~~the~~all ~~fair value~~ of the ~~Brazil~~goodwill ~~reporting unit was substantially~~ in ~~excess~~the ofbusiness, ~~carrying~~totaling ~~value~~$11 ~~and~~million, noshould ~~goodwill~~be ~~impairment~~written ~~charge was recorded~~off.

In addition, the Company considered whether there were any events or circumstances outside of the annual evaluation that would reduce the fair value of its reporting units with goodwill below their carrying amounts and necessitate aan interim goodwill impairment evaluation. In consideration of all relevant factors, there were no indicators that would require goodwill impairment subsequent to October 1, ~~2024~~2025.

~~No goodwill impairment charges were recorded in 2024, 2023 or 2022.~~ 39

44The Company recorded an $11 million impairment charge in 2025 and recorded no goodwill impairment charges in 2024 or 2023.

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax balances on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax balances is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. Judgment is required in evaluating the need for and magnitude of appropriate valuation allowances against deferred tax assets. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law and results of recent operations. If we determine that we would not be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would not benefit the projected losses in our annual effective estimated tax rate and/or make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

We record uncertain tax positions in accordance with ASC 740. Significant judgment is required in evaluating the need for and magnitude of appropriate uncertain tax positions. We estimate uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

While we believe that these judgments and estimates are appropriate and reasonable under the circumstances, actual resolution of these matters may differ from recorded estimates and amounts.

Commitments and Contingent Liabilities

Accruals for contingent liabilities, including environmental and safety matters, taxes (including VAT), personal injury, product liability, labor and employment, contracts, sales of property and other matters, are recorded when it is probable that a liability has been incurred or an asset impaired and the amount of the loss can be reasonably estimated. Liabilities accrued for value-added tax and other legal matters require judgments regarding projected outcomes and range of loss based on historical litigation and settlement experience and recommendations of legal counsel and, if applicable, other experts. Liabilities for environmental matters require evaluations of relevant environmental regulations and estimates of future remediation alternatives and costs. Claims-based liabilities require review of recent and historical claims data. The Company utilizes its in-house legal and environmental experts to develop estimates and involves third-party specialists as needed to analyze its most complex contingent liabilities.

RECENT ACCOUNTING DEVELOPMENTS

See Note 3 Recent Accounting Developments in Item 8. Financial Statements and Supplementary Data for a discussion of new accounting pronouncements.

FOREIGN CURRENCY EFFECTS

The Company has operations in a number of countries. Its operations in those countries also export to, and compete with, imports from other regions. As such, currency movements can have a number of direct and indirect impacts on the Company’s financial statements. Direct impacts include the translation of international operations’ local currency financial statements into U.S. dollars and the remeasurement impact associated with non-functional currency financial assets and liabilities. Indirect impacts include the change in competitiveness of imports into, and exports out of, the countries in which we operate due to the local currency pricing of products. The currencies that have the most impact on our continuing operations are the Euro and the Brazilian real.

4540

MARKET RISK

We use financial instruments, including fixed and variable rate debt. We do not use financial instruments for trading purposes. Additionally, various derivative contracts are used to hedge exposures to interest rate and foreign currency risks.

Interest Rate Risk

Sylvamo is subject to interest rate risk in connection with the issuance of debt. Our exposure to interest rate risk arises primarily from changes in SOFR. As of December 31, ~~2024~~2025, Sylvamo had floating rate debt of $~~796~~842 million comprised of Term Loan F, Term Loan F-2, Term Loan A and amounts drawn on the Securitization Program and Revolving Credit Facility, which is partially offset by $~~652~~428 million of interest rate swaps. At December 31, ~~2024~~2025, the applicable one-month SOFR rate was 43.3672%. Based on the amounts outstanding, a 100-basis point increase in market interest rates would result in a change to annual interest expense, including the impact of the swaps, of approximately $14 million at December 31, ~~2024~~2025. As of December 31, ~~2023~~2024, Sylvamo had floating rate debt of $~~859~~796 million comprised of Term Loan F, Term Loan F-2 and Term Loan A and amounts drawn on the Securitization Program, which is partially offset by $~~469~~652 million of interest rate swaps. At December 31, ~~2023~~2024, the applicable one-month SOFR rate was 54.36%. Based on the amounts outstanding, a 100-basis point increase in market interest rates would result in a change to annual interest expense of approximately $41 million at December 31, ~~2023~~2024. For more information about our term loans, Revolving Credit Facility, and Securitization Program see Note 1412 Long-Term Debt to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

Foreign Currency Risk

The Company transacts business in many currencies and is also subject to currency exchange rate risk through investments and businesses owned and operated outside the United States. Our objective in managing the associated foreign currency risks is to minimize the effect of exchange rate fluctuations on our after-tax cash flows. We address these risks on a limited basis by entering into cross-currency interest rate swaps or foreign exchange contracts. At December 31, ~~2024~~2025 and ~~2023~~2024 the net fair value of financial instruments with exposure to foreign currency risk was approximately a $140 million ~~liability~~asset and a $6 14 million ~~asset~~liability, respectively. The potential loss in fair value for such financial instruments from a 10% adverse change in quoted foreign currency exchange rates would have been approximately $149 million and $1214 million at December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information set forth in Part II, Item 7 of this Annual Report on Form 10-K under “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk” is incorporated by reference into this Item 7A.

4641

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF MANAGEMENT ON:

Financial Statements

The management of Sylvamo Corporation is responsible for the preparation of the consolidated financial statements in this Annual Report on Form 10-K. The consolidated financial statements have been prepared using accounting principles generally accepted in the United States of America considered appropriate in the circumstances to present fairly the Company’s consolidated financial position, results of operations and cash flows on a consistent basis. Management has also prepared the other information in this annual report and is responsible for its accuracy and consistency with the consolidated financial statements.

As can be expected in a complex and dynamic business environment, some financial statement amounts are based on estimates and judgments. Even though estimates and judgments are used, measures have been taken to provide reasonable assurance of the integrity and reliability of the financial information contained in this annual report. We have formed a Disclosure Committee to oversee this process.

The accompanying consolidated financial statements have been audited by the independent registered public accounting firm Deloitte & Touche LLP (PCAOB ID No. 34). During its audits, Deloitte & Touche LLP was given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders and the Board of Directors and all committees of the board. Management believes that all representations made to the independent auditors during their audits were valid and appropriate.

Internal Control Over Financial Reporting

The management of Sylvamo Corporation is also responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Internal control over financial reporting is the process designed by, or under the supervision of, our principal executive officer and principal financial officer, and effected by our Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes. All internal control systems have inherent limitations, including the possibility of circumvention and overriding of controls, and therefore can provide only reasonable assurance of achieving the designed control objectives. The Company’s internal control system is supported by written policies and procedures, contains self-monitoring mechanisms, and is audited by the internal audit function. Appropriate actions are taken by management to correct deficiencies as they are identified. Our procedures for financial reporting include the active involvement of senior management, our Audit Committee and our staff of highly qualified financial and legal professionals.

The Company has assessed the effectiveness of its internal control over financial reporting as of December 31, ~~2024~~2025. In making this assessment, it used the criteria described in “Internal Control – Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this assessment, management believes that, as of December 31, ~~2024~~2025, the Company’s internal control over financial reporting was effective.

The Company’s independent registered public accounting firm, Deloitte & Touche LLP, has issued its report on the effectiveness of the Company’s internal control over financial reporting. The report appears on page 5146.

Internal Control Environment And Board Of Directors Oversight

Our internal control environment includes an enterprise-wide attitude of integrity and control consciousness that establishes a positive “tone at the top.” This is exemplified by our ethics program that includes principles and policies on ethical business conduct that require employees to maintain the highest ethical and legal standards in the conduct of Sylvamo business, which have been distributed to all employees; a toll-free telephone helpline whereby any employee may anonymously report suspected violations of law or Sylvamo’s policy; and our Global Ethics and Compliance Office. The internal control system further includes careful selection and training of supervisory and management personnel, appropriate delegation of authority and division of responsibility, dissemination of accounting and business policies throughout Sylvamo, and an extensive program of internal audits with management follow-up.

4742

The Board of Directors, assisted by the Audit Committee, monitors the integrity of the Company’s financial statements and financial reporting procedures, the performance of the Company’s internal audit function and independent auditors, and other matters set forth in its charter. The Audit Committee, which consists of independent directors, meets regularly with representatives of management, and with the independent auditors and the internal auditor, with and without management representatives in attendance, to review their activities. The Audit Committee’s Charter takes into account the New York Stock Exchange rules relating to Audit Committees and the SEC rules and regulations promulgated as a result of the Sarbanes-Oxley Act of 2002. The Committee has reviewed and discussed the consolidated financial statements for the year ended December 31, ~~2024~~2025, including critical accounting policies and significant management judgments, with management and the independent auditors. The Committee’s report recommending the inclusion of such financial statements in this Annual Report on Form 10-K will be set forth in our Proxy Statement.

/s/ JEAN-MICHEL RIBIÉRAS

Chairman and Chief Executive Officer

/s/ JOHN V. SIMS

Chief Executive Officer and President

/s/ DONALD P. DEVLIN

Senior Vice President and Chief Financial Officer

4843

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Sylvamo Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Sylvamo Corporation (the "Company") as of December 31, ~~2024~~2025 and December 31, ~~2023~~2024, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, ~~2024~~2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, ~~2024~~2025 and December 31, ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2024~~2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, ~~2024~~2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 20, ~~2025~~2026, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Brazil Deductibility of Goodwill Amortization – Uncertain Tax Position – Refer to Note 1210 to the financial statements

Critical Audit Matter Description

The Company accounts for uncertain tax positions on the basis of a two-step process in which management (1) determines whether it is more likely than not that the tax position will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Specialized skill and knowledge and significant judgment is often required to evaluate each uncertain tax position to determine whether the more likely than not recognition threshold has been met and, if met, to determine the largest amount of benefit greater than 50 percent likely of being realized upon settlement with the taxing authorities.

The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by Sylvamo do Brasil Ltda., a wholly-owned subsidiary of the Company. The Company has determined this tax position meets the more likely than not threshold for recognition, and no liability for this uncertain tax position has been recorded as the Company has determined that the transaction underlying these assessments was appropriately evaluated, and that the Company’s tax position will be sustained, based on Brazilian tax law.

We identified the Company’s accounting for this tax position as a critical audit matter because of the complexity of the Brazilian tax laws and regulations, the materiality of the potential tax consequences, the fact that all decisions concerning this matter are to be made by the Company’s former parent, and the need to involve our income tax specialists when performing audit procedures to evaluate the Company’s conclusion that its position will be sustained based on Brazilian tax law.

How the Critical Audit Matter Was Addressed in the Audit

With the assistance of our income tax specialists, the audit procedures we performed related to the Company’s conclusion that its position will be sustained based on Brazilian tax law included the following, among others:

•We read the correspondence from the Brazilian Federal Revenue Service that challenged the deductibility of goodwill amortization. We read and evaluated management's documentation, including relevant accounting policies and information obtained by management from outside tax specialists, that detailed the basis of the uncertain tax position.

•We tested the reasonableness of management's judgments regarding the future resolution of the uncertain tax position, including an evaluation of the technical merits of the uncertain tax position.

•We evaluated whether management has appropriately considered new information that could significantly change the recognition, measurement or disclosure of the uncertain tax position, including information gathered from inquiries of the Company’s former parent’s management regarding their intent to vigorously defend the tax position.

•We evaluated the reasonableness of management’s estimates by considering how Brazilian tax law, including statutes, regulations and case law, impacted management’s judgments.

•We evaluated the appropriateness and consistency of management's methods and assumptions used in the identification, recognition, measurement, and disclosure of the uncertain tax position.

/s/ Deloitte & Touche LLP

Memphis, Tennessee

February 20, ~~2025~~2026

We have served as the Company's auditor since 2020.

5045

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Sylvamo Corporation

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Sylvamo Corporation (the "Company") as of December 31, ~~2024~~2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2024~~2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, ~~2024~~2025, of the Company and our report dated February 20, ~~2025~~2026, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

Memphis, Tennessee

February 20, ~~2025~~2026

5146

CONSOLIDATED STATEMENTS OF OPERATIONS

In millions, except per share amounts, for the years ended December 31	~~2024~~2025		~~2023~~2024		~~2022~~2023
NET SALES	$	3,~~773~~351	$	3,~~721~~773	$	3,~~628~~721
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)	2,~~833~~616		2,~~809~~833		2,~~619~~809
Selling and administrative expenses	~~311~~281		~~343~~311		~~325~~343
Depreciation, amortization and cost of timber harvested	~~159~~179		~~143~~159		~~125~~143
Taxes other than payroll and income taxes	26		2326		23
Interest expense (income), net	39		3439		6934
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	405		369		467
Impairment of goodwill	11		—		—
Income tax provision	103		116		131
INCOME BEFORE INCOME TAXES	199		405		369
NET INCOME FROM CONTINUING OPERATIONS	302		253		336
Income tax provision	67		103		116
Discontinued Operations, net of taxes	—		—		(218)
NET INCOME	$	132	$	302	$	253
NET INCOME	$	302	$	253	$	118
EARNINGS PER SHARE
BASIC EARNINGS PER SHARE
Basic	$	3.29	$	7.35	$	6.02
Earnings from continuing operations	$	7.35	$	6.02	$	7.65
Diluted	$	3.24	$	7.18	$	5.93
Discontinued operations, net of taxes	—		—		(4.97)
Net earnings	$	7.35	$	6.02	$	2.68
DILUTED EARNINGS PER SHARE
Earnings from continuing operations	$	7.18	$	5.93	$	7.57
Discontinued operations, net of taxes	—		—		(4.91)
Net earnings	$	7.18	$	5.93	$	2.66

The accompanying notes are an integral part of these consolidated financial statements.

5247

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

In millions for the years ended December 31	~~2024~~2025		~~2023~~2024		~~2022~~2023
NET INCOME	$	~~302~~132	$	~~253~~302	$	~~118~~253
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Defined Benefit Pension and Postretirement Adjustments:
Defined benefit pension and postretirement adjustments:
Amortization of pension and postretirement net loss	1		1		—1
Pension and postretirement liability adjustments (less tax of $2, $1 and $1)	4		(2)		4
Pension and postretirement liability adjustments (less tax of $1, $2 and $1)	4		4		(2)
Change in cumulative foreign currency translation adjustment	~~(223)~~134		91(223)		5691
Net gains/losses on cash flow hedging derivatives:
Net gains (losses) arising during the period (less tax of $5, $10 and $17)	(7)		19		41
Net gains (losses) arising during the period (less tax of $4, $5 and $10)	6		(7)		19
Reclassification adjustment for (gains) losses included in net earnings (less tax of $2, $12 and $7)	(9)		(27)		(13)
Reclassification adjustment for (gains) losses included in net earnings (less tax of $3, $2 and $12)	(8)		(9)		(27)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	~~(234)~~137		82(234)		8882
COMPREHENSIVE INCOME (LOSS)	$	68	$	335	$	206
COMPREHENSIVE INCOME	$	269	$	68	$	335

The accompanying notes are an integral part of these consolidated financial statements.

5348

CONSOLIDATED BALANCE SHEETS

In millions at December 31	~~2024~~2025		~~2023~~2024
ASSETS
Current Assets
Cash and temporary investments	$	~~205~~135	$	~~220~~205
Restricted cash	—		60
Accounts and notes receivable (less allowances of $17 in 2025 and $21 in 2024)	424		429
Accounts and notes receivable (less allowances of $21 in 2024 and $25 in 2023)	429		428
Contract assets	19		26
Contract assets	26		27
Inventories	418		361
Inventories	361		404
Other current assets	80		42
Other current assets	42		54
Total Current Assets	1,076		1,063
Total Current Assets	1,063		1,193
Plants, Properties and Equipment, net	1,047		944
Plants, Properties and Equipment, net	944		1,002
Forestlands	364		319
Forestlands	319		364
Goodwill	114		111
Goodwill	111		139
Right of Use Assets	48		58
Right of Use Assets	58		58
Deferred Charges and Other Assets	114		109
Deferred Charges and Other Assets	109		116
TOTAL ASSETS	$	2,763	$	2,604
TOTAL ASSETS	$	2,604	$	2,872
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	~~375~~381	$	~~421~~375
Notes payable and current maturities of long-term debt	2290		2822
Accrued payroll and benefits	7955		6379
Other current liabilities	~~206~~190		~~183~~206
Total Current Liabilities	~~682~~716		~~695~~682
Long-Term Debt	~~782~~763		~~931~~782
Deferred Income Taxes	~~152~~175		~~189~~152
Other Liabilities	~~141~~143		~~156~~141
Commitments and Contingent Liabilities (Note 13)
Commitments and Contingent Liabilities (Note 11)
Equity
Common stock $1.00 par value, 200.0 shares authorized, 44.9 shares and 44.5 shares issued and 40.6 shares and 41.2 shares outstanding at December 31, 2024 and 2023, respectively	45		45
Common stock $1.00 par value, 200.0 shares authorized, 45.6 shares and 44.9 shares issued and 39.4 shares and 40.6 shares outstanding at December 31, 2025 and 2024, respectively	46		45
Paid-in capital	7189		4871
Retained earnings	2,~~455~~514		2,~~222~~455
Accumulated other comprehensive loss	(1,~~490~~353)		(1,~~256~~490)
	1,081		1,059
	1,296		1,081
Less: Common stock held in treasury, at cost, 4.3 shares and 3.3 shares at December 31, 2024 and December 31, 2023, respectively	(234)		(158)
Less: Common stock held in treasury, at cost, 6.2 shares and 4.3 shares at December 31, 2025 and December 31, 2024, respectively	(330)		(234)
Total Equity	~~847~~966		~~901~~847
TOTAL LIABILITIES AND EQUITY	$	2,~~604~~763	$	2,~~872~~604

The accompanying notes are an integral part of these consolidated financial statements.

~~The accompanying notes are an integral part of these consolidated financial statements.~~49

CONSOLIDATED STATEMENTS OF CASH FLOWS

In millions for the years ended December 31	~~2024~~2025		~~2023~~2024		~~2022~~2023
OPERATING ACTIVITIES
Net income from continuing operations	$	302	$	253	$	336
Net income	$	132	$	302	$	253
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and cost of timber harvested	~~159~~179		~~143~~159		~~125~~143
Deferred income tax provision (benefit), net	(7)		—(7)		~~(7)~~—
Stock-based compensation	2318		23		2023
Impairment of goodwill	11		—		—
Changes in operating assets and liabilities and other
Accounts and notes receivable	~~(47)~~33		~~104~~(47)		~~(45)~~104
Inventories	25(14)		625		~~(99)~~6
Accounts payable and accrued liabilities	42(52)		~~(73)~~42		48(73)
Other	(2846)		48(28)		4048
CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS	469		504		418
CASH PROVIDED BY OPERATING ACTIVITIES	268		469		504
CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS, NET	—		—		20
CASH PROVIDED BY OPERATING ACTIVITIES	469		504		438
INVESTING ACTIVITIES
Invested in capital projects	(~~221~~224)		(~~210~~221)		(~~149~~210)
Cash proceeds on disposal of business, net of cash divested	—		—		324
Acquisition of business	—		—		(167)
Acquisition of business	—		(167)		—
CASH USED FOR INVESTING ACTIVITIES	(224)		(221)		(377)
Other	—		—		10
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS	(221)		(377)		185
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS, NET	—		—		(5)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	(221)		(377)		180
FINANCING ACTIVITIES
Dividends paid	(6273)		(5762)		(1057)
Issuance of debt	~~250~~229		~~446~~250		75446
Reduction of debt	(~~407~~182)		(~~526~~407)		(~~450~~526)
Repurchases of common stock	(6982)		(7069)		(8070)
Other	(2217)		(1222)		(412)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES FROM CONTINUING OPERATIONS	(310)		(219)		(469)
CASH USED FOR FINANCING ACTIVITIES	(125)		(310)		(219)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS, NET	—		—		(1)
Effect of Exchange Rate Changes on Cash	11		(13)		12
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(310)		(219)		(470)
Change in Cash, Temporary Investments and Restricted Cash	(70)		(75)		(80)
Effect of Exchange Rate Changes on Cash	(13)		12		32
Change in Cash Included in Assets Held for Sale	—		—		(21)
Change in Cash, Temporary Investments and Restricted Cash	(75)		(80)		201
Cash, Temporary Investments and Restricted Cash
Beginning of the period	~~280~~205		~~360~~280		~~159~~360
End of the period	$	~~205~~135	$	~~280~~205	$	~~360~~280

The accompanying notes are an integral part of these consolidated financial statements.

5550

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

In millions	Shares	Common Stock		Paid-In Capital		Retained Earnings		Accumulated Other ComprehensiveLoss		Common Stock Held in Treasury, At Cost		Total Equity
Balance, December 31, 2021	44	$	44	$	4	$	1,935	$	(1,801)	$	—	$	182
Balance, December 31, 2022	44	$	44	$	25	$	2,029	$	(1,338)	$	(82)	$	678
Disposal of business	—	—		—		—		375		—		375
Stock-based employee compensation	—	—		21		—		—		(2)		19
Share repurchase	—	—		—		—		—		(80)		(80)
Dividends ($0.4750 per share)	—	—				(21)		—		—		(21)
Change in equity related to the spin-off	—	—		—		(3)		—		—		(3)
Comprehensive income (loss)	—	—		—		118		88		—		206
Balance, December 31, 2022	44	44		25		2,029		(1,338)		(82)		678
Stock-based employee compensation	1	1		23		—		—		(5)		19
Share repurchase	—	—		—		—		—		(71)		(71)
Dividends ($1.4000 per share)	—	—				(60)		—		—		(60)
Comprehensive income (loss)	—	—		—		253		82		—		335
Balance, December 31, 2023	45	45		48		2,222		(1,256)		(158)		901
Stock-based employee compensation	—	—		23		—		—		(8)		15
Share repurchase	—	—		—		—		—		(68)		(68)
Dividends ($1.6500 per share)	—	—		—		(69)		—		—		(69)
Comprehensive income (loss)	—	—		—		302		(234)		—		68
Balance, December 31, 2024	45	$45	45	$71	71	$2,455	~~2,455~~	$(1,490)	~~(1,490)~~	$(234)	~~(234)~~	$847	~~847~~
Stock-based employee compensation	1	1		18		—		—		(14)		5
Share repurchase	—	—		—		—		—		(82)		(82)
Dividends ($1.8000 per share)	—	—		—		(73)		—		—		(73)
Comprehensive income (loss)	—	—		—		132		137		—		269
Balance, December 31, 2025	46	$	46	$	89	$	2,514	$	(1,353)	$	(330)	$	966

The accompanying notes are an integral part of these consolidated financial statements.

5651

Notes to Consolidated Financial Statements

NOTE 1 BACKGROUND AND SUMMARY OF BUSINESS

BACKGROUND

Sylvamo Corporation (NYSE: SLVM) is the world’s paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We transform renewable resources into papers that people depend on for education, communication and entertainment.

On December 3, 2020, International Paper Company (“International Paper“ or “Former Parent”) announced that its Board of Directors had approved a plan to spin-off its Printing Papers segment along with certain mixed-use coated paperboard and pulp businesses in Europe, Latin America, and North America (collectively referred to herein as the “Company,” “we,” “us,” or “our”), and separate into two distinct publicly-traded companies. On October 1, 2021, we settled the net parent investment and the spin-off was completed by a pro rata distribution to International Paper’s shareholders of approximately 80.1% of our common stock, with International Paper retaining a 19.9% ownership interest. As a result of the spin-off, Sylvamo Corporation became an independent public company. On September 12, 2022, International Paper sold its remaining shares of Sylvamo common stock. International Paper is no longer a related party.

The Company operates on a calendar year-end.

Divestiture of Russian Operations

During the second quarter of 2022, management committed to a plan to sell the Company’s Russian operations, which were previously part of the Europe business segment. As a result, all historical operating results of the Russian operations are presented as “Discontinued operations, net of taxes” in the consolidated statement of operations and the notes to the consolidated financial statements. In October 2022, the Company completed the sale of its Russian operations to Pulp Invest Limited Liability Company, a company incorporated in the Russian Federation. See Note 8 Divestiture and Impairment of Business for further details.

Acquisition of Nymölla

On January 2, 2023, the Company completed the previously announced acquisition of Stora Enso’s uncoated freesheet paper mill in Nymölla, Sweden, for €157 million (approximately $167 million) after post-close working capital adjustments. Sylvamo accounted for the acquisition under ASC 805, “Business Combinations” and the Nymölla mill’s results of operations are included in Sylvamo’s consolidated financial statements from the date of acquisition. ~~See Note 7 Acquisitions for further details.~~

NOTE 2 BASIS OF CONSOLIDATION AND SIGNIFICANT ACCOUNTING POLICIES

BASIS OF CONSOLIDATION

The consolidated financial statements include the accounts of Sylvamo Corporation and subsidiaries for which we have a controlling financial interest. All intracompany transactions have been eliminated.

USE OF ESTIMATES

In preparing the consolidated financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates.

REVENUE RECOGNITION

The Company recognizes revenue on a point-in-time basis when the customer takes title to the goods and assumes the risks and rewards for the goods. For customized goods where the Company has a legally enforceable right to payment for the goods, the Company recognizes revenue over time, which generally is as the goods are produced.

The Company’s revenue is primarily derived from fixed consideration; however, we do have contract terms that give rise to variable consideration, primarily volume rebates, early payment discounts and other customer refunds. The Company estimates its volume rebates at the individual customer level based upon the terms of the arrangement and expected volume purchases over the contract period, consistent with the most likely amount method outlined in ASC 606. The Company estimates early payment discounts and other customer refunds based on the historical experience across the Company’s portfolio of customers to record reductions in revenue which is consistent with the expected value method outlined in ASC 606. Management has concluded that these methods result in the best estimate of the consideration the Company will be entitled to from its customers.

over the contract period, consistent with the most likely amount method outlined in ASC 606. The Company estimates early payment discounts and other customer refunds based on the historical experience across the Company’s portfolio of customers to record reductions in revenue which is consistent with the expected value method outlined in ASC 606. Management has concluded that these methods result in the best estimate of the consideration the Company will be entitled to from its customers.

The Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. See Note 4 Revenue Recognition for further details.

BUSINESS COMBINATIONS

The Company allocates the total consideration of the assets acquired and liabilities assumed based on their estimated fair value as of the business combination date. In developing estimates of fair values for long-lived assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash flows, anticipated growth rates, discount rates, customer attrition, royalty rates, estimated replacement costs and depreciation and obsolescence factors. Determining the fair value for tangible assets such as real and personal property and specifically identified intangible assets such as customer lists and developed technology involves judgment. We may refine our estimates and make adjustments to the assets acquired and liabilities assumed over a measurement period, not to exceed one year. Upon the conclusion of the measurement period or the final determination of the values of assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are charged to the consolidated statements of operations. See Note 7 Acquisitions for further details.

TEMPORARY INVESTMENTS

Temporary investments with an original maturity of three months or less and money market funds with greater than three-month maturities but with the right to redeem without notice are treated as cash equivalents and are stated at cost, which approximates market value. See Note 97 Supplementary Financial Statement Information for further details.

RESTRICTED CASH

Cash that is legally restricted from use is classified as restricted cash. ~~See Note 9 Supplementary Financial Statement Information for further details.~~

COST OF PRODUCTS SOLD

Costs of products sold represents costs directly related to the manufacture of our products. Primary costs include raw materials, packaging, direct labor, overhead, warehousing costs and shipping and handling costs, such as freight to customers’ destinations.

INVENTORIES

Inventories are valued at the lower of cost or market value and include costs directly associated with manufacturing products: materials, labor, first leg freight and manufacturing overhead. In the United States, costs of raw materials and finished paper and pulp products are generally determined using the last-in, first-out method. Other inventories are valued using the first-in, first-out or average cost methods. See Note 97 Supplementary Financial Statement Information for further details.

LEASED ASSETS

Operating lease right of use (“ROU”) assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company’s leases may include options to extend the lease. These options to extend are included in the lease term when it is reasonably certain that we will exercise that option. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases are primarily related to common area maintenance, insurance, taxes and utilities. Variable payments for equipment, vehicles and leases within supply agreements are primarily related to usage, repairs and maintenance. As the implicit rate is not readily determinable for most of the Company’s leases, the Company applies a portfolio approach using an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease terms on a collateralized basis over a similar term, which is based on market and company specific information. We use the unsecured borrowing rate and risk adjust that rate to approximate a collateralized rate, and apply the rate based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities. Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company’s leases. See Note 8 Leases for further details.

of twelve months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the practical expedient to account for the lease and non-lease components as a single lease component for all of the Company’s leases. See Note 10 Leases for further details.

PLANTS, PROPERTIES AND EQUIPMENT

Plants, properties and equipment are stated at cost, less accumulated depreciation. Expenditures for betterments are capitalized, whereas normal repairs and maintenance are expensed as incurred. The units-of-production method of depreciation is used for the mills, and the straight-line method is used for other plants and equipment. See Note 97 Supplementary Financial Statement Information for further details.

GOODWILL

Annual evaluation for possible goodwill impairment is performed as of the beginning of the fourth quarter of each year, with additional interim evaluation performed when management believes that it is more likely than not that events or circumstances have occurred that would result in the impairment of a reporting unit’s goodwill.

The Company has the option to evaluate goodwill for impairment by first performing a qualitative assessment of events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the option to perform an initial qualitative assessment, then the Company is required to perform the quantitative goodwill impairment test. In performing this evaluation, the Company estimates the fair value of its reporting unit using a weighted approach based on discounted future cash flows, market multiples and transaction multiples. The determination of fair value using the discounted cash flow approach requires management to make significant estimates and assumptions related to forecasts of future revenues, operating profit margins and discount rates. The determination of fair value using market multiples and transaction multiples requires management to make significant assumptions related to revenue multiples and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. For reporting units whose carrying amount is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. See Note 11 Goodwill for further discussion.

assumptions related to revenue multiples and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples. For reporting units whose carrying amount is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. See Note 9 Goodwill for further discussion.

IMPAIRMENT OF LONG-LIVED ASSETS

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable. A recoverability test is performed based on undiscounted cash flows, requiring judgments as to the weighting of ~~operational~~ alternatives being considered by management and estimates of the amount and timing of expected future cash flows from the use and eventual disposition of the long-lived assets ~~generated by their use~~. Impaired assets are written-down to their estimated fair value. ~~See Note 11 Goodwill for further discussion.~~

EMPLOYEE RETIREMENT BENEFITS

The Company sponsors certain defined benefit pension and postretirement plans in Belgium, Brazil, France, Poland, the United Kingdom and the United States. The Company accounts for these plans using the single-employer method, with the net funded status of these plans recorded as an asset or liability in the consolidated balance sheets. See Note 1513 Retirement and Postretirement Benefit Plans for additional disclosures regarding retirement benefits.

INCOME TAXES

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets are recognized to the extent that we believe that these assets are more likely than not to be realized.

We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. While we believe that these judgments and estimates are appropriate and reasonable under the circumstances, actual resolution of these matters may differ from recorded estimates and amounts. See Note 10 Income Taxes for further discussion.

While we believe that these judgments and estimates are appropriate and reasonable under the circumstances, actual resolution of these matters may differ from recorded estimates and amounts. See Note 12 Income Taxes for further discussion.

TRANSLATION OF FINANCIAL STATEMENTS

Balance sheets of international operations are translated into U.S. dollars at period-end exchange rates, while statements of operations are translated at average rates. Adjustments resulting from financial statement translations are included as cumulative translation adjustments in accumulated other comprehensive income (loss) (“AOCI”).

NOTE 3 RECENT ACCOUNTING DEVELOPMENTS

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This guidance requires disaggregated disclosure of certain income statement captions for public business entities into specified categories within the footnotes to the financial statements. Additional disclosures are required in tabular format for each relevant expense caption on the face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion and amortization recognized as part of oil-and gas-producing activities or other types of depletion expenses. This update does not change or remove existing expense disclosure requirements; however, it may affect where that information appears in the footnotes to the financial statements. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the provisions of this guidance.

statements. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the provisions of this guidance.

Income Taxes

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company ~~plans~~retrospectively toadopted ~~adopt~~ the provisions of this guidance ~~in conjunction with our Form 10-K~~ for the ~~annual~~year ~~period~~ ending December 31, 2025. See Note 10 Income Taxes for further details.

Segment Reporting

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This guidance requires a public entity to disclose for each reportable segment, on an interim and annual basis, the significant expense categories and amounts that are regularly provided to the chief operating decision-maker (“CODM”) and included in each reported measure of a segment’s profit or loss. Additionally, it requires a public entity to disclose the title and position of the individual or the name of the group or committee identified as the CODM. The Company adopted the provisions of this guidance for the year ending December 31, 2024. See Note 17 Financial Information by Business Segment and Geographic Area for further details.

NOTE 4 REVENUE RECOGNITION

EXTERNAL NET SALES BY PRODUCT

External net sales by major products were as follows:

In millions

~~2024~~2025

~~2023~~2024

~~2022~~2023

Europe

Uncoated Papers

~~703~~656

~~733~~703

~~396~~733

Market Pulp

9683

8896

~~105~~88

Europe

~~799~~739

~~821~~799

~~501~~821

Latin America

Uncoated Papers

~~884~~809

~~885~~884

~~887~~885

Market Pulp

6149

6461

6764

Latin America

~~945~~858

~~949~~945

~~954~~949

North America

Uncoated Papers

1,~~951~~678

1,~~891~~951

21,~~091~~891

Market Pulp

7876

6078

8260

North America

21,~~029~~754

12,~~951~~029

21,~~173~~951

Total

3,~~773~~351

3,~~721~~773

3,~~628~~721

REVENUE CONTRACT BALANCES

A contract asset is created when the Company recognizes revenue on its customized products for which we have an enforceable right to payment.

A contract liability is created when customers prepay for goods prior to the Company transferring control over those goods to the customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of our customer prepayments are received during the fourth quarter each year for goods that will be transferred to customers over the following twelve months. Contract liabilities of $23 million ~~are~~and ~~included in current liabilities in the accompanying consolidated balance sheets as of December 31, 2024. There were~~ $82 million ~~contract~~are ~~liabilities~~ included in current liabilities in the accompanying consolidated balance sheets as of December 31, ~~2023~~2025 and 2024.

The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the difference between the price and quantity at comparable points in time for goods which we have an unconditional right to payment or receive pre-payment from the customer, respectively.

PERFORMANCE OBLIGATIONS AND SIGNIFICANT JUDGEMENTS

The Company’s principal business is to manufacture and sell uncoated freesheet papers, along with pulp. As a general rule, none of our businesses provide equipment installation or other ancillary services outside of producing and shipping paper and pulp goods to customers.

The nature of the Company’s contracts can vary based on the business, customer type, and region; however, in all instances it is the Company’s customary business practice to receive a valid purchase order from the customer, in which each party’s rights and related payment terms are clearly identifiable.

Contracts or purchase orders with customers could include a single type of product or it could include multiple types/grades of products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. The Company does not bundle prices; however, we do negotiate with customers on pricing and rebates for the same products based on a variety of factors (e.g. level of contractual volume, geographical location, etc.). Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.

NOTE 5 OTHER COMPREHENSIVE INCOME

The following table presents the changes in AOCI, net of tax, reported in the consolidated financial statements:

In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Defined Benefit Pension and Postretirement Adjustments
Balance at beginning of period	$	(7772)	$	(7677)	$	(8076)
Other comprehensive income (loss) before reclassifications	4		~~(2)~~4		4(2)
Amounts reclassified from accumulated other comprehensive income	1		1		—1
Balance at end of period	(7267)		(7772)		(7677)
Change in Cumulative Foreign Currency Translation Adjustments
Balance at beginning of period	(1,~~197~~420)		(1,~~288~~197)		(1,~~719~~288)
Disposal of business	—		—		375
Other comprehensive income (loss) before reclassifications	134		(223)		91
Other comprehensive income (loss) before reclassifications	(223)		91		56
Balance at end of period	(1,286)		(1,420)		(1,197)
Balance at end of period	(1,420)		(1,197)		(1,288)
Net Gains and Losses on Cash Flow Hedging Derivatives
Balance at beginning of period	182		2618		~~(2)~~26
Other comprehensive income (loss) before reclassifications	~~(7)~~6		19(7)		4119
Amounts reclassified from accumulated other comprehensive income	(98)		(279)		(1327)
Balance at end of period	2—		182		2618
Total Accumulated Other Comprehensive Income (Loss) at End of Period	$	(1,~~490~~353)	$	(1,~~256~~490)	$	(1,~~338~~256)

NOTE 6 EARNINGS PER SHARE

Basic earnings per share ~~from continuing operations~~ is computed by dividing net income ~~from continuing operations~~ by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share ~~from continuing operations~~ is computed by dividing net income ~~from continuing operations~~ by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potentially dilutive shares of common stock been issued. The dilutive effect of restricted stock units is reflected in diluted earnings per share by applying the treasury stock method. Basic and dilutive earnings per share from discontinued operations are computed under the same approach utilizing the same weighted-average number of shares of common stock outstanding during the period and dilutive shares.

There are no adjustments required to be made to net income ~~from continuing operations~~ for purposes of computing basic and diluted earnings per share ~~from continuing operations~~.

~~Basic and diluted earnings per share from continuing operations are calculated as follows:~~56

In millions, except per share amounts	2024		2023		2022
Net income from continuing operations	$	302	$	253	$	336
Weighted average common shares outstanding	41.1		42.0		43.9
Effect of dilutive securities	0.9		0.7		0.5
Weighted average common shares outstanding - assuming dilution	42.0		42.7		44.4
Earnings per share from continuing operations - basic	$	7.35	$	6.02	$	7.65
Earnings per share from continuing operations - diluted	$	7.18	$	5.93	$	7.57
Anti-dilutive shares (a)	0.2		0.3		0.2

Basic and diluted earnings per share are calculated as follows:


In millions, except per share amounts	2025		2024		2023
Net income	$	132	$	302	$	253
Weighted average common shares outstanding	40.1		41.1		42.0
Effect of dilutive securities	0.6		0.9		0.7
Weighted average common shares outstanding - assuming dilution	40.7		42.0		42.7
Earnings per share - basic	$	3.29	$	7.35	$	6.02
Earnings per share - diluted	$	3.24	$	7.18	$	5.93
Anti-dilutive shares (a)	0.3		0.2		0.3

(a) Common stock related to service-based restricted stock units and performance-based restricted stock units were outstanding but excluded from the computation of diluted earnings per share because their effect would be anti-dilutive under the treasury stock method or because the shares were subject to performance conditions that had not been met.

62NOTE 7 SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

NOTE 7 ACQUISITIONS

On January 2, 2023, the Company completed the previously announced acquisition of Stora Enso’s uncoated freesheet paper mill in Nymölla, Sweden, for €157 million (approximately $167 million) after post-close working capital adjustments. The integrated mill has the capacity to produce approximately 500,000 short tons of uncoated freesheet on two paper machines.

Sylvamo accounted for the acquisition under ASC 805, “Business Combinations” and the Nymölla mill’s results of operations are included in Sylvamo’s consolidated financial statements from the date of acquisition.

The following table summarizes the final allocation of the purchase price to the fair value assigned to assets and liabilities acquired as of January 2, 2023:

In millions
Accounts receivable	$	63
Inventory	67
Plants, properties and equipment	115
Other assets	2
Total assets acquired	247
Accounts payable	51
Other liabilities	29
Total liabilities assumed	80
Net assets acquired	$	167

In connection with the allocation of fair value, inventories were written up by $9 million to their estimated fair value. During the first quarter of 2023, $9 million before taxes ($7 million after taxes) was expensed related to the impact of the step-up of acquired Nymölla inventory sold during the quarter.

NOTE 8 DIVESTITURE AND IMPAIRMENT OF BUSINESS

RUSSIAN OPERATIONS

During the first quarter of 2022, as a result of the significant changes in the business climate impacting our Russian operations, a determination was made that the current carrying value of our Russian operations exceeded the estimated fair value. The fair value of the Russian operations was estimated based on a probability-weighted average approach of the potential cash flows from various paths the Company evaluated to exit the business. As a result, a pre-tax charge of $68 million ($57 million) was recorded for the impairment of the Russian fixed assets during the first quarter of 2022. These charges are included in “Impairment of business” within the summarized income statement for our Russian operations included in this footnote and is included in “Discontinued operations, net of taxes” in the consolidated statement of operations.

During the second quarter of 2022, management committed to a plan to sell the Company’s Russian operations. In October 2022, the Company completed the sale of its Russian operations to Pulp Invest Limited Liability Company, a company incorporated in the Russian Federation, for $420 million. After transaction and foreign currency exchange costs of $35 million, Sylvamo received $385 million in cash proceeds.

As a result, all historical operating results of the Russian operations are presented as “Discontinued operations, net of taxes” in the consolidated statement of operations. The Russian operations were previously part of the Europe business segment. The following summarizes the major classes of line items comprising Income (Loss) Before Income Taxes reconciled to Discontinued Operations, net of taxes, related to the Russian operations for all periods presented in the consolidated statements of operations.

In millions for the year ended December 31	2022
NET SALES	$	518
COSTS AND EXPENSES
Cost of products sold (exclusive of depreciation, amortization and cost of timber harvested shown separately below)	425
Selling and administrative expenses	10
Depreciation, amortization and cost of timber harvested	4
Taxes other than payroll and income taxes	1
Impairment of business	296
Interest expense (income), net	(3)
INCOME BEFORE INCOME TAXES	(215)
Income tax provision	3
DISCONTINUED OPERATIONS, NET OF TAXES	$	(218)

The following summarizes the total cash provided by operating activities from discontinued operations, net and total cash provided by (used for) investing activities from discontinued operations, net and included in the consolidated statements of cash flows:

In millions for the year ended December 31	2022
Cash Provided by Operating Activities	$	20
Cash Provided by (Used for) Investing Activities (a)	$	(5)

(a) Includes cash invested in capital projects of $5 million

NOTE 9 SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION

TEMPORARY INVESTMENTS

Temporary investments totaled $~~104~~63 million and $~~109~~104 million as of December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

RESTRICTED CASH

Restricted cash of $60 million as of December 31, 2023 represents funds held in escrow related to the Brazil Tax Dispute. See Note 14 Long-Term Debt for further details.

The following table provides a reconciliation of cash, temporary investments and restricted cash in the consolidated balance sheets to total cash, temporary investments and restricted cash in the consolidated statements of cash flows:

In millions as of December 31	2024		2023
Cash and temporary investments	$	205	$	220
Restricted cash	—		60
Total cash, temporary investments and restricted cash in the statements of cash flows	$	205	$	280

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net, by classification were:

In millions as of December 31

~~2024~~2025

~~2023~~2024

Accounts and notes receivable:

Trade

~~402~~399

~~404~~402

Notes and other

2725

2427

Total

~~429~~424

~~428~~429

64Accounts and notes receivable are recognized net of the allowance for expected credit losses. The allowance for expected credit losses reflects the best estimate of losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts, expectations for future economic conditions through the use of macroeconomic data and other available evidence. The allowance for expected credit losses was $17 million and $21 million at December 31, 2025 and December 31, 2024, respectively. Based on the Company’s accounting estimates and the facts and circumstances available as of the reporting date, we believe our allowance for expected credit losses is adequate.

Accounts and notes receivable are recognized net of the allowance for expected credit losses. The allowance for expected credit losses reflects the best estimate of losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts, expectations for future economic conditions through the use of macroeconomic data and other available evidence. The allowance for expected credit losses was $21 million and $25 million at December 31, 2024 and December 31, 2023, respectively. Based on the Company’s accounting estimates and the facts and circumstances available as of the reporting date, we believe our allowance for expected credit losses is adequate.

INVENTORIES

In millions as of December 31

~~2024~~2025

~~2023~~2024

Raw materials

5669

6056

Finished paper and pulp products

~~178~~217

~~213~~178

Operating supplies

~~107~~122

~~109~~107

Other

2010

2220

Total

~~361~~418

~~404~~361

The last-in, first-out inventory method is used to value most of the Company’s U.S. inventories. Approximately 6247% of total raw materials and finished paper and pulp product inventories were valued using this method. The last-in, first-out inventory reserve was $7255 million and $8172 million as of December 31, ~~2024~~2025 and ~~2023~~2024, respectively. During the periods ended December 31, ~~2024~~2025 and ~~2023~~2024, the amount of inventories in one of our two LIFO pools decreased and resulted in the liquidation of LIFO inventory layers carried at lower costs. The effect of this liquidation was to increase income ~~from continuing operations~~ before income taxes in the North America segment by approximately $12 million and $212 million for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

PLANTS, PROPERTIES AND EQUIPMENT, NET

In millions as of December 31

~~2024~~2025

~~2023~~2024

Land

910

109

Buildings

~~362~~401

~~396~~362

Machinery

4,~~090~~391

4,~~298~~090

Construction in progress

92140

~~102~~92

Capital leases

3740

3837

Gross cost

4,~~590~~982

4,~~844~~590

Less: Accumulated depreciation

3,~~646~~935

3,~~842~~646

Plants, Properties and Equipment, net

~~944~~1,047

~~1,002~~944

Additions to plants, property and equipment included within accounts payable were $1220 million, $1712 million and $3617 million as of December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively.

Annual straight-line depreciable lives generally are, for buildings – 20 to 40 years, and for machinery and equipment – 3 to 20 years. Depreciation expense was $~~128~~140 million, $~~118~~128 million and $~~104~~118 million for the years ended December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively. Cost of products sold excludes depreciation and amortization expense.

FORESTLANDS

Additions to Forestlands included within accounts payable were $100 million ~~at December 31~~, ~~2024.~~$10 million ~~There~~and ~~were~~$0 million ~~no additions to Forestlands included within accounts payable~~ as of December 31, 2025, 2024 and 2023.

ACCOUNTS PAYABLE

The Company maintains supplier finance agreements with third-party financial institutions. These agreements allow the Company’s participating suppliers to sell their receivables to such third-party financial institutions to receive payment earlier than the negotiated commercial terms between the supplier and the Company. Such sales are at the sole discretion of the supplier, and on terms and conditions that are negotiated between the supplier and the respective financial institution. The terms and conditions of the supplier invoice, including payment terms and amounts due, are not impacted by a supplier’s participation in the program. Pursuant to the supplier finance agreements, the Company has agreed to pay financial institutions on the original due date of the applicable invoice. There are no guarantees associated with these programs. The Company's outstanding payment obligations to financial institutions related to supplier financing programs are included within Accounts payable and accrued liabilities on the Consolidated Balance Sheets.

The following table presents supplier finance program obligations confirmed and paid for the year ended December 31, 2025:


In millions
Confirmed obligations outstanding at December 31, 2024	$	—
Invoiced confirmed during the year	8
Confirmed invoices paid during the year	(5)
Confirmed obligations outstanding at December 31, 2025	$	3

OTHER LIABILITIES AND COSTS

During the year ended December 31, 2023, the Company recorded approximately $13 million before taxes ($10 million after taxes) of severance costs related to a planned reduction in our salaried workforce, of which $3 million iswas included within Cost of products sold and $10 million iswas included within Selling and administrative expenses in our consolidated statements of operations. Of these total costs, $2 million, $3 million and $8 million ~~are~~were related to our Europe, Latin America and North America business segments, respectively. ~~These~~As ~~severance~~of ~~amounts~~December 31, ~~are~~2024, ~~reflected~~the inreserve ~~Other~~totaled ~~current~~approximately ~~liabilities~~$2 million which was paid in ~~our~~cash ~~consolidated~~over the first quarter of 2025.

6558

balance sheet. As of December 31, 2024, the reserve totaled approximately $2 million of which the majority will be paid in cash over the first quarter of 2025.

INTEREST

Cash interest payments of $6249 million, $6862 million and $6368 million were made during the years ended December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023, respectively. In addition, during the third quarter of 2024, we incurred a $3 million premium payment related to the redemption of our 2029 Senior Notes.

Amounts related to interest were as follows:

In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Interest expense (a)	$	5749	$	6457	$	8064
Interest income (b)	(146)		(2614)		(826)
Capitalized interest costs	(4)		(4)		(34)
Total	$	39	$	3439	$	6934

(a) Interest expense for 2024 includes $5 million of debt extinguishment cost related to the third quarter debt refinancing. Interest expense for 2023 includes $5 million of debt extinguishment cost related to the tender offer for our 7.00% 2029 Senior Notes. ~~Interest expense for 2022 includes $5 million of debt extinguishment cost related to the repayment of the total outstanding balance of Term Loan B.~~

(b) Interest income for 2023 includes $9 million of interest income related to tax settlements and $4 million of interest income related to the recognition of a foreign value-added tax refund in Brazil.

ASSET RETIREMENT OBLIGATIONS

At December 31, ~~2024~~2025 and ~~2023~~2024, we had recorded liabilities of $2829 million and $2728 million, respectively, related to asset retirement obligations. These amounts are included in “Other liabilities” in the accompanying consolidated balance sheets. For asset retirement obligations which are conditional upon future events, we cannot reasonably estimate the current fair value of those potential obligations due to the uncertainty as to the timing or amounts that may be incurred.

NOTE 108 LEASES

The Company leases various real estate, including warehouses, office space and land. The Company also leases material handling equipment, vehicles and certain other equipment. The Company’s leases have a remaining lease term of up to 15 years.

COMPONENTS OF LEASE EXPENSE

In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Operating lease costs	$	2627	$	2126	$	1821
Variable lease costs	2629		4026		2840
Short-term lease costs	—		—		7—
Finance lease cost
Amortization of right-of-use assets	3		3		43
Interest on lease liabilities	1		1		1
Total lease cost, net	$	5660	$	6556	$	5865

6659

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	~~2024~~2025		~~2023~~2024
Assets
Operating lease assets	Right of use assets	$	5848	$	58
Finance lease assets	Plants, properties, and equipment, net (a)	20		2220
Total leased assets		$	7868	$	8078
Liabilities
Current
Operating	Other current liabilities	$	21	$	1821
Finance	Notes payable and current maturities of long-term debt	23		2
Noncurrent
Operating	Other Liabilities	4534		4645
Finance	Long-term debt	12		1412
Total lease liabilities		$	8070	$	80

(a)Finance leases above are presented net of accumulated amortization of $1720 million and $1617 million as of December 31, ~~2024~~2025 and ~~2023~~2024, respectively.

LEASE TERM AND DISCOUNT RATE

	2024		2023
	2025		2024
Weighted average remaining lease term (years)
Operating leases	43.49 years		54.34 years
Finance leases	87.6 years		98.6 years
Weighted average discount rate
Operating leases	5.2518	%	45.9425	%
Finance leases	34.9809	%	3.8598	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	~~2024~~2025		~~2023~~2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	2428	$	2124
Operating cash flows related to financing leases	1		1
Financing cash flows related to finance leases	3		53
Right of use assets obtained in exchange for lease liabilities
Operating leases	167		3816
Finance leases	—3		1—

6760

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2025	$	24	$	2	$	26
2026	$	24	$	3	$	27
2026	20		2		22
2027	15		3		18
2027	11		2		13
2028	11		3		14
2028	9		2		11
2029	4		3		7
2029	3		2		5
2030	2		1		3
Thereafter	96		75		1611
Total lease payments	7662		1718		9380
Less: imputed interest	107		3		1310
Present value of lease liabilities	$	6655	$	1415	$	8070

NOTE 119 GOODWILL

~~GOODWILL~~The Company recorded an $11 million impairment charge related to our France reporting unit within our Europe segment for the year ended December 31, 2025 and recorded no goodwill impairment charges in 2024 or 2023.

There were no impairment charges related to goodwill for the years ended December 31, 2024, 2023 and 2022.

The following table presents changes in the goodwill balance as allocated to each business segment:

In millions	Europe		LatinAmerica		North America		Total
Balance as of December 31, 2022
Goodwill	$	11	$	118	$	—	$	129
Accumulated impairment losses	(1)		—		—		(1)
	10		118		—		128
Currency translation			11		—		11
Balance as of December 31, 2023
Goodwill	11$	11	~~129~~$	129	—$	—	~~140~~$	140
Accumulated impairment losses	(1)		—		—		(1)
	10		129		—		139
Currency translation	—		(28)		—		(28)
Changes due to currency translation and other
Goodwill	—		(28)		—		(28)
Accumulated impairment losses	—		—		—		—
	—		(28)		—		(28)
Balance as of December 31, 2024
Goodwill	11		101		—		112
Accumulated impairment losses	(1)		—		—		(1)
Total	$	10	$	101	$	—	$	111
	10		101		—		111
Changes due to currency translation and other
Goodwill	2		13		—		15
Accumulated impairment losses	(1)		—		—		(1)
	1		13		—		14
Impairment of Goodwill
Goodwill	—		—		—		—
Accumulated impairment losses	(11)		—		—		(11)
	(11)		—		—		(11)
Balance as of December 31, 2025
Goodwill	13		114		—		127
Accumulated impairment losses	(13)		—		—		(13)
Total	$	—	$	114	$	—	$	114

The Company performed its annual testing of goodwill impairment by applying the qualitative assessment to its ~~France~~Brazil reporting unit as of October 1, ~~2024~~2025. For the current year evaluation, the Company assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting unit under the qualitative assessment ~~for the reporting units listed above~~. The results of the qualitative assessment indicated that it is not more likely than not that the fair value of its ~~France~~Brazil reporting unit was less than its carrying value.

The Company also performed its annual testing of goodwill impairment by applying the quantitative goodwill impairment test to its Brazil reporting unit due to the length of time elapsed since the previous quantitative goodwill impairment test. The Company calculated the estimated fair value of the Brazil reporting unit using a probability-weighted approach based on discounted future cash flows, market multiples and transaction multiples. As a result, the Company concluded that the fair value of the Brazil reporting unit was not reduced below carrying value and no goodwill impairment charge was recorded.61

InThe ~~addition,~~Company also performed its annual testing of goodwill impairment by applying the ~~Company~~quantitative ~~considered~~goodwill ~~whether~~impairment ~~there~~test ~~were~~to ~~any~~its ~~events~~France orreporting ~~circumstances~~unit ~~outside~~due ofto ~~the~~continued ~~annual~~challenging ~~evaluation~~market ~~that~~conditions ~~would~~in ~~reduce~~Europe. The Company calculated the estimated fair value of ~~its~~the France reporting ~~units~~unit ~~below~~using ~~their~~a ~~carrying~~weighted ~~amounts~~approach based on discounted future cash flows, market multiples and ~~necessitate~~transaction amultiples, and determined that all of the goodwill ~~impairment~~in the business, totaling $11 million, should be written off.

68In addition, the Company considered whether there were any events or circumstances outside of the annual evaluation that would reduce the fair value of its reporting units with goodwill below their carrying amounts and necessitate an interim goodwill impairment evaluation. In consideration of all relevant factors, there were no indicators that would require goodwill impairment subsequent to October 1, 2025.

~~evaluation.~~NOTE In10 ~~consideration~~INCOME ~~of all relevant factors, there were no indicators that would require goodwill impairment evaluation subsequent to October 1, 2024.~~ TAXES

~~NOTE~~The 12components ~~INCOME~~of ~~TAXES~~the Company’s income before income taxes by taxing jurisdiction were as follows:

The components of the Company’s income from continuing operations before income taxes by taxing jurisdiction were as follows:


In millions	2025		2024		2023
U.S.	$	169	$	205	$	121
Non-U.S.	30		200		248
Income before income taxes	$	199	$	405	$	369

In millions	2024		2023		2022
U.S.	$	205	$	121	$	176
Non-U.S.	200		248		291
Income from continuing operations before income taxes	$	405	$	369	$	467

Income tax provision by taxing jurisdictions was as follows:

In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Current tax provision
U.S. federal	$	4312	$	3243	$	5632
U.S. state and local	133		1113		1511
Non-U.S.	5445		7354		6773
	$	110	$	116	$	138
	60		110		116
Deferred tax provision
U.S. federal	$17	~~(5)~~	$(5)	~~(3)~~	$(3)	~~(11)~~
U.S. state and local	~~(3)~~5		(73)		(17)
Non-U.S.	1(15)		101		510
	$	(7)	—		$	(7)
	7		(7)		—
Income tax provision	$	~~103~~67	$	~~116~~103	$	~~131~~116

AIncome ~~reconciliation of income~~ taxes ~~using~~paid ~~the~~(net ~~statutory U.S. income tax rate~~ of ~~21%~~refunds) ~~compared~~by totaxing ~~the~~jurisdictions ~~reported~~was ~~income tax provision is summarized~~ as follows:

In millions	~~2024~~2025			~~2023~~2024			~~2022~~2023
Income from continuing operations before income taxes	$	405		$	369		$	467
Federal	$	10		$	32		$	39
Statutory U.S. income tax rate	21		%	21		%	21		%
State	6			11			9
Income taxes using the statutory U.S. income tax rate	85			77			98
Non-U.S.	46			55			64
State and local income taxes	6			2			11
Total	$	62		$	98		$	112
Impact of rate differential on non-U.S. earnings	24			31			29
Non-U.S. valuation allowance	(3)			7			2
Permanent benefit for non-U.S. interest deductions	(9)			(11)			(10)
Foreign currency differences and other permanent deductions	—			—			(9)
Uncertain tax positions	2			6			—
U.S. tax on non-U.S. earnings (GILTI and Subpart F)	1			2			11
Other, net	(3)			2			(1)
Income tax provision	$	103		$	116		$	131
Effective income tax rate	25		%	31		%	28		%

69The Company also made payments of $20 million to purchase tax credits of which $15 million were applied against our U.S. federal tax liability for 2024 and 2025.

Income taxes paid (net of refunds) exceeded 5% of total income taxes paid (net of refunds) in the following jurisdictions:


In millions	2025		2024		2023
Non-U.S.
Brazil	$	42	$	52	$	60
Luxembourg	$	4	$	—	$	1


In millions	2025				2024				2023
	Amount		%		Amount		%		Amount		%
U.S. federal statutory tax rate	$	42	21	%	$	85	21	%	$	77	21	%
State and local income taxes, net of federal income tax effect (a)	6		3	%	6		2	%	2		—	%
Non-U.S. tax effects
Brazil
Statutory tax rate difference between Brazil and U.S.	17		9	%	23		6	%	33		9	%
Permanent benefit for non-U.S. interest deduction	(11)		(6)	%	(9)		(2)	%	(11)		(3)	%
France
Changes in valuation allowances	13		7	%	(3)		(1)	%	7		2	%
Sweden
Foreign exchange impacts	3		2	%	—		—	%	—		—	%
Other Non-U.S. jurisdiction	(2)		(1)	%	1		—	%	(2)		(1)	%
Effect of cross-border tax laws
Global intangible low-taxed income and Subpart F income	—		—	%	1		—	%	2		—	%
Tax credits
Research and development credits	(2)		(1)	%	(2)		(1)	%	(1)		—	%
Purchased credits	(1)		(1)	%	(2)		—	%	—		—	%
Nontaxable or nondeductible items
Stock compensation	(2)		(1)	%	—		—	%	1		—	%
Other permanent differences	1		1	%	—		—	%	2		1	%
Changes in unrecognized tax benefits	4		2	%	2		—	%	6		2	%
Other adjustments	(1)		(1)	%	1		—	%	—		—	%
Effective income tax rate	$	67	34	%	$	103	25	%	$	116	31	%

(a) State taxes in California, Illinois, New Jersey, Pennsylvania and Tennessee made up the majority (greater than 50%) of the tax effect in this category.

The components of deferred income tax assets and liabilities are as follows:

In millions	~~2024~~2025		~~2023~~2024
Deferred income tax assets:
Net operating and capital loss carryforwards	$	2343	$	2723
Accrued payroll and benefits	3124		3331
Lease liabilities	1311		1213
Tax credits	2534		25
Capitalized research and development	23—		1523
Other	3537		3235
Gross deferred income tax assets	~~150~~149		~~144~~150
Less: valuation allowance	(3552)		(3935)
Net deferred income tax asset	$97	~~115~~	$115	~~105~~
Deferred income tax liabilities:
Intangibles	$(41)	~~(37)~~	$(37)	~~(47)~~
Inventories	(1516)		(1215)
Right of use assets	(119)		(11)
Deferred foreign income	(4955)		(6249)
Plants, properties and equipment	(8669)		(8586)
Forestlands	(4146)		(5241)
Gross deferred income tax liabilities	(~~239~~236)		(~~269~~239)
Net deferred income tax liability	$	(~~124~~139)	$	(~~164~~124)

The Company recognizes deferred income tax assets for deductible temporary differences and carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized based on estimates of future taxable income. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. Based on this evaluation, as of December 31, ~~2024~~2025, a valuation allowance of $3552 million has been recorded to reduce ~~the~~certain deferred tax ~~asset~~assets to the amount that is more likely than not to be realized.

The Company ~~made~~has ~~income~~NOL ~~tax~~carryforwards ~~payments~~of $28 million in Brazil, ~~net~~$30 ofmillion ~~refunds~~in Finland, of$54 million in France, $841 million ~~during~~in ~~2024~~Luxembourg and $53 million in the United Kingdom. The Company ~~also~~has ~~made~~$5 ~~payments~~million of ~~$14 million~~U.S. tofederal ~~purchase~~ tax ~~credits~~credit ~~which~~carryforwards, ~~were~~$24 ~~applied~~million ~~against~~of ~~our~~ U.S. ~~federal~~state tax ~~liability~~credit ~~for~~carryforwards, ~~2024~~and $5 million of United Kingdom tax credit carryforwards. The NOL carryforwards in Finland and Luxembourg will begin to expire in 2032 and the remainder of the Company’s NOL and credit carryforwards may be carried forward indefinitely.

The reconciliation of the beginning and ending amount of unrecognized tax benefits were as follows:

In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Balance at January 1	$	(1012)	$	(410)	$	(34)
(Additions) reductions for tax positions related to current year	(4)		(64)		(16)
Reductions for tax positions related to prior years	1—		—1		—
Settlements	1—		—1		—
Balance at December 31	$	(1216)	$	(1012)	$	(410)

Included in the balance of unrecognized tax benefits as of December 31, ~~2024~~2025, December 31, ~~2023~~2024 and December 31, ~~2022~~2023 are $1216 million, $1012 million and $410 million, respectively, of tax benefits that if recognized would affect the effective tax rate. The Company accrues interest on unrecognized tax benefits as a component of interest expense. Penalties, if incurred, are recognized as a component of income tax expense. During the periods mentioned above, the amount of interest accrued was not material.

The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., a wholly-owned subsidiary of the Company now named Sylvamo do Brasil Ltda. (“Sylvamo Brasil”). Sylvamo Brasil received assessments for the tax years 2007-2015 totaling approximately $95 million in tax, and $235 million in interest, penalties and fees (adjusted for variation in currency exchange rates and a recent law change pursuant to which the Brazil tax authority agreed to cancel a portion of the interest, penalties, and fees). International Paper 64

70The Brazilian Federal Revenue Service has challenged the deductibility of goodwill amortization generated in a 2007 acquisition by International Paper do Brasil Ltda., a wholly-owned subsidiary of the Company now named Sylvamo do Brasil Ltda. (“Sylvamo Brasil”). Sylvamo Brasil received assessments for the tax years 2007-2015 totaling approximately $106 million in tax, and $289 million in interest, penalties and fees (adjusted for variation in currency exchange rates). International Paper challenged and is managing the litigation of this matter pursuant to the Tax Matters Agreement between us and International Paper. After a previous favorable ruling challenging the basis for these assessments, Sylvamo Brasil received other subsequent unfavorable decisions from the Brazilian Administrative Council of Tax Appeals. These decisions are being appealed. The appeal involves several separate cases. In October 2024, at the first level of appeal in the Brazilian federal court system, the court ruled in favor of Sylvamo Brasil in cases covering approximately two thirds of the disputed amounts. The Brazilian tax authorities have appealed the favorable ruling. One third of the disputed amounts was under challenge at the Brazilian administrative court level and was not part of the ruling. In November 2025, the administrative court upheld the assessments for the remaining one third of the disputed amounts. In January 2026, Sylvamo Brasil’s challenge of the administrative ruling was filed in the Brazilian federal court system. This tax litigation matter may take many years to resolve. The Company believes that the transaction underlying these assessments was appropriately evaluated, and that the Company’s tax position would be sustained, based on Brazilian tax law.

challenged and is managing the litigation of this matter pursuant to the Tax Matters Agreement between us and International Paper. After a previous favorable ruling challenging the basis for these assessments, Sylvamo Brasil received other subsequent unfavorable decisions from the Brazilian Administrative Council of Tax Appeals. These decisions are being appealed. The appeal involves several separate cases. In October 2024, at the first level of appeal in the Brazilian federal court system, the court ruled in favor of Sylvamo Brasil in cases covering approximately two thirds of the disputed amounts. The remaining one third of the disputed amounts is still under challenge at the Brazilian administrative court level and was not part of the ruling. The Brazilian tax authorities have appealed the October 2024 ruling. This tax litigation matter may take many years to resolve. The Company believes that the transaction underlying these assessments was appropriately evaluated, and that the Company’s tax position would be sustained, based on Brazilian tax law.

Pursuant to the terms of the Tax Matters Agreement, International Paper will pay 60%, and Sylvamo will pay 40% on up to $300 million of any assessment related to this matter, and International Paper will pay all amounts of the assessment over $300 million. Also in connection with this agreement, all decisions concerning the conduct of the litigation related to this matter, including strategy, settlement, pursuit and abandonment, will continue to be made by International Paper, which is vigorously defending Sylvamo Brasil’s historic tax position against the current assessments and any similar assessments that may be issued for tax years subsequent to 2015.

~~The~~NOTE ~~following~~11 ~~details~~COMMITMENTS ~~the~~AND ~~scheduled~~CONTINGENT ~~expiration dates of the Company’s December 31, 2024 net operating loss and income tax credit carryforwards:~~LIABILITIES

In millions	2025Through2034		Indefinite		Total
Non-U.S. NOLs	$	6	$	17	$	23
U.S. federal, non-U.S. and state tax credit carryforwards	—		25		25
Total	6		42		48
Less: related valuation allowance	(6)		(29)		(35)
Total, net	$	—	$	13	$	13

NOTE 13 COMMITMENTS AND CONTINGENT LIABILITIES

ENVIRONMENTAL AND LEGAL PROCEEDINGS

The Company is subject to environmental and legal proceedings in the countries in which we operate. Accruals for contingent liabilities, such as environmental remediation costs, are recorded in the consolidated financial statements when it is probable that a liability has been incurred or an asset impaired and the amount of the loss can be reasonably estimated. The Company has estimated some probable liability associated with environmental remediation matters that is immaterial in the aggregate as of December 31, ~~2024~~2025.

At the Company’s Mogi Guaçu mill, there are legacy basin areas that were formerly lagoons used for treatment of mill wastewater from pulp and paper manufacturing. In coordination with and in response to a request by the Environmental Company of the State of São Paulo (“CETESB”), which is the state environmental regulatory authority, there has been continuous regulatory monitoring and sampling of the former basins, which began prior to their closure in 2006, both to assess for contamination and evaluate whether additional remediation is needed beyond the basins’ ongoing natural vegetation growth. This monitoring and sampling detected metal contamination, with the main constituent of potential environmental impact being mercury. The Company presented CETESB with proposals for studies and other actions to further assess the scope and type of contamination and the possible need for an additional remediation approach.

In October 2022, CETESB requested that the Company expand its efforts to include providing CETESB with a proposed pilot intervention (remediation) plan for a portion of the former basins. The purpose of the pilot intervention plan was to facilitate determination of the appropriate actions to take for the basins generally, guided by the results of the pilot intervention plan in the subset portion of the basins. The Company submitted a proposed pilot intervention plan to CETESB in late 2023, and CETESB approved its pre-intervention stages and certain additional measures that the Company later submitted. The requirement to conduct the pilot intervention plan iswas ~~currently~~thereafter suspended, as agreed by CETESB. The Company continues to conduct environmental testing and analysis. ~~The Company anticipates discussing the results of its supplemental testing~~ and ~~analysis~~engage with CETESB in review of the ~~first~~results ~~half~~and ofestablishing ~~2025~~next steps.

71As of December 31, 2025, the Company has recorded an immaterial liability for the ongoing and additional environmental testing and analysis and a third-party review of the results and risk. While this matter could in the future have a material impact on our results of operations and cash flows, the Company is unable to estimate its potential liability. The Company’s liability will depend upon what additional studies and what remediation, beyond vegetation of the basins, may be required by CETESB, which in turn will depend partly upon CETESB’s assessment of information from the Company’s environmental testing and analysis and the third-party review of the results and risk.

As of December 31, 2024, the Company has recorded an immaterial liability for the ongoing and additional environmental testing and analysis and a third-party review of the results and risk. While this matter could in the future have a material impact on our results of operations and cash flows, the Company is unable to estimate its potential liability. The Company’s liability will depend upon what additional studies and what remediation, beyond vegetation of the basins, may be required by CETESB, which in turn will depend partly upon CETESB’s assessment of information from the Company’s environmental testing and analysis and the third-party review of the results and risk.65

TAXES OTHER THAN PAYROLL TAXES

See Note 1210 Income Taxes for a discussion of a goodwill amortization tax matter in Brazil.

During the first quarter of 2024, the State of Sao Paulo issued a tax assessment to ~~our~~Sylvamo ~~Brazilian~~Brasil ~~subsidiary~~ for approximately ~~$41~~ $51 million (adjusted for variation in currency exchange rates) regarding unpaid VAT arising from intercompany transactions. This assessment includes $17 19 million in tax and $24 32 million in interest and penalties. As of December 31, ~~2024~~2025, no reserve has been recorded by the Company because the risk of loss is not probable.

We have other open tax matters awaiting resolution in Brazil, which are at various stages of review in various administrative and judicial proceedings. We routinely assess these tax matters for materiality and probability of loss or gain, and appropriate amounts have been recorded in our financial statements for any open items where the risk of loss is deemed probable. We currently do not consider any of these other tax matters to be material individually. However, it is reasonably possible that settlement of any of these matters concurrently could result in a material loss or that over time a matter could become material, for example, if interest were accruing on the amount at issue for a significant period of time. Also, future exchange rate fluctuations could be unfavorable to the U.S. dollar and significant enough to cause an open matter to become material. The expected timing for resolution of these open matters ranges from one year to 10 years.

GENERAL

The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, taxes (including VAT), personal injury, product liability, labor and employment, contracts, sales of property and other matters, some of which allege substantial monetary damages. Assessments of lawsuits and claims can involve a series of complex judgments about future events, can rely heavily on estimates and assumptions, and are otherwise subject to significant uncertainties. As a result, there can be no certainty that the Company will not ultimately incur charges in excess of presently recorded liabilities. The Company believes that loss contingencies arising from pending matters, including the matters described herein, will not have a material effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in pending or threatened legal matters, some of which are beyond the Company's control, and the large or indeterminate damages sought in some of these matters, a future adverse ruling, settlement, unfavorable development, or increase in accruals with respect to these matters, could result in future charges that could be material to the Company's results of operations or cash flows in any particular reporting period.

72NOTE 12 LONG-TERM DEBT

NOTE 14 LONG-TERM DEBT

Long-term debt is summarized in the following table:

In millions as of December 31	~~2024~~2025		~~2023~~2024
Term Loan F - due 2027 (a)	$	255	$	~~471~~255
Term Loan F-2 - due 2031 (b)	230		—
Term Loan F-2 - due 2031 (a)	219		230
Term Loan A - due 2029 (c)	217		266
Term Loan A - due 2029 (a)	206		217
7% Senior Notes - due 2029 (d)	—		89
Securitization Program	90		88
Securitization Program	88		117
Other	16		14
Other	14		16
Less: current portion	(23)		(22)
Less: current portion	(22)		(28)
Total	$	763	$	782
Total	$	782	$	931

(a) As of December 31, ~~2024~~2025 and December 31, ~~2023~~2024, amounts are presented net of an aggregate total of $24 million and $36 million, respectively, in unamortized debt issuance costs, ~~respectively~~across the three term loans.

~~(b) As~~REVOLVING ofCREDIT ~~December 31, 2024, presented net of $2 million in unamortized debt issuance costs.~~ FACILITY

In addition to the debt noted above, the Company has the ability to access a cash flow-based revolving credit facility (c“Revolving Credit Facility”) with a total borrowing capacity of $400 million maturing in 2029. As of December 31, ~~2024~~2025, the Company had $67 million outstanding borrowings on the Revolving Credit Facility and an available borrowing capacity of $333 million. As of December 31, ~~2023~~2024, ~~presented~~ ~~net~~the Company had no outstanding borrowings on the Revolving Credit Facility, resulting in an available borrowing capacity of $2 400 million. Any outstanding balance on the Revolving Credit Facility is recorded within “Notes payable and $2current ~~million~~maturities inof ~~unamortized~~long-term debt” ~~issuance~~in ~~costs,~~the ~~respectively~~consolidated balance sheet.

~~(d) As of December 31, 2023, presented net of $1 million in unamortized debt issuance costs.~~66

InSECURITIZATION addition to the debt noted above, the Company has the ability to access a cash flow-based revolving credit facility (“Revolving Credit Facility”). As a part of the refinancing in the third quarter of 2024, the Company amended the existing Revolving Credit Facility agreement which reduced the total borrowing capacity to $400 million and extended the maturity to 2029. In addition, the Company entered into a separate bilateral letter of credit facility and subsequently transferred all existing letters of credit to the new facility, eliminating the impact to the borrowing capacity of the Revolving Credit Facility. As of December 31, 2024, the Company had no outstanding borrowings on the Revolving Credit Facility and an available borrowing capacity of $400 million. As of December 31, 2023, the Company had no outstanding borrowings on the Revolving Credit Facility and $21 million of letters of credit related to the Revolving Credit Facility, resulting in an available borrowing capacity of $429 million. Any outstanding balance on the Revolving Credit Facility is recorded within “Notes payable and current maturities of long-term debt” in the consolidated balance sheet. PROGRAM

Sylvamo North America LLC, a wholly owned subsidiary of the Company, maintains a $110 million accounts receivable finance facility (the “Securitization Program”), maturing in 2027 ~~as amended during the debt refinancing in the third quarter~~. ~~As part of the refinancing, the original capacity of the facility was reduced from $120 million.~~ The Company sells substantially all of its North American accounts receivable balances to Sylvamo Receivables, LLC, a special purpose entity, which pledges the receivables as collateral for the Securitization Program. The borrowing availability under this facility is limited by the balance of eligible receivables within the program. The average interest rate for the years ended December 31, ~~2024~~2025 and December 31, ~~2023~~2024 was 65.1028% and 56.9210%, respectively.

TERM LOANS

In the first quarter of 2023, in connection with the tender offer and the consent solicitation related to the 2029 Senior Notes, the Company entered into a new senior secured term loan facility amendment which provided an aggregate principal amount of $300 million (“Term Loan A”). Term Loan A, together with the $60 million of borrowings under the Revolving Credit Facility, were used to pay the total consideration for all notes tendered in the tender offer, plus accrued interest and all fees and expenses incurred in connection with the tender offer and consent solicitation. The aggregate principal of the notes which totaled $360 million were tendered, resulting in a debt extinguishment cost of $5 million, related to the write-off of debt issuance costs. This cost was recorded within “Interest expense (income), net.” As part of the refinancing in the third quarter of 2024, the agreement for Term Loan A was amended to extend the maturity date to 2029.

In the third quarter of 2024, as a result of the debt refinancing, the Company entered into a new senior secured term loan facility which provided an aggregate principal amount of $235 million (“Term Loan F-2”) maturing in 2031. A portion of the proceeds from Term Loan F-2 were used to repay $104 million of Term Loan F and $36 million of Term Loan A. The Company used the remaining proceeds to redeem the $90 million outstanding principal of our 2029 Senior Notes and to pay related premiums and fees. Debt extinguishment costs for the refinancing include $3 million of premiums paid related to the 2029 Senior Notes

redemption and $2 million of deferred financing costs which were written off. This cost was recorded within “Interest expense (income), net.” In connection with the debt refinancing, we incurred $5 million of debt issuance costs to be amortized over each instrument’s term until maturity.

INTEREST RATES

The interest rates applicable to the Term Loan F, Term Loan A, Term Loan F-2, and Revolving Credit Facility are based on a fluctuating rate of interest measured by reference to SOFR plus a fixed percentage of 1.85%, 1.85%, 2.25%, and 1.85%, respectively, payable monthly, with a SOFR floor of 0.00%. The obligations are secured by substantially all the tangible and intangible assets of Sylvamo and its subsidiaries, subject to certain exceptions, and are guaranteed by Sylvamo and certain subsidiaries.

WePATRONAGE are receiving interest patronage credits under the Term Loan F and Term Loan F-2. Patronage distributions, which are made primarily in cash but also in equity in the lenders, are generally received in the first quarter of the year following that in which they were earned. Expected patronage credits are accrued in accounts and notes receivable as a reduction to interest expense in the period earned. After giving effect to expected patronage distributions of 90 basis points, of which 75 basis points is expected as a cash rebate, the effective net interest rate on the Term Loan F was approximately 5.31% and 6.31% as of December 31, 2024 and December 31, 2023, respectively, and the effective net interest rate on the Term Loan F-2 was approximately 5.71% as of December 31, 2024.CREDITS

InWe ~~connection~~are ~~with~~receiving interest patronage credits under the Term Loan F, ~~the~~and ~~Company~~Term ~~entered~~Loan ~~into~~F-2. ~~interest~~Patronage ~~rate~~distributions, ~~swaps~~which ~~with~~are ~~various~~made ~~counterparties~~primarily ~~with~~in acash ~~notional~~but ~~amount~~also ofin ~~$200~~equity ~~million maturing~~ in ~~2024~~the ~~and~~lenders, ~~$200~~are ~~million~~generally ~~maturing~~received in ~~2026. In~~ the first quarter of ~~2023,~~ the ~~Company~~year ~~received~~following ~~cash~~that ~~proceeds~~in ofwhich ~~$12~~they ~~million~~were ~~from~~earned. ~~the~~Expected ~~unwind~~patronage ofcredits ~~the~~are ~~four~~accrued ~~interest~~in ~~rate~~accounts ~~swaps~~and ~~maturing~~notes inreceivable ~~2024~~as ~~with~~ a ~~total~~reduction ~~notional~~to ~~amount~~interest ofexpense ~~$200~~in ~~million.~~the Inperiod ~~addition,~~earned. ~~the~~After ~~Company~~giving ~~liquidated~~effect ~~the~~to ~~swaps~~expected ~~maturing~~patronage indistributions ~~2026~~of ~~with~~90 abasis ~~notional~~points, ~~amount~~ of ~~$200~~which ~~million~~75 inbasis ~~the~~points ~~third~~is ~~quarter~~expected ofas ~~2023,~~a ~~receiving~~ cash ~~proceeds~~rebate, ofthe ~~$19~~effective ~~million.~~net ~~The~~interest ~~related~~rate ~~gains~~on ~~from~~the ~~all~~Term ~~swap~~Loan ~~proceeds~~F ~~have~~was ~~been~~approximately ~~deferred~~4.67% ~~within~~and ~~“Accumulated~~5.31% ~~other~~as ~~comprehensive~~of ~~loss”~~December 31, in2025 ~~the~~and ~~consolidated~~December 31, ~~balance~~2024, ~~sheet~~respectively, and ~~will~~the beeffective ~~amortized~~net ~~into~~ interest ~~expense~~rate ~~over~~on the ~~original~~Term ~~contract~~Loan ~~term~~F-2 ofwas ~~the~~approximately ~~swaps,~~5.07% ofand ~~which~~5.71% ~~swaps~~as ~~originally~~of ~~maturing~~December 31, in2025 ~~2024 have matured~~ and ~~approximately~~December 31, ~~two~~2024, ~~years is remaining for the swaps originally maturing in 2026~~respectively.

InINTEREST ~~the~~RATE first quarter of 2023, the Company entered into four new interest rate swaps with various counterparties with a notional amount of $200 million, maturing in 2025. The interest rate swaps are designated as cash flow hedges and are utilized to manage interest rate risk. The interest rate swaps allow for the Company to exchange the difference in the variable rates on Term Loan F determined in reference to SOFR and the fixed interest rate per notional amount ranging from 3.72% to 3.75%.SWAPS

~~During~~In ~~second~~connection ~~quarter~~with some of ~~2023~~the Company’s loans, ~~all~~we ~~outstanding~~are a party to interest rate ~~swap~~swaps ~~agreements~~with ~~related~~various tocounterparties. ~~Term~~These ~~Loan~~interest Frate ~~were~~swaps ~~amended~~are todesignated ~~provide~~as acash ~~hedge~~flow ~~against~~hedges ~~changes~~utilized into ~~variable~~manage interest rate ~~cash~~risk ~~flows~~by ~~regarding~~allowing ~~fluctuations~~the inCompany ~~SOFR~~to asexchange ~~compared~~the todifference in the ~~previous~~variable ~~benchmark~~rates ~~rate~~on ofthe ~~one-month~~term ~~LIBOR.~~loans ~~The~~determined ~~revisions~~in reference to SOFR and the related fixed interest rate ~~swap~~per ~~agreements~~notional ~~did~~amount. ~~not~~Fair ~~impact~~value ~~our~~assets ~~hedge~~and ~~accounting~~liabilities ~~because~~related weto ~~applied~~interest ~~the~~rate ~~accounting~~swaps ~~expedients~~are ~~outlined~~recorded inwithin ~~ASU~~“Deferred ~~2020-04~~charges and ~~ASU~~other ~~2021-01~~assets” ofand ~~ASC~~“Other ~~Topic 848~~liabilities,” ~~Reference Rate Reform~~respectively.

As of December 31, 2024 and December 31, 2023, the total fair value of the interest rate swaps related to Term Loan F was an asset of $1 million and $1 million, respectively. Assets resulting from interest rate swaps are reflected in “Deferred charges and other assets.”67

In relation to Term Loan A, the Company is party to interest rate swaps with a current aggregate notional amount of $219 million that amortize each quarter and mature in 2028. These interest rate swaps allow for the Company to exchange the difference in the variable rates on Term Loan A determined in reference to SOFR and the fixed interest rate per notional amount ranging from 4.13% to 4.16%. In the fourth quarter of 2023, as a result of a $20 million prepayment of Term Loan A, the Company paid $232,000 to unwind a notional value of $20 million of swaps.


			2025						2024
(In millions)	Fixed Interest Rate	Maturity (a)	Notional Amount		Fair Value of Assets		Fair Value of Liabilities		Notional Amount		Fair Value of Assets		Fair Value of Liabilities
Interest rate swaps
Term Loan F	3.72% to 3.75%	2025	$	—	$	—	$	—	$	200	$	1	$	—
Term Loan F-2	3.80% to 3.82%	2029	220		—		3		232		2		—
Term Loan A	4.13% to 4.16%	2028	208		—		4		219		—		1

As(a) The ~~of December 31,~~total ~~2024~~notional ~~and~~amounts ~~December 31, 2023, the fair value~~ of ~~these~~Term ~~interest~~Loan ~~rate~~F-2 ~~swaps resulted in a liability of $1 million~~ and $5Term ~~million,~~Loan ~~recorded~~A ~~within~~amortize ~~“Other~~quarterly ~~liabilities,”~~until ~~respectively~~maturity.

AsDEBT a result of the refinancing in the third quarter of 2024, the Company entered into five new interest rate swaps with various counterparties in connection with Term Loan F-2. The total current notional amount of these swaps is $232 million, which will amortize each quarter and mature in 2029. These interest rate swaps allow for the Company to exchange the difference in the variable rates on Term Loan F-2 determined in reference to SOFR and the fixed interest rate per notional amount ranging from 3.80% to 3.82%. As of December 31, 2024, the fair value of these interest rate swaps resulted in an asset of $2 millionCOVENANTS

recorded within “Deferred charges and other assets.”

The Company is subject to certain covenants limiting, among other things, the ability of most of its subsidiaries to: (a) incur additional indebtedness or issue certain preferred shares; (b) pay dividends on or make distributions in respect of the Company’s or its subsidiaries’ capital stock or make investments or other restricted payments; (c) create restrictions on the ability of the Company’s restricted subsidiaries to pay dividends to the Company or make certain other intercompany transfers; (d) sell certain assets; (e) create liens; (f) consolidate, merge, sell or otherwise dispose of all or substantially all of the Company’s assets; and (g) enter into certain transactions with its affiliates. The Company is currently subject to a maximum consolidated total leverage ratio of 3.75 to 1.00.

~~Due~~Our to the unresolved Brazil Tax Dispute, the agreements governing debt, as originally drafted, limited restricted payments to $60 million if our pro-forma consolidated leverage ratio was less than 2.50 to 1.00 and greater than or equal to 2.00 to 1.00, or $90 million if the pro-forma consolidated leverage ratio was less than 2.00 to 1.00. In 2023, the Company deposited $60 million in an account subject to the control of the administrative agent under the credit agreement. As a result, our ability to make restricted payments under the credit agreement ~~was~~is governed by the provisions of our debt agreements in effect as if the Brazil Tax Dispute ~~was~~is settled, provided we ~~maintained~~maintain $~~225~~ 275 million of available liquidity at the time ofwe ~~any~~make restricted payments. In the fourth quarter of 2024, the Company renegotiated its credit agreements to eliminate the requirement to maintain the escrow and received $60 million in cash released from the escrow account. The minimum liquidity requirement at the time of any restricted payments was increased to $275 million.

As of December 31, ~~2024~~2025, we were in compliance with our debt covenants.

The fair market value of total debt was approximately $~~796~~842 million at December 31, ~~2024~~2025.

At December 31, 2024, contractual obligations for future payments of debt maturities (including finance lease liabilities disclosed in Note 10 Leases) by calendar year were as follows over the next five years: 2025 LONG-TERM ~~$22~~DEBT ~~million; 2026 - $25 million; 2027 - $370 million; 2028 - $25 million; 2029 - $191 million; and thereafter - $180 million.~~MATURITIES

~~NOTE~~At 15December 31, ~~RETIREMENT~~2025, ~~AND~~contractual ~~POSTRETIREMENT~~obligations ~~BENEFIT~~for ~~PLANS~~future payments of long-term debt maturities by calendar year were as follows: 2027 - $370 million; 2028 - $23 million; 2029 - $189 million; 2030 - $12 million; and thereafter - $161 million.

NOTE 13 RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

DEFINED BENEFIT PENSION PLANS

The Company sponsors and maintains pension plans for the benefit of certain of the Company’s employees. The service and non-service cost components of net periodic pension expense for these employees is recorded within cost of products sold and selling and administrative expenses. The assets and liabilities related to plans sponsored by the Company are reflected in deferred charges and other assets and other liabilities, respectively.

7568

OBLIGATIONS AND FUNDED STATUS

The following table shows the changes in the benefit obligation and plan assets and the plans’ funded status.

In millions	~~2024~~2025		~~2023~~2024
Change in projected benefit obligation:
Benefit obligation, January 1	$	~~338~~317	$	~~307~~338
Service cost	43		4
Interest cost	1719		17
Actuarial loss (gain)	~~(26)~~4		11(26)
Benefits paid	(1013)		(710)
Effect of foreign currency exchange rate movements	~~(6)~~10		(6)
Benefit obligation, December 31	$340	~~317~~	$317	~~338~~
Change in plan assets:
Fair value of plan assets, January 1	$300	~~317~~	$317	~~286~~
Actual return on plan assets	~~(8)~~29		26(8)
Company contributions	813		68
Benefits paid	(1013)		(810)
Effect of foreign currency exchange rate movements	~~(7)~~9		(7)
Fair value of plan assets, December 31	$338	~~300~~	$300	~~317~~
Funded status, December 31	$	(172)	$	(2117)
Amounts recognized in the consolidated balance sheets:
Non-current asset	$	1221	$	12
Non-current liability	(29)		(33)
Current liability	(1)		—
	$	(17)	$	(21)
Non-current liability	(22)		(29)
	$	(2)	$	(17)
Amounts recognized in accumulated other comprehensive income (loss) under ASC 715 (pre-tax):
Net prior service cost	$	12	$	1
Net actuarial loss	8579		9385
	$	8681	$	9486

The accumulated benefit obligation (“ABO”) for all plans was $~~308~~332 million as of December 31, ~~2024~~2025 and $~~328~~308 million as of December 31, ~~2023~~2024. The following table reflects the pension plans for which the accumulated benefit obligation or projected benefit obligation exceed the fair value of their respective plan assets at December 31:

In millions as of December 31

~~2024~~2025

~~2023~~2024

Pension plans with ABO in excess of plan assets

Accumulated benefit obligation

~~215~~24

~~220~~215

Fair value of plan assets

~~194~~5

~~196~~194

Pension plans with PBO in excess of plan assets

Projected benefit obligation

~~224~~28

~~229~~224

Fair value of plan assets

~~194~~5

~~196~~194

NET PERIODIC PENSION EXPENSE

Service cost is the actuarial present value of benefits attributed by the plans’ benefit formula to services rendered by employees during the year. Interest cost represents the increase in the projected benefit obligation, which is a discounted amount, due to the

7669

passage of time. The expected return on plan assets reflects the computed amount of current-year earnings from the investment of plan assets using an estimated long-term rate of return.

Net periodic pension expense comprised the following:

In millions	~~2024~~2025		~~2023~~2024		~~2022~~2023
Service cost	$	43	$	4	$	64
Interest cost	1719		17		1317
Expected return on plan assets	(17)		(17)		(2117)
Actuarial loss (gain)	3		3		43
Net periodic pension expense (benefit)	$	78	$	7	$	27

ASSUMPTIONS

The Company evaluates its actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements for employers’ accounting for pensions. These assumptions are used to calculate benefit obligations as of December 31 of the current year and pension expense to be recorded in the following year (i.e., the discount rate used to determine the benefit obligation as of December 31, ~~2024~~2025 is also the discount rate used to determine net pension expense for the ~~2025~~2026 year).

Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit plans are presented in the following table:

	2024		2023		2022
	2025		2024		2023
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate	5.81	%	5.89	%	5.27	%
Rate of compensation increase	3.27	%	3.34	%	3.30	%
Actuarial assumptions used to determine net periodic pension cost for years ended December 31:
Discount rate	5.89	%	5.27	%	5.52	%
Expected long-term rate of return on plan assets	5.93	%	5.64	%	5.84	%
Rate of compensation increase	3.34	%	3.30	%	3.36	%
Actuarial assumptions used to determine net periodic pension cost for years ended December 31:
Discount rate	5.27	%	5.52	%	2.79	%
Expected long-term rate of return on plan assets	5.64	%	5.84	%	5.18	%
Rate of compensation increase	3.30	%	3.36	%	3.36	%

PLAN ASSETS

The plans maintain a strategic asset allocation policy that designates target allocations by asset class. Investments are diversified across classes and within each class to minimize the risk of large losses. Derivatives, including swaps, forward and futures contracts, may be used as asset class substitutes or for hedging or other risk management purposes. Periodic reviews are made of investment policy objectives and investment manager performance. The fair value of pension plan assets at December 31, ~~2024~~2025 and ~~2023~~2024 by asset class are shown below for the material plans. Each category of investments for the U.S. plans is diversified and comprised of the following:

•Equity investments - developed market and emerging market equity securities primarily held in mutual funds

•Debt securities - corporate bonds and government securities

•Other investments - represents primarily cash and cash equivalents

Each category of investments for the U.K. plan is diversified and comprised of the following:

•Growth assets – equities, diversified growth funds, absolute return fixed income funds, multi-asset credit funds, and other private equity type investments

•Stabilizing assets – liability-driven investments consisting primarily of interest and inflation linked assets, cash flow driven investments invested primarily in credit markets, and cash and cash equivalents

7770

The target allocations for each asset class in the U.S. plan were 35% in equity securities, and 65% in debt securities ~~and 0% in other investment types~~ for the years ended December 31, ~~2024~~2025 and ~~2023~~2024. The target allocations for each asset class in the U.K. plan were 33% in growth assets and 67% in stabilizing assets for the years ended December 31, ~~2024~~2025 and ~~2023~~2024. Pension assets for the immaterial plans totaled $2327 million for the year ended December 31, ~~2024~~2025 and $3023 million for the year ended December 31, ~~2023~~2024. These assets primarily relate to government securities within Level 1 of the fair value hierarchy.

Fair Value Measurement U.S. Plans
	2024						2023
	2025						2024
Asset Class	Total		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Total		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
In millions
Cash and cash equivalents	$	107	$	107	$	—	$	510	$	510	$	—
Equities - developed markets	59

Filing Compare · Sylvamo Corp