Sylvamo prepares for leadership transition as CEO set to retire

MEMPHIS, Tenn. - Sylvamo (NYSE: SLVM), known as the world’s paper company and currently valued at $2.43 billion, has announced a forthcoming change in its executive leadership. Jean-Michel Ribiéras, the company’s inaugural chairman and chief executive officer, is set to retire on December 31, the company said Monday. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, suggesting strong operational performance under current leadership.

John Sims, currently Sylvamo’s senior vice president and chief financial officer, will step into the role of chief operating officer starting May 1. In this role, Sims will oversee the company’s commercial and operational functions. Following Ribiéras’s retirement, Sims is slated to become CEO on January 1, 2026. Under current management, InvestingPro data shows the company has been aggressively buying back shares while maintaining a healthy 3.01% dividend yield.

Don Devlin will take over Sims’s current responsibilities as senior vice president and CFO, also effective May 1. Devlin’s background includes various leadership and finance roles at International Paper, Sylvamo’s parent company prior to its spinoff.

The company’s lead independent director, David Petratis, expressed gratitude for Ribiéras’s leadership and confidence in Sims’s and Devlin’s abilities to guide Sylvamo into the future. Ribiéras also shared his pride in Sylvamo’s achievements and his belief in Sims’s capacity to amplify the company’s success.

Ribiéras has been at the helm since Sylvamo’s inception in 2021, following a distinguished 35-year career in the industry. Sims, who joined Sylvamo at the same time, has a 27-year tenure with International Paper and brings extensive experience to his new role. Devlin, joining from International Paper, has a strong background in strategic planning and finance.

Sylvamo, headquartered in Memphis, Tennessee, operates mills across Europe, Latin America, and North America, employing over 6,500 people. The company reported net sales of $3.8 billion for 2024, trading at an attractive P/E ratio of 9.69. InvestingPro analysis indicates the stock is currently undervalued, with multiple additional ProTips and detailed metrics available to subscribers through the platform’s comprehensive Pro Research Report, which covers over 1,400 US stocks.

The information for this article is based on a press release statement.

In other recent news, Sylvamo reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $1.96, which exceeded analyst estimates of $1.80. The company’s revenue for the quarter reached $970 million, slightly surpassing the expected $965.41 million. Despite these positive results, Sylvamo’s stock experienced a decline, reflecting investor concerns about future market conditions and operational challenges. The company achieved a net income of $302 million for the full year, with adjusted EBITDA standing at $632 million, marking a 17% margin. However, operating cash flow decreased to $469 million, and free cash flow dropped to $248 million compared to the previous year.

Sylvamo announced plans to invest approximately $145 million in its South Carolina operations to enhance production capabilities and reduce costs. This includes a $100 million upgrade to a paper machine at the Eastover mill and a $45 million investment in a new cutsize sheeter at the Sumter sheeting plant. Additionally, the company is entering a 20-year partnership to outsource woodyard operations at Eastover, aiming to improve efficiency and avoid $75 million in capital expenditures. Analysts from firms like Bank of America have noted mixed expectations for Sylvamo, with challenges anticipated in Europe due to maintenance costs, despite a slightly improved outlook for North and Latin America. The company continues to focus on structural cost reductions and high-return capital projects to enhance its competitiveness and cash flow.

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