Sylvamo Corp adopts new by-laws, holds annual meeting

Published 16/05/2025, 19:14
Sylvamo Corp adopts new by-laws, holds annual meeting

In a recent 8-K filing with the Securities and Exchange Commission, Sylvamo Corp (market cap: $2.28 billion), a company specializing in paper mills, reported amendments to its by-laws and the results of its annual stockholders’ meeting. According to InvestingPro data, the company maintains a "GREAT" financial health score, with strong profitability metrics including a 32% return on equity. On Thursday, May 15, 2025, the Board of Directors approved the second amended and restated by-laws, which introduced several revisions.

These changes include modifications to advance notice procedures for stockholder nominations and proposals, clarification of the majority voting provision for contested elections, and the ability for the Board to propose business at special meetings requested by stockholders. The updated by-laws also reflect recent amendments to Delaware’s General Corporation Law. With a P/E ratio of 8.2x and trading below its Fair Value according to InvestingPro analysis, the company has been actively engaging in shareholder-friendly initiatives, including aggressive share buybacks.

At the annual meeting on Thursday, all ten director nominees were elected to the Board. Additionally, the appointment of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified by the stockholders. The compensation of Sylvamo Corp’s named executive officers was approved on a non-binding advisory basis.

The detailed voting results for each proposal were disclosed, showing a high level of support for the directors, the ratification of the accounting firm, and the executive compensation package. The full text of the second amended and restated by-laws is attached as Exhibit 3.1 to the 8-K filing.

This report is based on the information provided in the SEC filing by Sylvamo Corp.

In other recent news, Sylvamo reported its first-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $0.68, which fell significantly short of the expected $1.03. The company’s revenue also missed projections, coming in at $821 million compared to the anticipated $831.93 million. Sylvamo’s performance was affected by operational challenges and maintenance costs, particularly impacting their North American and European operations. Despite these setbacks, the company remains optimistic about the latter half of 2025, with projections for improved performance driven by strategic initiatives in Latin America and North America.

Additionally, Sylvamo announced a quarterly dividend of $0.45 per share for the third quarter of 2025, demonstrating its commitment to returning value to shareholders. The dividend is scheduled for payment on July 29, 2025, to shareholders of record as of July 8, 2025. Looking forward, Sylvamo projects a Q2 2025 adjusted EBITDA between $75 million and $95 million, with expectations for better operational outcomes in the second half of the year. The company also anticipates challenges in Europe to persist due to ongoing maintenance costs. Sylvamo’s CEO, Jean Michel Rivieres, expressed confidence in the company’s ability to navigate these challenges, emphasizing their strong position in the market.

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