Sylvamo Corp is navigating a critical transition year in 2026, characterized by short-term capacity constraints, elevated capital expenditures, and footprint optimization costs. While the company's long-term targets of generating over $300 million in annual free cash flow and achieving a 15%+ ROIC remain highly attractive, near-term performance is heavily pressured by the termination of the Riverdale supply agreement and extensive planned maintenance outages at the Eastover mill. A Hold recommendation is warranted as the market awaits execution proof of its high-return strategic investments and the realization of its lean transformation benefits in late 2026 and 2027.