Rayonier Advanced Materials Inc.

What they do

RYAM manufactures cellulose specialties and derivatives used in filters, food, pharmaceuticals, and industrial applications. It also produces cellulose commodities (viscose and fluff pulp), paperboard, high-yield pulp, and value-added derivatives like lignin and bioelectricity. The company operates five segments: Cellulose Specialties, Biomaterials, Cellulose Commodities, Paperboard, and High-Yield Pulp.

Revenue drivers

• Cellulose Specialties — Primary profitability driver, producing high-purity cellulose for demanding applications. Q2 2026 pricing up 21% year-over-year.
• Cellulose Commodities — Viscose and fluff pulp production, flexible with specialties capacity. Temiscaming plant indefinitely suspended since July 2024 due to commodity exposure.
• Paperboard & High-Yield Pulp — Temiscaming paperboard and high-yield pulp plants operating at full capacity. Company no longer marketing these segments for sale.
• Biomaterials — New segment formed in Q1 2025, including BioNova subsidiary and Altamaha Green Energy project, with capital-light interest and potential upside.

Recent performance

Q2 2026 net sales were $376 million, up 11% year-over-year and 18% sequentially. Net loss was $33 million, or $(0.49) per share, including a $13 million non-cash asset impairment. Adjusted EBITDA from continuing operations was $40 million, up 43% from the prior-year quarter. Full-year 2025 revenue was $1.47 billion with a net loss of $420.7 million. Cash flow from operations was weak at $23.9 million in 2025.

Strategy

Management is conducting a comprehensive review of strategic alternatives, expected to conclude in Q4 2026, with a focus on maximizing shareholder value and balance sheet deleveraging. The company is rebuilding performance through disciplined execution, capital allocation, and cost initiatives across manufacturing. It is prioritizing Cellulose Specialties and advancing select biomaterials opportunities, such as Altamaha Green Energy, with capital-light structures.

Risks

• Geopolitical and trade disruptions — Conflicts and trade policy changes could disrupt supply chains, raise costs, and limit market access in Europe and Asia.
• Cyclicality and competition — Highly competitive and cyclical markets may cause significant fluctuations in pricing and volumes.
• Balance sheet leverage — Shareholder equity is thin at $194.8M with $775.5M long-term debt (2016 figure), and 2025 net loss of $420.7M, increasing default risk.
• Temiscaming plant suspension — Permanent cessation of DWP production and indefinite suspension of cellulose plant could lead to additional impairments and charges.

Outlook

Management expects full-year 2026 trajectory to align with prior expectations, including positive free cash flow. Q2 results were ahead of expectations, with momentum building into the second half. The strategic review is the top priority, with a clear path forward expected to be communicated in Q4 2026.