"2025 was a challenging year for RYAM. Various disruptions and a difficult demand environment pressured volumes, earnings and cash generation." – Scott Sutton, President and CEO of RYAM.
March 3, 2026 - Rayonier Advanced Materials (RYAM) today reported results for its fourth quarter and year ended December 31, 2025.
"2025 was a challenging year for RYAM," said Scott Sutton, President and Chief Executive Officer of RYAM. "Various disruptions and a difficult demand environment pressured volumes, earnings and cash generation, and we delivered full-year revenue of $1.5 billion, Adjusted EBITDA of $133 million and negative Adjusted Free Cash Flow of $88 million — performance we are not satisfied with and cannot repeat.
"In 2026, our focus is sharpening around disciplined execution and cash. Our priorities are clear: deliver positive free cash flow, assert our leadership in Cellulose Specialties and drive year-over-year EBITDA improvement across every business. In Cellulose Specialties, we have the market position to lead, and we are taking value-based pricing actions to earn the returns our products deserve; as we execute, volumes will be pressured early in the year as customers adjust ordering and inventory positions. At the same time, we are tightening working capital, addressing our fixed cost structure and prioritizing and reducing CapEx relative to 2025 — focusing spend on essential maintenance and the highest-return projects. This is the path to converting improved EBITDA into cash, rebuilding a healthier operating base and positioning RYAM for stronger performance in 2027 and beyond."
Sutton added, "Our employees are aligned and engaged behind an execution-focused operating model aimed at restoring cash generation, strengthening our leadership positions and lifting people."
The Company reported a loss from continuing operations and net loss each of $21 million, or $(0.32) per diluted share, for the quarter ended December 31, 2025 and a loss from continuing operations and net loss each of $16 million, or $(0.25) per diluted share, for the quarter ended December 31, 2024.
Beginning in January 2025, the Company reorganized its former High Purity Cellulose operating segment into three separate businesses: Cellulose Specialties, Biomaterials and Cellulose Commodities. No changes were made to the composition of the Paperboard and High-Yield Pulp operating segments. Prior period segment results have been recast to align with this new segment reporting structure.
Net sales for the fourth quarter increased $6 million, or 2 percent, compared to the same prior year quarter driven by a 7 percent increase in average sales price that was primarily due to negotiated price increases and sales mix. Partially offsetting the increase in average sales price was a 4 percent decrease in sales volumes driven by larger customer orders in 2024 as a result of the indefinite suspension of Temiscaming cellulose operations.
Operating income for the fourth quarter increased $2 million, or 4 percent, compared to the same prior year quarter driven by the higher average sales price, lower costs due to the 2024 indefinite suspension of Temiscaming cellulose operations and the prior year impact of the fire at the Jesup plant. Partially offsetting these improvements were the lower sales volumes and a $7 million energy cost benefit from sales of excess emission allowances in 2024, the current year sales of which occurred in the third quarter.
Net sales for the fourth quarter increased $2 million, or 25 percent, compared to the same prior year quarter primarily driven by higher lignosulfonates and bioethanol sales, as the new bioethanol facility had not yet fully ramped up in 2024 and lignosulfonate powder production was halted during this time to assist in stabilizing bioethanol production.
Operating income for the fourth quarter was flat compared to the same prior year quarter as the increase in net sales was offset by increases in various operating costs.
Net sales for the fourth quarter increased $6 million, or 7 percent, compared to the same prior year quarter driven by a 2 percent increase in both average sales price and sales volumes due to product mix and sales timing.
Operating loss for the fourth quarter was flat compared to the same prior year quarter as the higher sales, lower wood costs, lower costs due to the indefinite suspension of Temiscaming cellulose operations, the prior year impact of the fire at the Jesup plant and the impact of the timing of planned maintenance outages compared to the prior year quarter were offset by higher logistics costs and higher energy costs that were due, in part, to a $3 million energy cost benefit from sales of excess emission allowances in 2024, the current year sales of which occurred in the third quarter.
Net sales for the fourth quarter decreased $16 million, or 27 percent, compared to the same prior year quarter. Average sales price and sales volumes decreased 9 percent and 19 percent, respectively, driven by mix and continued pressure from new U.S. capacity.
Operating results for the fourth quarter declined $5 million, or 125 percent, compared to the same prior year quarter driven by the lower sales and the impacts of the current quarter market-driven downtime and the timing of planned maintenance outages compared to the prior year quarter, partially offset by lower purchased pulp and energy costs.
Net sales for the fourth quarter decreased $4 million, or 13 percent, compared to the same prior year quarter. Average sales price and sales volumes decreased 7 percent and 6 percent, respectively, driven by lower demand, including in China where demand for all grades of market pulp were down, continued oversupply of domestic high-yield pulp in China and the timing of shipments, primarily related to shipping challenges to customers in India.
Operating loss for the fourth quarter improved $2 million, or 25 percent, compared to the same prior year quarter driven by lower key input and certain fixed costs, partially offset by the lower sales and the impact of the current quarter market-driven downtime.
RYAM is a global leader of cellulose-based technologies, including cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. RYAM's specialized assets are also used to produce commodity fluff pulp, biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The company also manufactures products for the paper and packaging markets.
SOURCE: Rayonier Advanced Materials Inc.