Rayonier Advanced Materials Reports First Quarter 2026 Results

RYAM reported a net loss of $81 million for the quarter ended March 28, 2026 compared to a net loss of $32 million for the prior year quarter.

May 6, 2026 - Rayonier Advanced Materials (NYSE:RYAM) on May 5 reported results for its first quarter ended March 28, 2026.

"Our first quarter performance was consistent with the trajectory we outlined in March, with early progress on pricing and mix in Cellulose Specialties and positive adjusted free cash flow despite a low earnings base," said Marcus Moeltner, Office of the CEO, Chief Financial Officer and Senior Vice President of Finance.

Moeltner added, "As previously announced, we are conducting a review of a range of strategic and financial alternatives to maximize shareholder value, including continued execution of our standalone plan. In light of recent unsolicited indications of interest and the Board's responsibility to evaluate the full range of value-maximizing options available to the Company, we believe this is the appropriate time to undertake that review. While that process is underway, our focus remains on executing our operating plan, strengthening earnings and cash flow, and advancing our Cellulose Specialties leadership initiative.

"2026 remains a transition year that depends on sequential improvement, and we have a defined path to build earnings momentum over the balance of the year. Our priorities remain unchanged, and we continue to expect full-year EBITDA above 2025 levels and positive free cash flow in 2026. By continuing to execute our strategic leadership initiatives, we are laying the foundation for stronger performance in 2027 and beyond."

First Quarter 2026 Financial Results

The Company reported a net loss of $81 million, or $(1.22) per diluted share, for the quarter ended March 28, 2026, compared to a net loss of $32 million, or $(0.49) per diluted share, for the prior year quarter.

Beginning in January 2026, the Company reorganized its segment structure and now operates in two segments:

High Purity Cellulose: formerly the segments of Cellulose Specialties, Cellulose Commodities and Biomaterials

Paperboard & High Yield Pulp: formerly the segments of Paperboard and High Yield Pulp

Prior period segment results have been recast to align with this new segment reporting structure.

High Purity Cellulose

In April 2026, an isolated fire occurred on the B production line of the Company's HPC plant in Jesup, Georgia during its scheduled annual maintenance outage. There were no injuries to employees or contractors and no impact on the surrounding community. Production lines A and C resumed operations as scheduled following the maintenance outage and the B line resumed operations within one week of the fire. The total impact of the fire is estimated at under $5 million.

Net Sales

Net sales for the quarter decreased $16 million, or 6%, compared to the prior year quarter, driven by:

Cellulose sales volume increase of 5%, driven by mix that included a 58% increase in cellulose commodities (CC) sales volume that was partially offset by a 35% decrease in cellulose specialties (CS) sales volume.

CC sales volume increased as the Company executed its CS leadership initiatives and shifted production toward commodity products.
CS sales volume declined as the Company executed its CS leadership initiatives, with the decline further impacted by elevated inventory levels in the acetate market and softer demand in the ethers market.

Cellulose average sales price decrease of 11%, including an 11% decrease in CC average sales price that was partially offset by a 17% increase in CS average sales price.

CS average sales price increase was driven by improved pricing of newly negotiated contracts. The Company remains on track to securing value-based pricing for its 2026 CS portfolio.
CC average sales price decline was due to softer global commodity pricing.

Partially offsetting the decreases above was an increase in biomaterials and other net sales from $11 million to $13 million, primarily driven by 2G bioethanol fuel and lignosulfonates.

Operating Income (Loss)

Operating results for the quarter declined $63 million, or 315%, compared to the prior year quarter, driven by:

Non-cash permanent idling charges of $41 million in the current quarter as a result of the decision to permanently cease dissolving wood pulp production at the Temiscaming HPC plant.
Decrease in net sales discussed above, primarily the decrease in variable margin resulting from the lower CS sales volumes.
Higher labor and maintenance costs.

These decreases were partially offset by:

Lower wood costs.
Insurance recovery of $4 million related to the 2024 Jesup plant fire.
Lower energy costs, driven by a $3 million higher benefit from sales of excess emission allowances in the current quarter compared to the prior year quarter.

Paperboard & High Yield Pulp

Net Sales

Net sales for the quarter decreased $18 million, or 24%, compared to the prior year quarter, driven by:

Total sales volume decrease of 26%, due to 5% and 42% decreases for paperboard (PBD) and high yield pulp (HYP), respectively.
Total average sales price increase of 2%, despite 10% and 3% decreases for PBD and HYP, respectively, due to a higher mix of PBD sales.

These decreases were driven by:

Increased competitive activity in PBD due to the startup of new U.S. capacity in mid-year 2025.
Continued oversupply of domestic HYP in Asia.
Weaker demand for paper and packaging materials due to global economic uncertainty.
Partially offsetting these decreases were higher sales of folding packaging PBD grades due to increased focus on this market segment.

Operating Loss

Operating loss for the quarter increased $1 million, or 11%, compared to the prior year quarter, driven by:
Decrease in net sales discussed above.
Increase in logistics costs due to higher ocean freight rates for shipments to Asia as a result of the current geopolitical environment.
Impact of market downtime taken in the current quarter.

Partially offsetting these decreases were:

Lower energy costs due to higher offsetting electricity production and sales.
Lower purchased pulp costs.

Corporate & Other

Operating loss for the quarter improved $14 million, or 54%, compared to the prior year quarter, driven by:

Lower environmental remediation expense driven by the $12 million charge incurred in the prior year quarter.
Favorable foreign exchange rates in the current quarter compared to unfavorable rates in the prior year quarter.

Liquidity

The Company ended the first quarter with $160 million of global liquidity, including $68 million of cash, $88 million of borrowing capacity under the ABL Credit Facility and $4 million of availability under the France factoring facility.

As of March 28, 2026, the Company's consolidated net secured leverage ratio was 4.3 times covenant EBITDA.

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.