Nov. 4, 2026 - Rayonier Advanced Materials Inc. (NYSE:RYAM) (the "Company") [on Nov. 3] reported results for its third quarter ended September 26, 2026.
"RYAM delivered another strong quarter in HPC, with higher earnings, increased cellulose shipments and positive cash generation building on the progress we have made since the first quarter," said Dan Krawczyk, President and Chief Executive Officer. "My time with customers and our teams has reinforced my confidence in the strength of our Cellulose Specialties franchise. Our commodity production mix currently masks the full value of that franchise and dilutes our average realized cellulose price. Our CS products and technical expertise support customers' manufacturing efficiency and differentiate their finished products.
"Commodity losses continue to weigh on HPC's overall results, making a production mix more heavily weighted toward CS a clear and urgent priority. We remain focused on growing CS volumes, loading plant production capacity more heavily toward CS and capturing product value, alongside continued operating improvements. We also see opportunities to create long-term value by leveraging our existing infrastructure, including through the Altamaha Green Energy project at Jesup, where construction is underway.
"Since joining RYAM, I have made advancing the strategic review a priority, and we continue to work actively with interested parties. U.S. tariffs on Canadian paperboard and the resulting October 3 economic idling at Temiscaming have slowed the review as parties seek greater clarity on the site's path forward and its implications for the broader business. We are managing site costs and evaluating all options for Temiscaming. We are actively providing additional information to help interested parties assess the full value of RYAM, while discussing strategic alternatives to strengthen our CS franchise more quickly. Our mandate is to maximize shareholder value, and we are continuing to strengthen the business throughout the review. Given the complexities of these discussions, we are targeting a conclusion of the strategic review in Q1 2027."
Loss from continuing operations and net loss for the quarter ended September 26, 2026 were each $229 million, or $(3.40) per diluted share, inclusive of non-cash impairments of $221 million. Loss from continuing operations and net loss for the same prior year quarter were each $4 million, or $(0.07) per diluted share.
Beginning in January 2026, the Company reorganized its segment structure and now operates in two segments:
Net sales for the third quarter increased $17 million, or 6%, compared to the same prior year quarter, driven by:
Total Cellulose sales volume increase of 10%, including a 42% increase in CC sales volume that was offset by an 18% decrease in CS sales volume.
Total Cellulose average sales price decrease of 3%, including an 8% decrease in CC average sales price that was partially offset by a 19% increase in CS average sales price.
Decrease of $5 million in Biomaterials & Other driven by a prospective reclass, beginning in 2026, of electricity sales from "net sales" to "cost of sales."
Operating income for the third quarter increased $5 million, or 13%, compared to the same prior year quarter, driven by:
Partially offsetting these income drivers were:
Net sales for the third quarter increased $13 million, or 23%, compared to the same prior year quarter, driven by:
Partially offsetting these sales drivers were:
The 50% U.S. tariff on Canadian paperboard, effective August 22, 2026, resulted in $2 million of tariff-related costs during the third quarter. Despite mitigation efforts, the tariff rendered continued paperboard and high yield pulp production at Temiscaming uneconomic and operations were economically idled on October 3, 2026. Production remains idled, with estimated site carrying costs of $2 million to $3 million per month. The Company is managing these costs and continues to evaluate all options for the site as part of its strategic review.
Operating loss for the third quarter increased $210 million compared to the same prior year quarter, driven by:
Partially offsetting these negative impacts were:
Operating loss for the third quarter was flat compared to the same prior year quarter as a $2 million impairment of the Company's PBD & HYP assets, higher legal fees and unfavorable foreign exchange rates in the current quarter compared to favorable rates in the prior year quarter were offset by lower variable compensation costs and professional fees.
The Company ended its third quarter with $143 million of global liquidity, including $61 million of cash, $66 million of borrowing capacity under the ABL Credit Facility and $16 million of availability under the France factoring facility.
As of September 26, 2026, the Company’s consolidated net secured leverage ratio was 4.0 times covenant EBITDA.
Year-to-date Adjusted Free Cash Flow was $2 million, an improvement of $10 million from the first-half result. The Company paid $2 million in tariff-related costs on Canadian paperboard during the third quarter.
RYAM is a global leader of high purity cellulose commonly used in the production of filters, food, pharmaceuticals, high performance plastics, propellants and various other industrial applications. RYAM’s specialized assets, capable of creating the world’s leading cellulose specialties products, are also used to produce cellulose viscose pulp, cellulose fluff pulp, paperboard, high yield pulp and various value-added co-products, including biofuels, bioelectricity and lignin. With manufacturing operations in the U.S., Canada and France, RYAM generated $1.5 billion of revenue in 2025.
SOURCE: RYAM