Rayonier Advanced Materials (RYAM) Q1 2026 earnings summary

Executive summary

• Initiated a formal review of strategic alternatives, including potential sale, merger, partnership, or capital structure actions, with Morgan Stanley as advisor; interim office of the CEO established and search for permanent CEO underway.

• Net sales for Q1 2026 were $319 million, down year-over-year due to lower volumes and pricing in key segments.

• Net loss attributable to shareholders was $81.6 million, including $41 million in non-cash charges from the permanent idling of the Temiscaming HPC plant.

• Adjusted EBITDA was $8 million, with positive adjusted free cash flow of $12 million.

• The company reorganized into two segments: High Purity Cellulose and Paperboard & High Yield Pulp.

Financial highlights

• Q1 2026 net sales were $319 million, adjusted EBITDA was $8 million, and net loss was $81 million.

• High Purity Cellulose generated $24 million of adjusted EBITDA; Paperboard & High Yield Pulp posted $(5) million.

• Adjusted Free Cash Flow improved to $12 million from $2 million in the prior year quarter.

• Cash and cash equivalents stood at $68 million; total liquidity at quarter-end was $160 million.

• Debt to capital ratio increased to 77% from 71% at year-end 2025; total debt stood at $763 million.

Outlook and guidance

• 2026 is a transition year, with sequential improvement and positive free cash flow anticipated; full-year EBITDA expected to exceed 2025.

• Targeting improved mix and EBITDA growth across all businesses, with new product commercialization expected to benefit results.

• High Purity Cellulose expects improved pricing and higher CC volumes, but lower CS volumes for 2026.

• Paperboard & High Yield Pulp segment anticipates year-over-year improvement from new products and market expansion.

• Capital expenditures for 2026 forecasted at $80–$85 million, with a focus on cash generation and deleveraging.