Rayonier Advanced Materials (RYAM) investor relations material

Executive summary

• Q3 net sales rose 8% YoY to $383 million; Adjusted EBITDA increased 30% sequentially to $52 million, led by stronger HPC results.

• Reported loss from continuing operations was $229 million, including $221 million of non-cash impairments; excluding impairments, the loss was $8 million.

• Tariffs made Temiscaming paperboard and high-yield pulp production uneconomic, prompting an October 3 idling; the strategic review targets a Q1 2027 conclusion.

• Priorities include growing Cellulose Specialties, shifting production toward higher-value products, reducing commodity losses, and generating positive 2026 free cash flow.

• Q3 results were preliminary pending the Form 10-Q filing.

Financial highlights

• Net sales were $383 million, versus $376 million in Q2 2026 and $353 million in Q3 2025; gross margin was $15 million.

• Operating loss was $196 million; net loss attributable to common shareholders was $230 million, or $3.40 per diluted share.

• Adjusted EBITDA was $52 million, versus $40 million in Q2 and $42 million in Q3 2025; it included $2 million of U.S. tariff-related costs.

• Nine-month net sales were $1,078 million and net loss attributable to common shareholders was $344 million.

• Nine-month operating cash flow was $66 million; Adjusted Free Cash Flow was positive $2 million, versus negative $103 million in 2025.

Outlook and guidance

• Cellulose Specialties shipments are expected to exit 2026 at or near a 100,000-metric-ton quarterly run rate; full-year volumes are expected below 2025, with H2 improving from H1.

• Positive 2026 free cash flow remains an objective, subject to tariff-related cash impacts and Temiscaming carrying costs; priorities include working capital, cost control, and disciplined capital spending.

• Strategic review discussions with interested parties continue; conclusion is targeted for Q1 2027, with tariff uncertainty and Temiscaming idling slowing the process.

• 2026 modeling assumptions include capital expenditures of $80 million, cash interest expense of $85 million, environmental expenditure of $5 million, and cash taxes of $0–$2 million.