Rayonier Advanced Materials (RYAM) Gabelli Funds Annual Specialty Chemicals Symposium summary

Leadership and Strategic Direction

• New CEO with a transformation track record is driving value creation and turnaround, focusing on operational flexibility and innovation.

• Strategic priorities include regaining leadership in Cellulose Specialties, disciplined execution, and value-based pricing.

• Programs like RYAM Uplift and Hearts & Minds aim to enhance employee fulfillment, safety, and engagement.

• Company operates four manufacturing facilities across three countries, converting over 5 million green tons of timber into more than 1 million metric tons of products annually.

• Global sales are diversified across the Americas, Europe/Africa, and Asia Pacific.

Financial Position and Outlook

• Net debt is $715 million, with an enterprise value of $1.5 billion.

• Ran negative free cash flow of -$88 million last year; 2026 targets positive free cash flow and substantial EBITDA improvement.

• 2025 EBITDA was $133 million, with a goal to double by 2028.

• Capital expenditures for 2026 are forecast at $80 million, with $85 million in cash interest expense and $5 million in environmental expenditure.

• Refinancing of debt is targeted for 2027, aiming for a 300-400 basis point improvement in cost.

Operational and Business Model Changes

• Transitioning from five reporting segments to 20 monetization outlets for greater flexibility and new reporting segments to track specialty and commodity improvements.

• Implementing dual value-over-volume and volume-over-value strategies to maximize asset utilization.

• Specialties segment maintains high margins, but volume will decrease by 20% in 2026 as prices are raised.

• Commodity volumes will increase to offset lower specialty volumes, focusing on contribution profit.

• Sophisticated leadership playbooks and dynamic asset allocation will tailor pricing and optimize output.