Rayonier Advanced Materials (RYAM) Q2 2026 earnings summary

Executive summary

• Strategic review of alternatives is progressing with urgency, aiming to maximize shareholder value, with a conclusion expected in Q4 2026.

• Net sales for Q2 2026 increased 11% year-over-year to $376 million, driven by higher Cellulose Specialties pricing and increased sales volumes in Cellulose Commodities, Paperboard, and High Yield Pulp.

• Loss from continuing operations improved to $33 million from $81 million in Q1, with adjusted EBITDA up to $40 million from $8 million sequentially and up 43% year-over-year.

• Leadership transition to a new CEO with deep operational and transaction experience, focused on strengthening performance and supporting the review.

• Emphasis on the differentiated Cellulose Specialties franchise, technical expertise, and strong customer relationships as core value drivers.

Financial highlights

• Q2 2026 net sales reached $376 million, up 18% sequentially and 11% year-over-year.

• Adjusted EBITDA for Q2 2026 was $40 million, up from $8 million in Q1 and $28 million in the prior-year quarter.

• Net loss attributable to shareholders was $33 million in Q2 2026, compared to $363 million in Q2 2025.

• Gross margin improved to $23 million in Q2 2026 from $(8) million in Q1 and was $24 million in the prior-year quarter.

• Adjusted Free Cash Flow for the first half of 2026 was $(8) million, an improvement from $(65) million in the prior year period.

Outlook and guidance

• Full-year outlook remains aligned with prior expectations for positive free cash flow in 2026.

• Cellulose Specialties pricing expected to remain significantly above prior year levels through the second half; volumes to improve compared to the first half.

• Paperboard market conditions are tightening, supporting a firmer pricing outlook.

• Operational focus on reliability, productivity, and cost improvements to mitigate inflation and enhance cash generation.

• Strategic review outcome and refinancing alternatives to be communicated in Q4.