Rayonier Advanced Materials (RYAM) Q4 2025 earnings summary

Executive summary

• Leadership transition and new CEO emphasized, with a renewed focus on execution, operational improvement, and disciplined capital spending.

• 2025 revenue was $1.5 billion, down year-over-year, with Adjusted EBITDA of $133 million and negative free cash flow of $88 million.

• Operating income for 2025 was $4 million, a decrease of $35 million from 2024; Q4 operating income was $11 million, flat year-over-year.

• Strategic priorities for 2026 include delivering positive free cash flow, EBITDA growth, and leadership in Cellulose Specialties.

• No plans to divest or close any business segments; all are targeted for improvement.

Financial highlights

• Adjusted Free Cash Flow for 2025 was negative $88 million, compared to positive $95 million in 2024.

• Cellulose Specialties contributed $862 million in net sales and $228 million in Adjusted EBITDA for 2025, with a 28% EBITDA margin in Q4.

• Paperboard net sales were $179 million with Adjusted EBITDA of $14 million for 2025; new products and improved plant performance drove sequential Q4 gains.

• High-Yield Pulp net sales were $112 million with Adjusted EBITDA of negative $27 million for 2025; oversupply persists but new products are under customer testing.

• Year-end Adjusted Net Debt was $745 million; Net Secured Debt was $715 million; total liquidity was $157 million.

Outlook and guidance

• 2026 focus is on delivering positive free cash flow, substantial EBITDA improvement, and value-based pricing in Cellulose Specialties.

• Path to positive free cash flow in 2026 includes CapEx reduction, fixed cost savings, and new product commercialization.

• 2026 modeling assumptions: CapEx $80 million, cash interest expense $85 million, environmental expenditure $5 million, cash taxes $3–5 million, stock compensation $8–10 million.

• Early 2026 volumes expected to be pressured as customers adjust ordering and inventory.

• Ongoing updates to forward plans, with more details to be shared in future earnings calls.