Key Highlights

  • Net sales were USD 383 million, up from USD 353 million, and adjusted EBITDA was USD 52 million, up 30%.
  • The net loss was USD 229 million, or USD 3.40 per share, including USD 221 million of non-cash impairments.
  • High Purity Cellulose adjusted EBITDA was USD 73 million, and income from continuing operations rose to USD 44 million.
  • Temiscaming production was economically idled on October 3, and the strategic review now targets a conclusion in Q1 2027.

Impairments in the Loss

Rayonier Advanced Materials Inc. (NYSE:RYAM), the Jacksonville, Florida cellulose producer, reported third-quarter 2026 net sales of USD 383 million, up from USD 353 million a year earlier and USD 376 million in the second quarter. The loss from continuing operations and the net loss were each USD 229 million, or USD 3.40 per diluted share, including USD 221 million of non-cash impairments, against USD 4 million, or USD 0.07, a year earlier. Adjusted for the impairments, the loss from continuing operations was USD 8 million, which the company describes as a 60% sequential improvement.

Consolidated adjusted EBITDA was USD 52 million, including USD 2 million of tariff-related costs. Year-to-date Cash Flow from Operating Activities was USD 66 million and adjusted free cash flow was USD 2 million.

Analyst estimates were EPS of USD 0.00 against reported EPS of negative USD 0.13, and Revenue of USD 389.4 million against reported revenue of USD 383.0 million.

High Purity Cellulose Carries the Quarter

The High Purity Cellulose segment had net sales of USD 313 million, up 6% from USD 296 million, and Operating Income of USD 43 million against USD 38 million. Income from continuing operations rose sequentially from USD 29 million to USD 44 million, with adjusted EBITDA of USD 73 million, and total cellulose shipments grew 4%. Total cellulose sales Volume rose 10% year over year, including a 42% increase in Commodity cellulose and an 18% decrease in Cellulose Specialties, while the average cellulose price fell 3%. Specialties pricing rose 19% on the company's Leadership initiatives, and commodity pricing fell 8%.

President and Chief Executive Officer Dan Krawczyk said commodity production masks the value of the Cellulose Specialties Franchise and dilutes the average realized price, and that shifting production toward Specialties is a clear and urgent priority. He pointed to the Altamaha Green Energy project at Jesup, where construction is underway.

Temiscaming and the Strategic Review

The Paperboard and High Yield Pulp segment had net sales of USD 70 million, up 23% from USD 57 million, with sales volume up 26%, but an operating loss of USD 224 million against a loss of USD 14 million. A 50% U.S. Tariff on Canadian paperboard, effective August 22, 2026, added USD 2 million of costs in the quarter and made continued production at Temiscaming uneconomic, so paperboard and high yield pulp production there was economically idled on October 3, 2026. Estimated site carrying costs are USD 2 million to USD 3 million per month, and all Options for the site are under evaluation.

Consolidated operating loss was USD 196 million versus operating income of USD 9 million. Liquidity was USD 143 million, made up of USD 61 million of cash, USD 66 million of borrowing capacity under the asset-based Credit Facility and USD 16 million of availability under the French factoring facility. The strategic review continues with interested parties, but the tariff uncertainty at Temiscaming has slowed it, and the company now targets a conclusion in the first quarter of 2027.

Items to Follow

Temiscaming site costs and decisions, the shift toward Cellulose Specialties volume and the strategic review conclusion are the items to follow.