Key Highlights

  • USD 229 million: the third quarter net loss at Rayonier Advanced Materials (NYSE:RYAM), or USD 3.40 per diluted share, after USD 221 million of non-cash impairments, against a loss of USD 4 million a year earlier.
  • USD 52 million: consolidated Adjusted EBITDA for the quarter, including USD 2 million of tariff-related costs, up 30% sequentially, with year-to-date Operating Cash Flow of USD 66 million.
  • 50%: the U.S. Tariff on Canadian paperboard, effective August 22, 2026, which led the company to economically idle Temiscaming paperboard and high Yield pulp production on October 3, 2026.
  • USD 143 million: global Liquidity at September 26, 2026, including USD 61 million of cash and USD 66 million of ABL Facility capacity.

Impairments Turn a Weak Quarter Into a USD 229 Million Loss

Rayonier Advanced Materials reported third quarter results on November 3, 2026, for the quarter ended September 26, 2026. Loss from continuing operations and net loss were each USD 229 million, or USD 3.40 per diluted share, compared with USD 4 million, or USD 0.07 per share, in the prior year quarter. The result includes USD 221 million of non-cash impairments, and the company said the loss excluding them was USD 8 million, a 60% sequential improvement. Subtracting USD 221 million from USD 229 million gives the same USD 8 million, simple arithmetic on two reported numbers. Of the impairments, USD 210 million sat in the Paperboard and High Yield Pulp segment, which posted an operating loss of USD 224 million. Net sales rose to USD 383 million from USD 353 million a year earlier. The Form 10-Q is not yet filed, so figures are preliminary.

High Purity Cellulose Earns More While Commodity Mix Dilutes Price

High Purity Cellulose is the larger business, with net sales of USD 313 million and Operating Income of USD 43 million, up from USD 29 million in the second quarter. Segment Adjusted EBITDA was USD 73 million. The mechanism is a mix story. Average cellulose specialties price rose 19% on pricing initiatives, but specialties Volume fell 18% on weaker Demand for ethers and other uses. Commodity volume jumped 42% as production shifted toward commodity grades, while its price fell 8%. Management called a heavier specialties mix an urgent priority.

Temiscaming Carrying Costs, 4.0 Times Leverage and a Q1 2027 Review Target

The 50% U.S. tariff on Canadian paperboard produced USD 2 million of costs in the quarter and made continued production at Temiscaming uneconomic, in the company's words. Production remains idled, with estimated site carrying costs of USD 2 million to USD 3 million per month. Net secured leverage stood at 4.0 times covenant EBITDA, and year-to-date Adjusted Free Cash Flow was only USD 2 million. The strategic review with interested parties has slowed because they want clarity on the site, and the company now targets a conclusion in Q1 2027. No outcome is assured, and no bidder or terms were disclosed. A conference call is set for 9:00 a.m. ET on November 4, 2026. Watch the 10-Q and any Temiscaming decision.

Where Things Stand

The USD 229 million loss was driven mostly by non-cash impairments, not cash operating weakness, but it is not a clean quarter. Rayonier Advanced Materials (NYSE:RYAM) still showed an USD 8 million loss after excluding USD 221 million of write-downs, and year-to-date free cash flow of USD 2 million shows a Business only just covering its costs. High Purity Cellulose is improving, yet the paperboard unit is a drag and no end to the tariff was stated. With 4.0 times leverage and USD 143 million of liquidity, the strategic review targeted for Q1 2027 and the Temiscaming decision are the next catalysts.