Rayonier Advanced Materials Narrowed Loss as Cellulose Pricing Rose
Adjusted EBITDA from continuing operations increased fivefold from the prior quarter to $40 million.
Rayonier Advanced Materials Inc. (RYAM), a specialty cellulose producer, returned to year-over-year growth as second-quarter net sales rose 11%, reversing the first quarter’s 10% decline.
The rebound reflected higher cellulose volume and sharply improved Cellulose Specialties pricing. Net sales increased 18% sequentially to $376 million from $319 million, while adjusted EBITDA from continuing operations rose 43% from a year earlier.
The loss from continuing operations narrowed to $33 million from $81 million in the first quarter and $366 million a year earlier. The latest period included a $13 million asset impairment, while the year-earlier quarter included a $337 million deferred-tax-asset write-off. Gross margin turned positive at $23 million after a negative $8 million in the first quarter, and the operating loss narrowed sequentially to $7 million from $65 million.
High Purity Cellulose sales increased to $301 million from $263 million sequentially and $272 million a year earlier. Segment operating income swung to $29 million from a $43 million first-quarter loss and rose from $20 million a year earlier. Cellulose Specialties pricing climbed 21% year over year to $2,193 per metric ton, reflecting newly negotiated 2026 agreements.
Specialties volume recovered 19% sequentially to 86,000 metric tons. It remained 23% below the year-earlier quarter as the company shifted production toward commodity cellulose amid lower specialties orders. Commodity cellulose volume nearly doubled year over year to 124,000 tons, contributing to a 20% increase in total cellulose volume. The richer commodity mix lowered the total average selling price 7% to $1,380 per ton.
Paperboard & High Yield Pulp sales rose to $75 million from $56 million in the first quarter, as a 22% year-over-year volume increase outweighed a 10% decline in average price. The segment’s operating loss widened to $27 million from $10 million sequentially, including the $13 million high-yield-pulp impairment and costs tied to maintenance and market-related downtime.
First-half adjusted free cash flow improved to negative $8 million from negative $65 million a year earlier as operating cash flow increased and capital spending declined. Adjusted net debt rose to $755 million from $745 million at year-end as cash fell to $57 million from $75 million.
Rayonier Advanced Materials continues to expect positive free cash flow in 2026 and full-year EBITDA above 2025 levels after results came in ahead of its expectations. The company now expects to conclude its strategic review and communicate a path forward in the fourth quarter, adding a timetable that was absent when the review was announced in April.