Rayonier Idles Temiscaming After Canadian Paperboard Tariff

The Tip Desk · November 10, 2026 · 3 min read

Consolidated Adjusted EBITDA rose 30% to $52 million as High Purity Cellulose income reached $44 million and the strategic review slipped to the first quarter of 2027.

Rayonier Advanced Materials Inc. (RYAM) economically idled paperboard and high yield pulp production at its Temiscaming site on October 3 after a 50% U.S. tariff on Canadian paperboard, effective August 22, rendered continued operations uneconomic.

The cellulose producer recorded $2 million of tariff-related costs in the third quarter ended September 26, 2026. Production remains idled, with estimated site carrying costs of $2 million to $3 million per month. The company said it is managing those costs and evaluating all options for the site as part of an ongoing strategic review.

Loss from continuing operations was $229 million, or $(3.40) a share, inclusive of $221 million of non-cash impairments. Excluding those impairments, the loss was $8 million, a 60% sequential improvement from a $33 million loss in the second quarter.

Consolidated Adjusted EBITDA was $52 million, up 30% from $40 million in the prior quarter. Net sales were $383 million.

High Purity Cellulose, which combines cellulose specialties, cellulose commodities and biomaterials, was the earnings engine. Income from continuing operations in the segment rose to $44 million from $29 million, and Adjusted EBITDA was $73 million. Operating income was $43 million. Net sales in the segment were $313 million.

Total cellulose shipments increased 4% sequentially to 218 thousand metric tons. The mix shifted toward commodity product: cellulose specialties volume fell to 86 thousand metric tons from 105 thousand a year earlier, while cellulose commodities volume rose to 132 thousand from 93 thousand. Cellulose specialties average sales price rose 19% year-over-year to $2,227 a metric ton. Cellulose commodities average sales price fell 8% to $825.

President and Chief Executive Officer Dan Krawczyk said commodity production currently masks the full value of the cellulose specialties franchise and dilutes average realized cellulose price. He said commodity losses continue to weigh on High Purity Cellulose results and that a production mix more heavily weighted toward specialties is a clear and urgent priority.

Paperboard & High Yield Pulp net sales were $70 million. Sales volume rose to 83 thousand metric tons from 66 thousand a year earlier, with paperboard at 40 thousand and high yield pulp at 43 thousand. Average sales price fell 2% year-over-year to $839 a metric ton. Operating loss in the segment widened to $224 million from $27 million sequentially, including $210 million of non-cash asset impairments.

The company said higher sales of folding packaging paperboard, lottery grades, and high yield pulp maple in Asia, along with challenges with Indonesian high yield pulp supply, lifted volumes. Average paperboard price fell 4% on product mix; high yield pulp price was flat.

Corporate & Other operating loss was $15 million. Gross margin was $15 million.

The strategic review, which the company had expected to conclude in the fourth quarter of 2026, is now targeted for the first quarter of 2027. Krawczyk said U.S. tariffs on Canadian paperboard and the October 3 idling have slowed the process as parties seek greater clarity on Temiscaming’s path forward. The company said it is providing additional information to interested parties and discussing strategic alternatives to strengthen the cellulose specialties franchise.

Global liquidity ended the quarter at $143 million, including $61 million of cash. The consolidated net secured leverage ratio was 4.0 times covenant EBITDA. Year-to-date cash flow from operating activities was $66 million and Adjusted Free Cash Flow was $2 million.