Rayonier Advanced Materials Reports Stronger Second-Quarter Results as Strategic Review Remains Top Priority

Rayonier Advanced Materials Inc. (NYSE: RYAM) reported improved second-quarter 2026 financial results, citing stronger operating performance, higher Cellulose Specialties pricing and continued progress toward its full-year objectives as the company advances its strategic review.

Net sales increased to $376 million, up 18% sequentially from the first quarter and 11% from the prior-year quarter. Loss from continuing operations improved to $33 million, compared with $81 million in the first quarter. Adjusted EBITDA from continuing operations rose to $40 million, up from $8 million in the first quarter and 43% higher than the same period last year.

The company said Cellulose Specialties pricing increased 21% year over year and 8% sequentially, while sales volumes improved 19% from the first quarter. Management said second-quarter performance exceeded expectations and that the company remains on track to meet its previously stated full-year outlook, including generating positive free cash flow in 2026.

President and Chief Executive Officer Daniel M. Krawczyk said completing the company's comprehensive strategic review remains the board's top priority, with the review expected to conclude and a clear path forward to be communicated during the fourth quarter. He said operational improvements, commercial execution and stronger cash generation are intended to enhance the company's value while broadening the strategic alternatives available.

Beginning in January 2026, Rayonier Advanced Materials reorganized its reporting structure into two operating segments: High Purity Cellulose, which combines the former Cellulose Specialties, Cellulose Commodities and Biomaterials businesses, and Paperboard & High Yield Pulp, which combines the former Paperboard and High Yield Pulp segments.

Within the High Purity Cellulose segment, second-quarter net sales increased 11% from the prior-year quarter. Cellulose sales volume rose 20%, driven by higher cellulose commodities shipments, while Cellulose Specialties average selling prices increased 21% following newly negotiated 2026 agreements. Operating income increased 45%, supported by higher Cellulose Specialties pricing, lower wood costs, reduced discretionary spending and improved operating rates.

In the Paperboard & High Yield Pulp segment, net sales increased 10% year over year as total sales volumes rose 22%, reflecting higher folding packaging paperboard sales and increased high yield pulp shipments. However, the segment recorded a larger operating loss due to a $13 million non-cash asset impairment, lower average selling prices, and the effects of a planned maintenance outage and market-related downtime.

The company reported second-quarter net loss and loss from continuing operations of $33 million, or $(0.49) per diluted share, including the non-cash impairment charge. In the comparable quarter of 2025, net loss was $363 million, or $(5.44) per diluted share, while loss from continuing operations was $366 million, or $(5.48) per diluted share, both including a $337 million non-cash deferred tax asset write-off.

Rayonier Advanced Materials ended the quarter with $145 million in global liquidity, comprising $57 million in cash, $76 million of borrowing capacity under its ABL Credit Facility and $12 million of availability under its France factoring facility. As of June 27, 2026, the company's consolidated net secured leverage ratio was 4.2 times covenant EBITDA.