RYAM Reports Third Quarter 2026 Results, Delivering 30% Sequential Growth in Adjusted EBITDA

RYAM (Rayonier Advanced Materials Inc.) today reported its financial and operating results for the third quarter ended September 26, 2026, demonstrating continued sequential improvement in operating performance, stronger High Purity Cellulose results and positive cash generation.

The company delivered Adjusted EBITDA of $52 million, representing a 30% increase from $40 million in the second quarter of 2026. The improvement was primarily driven by higher Cellulose Specialties pricing, favorable product mix and increased total cellulose shipments.

Net sales for the third quarter reached $383 million, compared with $353 million in the prior-year quarter.

Third Quarter 2026 Financial Highlights

• Net sales: $383 million, compared with $353 million in Q3 2025.

• Adjusted EBITDA: $52 million, compared with $40 million in Q2 2026, representing 30% sequential growth.

• High Purity Cellulose Adjusted EBITDA: $73 million, compared with $57 million in Q2 2026.

• High Purity Cellulose net sales: $313 million, compared with $301 million in Q2 2026.

• Total liquidity: $143 million, including $61 million in cash.

• Adjusted net debt: $745 million.

• Nine-month Adjusted Free Cash Flow: $2 million, compared with negative $103 million in the prior-year period.

High Purity Cellulose Delivers Continued Sequential Improvement

RYAM's High Purity Cellulose segment continued its positive momentum, with Adjusted EBITDA increasing to $73 million from $57 million in the previous quarter.

The improvement reflected higher Cellulose Specialties pricing, favorable product mix, increased total cellulose shipments and favorable shipment timing and energy credits.

Total cellulose shipments increased 4% sequentially. Cellulose Specialties pricing reached $2,227 per metric ton, representing a 170% premium over commodity cellulose pricing of $825 per metric ton.

The company continues to focus on strengthening its Cellulose Specialties leadership position through customer partnerships, product innovation, improved production mix and greater utilization of its existing manufacturing infrastructure.

Paperboard and High Yield Pulp Operations

The Paperboard and High Yield Pulp segment reported net sales of $70 million and an Adjusted EBITDA loss of $9 million for the third quarter.

The segment's performance included approximately $2 million in tariff-related costs associated with U.S. tariffs on Canadian paperboard.

Following the implementation of a 50% U.S. tariff on Canadian paperboard, RYAM economically idled paperboard and high yield pulp production at its Temiscaming facility effective October 3, 2026.

The company estimates monthly site carrying costs of approximately $2 million to $3 million while production remains idled. Essential site services continue, and all options for the facility remain under evaluation.

Strategic Review Progress

RYAM continues to advance its strategic review, working actively with interested parties.

The review has been impacted by tariff uncertainty and developments at the Temiscaming facility. The company is providing additional information to support the evaluation process and remains engaged with interested parties.

RYAM is targeting a conclusion of the strategic review in the first quarter of 2027.

Financial Position and Liquidity

At September 26, 2026, RYAM reported total liquidity of $143 million, including $61 million in cash, $66 million of availability under its North American asset-based lending facility and $16 million under its French factoring facility.

Adjusted net debt stood at $745 million, while net secured debt was $714 million. Net secured leverage was 4.0x covenant EBITDA, compared with a covenant threshold of 4.75x.

Net capital expenditures for the first nine months of 2026 totaled $64 million, including $10 million of strategic capital expenditures.

Business Priorities and Outlook

RYAM remains focused on strengthening operating performance, generating cash and advancing its strategic review.

The company's priorities include:

• Advancing the strategic review, with a targeted conclusion in Q1 2027.

• Executing its Cellulose Specialties leadership strategy by growing volumes and capturing product value.

• Improving production mix and reducing exposure to lower-margin commodity businesses.

• Maintaining disciplined working capital management, capital spending and cost control.

• Building on sequential operating improvements and pursuing positive free cash flow for full-year 2026.

The company continues to focus on positioning its business for improved performance and greater financial flexibility entering 2027.