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Core Points - Rayonier Advanced Materials Inc. announced the retirement of President and CEO De Lyle W. Bloomquist by May 2026, with a commitment to ensure a smooth transition [1][2] - The Board of Directors has initiated a search for Bloomquist's successor, engaging Spencer Stuart to assist in identifying candidates [2][3] - The Board expressed gratitude for Bloomquist's leadership and contributions, emphasizing confidence in the company's strategy and commitment to appoint a new CEO focused on innovation and shareholder value [3] Company Overview - Rayonier Advanced Materials Inc. is a global leader in cellulose-based technologies, producing cellulose specialties used in various industries including filters, food, and pharmaceuticals [4] - The company also manufactures products for the paper and packaging markets, generating $1.6 billion in revenue in 2024 [4]

Rayonier Advanced Materials (NYSE:RYAM) FY Conference Summary Company Overview - Rayonier Advanced Materials has been in operation for nearly a century, specializing in natural cellulose fibers used globally in various products [2][3] - The company operates four facilities located in Florida, Georgia, France, and Canada [2] Business Segments - The company operates in five segments: 1. **Cellulose Specialties**: Core business segment 2. **Cellulose Commodities**: Includes fluff used in baby diapers and personal hygiene products 3. **Biomaterials**: Future growth area focusing on energy, ethanol, and lignin [3][6] 4. **Non-core Paperboard**: Includes packaging products like lottery tickets and gum wrappers 5. **High Yield Pulp**: Facing challenges this year, particularly in printing and writing [6][7] Financial Performance and Guidance - Initial guidance for the year was $215-$235 million, but current guidance has been revised to $135-$140 million due to various challenges [9] - The company aims for a baseline EBITDA of $195 million, with a target to double EBITDA to $315 million by the end of 2027 [11][12] - Price increases in cellulose specialties are expected to grow at 4%-6% annually, with potential for higher increases in 2026 [12][13] Market Dynamics - The cellulose specialties market is dominated by three players holding about 80% market share, operating at 90% utilization [12][14] - No new capacity is expected in the market until at least 2029, supporting pricing power [14] Tariffs and Currency Impact - The company has seen a shift in tariffs, with zero tariffs on sales to China and Europe, and a 10% tariff on fluff sales to China [10][11] - The strengthening U.S. dollar is expected to provide a competitive advantage [11] Biomaterials Growth Opportunities - The company is focusing on leveraging existing assets to develop new products, including: - A bioethanol plant in France expected to generate $8-$10 million annually [17] - A biomass facility in Georgia projected to generate $100 million of EBITDA [18] - Additional projects in prebiotics and crude tall oil with minimal capital investment [20][19] Balance Sheet and Debt Management - The company maintains adequate liquidity with $140 million globally, despite a challenging year [23] - A target of reducing net leverage to 2-2.5 times is set, with plans to refinance high-cost debt [24][26] - The company aims to generate over $140 million of free cash flow annually, prioritizing debt reduction and reinvestment [27] Future Outlook - The company believes that short-term challenges are behind them, with a positive outlook for core cellulose specialties and biomaterials growth [28] - Current trading multiples suggest a compelling investment opportunity, with potential for significant stock price appreciation [28][29] Conclusion - Rayonier Advanced Materials is positioned for growth with a focus on cellulose specialties and biomaterials, while managing financial challenges and leveraging market dynamics to enhance profitability and shareholder value [28][30]

Core Insights - Rayonier Advanced Materials Inc. (RYAM) is a global leader in High Purity Cellulose and will have its CEO, De Lyle Bloomquist, present at the Southwest IDEAS Investor Conference on November 19, 2025 [1][2] - The company generated $1.6 billion in revenue in 2024, showcasing its strong market position and diverse product offerings [3] Company Overview - RYAM specializes in cellulose-based technologies, producing high purity cellulose used in filters, food, pharmaceuticals, and industrial applications [3] - The company also manufactures products for the paper and packaging markets and has operations in the U.S., Canada, and France [3] Upcoming Events - RYAM plans to release its third quarter 2025 earnings on November 4, 2025, and will host a conference call on November 5, 2025, to discuss the results [8]

Core Insights - The materials sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **SunCoke Energy Inc (NYSE:SXC)**: Reported better-than-expected quarterly earnings with a Consolidated Adjusted EBITDA of $59.1 million, including results from Phoenix Global. The stock has fallen approximately 21% over the past month, with a 52-week low of $6.62. The RSI value is 29.7, and shares closed at $6.64, down 4.5% [8] - **Rayonier Advanced Materials Inc (NYSE:RYAM)**: Posted weaker-than-expected quarterly results, with a stock decline of around 22% over the past month and a 52-week low of $3.35. The RSI value is 29.5, and shares rose 1% to close at $6.01 [8] - **Chemours Co (NYSE:CC)**: Reported disappointing earnings for the third quarter, with a stock decline of approximately 26% over the past month and a 52-week low of $9.13. The RSI value is 28.8, and shares fell 2.6% to close at $11.74 [8]

Core Insights - The materials sector is currently experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **SunCoke Energy Inc (NYSE:SXC)**: Reported better-than-expected quarterly earnings with a Consolidated Adjusted EBITDA of $59.1 million, including results from Phoenix Global. The stock has fallen approximately 21% over the past month, with a 52-week low of $6.62. The RSI value is 29.7, and shares closed at $6.64, down 4.5% [8] - **Rayonier Advanced Materials Inc (NYSE:RYAM)**: Posted weaker-than-expected quarterly results, with a stock decline of around 22% over the past month and a 52-week low of $3.35. The RSI value is 29.5, and shares rose 1% to close at $6.01 [8] - **Chemours Co (NYSE:CC)**: Reported disappointing earnings for the third quarter, with a stock decline of about 26% over the past month and a 52-week low of $9.13. The RSI value is 28.8, and shares fell 2.6% to close at $11.74 [8]

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Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $353 million, a decrease of $48 million year-over-year [24] - Operating income improved to $9 million, an increase of $26 million compared to the prior year [24] - Adjusted EBITDA was $42 million, down $9 million from Q3 2024 [25] - Adjusted free cash flow year-to-date was negative $83 million, with expectations for improvement in Q4 [25] Business Line Data and Key Metrics Changes - **Cellulose Specialties**: Quarterly net sales were $204 million, down 12% year-over-year, with a 17% decrease in sales volumes but a 7% increase in average sales prices [26] - **Biomaterials**: Quarterly net sales were $8 million, flat compared to the prior year, with operating income decreasing to $1 million [28] - **Cellulose Commodities**: Quarterly net sales were $85 million, down 1% from the prior year, with an operating loss of $13 million [30] - **Paperboard**: Quarterly net sales were $39 million, down 29% year-over-year, with an operating loss of $4 million [31] - **High-Yield Pulp**: Quarterly net sales were $24 million, down 14% compared to the prior year, with an operating loss of $10 million [32] Market Data and Key Metrics Changes - The company faced increased competition in the paperboard market due to new U.S. capacity and EU imports, leading to lower sales volumes and pricing [25][31] - The U.S. FLUF industry exports to China were impacted by a 10% tariff, affecting market dynamics [5][6] Company Strategy and Development Direction - The company aims to increase EBITDA to over $300 million by exiting 2027, focusing on cash generation and capital investment discipline [4] - A significant pricing reset for cellular specialty products is targeted to recapture lost value from inflation [12][42] - The company is pursuing new product development to enhance profitability and market position [10][14] Management's Comments on Operating Environment and Future Outlook - Management believes that the temporary headwinds of 2025 are largely behind, with core business performance stabilizing [57] - The company is confident in achieving a significant pricing reset and improving EBITDA margins through organic growth [23][42] - Management highlighted the importance of achieving positive EBITDA and cash flow for the viability of certain assets before potential divestiture [35][36] Other Important Information - The company has $40 million of committed green debt available to support biomaterials projects [32] - The Altamaha Green Energy project is expected to generate significant returns, with a focus on securing funding [17][46] Q&A Session Summary Question: What operational and financial milestones are needed for paperboard and high-yield pulp assets to be viable for sale? - Management indicated that achieving positive EBITDA and cash flow, along with the completion of USMCA negotiations, are critical milestones [35][36] Question: How does the company plan to refinance given the current leverage ratio? - Management noted that demonstrating a return to historical EBITDA levels will improve leverage profiles and facilitate refinancing [37][38] Question: What is the expected impact of pricing negotiations on future EBITDA? - A 1% increase in pricing is expected to generate an $8 million to $9 million increase in EBITDA, with significant pricing increases needed to recapture lost value from inflation [39][42] Question: Can you elaborate on the new fluff product that avoids tariffs? - The new product is a dissolving wood pulp product that can bypass tariffs, but cost efficiency in production remains a challenge [51][52] Question: What are the major buckets for the additional $20 million in EBITDA improvement projects? - The focus will be on improving reliability, material usage, and implementing automation and predictive maintenance [53][54]

Financial Performance & Guidance - Q3 2025 revenue was $353 million, a decrease of $48 million compared to Q3 2024[39] - Adjusted EBITDA for Q3 2025 was $42 million, down $9 million from Q3 2024[39] - The company projects Q4 2025 Adjusted Free Cash Flow to be between $25 million and $30 million[39] - 2025 Adjusted EBITDA guidance is $135-140 million[39] Segment Performance - Cellulose Specialties Q3 2025 Adjusted EBITDA was $66 million with a 32% margin[39, 40] - Biomaterials Q3 2025 Adjusted EBITDA was $1 million with a 13% margin[39, 45] - Cellulose Commodities Q3 2025 Adjusted EBITDA was negative $3 million with a negative 4% margin[39, 48] - Paperboard Q3 2025 Adjusted EBITDA was $1 million with a 3% margin[39, 54] - High-Yield Pulp Q3 2025 Adjusted EBITDA was negative $9 million with a negative 38% margin[39, 60] Strategic Initiatives - The company aims to restore Temiscaming profitability with $10 million annual EBITDA improvement through cost reduction and $10 million annual EBITDA improvement by improving Paperboard Operational Equipment Efficiency (OEE)[20] - The company expects Biomaterials to contribute approximately $31 million of proportional run-rate EBITDA in 2027 and approximately $80 million including proportional AGE EBITDA in 2028[34]