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]

Core Insights - Rayonier Advanced Materials reported a revenue of $353 million for the quarter ended September 2025, reflecting a 12% decrease compared to the same period last year [1] - The company's EPS was -$0.07, an improvement from -$0.12 in the year-ago quarter, but did not meet the Zacks Consensus Estimate of -$0.07 [1][3] - The revenue fell short of the Zacks Consensus Estimate of $376.4 million by 6.22% [1] Revenue Performance - High-Yield Pulp revenue was $24 million, exceeding the average estimate of $21.15 million from two analysts [4] - Eliminations revenue was reported at -$7 million, slightly better than the estimated -$8 million [4] - Paperboard revenue was $39 million, below the average estimate of $48.45 million [4] EBITDA Analysis - EBITDA from operations for Paperboard was $1 million, significantly lower than the estimated $7.25 million [4] - Corporate EBITDA from operations was -$14 million, matching the average estimate [4] - High-Yield Pulp EBITDA from operations was -$9 million, worse than the estimated -$3.3 million [4] Stock Performance - Rayonier Advanced Materials shares have returned -13.1% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance against the broader market in the near term [3]

Financial Performance - Net sales for Q3 2025 were $353 million, down $48 million or 12% from the prior year quarter[6]. - Loss from continuing operations for Q3 2025 was $4 million, an improvement of $29 million from the prior year quarter[7]. - Adjusted EBITDA for Q3 2025 was $42 million, down $9 million from the prior year quarter, with full year 2025 expected to be between $135 million and $140 million[6][32]. - RYAM's overall EBITDA for the full year 2025 is expected to approximate $227 million to $230 million, subject to additional impacts from tariffs[38]. - Gross margin for the three months ended September 27, 2025, was $34 million, down from $44 million in the same period last year, indicating a decline of 23%[63]. - The net loss attributable to Rayonier Advanced Materials Inc. for the nine months ended September 27, 2025, was $399 million, compared to a net loss of $23 million for the same period in 2024[63]. - Basic and diluted loss per share from continuing operations for the three months ended September 27, 2025, was $0.07, compared to a loss of $5.48 for the same period in 2024[63]. - For the nine months ended September 27, 2025, the total income from continuing operations attributable to RYAM was $110 million, down from $133 million in the same period last year[73]. - The company reported an adjusted free cash flow of $(83) million for the nine months ended September 27, 2025, compared to $99 million in the same period last year[76]. - EBITDA attributable to RYAM for the three months ended September 27, 2025, was $43 million, down from $66 million in the previous quarter[72]. Debt and Cash Flow - Total debt stood at $794 million with a net secured debt of $729 million, resulting in a covenant net secured leverage ratio of 4.1 times[6]. - Long-term debt increased to $764 million as of September 27, 2025, compared to $706 million at the end of 2024, marking an increase of 8%[65]. - Total debt increased to $794 million as of September 27, 2025, compared to $730 million on December 31, 2024, reflecting a rise of 8.8%[78]. - Adjusted Net Debt rose to $760 million from $653 million, indicating a significant increase of 16.4%[78]. - Cash and cash equivalents decreased to $(77) million from $(125) million, showing an improvement of 38.4%[78]. - Cash provided by operating activities for the nine months ended September 27, 2025, was a negative $8 million, a significant decrease from $149 million in the same period last year[67]. Sales and Market Performance - Cellulose Specialties net sales decreased by $28 million or 12% year-over-year, driven by a 17% decrease in sales volumes[9]. - Sales prices in the Cellulose Specialties segment are anticipated to be mid single-digit percentage above the prior year average, while sales volumes are expected to decline approximately 10%[37]. - Average sales price for Cellulose Specialties was $1,873 per metric ton for the three months ended September 27, 2025, up from $1,753 in the same period last year, indicating an increase of 7%[70]. - The sales volume of Cellulose Commodities for the three months ended September 27, 2025, was 93,000 metric tons, a decrease from 95,000 metric tons in the same period last year, representing a decline of 2%[70]. - Paperboard sales volumes are expected to remain soft, with an overall EBITDA expected to approximate $13 million for the full year 2025[44]. Strategic Initiatives - The company targets approximately $30 million in annual cost savings by 2026, with potential additional savings of up to $20 million in 2027[33]. - Biomaterials projects are expected to contribute approximately $31 million of run-rate proportional EBITDA by the end of 2027[33]. - The company aims to achieve over $300 million in run-rate EBITDA by the end of 2027, supported by strategic initiatives and pricing actions[4][33]. - The Company secured green capital of €67 million in Q4 2024 to advance its biomaterials strategy[39]. - RYAM is evaluating investments in crude tall oil facilities in Georgia and France, and has purchased high-quality CTO plant equipment for the Jesup project[45]. - The Company is pursuing a potential bioethanol facility in Florida, despite earlier site plan application denial, and remains confident in the project's merits[45]. - RYAM's production is being shifted toward non-fluff commodities due to disruptions in the global fluff market caused by Chinese retaliatory tariffs[41]. Expenses and Charges - Interest expense for Q3 2025 increased by $5 million compared to the prior year quarter, primarily due to a rise in the average effective interest rate on debt[26]. - Interest expense for the nine months ended September 27, 2025, was $70 million, an increase from $61 million in the same period last year[73]. - Corporate costs for the full year 2025 are expected to approximate $70 million, primarily due to non-cash environmental reserve charges[49]. - The company incurred indefinite suspension charges of $1 million in the three months ended September 27, 2025[72]. - Asset impairment charges were recorded at $25 million for the nine months ended September 27, 2025, consistent with the previous year[80]. - Indefinite suspension charges amounted to $1 million for the three months ended September 27, 2025, compared to $7 million in the same period in 2024[80]. - The total income tax expense for the nine months ended September 27, 2025, was $323 million, compared to an income tax benefit of $6 million in the same period last year[73].

Core Viewpoint - Rayonier Advanced Materials (NYSE: RYAM) is set to release its third quarter 2025 earnings on November 4, 2025, after market close, indicating a scheduled timeline for financial performance disclosure [1] Group 1 - The earnings release will be followed by a conference call and live webcast on November 5, 2025, at 9:00 a.m. ET to discuss the results [1] - Supplemental materials and access to the live audio webcast will be available on the company's website [1] - A replay of the webcast will be archived on the company's website shortly after the call [1]

Core Insights - Quanex Building Products Corporation has appointed Gabriela Garcia as Chief Accounting Officer, effective immediately, to lead the global accounting function and enhance operational efficiency in finance [1][2] Leadership and Experience - Gabriela Garcia brings over 25 years of progressive accounting experience, having previously served as Chief Accounting Officer and Corporate Controller at Rayonier Advanced Materials from 2020 to 2025, and as Assistant Controller and Controller at Nexeo Solutions from 2012 to 2019 [2] - Garcia holds a BBA in marketing, an MBA in finance, and a MS in accounting, and is a Certified Public Accountant [2] Company Overview - Quanex is a global manufacturer with capabilities across various end markets, collaborating with leading OEMs to provide innovative solutions in sectors such as window, door, solar, refrigeration, and cabinetry [3] - The company aims to leverage its material science expertise and process engineering to expand into adjacent markets [3]

Core Viewpoint - Rayonier Advanced Materials Inc. (RYAM) is set to discuss its first half 2025 performance and long-term growth milestones in an upcoming fireside chat with analyst Dmitry Silversteyn [1] Group 1 - The event will take place on September 22, 2025, featuring President and CEO De Lyle Bloomquist [1] - The discussion will focus on RYAM's performance and opportunities supporting the company's growth strategy [1]

Rayonier Advanced Materials (RYAM) FY Conference Summary Company Overview - Rayonier Advanced Materials operates in the natural cellulosic fibers industry, not merely as a pulp and paper company, but as a producer of specialty products including cellular specialty products and biomaterials [4][5][6] Core Business and Strategy - The company focuses on high purity specialty products and aims to grow its biomaterials segment, which is expected to provide significant growth potential and attractive returns to shareholders [5][6][9] - Rayonier operates four facilities located in the United States, Canada, and France, with a strategy centered on adding value through its core business and reducing costs [6][10] Financial Performance and Projections - The estimated EBITDA for 2025 is projected to be around $596 million, with a normalized EBITDA of approximately $200 million expected for 2026 [10][41] - The company faced a $21 million impact from tariffs, with $14 million related to U.S. customer sales affected by these tariffs [11][12] - Operational challenges included production losses due to strikes and severe weather, particularly affecting the Georgia facility [14][15] Market Dynamics - Rayonier is a leading producer in the cellular specialties market, controlling about 80% of the market share alongside two other major players [20][21] - The industry is experiencing high capacity utilization near 90%, with analysts projecting a 4-6% price increase, which is expected to outpace cost inflation [21][22] Growth Opportunities - The company plans to divest its non-core paperboard and high yield pulp businesses to focus on its cellular specialties and biomaterials segments [17][18] - There are significant opportunities in biomaterials, with projects aimed at monetizing the remaining 60% of wood used in production, which is currently burned for energy [29][30] - Projects include a bioethanol facility with a projected EBITDA of $8-10 million per year and a biomass electricity generator expected to generate $30 million in pretax income annually [31][36] Investment Outlook - Rayonier believes its current share price does not reflect the intrinsic value of its assets or growth potential, with projections suggesting a stock price increase to 8-10 times current levels based on future EBITDA multiples [41][42] - The company has a solid balance sheet and liquidity to fund growth projects without shareholder dilution, especially after divesting non-core businesses [39][40] Conclusion - Rayonier Advanced Materials presents a compelling investment opportunity with a strong focus on growth in high-margin specialty products and biomaterials, backed by a robust market position and strategic plans to enhance shareholder value [40][41]

Core Viewpoint - Rayonier Advanced Materials Inc. (RYAM) held its Q2 2025 earnings conference call, discussing financial performance and strategic direction [1][4]. Group 1: Financial Performance - The earnings report and presentation materials were released, providing insights into the company's financial performance [4]. - The call included discussions on non-GAAP financial measures to offer additional perspective on operational performance [5]. Group 2: Leadership and Participation - The conference call featured key company participants including De Lyle Bloomquist (President and CEO) and Marcus Moeltner (CFO and Senior VP of Finance) [3]. - Michael H. Walsh (VP of Investor Relations and Treasurer) hosted the call, welcoming participants and outlining the agenda [2][3].

Financial Data and Key Metrics Changes - In Q2 2025, revenue was $340 million, down $79 million year-over-year. Operating loss was $1 million, a decline of $29 million compared to the prior year. Adjusted EBITDA was $28 million, a decrease of $40 million year-over-year [35][36][37] - Full year 2025 adjusted EBITDA guidance was revised to a range of $150 million to $160 million, implying second half EBITDA of approximately $105 million to $115 million [37] Business Line Data and Key Metrics Changes - In the cellulose specialties segment, net sales decreased by $33 million to $208 million, with a 3% increase in sales prices offset by a 15% decline in sales volumes. Operating income declined by $21 million year-over-year to $29 million [38] - The biomaterials segment saw net sales decline by $2 million year-over-year to $6 million, with adjusted EBITDA margin dropping to 17% from 25% in the prior year [39] - The paperboard segment's net sales decreased by $13 million year-over-year to $47 million, reflecting a 23% decline in sales volumes and a 3% decrease in prices [40] - The high yield pulp segment experienced a net sales decrease of $4 million year-over-year to $29 million, driven by an 11% decline in sales prices [41] Market Data and Key Metrics Changes - The company faced approximately $59 million in EBITDA headwinds in 2025, primarily from tariff-related uncertainty, foreign exchange losses, operational disruptions, and noncash environmental charges [6][7][8] - The cellulose specialty market is expected to grow, with industry analysts forecasting sustained annual price increases of approximately 4% to 6% [19] Company Strategy and Development Direction - The company plans to nearly double its EBITDA over the next two years, focusing on accelerating revenue growth, expanding margins, and achieving exceptional returns on strategic growth investments [5][6] - A divestiture of non-core paperboard and high yield pulp businesses is anticipated, transforming the company into a more focused entity on core businesses [17][18] - The company aims to capture market share growth opportunities in the cellulose specialties market, leveraging its excess capacity [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the extraordinary challenges faced in 2025 are largely behind them, with expectations for accelerating growth and profitability in subsequent quarters [6][8] - The company highlighted a strong liquidity position of approximately $202 million, including $71 million in cash, which supports its strategic initiatives without shareholder dilution [31] Other Important Information - The company is targeting around $10 million in corporate expense reductions and anticipates $20 million in operational savings from various initiatives [21] - The biomaterials initiative is expected to generate significant cash flows from high-value products, with a projected annual EBITDA contribution of $8 million to $10 million from the Tardis bioethanol project [25][26] Q&A Session Summary Question: Timeline for dissolving wood pulp fluff product approval for sale in China - Management indicated that trials are ongoing, and if successful, commercialization is expected as they approach 2026 [43][44] Question: Structural cost reduction initiatives and timing of execution at Temiscaming - Most of the $24 million capital for cost savings will be spent in 2025, with expected realization of $30 million in savings in 2026 [47][49] Question: Incremental EBITDA within cellulose specialties and capital deployment in 2027 - The $30 million growth is tied to the substitution of cellulose specialties for commodities, with a focus on high-return projects for capital deployment [56][64] Question: Confidence in ramping up biomaterials business and market share - Management expressed high confidence in ramping up construction and commercialization of biomaterials projects, with commercial agreements in place to support market entry [83][84]

Financial Performance & Challenges - RYAM reported Q2 2025 revenue of $340 million, a decrease of $79 million compared to Q2 2024[59] - The company's Adjusted EBITDA for Q2 2025 was $28 million, down $40 million from Q2 2024[59] - RYAM faces an Adjusted Free Cash Flow deficit of $(52) million year-to-date[59] - The company's 2025 EBITDA guidance is projected to be in the range of $150 million to $160 million[14, 59] Segment Performance - Cellulose Specialties reported Q2 2025 sales of $208 million with an Adjusted EBITDA of $46 million, representing a 22% margin[60] - Cellulose Commodities experienced a negative Adjusted EBITDA of $(2) million on sales of $59 million, with a margin of (3%)[69] - Paperboard sales were $47 million with an Adjusted EBITDA of $5 million, resulting in an 11% margin[75] - High-Yield Pulp reported sales of $29 million and a negative Adjusted EBITDA of $(7) million, with a margin of (24%)[80] Strategic Initiatives & Outlook - RYAM aims to restore Temiscaming's profitability, targeting a $35 million improvement and positioning it for potential divestiture in 2026[22] - The company anticipates a 2027 run-rate EBITDA of $308 million for its core business, excluding the AGE project[26] - RYAM expects to generate approximately $30 million of cumulative incremental EBITDA by 2027 by capturing Cellulose Specialties market growth[35] - BioNova is expected to invest $110 million to generate ~$39 million in EBITDA, implying a build multiple of 28X[41]