Rayonier Advanced Materials(US:RYAM)2025-06-11 13:40Company Overview - RYAM produces natural cellulose fibers for diverse end-use products and operates four production facilities across the U S, Canada, and France[14] - The company's strategic investments focus on Biomaterials growth and operational efficiencies[14] Financial Performance and Targets - The company anticipates revenue between $15 billion and $16 billion for 2025[20] - The company projects EBITDA between $175 million and $185 million for 2025[22] - The company aims for $325 million in run-rate EBITDA by 2027, driven by a stable core business and biomaterials growth[41] Strategic Initiatives and Risks - The company is reducing commodity exposure, with non-Fluff commodities decreasing from 15% of sales in 2023 to 5% in 2024, and an estimated impact reduction from approximately -$60 million in 2023 to approximately -$5 million in 2025[29] - The company is investing in strategic capital expenditures with a minimum 30% ROE and less than 2-year payback, including $141 million in Biomaterials and $33 million in Cellulose Specialties projects[33] Tariff Impact and Mitigation - The company faces tariff exposure in Cellulose Specialties (China: ~$160 million, EU: ~$115 million), Cellulose Commodities (China: ~$85 million, EU: $30 million), and Paperboard ($175 million)[69] - The company is implementing mitigation strategies such as customer advocacy, market diversification, and operational adjustments to address tariff impacts[64, 68]