Rayonier Advanced Materials Inc. (RYAM) reported a wider first-quarter loss in 2026 as restructuring-related charges and weaker cellulose specialties markets weighed on earnings, while the company launched a formal review of strategic and financial alternatives.
The company reported a net loss of US$81 million for the quarter ended March 28, compared with a net loss of US$32 million in the prior-year period. The results included US$41 million in non-cash permanent idling charges related to the previously announced cessation of dissolving wood pulp production at the Temiscaming high-purity cellulose facility in Québec.
Adjusted EBITDA declined to US$8 million from US$17 million a year earlier, while net sales fell to US$319 million from US$353 million. Despite the weaker earnings, the company generated US$32 million in operating cash flow and US$12 million in adjusted free cash flow during the quarter.
RYAM said it is reviewing a range of strategic and financial alternatives aimed at maximizing shareholder value, including continued execution of its standalone plan. The company indicated that the review follows unsolicited indications of interest received in recent months.
According to the company, alternatives under evaluation may include strategic investments, partnerships, mergers, asset sales or broader transactions involving part or all of the company. Morgan Stanley has been engaged as financial advisor in connection with the review.
Cellulose specialties remain under pressure
Within its newly created High Purity Cellulose segment, cellulose specialties volumes declined 35% year-over-year as elevated acetate inventories and weaker ethers demand continued to pressure the market.
At the same time, cellulose specialties average selling prices increased 17% due to newly negotiated contracts, while commodity cellulose pricing weakened amid softer global market conditions. The company said it continued shifting part of its production toward commodity-grade cellulose products as part of its cellulose specialties leadership initiative.
RYAM reorganized its reporting structure at the start of 2026 into two operating segments:
- High Purity Cellulose;
- Paperboard & High Yield Pulp.
In the Paperboard & High Yield Pulp segment, the company cited weaker demand for packaging and paper products, continued oversupply of high-yield pulp in Asia and increased competition following new paperboard capacity additions in the United States.
The company also pointed to higher freight costs tied to geopolitical tensions and elevated ocean shipping rates to Asia.
Company maintains 2026 outlook
RYAM said 2026 remains a transition year but maintained expectations for higher EBITDA and positive free cash flow compared with 2025.
Management said the company continues to focus on improving operational performance, strengthening earnings and advancing higher-value cellulose specialties initiatives.
In April, an isolated fire occurred on the B production line at the company’s Jesup, Georgia facility during a scheduled maintenance outage. RYAM said no injuries were reported and operations resumed within one week. The financial impact is estimated at less than US$5 million.
As of March 28, the company reported total debt of US$763 million and a net secured leverage ratio of 4.3 times covenant EBITDA.
Rayonier Advanced Materials Inc. is a global producer of high-purity cellulose used in filters, pharmaceuticals, food products, plastics and industrial applications. The company also manufactures paperboard, high-yield pulp and bio-based products, with operations in the United States, Canada and France.
