Long-Term Strategy and Outlook Remain Intact
- Net Sales for the quarter of $356 million, down $32 million from prior year quarter
- Net Loss for the quarter of $32 million, a $30 million decline from prior year quarter
- Adjusted EBITDA for the quarter of $17 million, inclusive of a $12 million non-cash environmental charge, down $35 million from prior year quarter
- Total Debt of $736 million and Net Secured Debt of $624 million with a covenant net secured leverage ratio of 2.9 times
- Cash Provided by Operating Activities for the quarter of $40 million; Adjusted Free Cash Flow generation of $10 million
- 2025 Adjusted EBITDA guidance of $175 million to $185 million
- 2025 Adjusted Free Cash Flow guidance of $5 million to $15 million
JACKSONVILLE, Fla. - Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) today reported results for its first quarter ended March 29, 2025.
“Despite near-term challenges in the macroeconomic and regulatory environment, we remain focused on creating long-term value and are confident in the strength of our core business and strategic positioning,” said De Lyle Bloomquist, President and CEO of RYAM.
“Our first quarter results fell short of expectations, primarily due to several factors: a $12 million non-cash environmental charge, lower cellulose specialties sales volumes following accelerated customer purchases in the prior quarter ahead of a potential supply chain disruption, higher key input costs and operational challenges. In addition, demand in our Paperboard and High-Yield Pulp businesses remained soft.
“We are also navigating a dynamic global trade environment. Based on our most recent insight, approximately $85 million of RYAM annual revenues are currently exposed to a 125 percent import tariff from China. Additionally, we believe we are exposed to second-order effects as certain Cellulose Specialties customers adjust their supply chains in response to the tariffs. While some Chinese fluff customers have chosen to absorb the tariff and continue placing orders, we anticipate shifting production toward non-fluff commodities to help offset potential reductions in direct fluff sales to China and the likely softer demand resulting from these second-order effects.
“Considering these factors — the tariffs, poor first quarter operational performance, the weaker U.S. dollar, the one-time non-cash environmental charge and elevated key input costs — we now project 2025 Adjusted EBITDA to range between $175 million and $185 million. We also expect 2025 Adjusted Free Cash Flow to approximate $5 million to $15 million. With a strong balance sheet and ample liquidity, we remain confident in our ability to manage near-term pressures, meet our debt covenants and deliver long-term value for our shareholders,” concluded Mr. Bloomquist.
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