Key Points
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Strategic review remains active: CEO Dan Krawczyk said the process is progressing with urgency and discipline, with the company expecting to communicate a clear path forward in the fourth quarter.
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Second-quarter results improved: Sales rose 11% year over year to $376 million, while adjusted EBITDA increased to $40 million from $28 million a year earlier, driven mainly by stronger High Purity Cellulose performance.
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Liquidity and refinancing remain priorities: RYAM ended the quarter with $145 million in liquidity and remained within its debt covenants, but reported negative adjusted free cash flow of $8 million year to date and continues targeting positive full-year 2026 free cash flow.
Rayonier Advanced Materials (NYSE:RYAM) reported higher second-quarter sales and adjusted EBITDA, while management said its strategic review remains active and is expected to conclude with a clear path forward in the fourth quarter.
In his first earnings call as president and chief executive officer, Dan Krawczyk said his appointment does not change the company’s strategic-review process. He said the board’s mandate is to maximize shareholder value while maintaining operational performance during the review.
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“The comprehensive review of strategic alternatives remains a top priority for RYAM,” Krawczyk said. “It’s active, it’s progressing with urgency and discipline,” with the company evaluating the full range of strategic and financial alternatives available.
Krawczyk said the company has seen constructive engagement from interested parties and expects to communicate a clear path forward during the fourth quarter. He also said the company is pursuing reliability, productivity, energy-efficiency, process-optimization and automation initiatives intended to improve earnings and cash generation.
Second-Quarter Results Improve Sequentially
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Chief Financial Officer Marcus Moeltner said second-quarter net sales totaled $376 million, up 18% sequentially and 11% from the prior-year quarter. The company reported a loss from continuing operations of $33 million, improving from an $81 million loss in the first quarter. The second-quarter loss included a $13 million non-cash asset impairment charge related to High-Yield Pulp.
Adjusted EBITDA, a non-GAAP measure, increased to $40 million from $8 million in the first quarter and $28 million a year earlier. The year-over-year increase reflected a $12 million improvement in High Purity Cellulose adjusted EBITDA and an $8 million improvement in corporate and other expenses, partly offset by weaker results in Paperboard and High-Yield Pulp.
