Rayonier Advanced Materials Targets Significant Price Reset for Cellular Specialties, Strengthens Biomaterial Projects and Cost Reduction Initiatives Amid Operational Challenges and Lowered EBITDA Guidance.

Rayonier Advanced Materials Inc (RYAM) is targeting a significant price reset for its cellular specialty products, which could lead to substantial revenue growth. The company has developed a dissolving wood pulp fluff product that could bypass Chinese tariffs and has implemented a $30 million cost reduction program. RYAM is actively working on strategic capital projects expected to deliver $20 million in EBITDA benefits by 2027. However, full-year adjusted EBITDA guidance has been lowered to $135-$140 million due to market weaknesses and operational challenges. The company faces increased competition in non-China markets and operational challenges, including French national strikes. RYAM's leverage remains high at 4.1 times, which may impact refinancing opportunities and financial flexibility.