Rayonier Advanced Materials Inc. (RYAM) Soars 20.66% on Q1 Earnings Report

On May 13, 2025, Rayonier Advanced Materials Inc. (RYAM) saw a significant pre-market rise of 20.66%, marking a notable surge in its stock price.

Rayonier Advanced Materials Inc. reported a net loss of $32 million for the first quarter of 2025, a substantial increase from the $2 million net loss in the same period last year. The company's net sales for the quarter were $356 million, down $32 million from the prior year. The adjusted EBITDA for the quarter was $17 million, which included a $12 million non-cash environmental charge, a significant decrease from the previous year's $35 million.

The operating loss for the quarter increased by $15 million, driven by non-cash environmental reserve charges and unfavorable foreign exchange rates. The environmental charges are related to remediation sites in Port Angeles, Washington, and Augusta, Georgia. The cash impact for the Augusta site is expected in early 2027, while the Port Angeles site's cash impact is not anticipated before 2028, with outflows spread over the following three to five years.

Despite these challenges, the company remains focused on long-term value creation and is confident in its core business and strategic positioning. The CEO, De Lyle Bloomquist, acknowledged that the first quarter results fell short of expectations due to several factors, including the non-cash environmental charge, lower cellulose specialties sales volumes, higher input costs, and operational challenges. Additionally, demand in the Paperboard and High-Yield Pulp businesses remained soft.

The company has projected its 2025 Adjusted EBITDA to range between $175 million and $185 million, reflecting the impact of tariffs, unfavorable foreign exchange rates, the one-time non-cash environmental charge, and continued soft demand and pricing in certain sectors. The potential sale of its Paperboard and High-Yield Pulp assets at the Temiscaming site, announced in October 2023, is currently on hold due to global trade uncertainty. The company remains committed to pursuing a sale at a fair price when conditions align.