RAYONIER ADVANCED MATERIALS INC. has recently released its 10-Q report. The company makes and sells cellulose-based specialty products and related materials across the United States and international markets, with operations spanning Cellulose Specialties, Biomaterials, Cellulose Commodities, Paperboard, and High-Yield Pulp. Its products are used in items such as filters, plastics, food ingredients, pharmaceuticals, packaging, and paper products, and the company is headquartered in Jacksonville, Florida.
In Item 2, management said the review of strategic alternatives remains the top priority and is being pursued “with urgency and discipline,” with a target to conclude it and communicate a path forward in the fourth quarter of 2026. The company also said it is focused on strengthening Cellulose Specialties, improving operating reliability and asset optimization, generating cash, and maintaining disciplined capital allocation. Management expects sequential improvement in the second half of 2026, but said results may still be affected by customer inventory levels, demand, commodity pricing, input cost inflation, logistics costs, and geopolitical developments.
Second-quarter net sales rose to $376 million from $340 million a year earlier, up $36 million or 11%. For the first six months, net sales were $695 million, essentially flat from $696 million in the prior-year period. High Purity Cellulose sales increased to $301 million in the quarter from $272 million, while Paperboard & High Yield Pulp sales rose to $75 million from $68 million.
The quarter’s sales increase was driven by higher average selling prices in Cellulose Specialties and higher volumes in Cellulose Commodities, Paperboard, and High-Yield Pulp, partly offset by lower prices in Cellulose Commodities, Paperboard, and High-Yield Pulp and lower Cellulose Specialties volume. For the six-month period, higher Cellulose Specialties pricing and higher Cellulose Commodities and Paperboard volumes were offset by lower prices in Cellulose Commodities, Paperboard, and High-Yield Pulp and lower volumes in Cellulose Specialties and High-Yield Pulp.
The company posted an operating loss of $7 million in the quarter, compared with a loss of $1 million a year earlier. For the first half, operating loss widened to $72 million from $16 million. Quarterly results included a $13 million non-cash High-Yield Pulp asset impairment, while the six-month period included $41 million of non-cash Temiscaming High Purity Cellulose permanent idling charges and the same $13 million High-Yield Pulp impairment.
High Purity Cellulose operating income was $29 million in the quarter, up from $20 million a year earlier, but the segment swung to an operating loss of $14 million for the first half from income of $40 million last year. Paperboard & High Yield Pulp posted an operating loss of $27 million in the quarter versus $7 million a year earlier, and a loss of $37 million for the first half versus $16 million. Corporate & Other showed an operating loss of $9 million in the quarter and $21 million for the first half, both improvements from the prior-year periods.
Interest expense was $25 million in the quarter and $48 million for the first six months, up from $23 million and $47 million, respectively. The effective tax rate on continuing operations was an expense of 7.4% for the quarter and a benefit of 4.2% for the six months, compared with rates that were not meaningful in the prior-year periods because of the full write-off of Canadian deferred tax assets.
Net loss attributable to RYAM was $33 million for the quarter, compared with $363 million a year earlier, and $114 million for the first half, compared with $395 million a year earlier. The company said favorable foreign exchange rates helped results, while higher chemicals and logistics costs, planned maintenance outages, and market-related downtime weighed on performance. The market has reacted to these announcements by moving the company's shares 8.11% to a price of $9.47. For more information, read the company's full 10-Q submission here.
