Rayonier Advanced Materials Reports 12% Decline in Q3 2025 Net Sales

Rayonier Advanced Materials Inc. reported a decline in financial performance for the third quarter of 2025, with net sales of $352.8 million, down 12% from $401.1 million in the same period last year. For the nine months ending September 27, 2025, net sales totaled $1.05 billion, a decrease of 13% compared to $1.21 billion in the prior year. The company experienced a gross margin of $34.1 million for the quarter, down from $43.6 million a year earlier, and a gross margin of $81.8 million for the nine months, compared to $128.6 million in 2024. The net loss attributable to Rayonier Advanced Materials was $4.5 million for the quarter, compared to a loss of $32.6 million in the same quarter of 2024, and a net loss of $399.6 million for the nine months, compared to a loss of $22.8 million in the prior year.

The company attributed the decline in revenue primarily to lower average sales prices in its Paperboard and High-Yield Pulp segments, as well as reduced sales volumes across all segments. This was influenced by factors such as imposed tariffs, operational challenges, and labor strikes at the Tartas cellulose plant. Despite these challenges, Rayonier reported an operating income of $9.7 million for the quarter, a significant improvement from an operating loss of $16.8 million in the prior year, largely due to the absence of prior year asset impairment charges and lower fixed costs associated with the indefinite suspension of operations at the Temiscaming cellulose plant.

Strategically, Rayonier Advanced Materials has reorganized its High Purity Cellulose operating segment into three distinct businesses: Cellulose Specialties, Cellulose Commodities, and Biomaterials. This restructuring aims to enhance operational efficiency and financial reporting capabilities. The company also launched an enhanced freezer application for its Kallima® portfolio, targeting the growing frozen food market. Additionally, Rayonier is pursuing various biomaterials projects, including a bioethanol facility in France and potential investments in new green energy initiatives.

Operationally, Rayonier reported a total of 67 million shares of common stock outstanding as of November 3, 2025. The company continues to face challenges in its Cellulose Commodities segment, which is expected to incur an EBITDA loss of $13 million to $15 million for the full year 2025 due to ongoing tariff impacts. Conversely, the Cellulose Specialties segment is projected to achieve an EBITDA of approximately $227 million to $230 million for the year, supported by price increases and improved order trends. Looking ahead, Rayonier anticipates a strong finish to 2025, with expectations to more than double EBITDA over the next two years, driven by price actions and cost-saving initiatives.