Rayonier Advanced Materials Reports 19% Decline in Q2 2025 Net Sales

Rayonier Advanced Materials Inc. reported a significant decline in financial performance for the second quarter of 2025, with net sales of $340 million, down 19% from $419 million in the same period last year. For the first half of 2025, the company recorded net sales of $696 million, a decrease of 14% compared to $807 million in the first half of 2024. The decline in revenue was attributed to lower sales prices in the Paperboard and High-Yield Pulp segments, as well as reduced sales volumes across all segments, largely due to imposed tariffs and operational challenges, including a labor strike at the Tartas cellulose plant.

The company's gross margin also suffered, falling to $24 million in the second quarter, down from $48 million a year earlier, resulting in a gross margin percentage of 7.1%, compared to 11.5% in the prior year. Operating income turned negative, with a loss of $1 million for the quarter, compared to a profit of $28 million in the same quarter of 2024. For the first half of 2025, operating loss was $16 million, a stark contrast to the $45 million profit recorded in the first half of 2024. The company reported a net loss attributable to RYAM of $363 million for the second quarter, compared to a profit of $11 million in the same period last year.

In terms of operational developments, 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 management and performance tracking. The company also continues to explore investments in green energy and renewable products, with plans to advance several projects, including a bioethanol facility in Fernandina Beach, Florida, and a prebiotics facility at the Jesup plant.

The company’s balance sheet reflects a decrease in total assets to $1.75 billion as of June 28, 2025, down from $2.13 billion at the end of 2024. Cash and cash equivalents also fell to $70.7 million from $125.2 million. Total debt increased to $746 million, with a debt-to-capital ratio of 69%. Rayonier Advanced Materials is currently in compliance with all financial covenants under its debt agreements. Looking ahead, the company anticipates a gradual recovery in order trends and operational performance, with expectations to grow EBITDA significantly over the next two years, supported by strategic pricing and cost reduction initiatives.