Rayonier Advanced Materials Inc. (RYAM) reported a net loss of $32 million, or $0.49 per diluted share, for the Q1 ended March 29, 2025 compared to a net loss of $2 million, or $0.02 per diluted share, for the prior year quarter.
Q1 2025 net sales were $356 million, down $32 million from prior year quarter. Adjusted EBITDA for the Q1 2025 was $17 million, inclusive of a $12 million non-cash environmental charge, down $35 million from Q1 2024.
Operating loss for the Q1 2025 increased $15 million, or 136%, compared to the prior year quarter driven by current quarter non-cash environmental reserves charges of $12 million and unfavorable foreign exchange rates in the current quarter compared to favorable rates in the prior year quarter. The environmental reserves charges are associated with recent developments at the Port Angeles, Washington, and Augusta, Georgia, remediation sites. The cash impact associated with the Augusta remediation site is expected in early 2027; the cash impact for the Port Angeles remediation site is not expected to begin before 2028, with outflows in the following three to five years.
Compared to the Q4 2024, operating loss increased $10 million driven by the non-cash environmental reserves charges mentioned above and unfavorable foreign exchange rates in the current quarter compared to favorable rates in the prior year quarter, partially offset by lower variable compensation costs and the impact of the debt refinancing in the prior period.
“Despite near-term challenges in the macroeconomic and regulatory environment, we remain focused on creating long-term value and are confident in the strength of our core business and strategic positioning,” said De Lyle Bloomquist, President and CEO of RYAM.
“Our Q1 results fell short of expectations, primarily due to several factors: a $12 million non-cash environmental charge, lower cellulose specialties sales volumes following accelerated customer purchases in the prior quarter ahead of a potential supply chain disruption, higher key input costs and operational challenges. In addition, demand in our Paperboard and High-Yield Pulp businesses remained soft.
Outlook
The Company now projects 2025 Adjusted EBITDA to range between $175 million and $185 million, primarily reflecting the impact of tariffs, unfavorable foreign exchange due to the weaker U.S. dollar relative to the Canadian dollar and euro, the one-time non-cash environmental charge, poor first quarter operational results and continued soft demand and pricing in Paperboard and High-Yield Pulp.
In October 2023, the Company announced that it was exploring the potential sale of its Paperboard and High-Yield Pulp assets at its Temiscaming site. Given the current global trade uncertainty, the sale process is effectively on hold. The Company continues to focus on operating these businesses and remains committed to pursuing a sale at a fair price when timing and value align.
RYAM is a global leader of cellulose-based technologies. The Company also manufactures products for the paper and packaging markets.
