Rayonier Advanced Materials Reports Strong Q3 Results

Rayonier Advanced Materials ( (RYAM) ) has released its Q3 earnings. Here is a breakdown of the information Rayonier Advanced Materials presented to its investors.

Rayonier Advanced Materials Inc. is a global leader in cellulose-based technologies, producing high purity cellulose specialties for various industrial applications, including filters, food, and pharmaceuticals, with operations in the U.S., Canada, and France. In the third quarter of 2024, the company reported net sales of $401 million, a $32 million increase from the previous year, despite a net loss of $33 million due to a $25 million non-cash asset impairment and a $7 million indefinite suspension charge. Adjusted EBITDA rose significantly by $27 million, reaching $51 million, and the company successfully refinanced its capital structure with a $700 million secured term loan. Key performance highlights included a strong demand for cellulose specialties, leading to improved product mix and margins, and the generation of $99 million in adjusted free cash flow, which facilitated the reduction of net secured debt by $37 million. The company faced challenges, such as an isolated fire at its Jesup plant, expected to impact earnings by $10 million. Nevertheless, RYAM maintained its 2024 adjusted EBITDA guidance of $205 million to $215 million and increased its free cash flow guidance to $115 million to $125 million. Looking ahead, RYAM expects to continue capitalizing on favorable market dynamics, including price increases for cellulose specialties and strategic investments in biomaterials, while addressing operational challenges and maintaining a focus on enhancing profitability.