Rayonier Advanced Materials Q4 Earnings Call Highlights
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He also framed pricing as a necessity for industry health, arguing the market is still “far, far short of reinvestment economics” even after the 18% increase. Sutton cited specialty site and business shutdowns over the last four years in Washington, Tennessee, and Florida, and noted the company permanently ceased dissolving wood pulp production at its Témiscaming facility. He said that, as a result, RYAM is left with two domestic sites and has the capability to supply the full domestic market, but described the domestic landscape as shaped by “subsidized imports.”
In closing remarks, Sutton returned to the unresolved 15%, saying the shortfall is “mainly a shortage in the acetate area” and “mainly a shortage in the U.S.” He said the company has options if negotiations do not resolve in specialties, including shifting production through a strategy he likened to a “NASCAR leaderboard,” moving volume across markets to maximize contribution while maintaining leadership positions where RYAM has higher market shares.
Market conditions: ethers pressure in Europe; nitration inquiries increase
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Asked about demand conditions, Sutton said ethers-grade cellulose is challenged in Europe, largely because ethers coming out of China are pressuring his customers’ products and therefore reducing demand for ethers-grade cellulose. Even so, he said RYAM has been able to achieve a near 20% price increase across ethers in Europe, contrasting that with commentary suggesting pricing is declining.
On nitration-grade cellulose, Sutton said there are “lots of new inquiries” and “lots of demand coming from domestic producers of propellants,” adding that it is an area where RYAM has been able to achieve more than the 18% price increase cited in his prepared remarks.
Biomaterials and Tartas operations: running harder to support BioNova outputs
On Biomaterials, Sutton described the segment as “important” today and part of the company’s longer-term growth story, but stressed it is only one contributor. He said management plans to talk more about an “integrated model” that runs Cellulose Specialties, commodities, and Biomaterials under a single value-creation approach.
In response to a question about operating issues at Tartas and how decisions affect the BioNova joint venture, Sutton said the company is working on a plan to run Tartas harder and has “basically a crisis management team,” adding that it is having success. He described increased Tartas production as a lever that can both support specialties strategy and increase feedstock for Biomaterials, including BioNova, enabling higher sales of ethanol and lignosulfonates.
Trade case timelines and implications for pricing
Management also discussed the status of trade actions tied to imports. Sutton said the company is restoring prices “with or without” antidumping and countervailing duty outcomes, but added that success could help close the remaining 15% of specialties business sooner and improve the 2027 trajectory.
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Countervailing duties: Sutton said the company expects a preliminary determination of duty rates “later this month,” which he believed would come in March, applying to exports out of Brazil from a “subsidized state-sponsored producer.”
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Antidumping duties: Sutton said these apply to Brazil and Norway, with a preliminary determination expected in May.
He noted the remedies can be “stackable,” meaning countervailing and antidumping duties could layer on top of each other, and potentially on top of other measures such as tariffs if enacted.
Paperboard and High-Yield Pulp: new products aimed at improvement, no asset sales planned
Addressing the portfolio beyond specialties and Biomaterials, Sutton said the company is not selling any business and is not closing any assets, emphasizing that each business is a source of improvement in 2026. He acknowledged paperboard and High-Yield Pulp are challenged, including capacity absorption issues in paperboard and lingering oversupply in High-Yield Pulp.
For paperboard, Sutton said the expected improvement in 2026 versus 2025 will come from new products, including:
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an oil and grease-resistant board
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a foldable freezer board with a unique set of printing and coating options
On quarter-to-quarter performance, management cited mix and the freezer board introduction as factors supporting sequential increases in paperboard volumes and prices, with Moeltner adding that improved productivity and quality can reduce claims and improve mix. Asked about opportunities tied to the closure of a competitor’s SBS mill in Quebec, Sutton said there may be opportunities but noted the company is also absorbing new capacity in the Northeast U.S., which could offset the benefit.
For High-Yield Pulp, Sutton said a significant new product is under customer testing, with trial quantities already sold, and he expects prices to begin moving back up as oversupply is addressed.
Looking ahead, Sutton said the company expects a “near zero” EBITDA first quarter as leadership initiatives take hold, followed by a full-year EBITDA “substantially better than 2025,” alongside “solid positive free cash flow.” He said management intends to exit 2026 with momentum and “hit 2027 running hard,” and indicated investors should expect more detail on the company’s forward plans in upcoming earnings calls.
About Rayonier Advanced Materials (NYSE:RYAM)
Rayonier Advanced Materials, Inc is a publicly traded specialty bioproducts company focused on the production of high-purity cellulose and engineered wood products. Headquartered in Jacksonville, Florida, the company operates a network of manufacturing facilities across North America, New Zealand and Europe. Its cellulose specialties business produces dissolving pulps and high-purity fibers that serve a range of end markets, including food and beverage, personal care, pharmaceuticals and textiles.
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