Rayonier Advanced Materials Inc. reported Adjusted EBITDA from continuing operations of $42 million for the Q3 ended September 27, 2025, an 18% decrease from $51 million in the same period last year, as the company navigated transitory market pressures.

The loss from continuing operations was $4 million, an improvement from a loss of $33 million in the prior year quarter, driven by lower variable compensation costs and favorable foreign exchange rates. Net sales decreased by 12% to $353 million, according to Rayonier Advanced Materials.

The company stated that its core Cellulose Specialties business performed as expected, approaching normalized levels, and that transitory pressures are easing with clear signs of stabilization across demand, operational performance, and costs.

For the full year 2025, the company expects Adjusted EBITDA to be in the range of $135 to $140 million, which includes a $12 million non-cash environmental charge. It expects Adjusted Free Cash Flow to be $25 to $30 million in the Q4, reflecting improved working capital conversion as orders normalize. Corporate costs for the full year are expected to be approximately $70 million.

The company is targeting a significant price reset for its Cellulose Specialties products in 2026 to recapture value lost to prior inflation. It expects to more than double its EBITDA over the next two years, driven by these price actions, efficiency gains, and structural cost reductions targeting approximately $30 million in annual savings by 2026. It is evaluating initiatives that could deliver up to $20 million of additional annual savings in 2027. Biomaterials projects are expected to add approximately $31 million of run-rate proportional EBITDA by the end of 2027. The company's long-term strategy to achieve over $300 million in run-rate EBITDA by the end of 2027 remains intact.

Source: Lesprom