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Mar 31
Rayonier AM Q1 2025 Earnings Report
Rayonier Advanced Materials Inc. reported a net loss for the first quarter of 2025, with revenues decreasing from the prior year quarter.
Key Takeaways
Rayonier Advanced Materials Inc. reported a net loss of $32 million for the first quarter of 2025, a significant decline from the prior year. Net sales were $356 million, down $32 million from the prior year quarter. Adjusted EBITDA was $17 million, impacted by a non-cash environmental charge.
Net Sales for the quarter were $356 million, a decrease of $32 million from the prior year quarter.
The company reported a Net Loss of $32 million, a $30 million decline compared to the prior year quarter.
Adjusted EBITDA for the quarter was $17 million, which included a $12 million non-cash environmental charge.
Total Debt stood at $736 million, with a Net Secured Debt of $624 million and a covenant net secured leverage ratio of 2.9 times.
Rayonier AM
Rayonier AM
Rayonier AM Revenue by Segment
Revenue by Segment
Cellulose Specialties Revenue
CapyFin.comCellulose Commodities Revenue
CapyFin.comBiomaterials Revenue
CapyFin.comPaperboard Revenue
CapyFin.comHigh-Yield Pulp Revenue
CapyFin.com Forward Guidance
RYAM projects 2025 Adjusted EBITDA to range between $175 million and $185 million, and 2025 Adjusted Free Cash Flow to approximate $5 million to $15 million.
Positive Outlook
- Confidence in managing near-term pressures due to a strong balance sheet and ample liquidity.
- Commitment to pursuing the sale of Paperboard and High-Yield Pulp assets at a fair price when timing and value align.
- Cellulose Specialties average sales prices are expected to increase by a mid single-digit percentage in 2025.
- Overall fluff demand is expected to remain resilient for Cellulose Commodities.
- The Company is evaluating investments in new green energy and renewable products to provide increased end-market diversity and incremental profitability.
Challenges Ahead
- Impact of tariffs on Adjusted EBITDA guidance.
- Unfavorable foreign exchange due to the weaker U.S. dollar relative to the Canadian dollar and euro.
- One-time non-cash environmental charge impacting financial results.
- Poor first quarter operational results affecting full-year projections.
- Continued soft demand and pricing in Paperboard and High-Yield Pulp businesses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income