Key Highlights

  • The third-quarter net loss of USD 229 million, or USD 3.40 per diluted share, included USD 221 million of non-cash impairments, against a USD 4 million loss in the prior-year period.
  • Consolidated Adjusted EBITDA reached USD 52 million, including USD 2 million of Tariff costs and up 30% from the prior quarter, while year-to-date Operating Cash Flow totaled USD 66 million.
  • A 50% U.S. tariff on Canadian paperboard, effective August 22, 2026, led the company to economically idle Temiscaming paperboard and high Yield pulp output on October 3, 2026.
  • Global Liquidity stood at USD 143 million on September 26, 2026, comprising USD 61 million of cash and USD 66 million of capacity under the ABL facility.

Writedowns Account for Most of a Quarterly Loss

Rayonier Advanced Materials (NYSE:RYAM) delivered third-quarter results on November 3, 2026 for the quarter ended September 26, 2026. Loss from continuing operations and the net loss were both USD 229 million, or USD 3.40 per diluted share, against USD 4 million, or USD 0.07 per share, a year earlier. Non-cash impairments of USD 221 million are included, and the company said the loss without them would have been USD 8 million, a 60% improvement sequentially. Subtracting USD 221 million from USD 229 million also yields USD 8 million, simple arithmetic on two reported figures. Of the impairments, USD 210 million landed in the Paperboard and High Yield Pulp segment, whose operating loss reached USD 224 million. Net sales increased to USD 383 million from USD 353 million. Because the Form 10-Q had not yet been filed, the figures remain preliminary.

Cellulose Specialties Gain as Commodity Mix Erodes Pricing

High Purity Cellulose is the bigger operation, with net sales of USD 313 million, Operating Income of USD 43 million up from USD 29 million in the second quarter, and segment Adjusted EBITDA of USD 73 million. The shift is driven by product mix. Average specialties prices climbed 19% on pricing initiatives, yet specialties Volume dropped 18% amid softer Demand for ethers and other applications. Commodity volume surged 42% as output moved toward commodity grades, even though commodity prices fell 8%. Management described steering back toward a richer specialties mix as an urgent priority.

Temiscaming Idling, Leverage at 4.0 Times and a Q1 2027 Review

The 50% U.S. tariff on Canadian paperboard cost USD 2 million in the quarter and, in the company's words, made continued Temiscaming production uneconomic. Production stays shut at that site, where carrying costs are estimated at USD 2 million to USD 3 million monthly. Net secured leverage was 4.0 times covenant EBITDA, and year-to-date Adjusted Free Cash Flow reached only USD 2 million. Talks with interested parties in the strategic review have slowed because they want clarity on the site, so the company now aims to conclude in Q1 2027. No outcome is assured, and no bidder or terms were disclosed. A conference call is set for 9:00 a.m. ET on November 4, 2026, and the 10-Q and any Temiscaming decision are the next markers.

Where Things Stand

The USD 229 million loss stemmed mainly from non-cash impairments rather than operating cash weakness, though the quarter is not clean. Rayonier Advanced Materials (NYSE:RYAM) still lost USD 8 million after excluding USD 221 million of writedowns, and year-to-date free cash flow of USD 2 million means the Business is barely covering its costs. High Purity Cellulose is improving, but the paperboard unit is weighing on results and no end to the tariff has been announced. Leverage stands at 4.0 times and liquidity at USD 143 million, so the Q1 2027 target for the strategic review and the Temiscaming decision are the next catalysts.