Third Quarter 2026
Filed Nov 3, 2026RYAM Reports Third Quarter 2026 Results Delivers 30% sequential growth in Adjusted EBITDA Temiscaming production economically idled following U.S. tariffs
Consolidated Adjusted EBITDA increased sequentially to $52 million and High Purity Cellulose earnings improved, but a $221 million non-cash impairment drove a $229 million loss from continuing operations and Temiscaming was economically idled following U.S. tariffs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 26, 2026GAAP | $383M | – | – |
| Cost of sales, three months ended September 26, 2026GAAP | −$345M | – | – |
| Cost of sales - Temiscaming inventory and other asset impairment, three months ended September 26, 2026GAAP | −$23M | – | – |
| Gross margin, three months ended September 26, 2026GAAP | $15M | – | – |
| Selling, general and administrative expense, three months ended September 26, 2026GAAP | −$20M | – | – |
| Asset impairment, three months ended September 26, 2026GAAP | −$189M | – | – |
| Operating income (loss), three months ended September 26, 2026GAAP | −$196M | – | – |
| Interest expense, three months ended September 26, 2026GAAP | −$25M | – | – |
| Loss from continuing operations before income tax, three months ended September 26, 2026GAAP | −$226M | – | – |
| Income tax (expense) benefit, three months ended September 26, 2026GAAP | −$2M | – | – |
| Loss from continuing operations, three months ended September 26, 2026GAAP | −$229M | – | – |
| Net loss, three months ended September 26, 2026GAAP | −$229M | – | – |
| Net loss attributable to RYAM, three months ended September 26, 2026GAAP | −$230M | – | – |
| Loss from continuing operations per diluted share, three months ended September 26, 2026GAAP | $(3.40) per diluted share | – | – |
| Net loss per diluted share, three months ended September 26, 2026GAAP | $(3.40) per diluted share | – | – |
| Weighted average shares used in determining EPS - Basic and Diluted, three months ended September 26, 2026GAAP | 67,642,372 | – | – |
| Adjusted EBITDA-continuing operations, three months ended September 26, 2026non-GAAP | $52M | 30% sequential growth | – |
| High Purity Cellulose Adjusted EBITDA-continuing operations, three months ended September 26, 2026non-GAAP | $73M | – | – |
| Paperboard & High Yield Pulp Adjusted EBITDA-continuing operations, three months ended September 26, 2026non-GAAP | −$9M | – | – |
| Net sales, nine months ended September 26, 2026GAAP | $1.08B | – | – |
| Gross margin, nine months ended September 26, 2026GAAP | $30M | – | – |
| Operating income (loss), nine months ended September 26, 2026GAAP | −$268M | – | – |
| Loss from continuing operations, nine months ended September 26, 2026GAAP | −$343M | – | – |
| Net loss, nine months ended September 26, 2026GAAP | −$343M | – | – |
| Loss from continuing operations per diluted share, nine months ended September 26, 2026GAAP | $(5.13) per diluted share | – | – |
| Net loss per diluted share, nine months ended September 26, 2026GAAP | $(5.13) per diluted share | – | – |
| Adjusted EBITDA-continuing operations, nine months ended September 26, 2026non-GAAP | $100M | – | – |
| Cash provided by operating activities, nine months ended September 26, 2026GAAP | $66M | – | – |
| Capital expenditures, net of proceeds from sale of property, plant and equipment, nine months ended September 26, 2026GAAP | −$66M | – | – |
| Adjusted Free Cash Flow, nine months ended September 26, 2026non-GAAP | $2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| High Purity CelluloseNet sales increased $17 million, driven by a 10% Total Cellulose sales volume increase, partly offset by a 3% Total Cellulose average sales price decrease and a $5 million decrease in Biomaterials & Other. | $313M | – | 6% |
| Paperboard & High Yield PulpNet sales increased $13 million, driven by a 26% total sales volume increase, partly offset by a 2% total average sales price decrease. | $70M | – | 23% |
Q1 2027 / ongoing outlook
- NoteThe Company is targeting a conclusion of the strategic review in Q1 2027.
- NoteProduction remains idled, with estimated site carrying costs of $2 million to $3 million per month.
What drove it
- High Purity Cellulose operating income increased $5 million, or 13%, compared to the same prior year quarter, supported by higher Cellulose Specialties average sales price, lower wood costs, lower logistics costs, lower maintenance and other service costs, and a $3 million insurance recovery related to the 2024 Jesup plant fire.
- Total Cellulose sales volume increased 10%, including a 42% increase in Cellulose Commodities sales volume that was offset by an 18% decrease in Cellulose Specialties sales volume.
- Cellulose Specialties average sales price increased 19%, driven by higher pricing through CS leadership initiatives in 2026.
- Paperboard & High Yield Pulp volume increased through higher folding packaging and lottery paperboard sales, increased demand for HYP maple grade in Asia, and HYP supply challenges from Indonesia.
- The Company paid $2 million in tariff-related costs on Canadian paperboard during the third quarter.
Concerns
- Loss from continuing operations and net loss were each $229 million, or $(3.40) per diluted share, inclusive of non-cash impairments of $221 million.
- The 50% U.S. tariff on Canadian paperboard, effective August 22, 2026, rendered continued paperboard and high yield pulp production at Temiscaming uneconomic.
- Temiscaming paperboard and high yield pulp production was economically idled on October 3, 2026.
- Temiscaming production remains idled, with estimated site carrying costs of $2 million to $3 million per month.
- Cellulose Specialties sales volume declined 18% amid execution of CS leadership initiatives and weaker demand for ethers and other CS end uses.
- Cellulose Commodities average sales price decreased 8% due to softer global commodity pricing and product mix within the commodity portfolio.
- The Company stated that tariff-related uncertainty at Temiscaming has slowed the strategic review.
- The Company has not filed its Form 10-Q for the quarter ended September 26, 2026, and stated that all financial results are preliminary and subject to change.
What to watch
- The Company’s ability to grow Cellulose Specialties volumes, load plant production capacity more heavily toward Cellulose Specialties, and capture product value.
- The path forward for the Temiscaming site, including site-cost management and the evaluation of all options.
- Whether the Company concludes its strategic review in Q1 2027.
- The effect of the 50% U.S. tariff on Canadian paperboard and ongoing tariff-related costs.
- Cellulose Specialties demand, particularly for ethers and other CS end uses.
- Construction progress at the Altamaha Green Energy project at Jesup.
Balance sheet and cash flow
- The Company ended its third quarter with $143 million of global liquidity, including $61 million of cash, $66 million of borrowing capacity under the ABL Credit Facility and $16 million of availability under the France factoring facility.
- As of September 26, 2026, the Company’s consolidated net secured leverage ratio was 4.0 times covenant EBITDA.
- Cash and cash equivalents were $61 million as of September 26, 2026, compared with $75 million as of December 31, 2025.
- Debt due within one year was $34 million and long-term debt was $737 million as of September 26, 2026.
- Total debt was $771 million, Adjusted Net Debt was $745 million, and Net Secured Debt was $714 million as of September 26, 2026.
- Cash provided by operating activities was $66 million for the nine months ended September 26, 2026, compared with cash used in operating activities of $(8) million for the nine months ended September 27, 2025.
- Cash used in investing activities was $(64) million for the nine months ended September 26, 2026.
- Cash used in financing activities was $(14) million for the nine months ended September 26, 2026.
Analysis
RYAM reported third-quarter net sales of $383 million, compared with $353 million in the same prior-year quarter and $376 million in the second quarter. The operating result deteriorated to a $(196) million loss from $9 million of operating income a year earlier, while loss from continuing operations was $(229) million, or $(3.40) per diluted share. The quarterly loss included $221 million of non-cash impairments, comprising $210 million in Paperboard & High Yield Pulp and $11 million in Corporate & Other under the Adjusted EBITDA reconciliation.
High Purity Cellulose was the principal earnings contributor. Segment net sales were $313 million, up 6%, and operating income was $43 million, up $5 million, or 13%, from the same prior-year quarter. Total Cellulose volume increased 10%, but the mix shifted toward lower-priced Cellulose Commodities: CC volume rose 42% while Cellulose Specialties volume declined 18%. CS pricing increased 19%, while CC pricing declined 8%. Management identified lower wood, logistics, maintenance and service costs, plus a $3 million Jesup fire insurance recovery, as contributors to the segment operating-income improvement. HPC Adjusted EBITDA was $73 million, compared with $57 million in the prior quarter and $64 million a year earlier.
Paperboard & High Yield Pulp generated $70 million of net sales, up 23%, on a 26% volume increase, but posted a $(224) million operating loss. The segment absorbed $210 million of non-cash asset impairments and $2 million of tariff-related costs. The 50% U.S. tariff on Canadian paperboard became effective August 22, 2026, and the company economically idled Temiscaming paperboard and high yield pulp production on October 3, 2026. The site remains idled, and management estimates carrying costs of $2 million to $3 million per month. This operating disruption and the tariff uncertainty have also slowed the strategic review.
Cash generation improved over the first nine months. Cash provided by operating activities was $66 million, compared with $(8) million in the prior-year period, and Adjusted Free Cash Flow was $2 million, compared with $(103) million. The company ended the quarter with $143 million of global liquidity, including $61 million of cash, and reported $714 million of Net Secured Debt and a 4.0 times consolidated net secured leverage ratio based on covenant EBITDA. Management gave no revenue, margin, expense or tax-rate outlook, but is targeting a strategic-review conclusion in Q1 2027. The results remain preliminary because the company had not filed its Form 10-Q for the quarter ended September 26, 2026.
Management, verbatim
RYAM delivered another strong quarter in HPC, with higher earnings, increased cellulose shipments and positive cash generation building on the progress we have made since the first quarter.
Dan Krawczyk, President and Chief Executive Officer
Commodity losses continue to weigh on HPC’s overall results, making a production mix more heavily weighted toward CS a clear and urgent priority.
Dan Krawczyk, President and Chief Executive Officer
Given the complexities of these discussions, we are targeting a conclusion of the strategic review in Q1 2027.
Dan Krawczyk, President and Chief Executive Officer
Not in the filing
stated, not guessed- Formal revenue guidance
- Formal gross margin guidance
- Formal operating expense guidance
- Formal tax-rate guidance
- Prior-quarter percentage changes for total net sales, gross margin, operating income (loss), net loss, and EPS
- Share repurchases
- Dividend declaration or payment
- Prior outlook for comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.