Rayonier Advanced Materials Inc. Q4 FY2025 earnings call

First, the team is great and RIAM is a leader in cellulose and derivatives with a broad portfolio. Priority one is to deliver positive free cash flow in 2026. Priority two is to assert leadership and lift value in cellulose specialties, with 85% of the specialties business already having an average price increase of 18% over 2025. Priority three is that every business is expected to improve EBITDA in 2026 through leadership initiatives, active portfolio management, and new product commercializations.

In 2025, free cash flow was negative 88 million US dollars. For the specialties business, 85% of it is arranged at an average price increase of 18% over 2025 with expected volume loss of about 20% compared with 2025. The other 15% is still in discussion. Every business is expected to improve EBITDA in 2026 relative to 2025 through various initiatives.

Priority one is to deliver positive free cash flow in 2026. 85% of the specialties business has an average price increase of 18% over 2025 with expected volume loss of about 20%, and the remaining 15% is in discussion. Every business is expected to improve EBITDA in 2026 relative to 2025.

There are risks related to subsidized imports affecting pricing in the market, such as with the anti-dumping and countervailing duties cases still in progress which impact pricing restoration in North America.

Q: Daniel Harriman from Sudoti asked about confidence in underlying earnings power and pricing ceiling in specialties.

A: Scott said the team is capable, there's more value, and discussed themes like leadership initiatives, leveling up/down, new products, and active idea pipeline.

Q: Matthew McKellar from RBC Capital Markets asked about recent filing rejecting offer and themes.

A: Scott talked about plans delivering more value, four themes including leadership initiatives, leveling up/down, new products, active idea pipeline, and Marcus added refi to address capital structure.

Q: Dimitri Silverstein from Water Tower Research asked about biomaterials strategy and anti-dumping case.

A: Scott talked about biomaterials as part of growth, and anti-dumping case preliminary determinations in March and May.

Q: Daniel Harriman from Sudoti asked about paperboard and high yield pulp in portfolio.

A: Scott said all businesses are sources of improvement, paperboard has new products like freezer board, high yield pulp has new product under testing.

Q: Matthew McKellar from RBC Capital Markets asked about integrated model and paperboard volumes.

A: Scott and Marcus talked about integrated model, paperboard volumes affected by new product and mix, and opportunities from competitor mill closure.