Rayonier Advanced Materials Inc. Q1 FY2026 earnings call

• 2026 priorities unchanged: deliver positive free cash flow, assert leadership in CS, drive year-over-year EBITDA improvement across every business, exit 2026 with momentum. - First quarter adjusted EBITDA $8 million, with high purity cellulose at $24 million, paperboard and high yield pulp negative $5 million, corporate and other costs $11 million. - Ended quarter with $160 million liquidity. - New product pipeline with progress in paperboard, high-yield pulp, cellulose commodities. - Examples of value creation through targeted product innovation, commercial focus, dynamic asset allocation

Adjusted EBITDA in the first quarter was $8 million. High purity cellulose generated $24 million of adjusted EBITDA. Paperboard and high yield pulp were a negative $5 million. Corporate and other costs were $11 million. Ended the quarter with total liquidity of $160 million, comprising $68 million of cash on hand, $88 million of availability under the ABL and $4 million available under our factoring line in France.

• 2026 remains a transition year building leadership momentum. - First quarter broadly in line to slightly ahead of prior outlook. - Priorities unchanged: positive free cash flow, assert CS leadership, drive EBITDA improvement, exit with stronger momentum. - Expect CS sales price increase, inventory conditions to improve, benefit from improving commodity pricing

• Pressure from new third-party supply and domestic oversupply in paperboard and high-yield pulp. - Impact of elevated acetate inventories, soft ethers demand, competing products from China. - Shipping cost increases due to higher oil pricing and diesel costs. - Impact of trade dispute remedies being less than expected

Q: Heading into 2026, update on CS pricing conversations and volume weakness.

A: Secured majority 2026 CS volume, pricing meaningfully higher, market still constructive, volumes in back half to be completed.

Q: Formal process to explore strategic alternatives, timing, interest drivers.

A: Engaged Morgan Stanley, broad mandate to maximize shareholder value, unique offering.

Q: Fluff market conditions and mix in commodities business.

A: Higher fluff pricing, dynamic asset allocation, mix to evolve with fluff production.

Q: Trade dispute on anti-dumping, shipping costs.

A: Positive direction on trade, shipping costs impacted by oil pricing, managed through negotiations.

Q: New products impact on results.

A: Timiskaming products impact in 2026, odor control fluff impact in longer term.

Q: Dynamic asset allocation detail and COS shipments.

A: Flexibility from nimble response to market changes, CS volumes to be higher, fire impact de minimis