Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q1 2025 Earnings Presentation
28 slides from Rayonier Advanced Materials's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Financial Presentation Materials
First Quarter 2025 Financial Presentation Materials May 7, 2025
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements Certain statements in this document regarding anticipated financial, business, legal or other outcomes, including business and market conditions, outlook and other similar statements relating to future events, developments or financial or operational performan
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted income from continuing operations, adjusted net debt, and net secured debt. The Company believes these n
Slide 4: Q1'25 Financial Highlights
Q1’25 Financial Highlights Revenue by Segment/Product ⎔ Revenue of $356 million; -$32 million from Q1’24 ⎔ Operating Loss of $15 million; -$32 million from Q1’24 ⎔ Adjusted Free Cash Flow generation of $10 million; +$26 million from Q1’24 ⎔ Adjusted EBITDA of $17 million; -$35 million from Q1’24 – C
Slide 5: Cellulose Specialties
Cellulose Specialties Quarter Ended Operating Income Bridge 45 Mar 29, Dec 31, Mar 30, 40 38 Key Financials 35 2025 2024 2024 31 30 ($ millions) $ millions 25 Net Sales $201 $241 $206 20 Operating Income 31 45 38 15 10 Adjusted EBITDA 46 62 55 5 0 (1) (2) Q1'24 CS Price/ Volume / Cost SG&A / Q1'25 E
Slide 6: Cellulose Commodities
Cellulose Commodities Quarter Ended Operating Income Bridge 0 Mar 29, Dec 31, Mar 30, (2) Key Financials (4) 2025 2024 2024 (6) ($ millions) (8) $ millions (10) Net Sales $75 $90 $94 (12) Operating Income (13) (16) (19) (14) (13) (16) (18) Adjusted EBITDA (2) (3) (7) (20) (19) (22) (1) (2) EBITDA Ma
Slide 7: Biomaterials
Biomaterials Quarter Ended Operating Income Bridge 4 Mar 29, Dec 31, Mar 30, Key Financials 3 2025 2024 2024 3 2 2 $ millions ($ millions) 2 Net Sales $7 $8 $7 2 1 Operating Income 2 2 2 1 0 Adjusted EBITDA 2 3 2 Q1'24 Price Volume / Cost SG&A / Q1'25 Sales Mix Other EBITDA Margin 29% 38% 29% ⎔ Net
Slide 8: Paperboard
Paperboard Quarter Ended Operating Income Bridge Mar 29, Dec 31, Mar 30, 10 Key Financials 8 8 2025 2024 2024 6 ($ millions) $ millions 4 Net Sales $49 $60 $53 2 Operating Income (2) 4 8 0 (2) (2) Adjusted EBITDA 4 10 12 (4) Q1'24 Price Volume / Cost SG&A / Q1'25 Sales Mix Other EBITDA Margin 8% 17%
Slide 9: High-Yield Pulp
High-Yield Pulp Quarter Ended Operating Income Bridge 0 Mar 29, Dec 31, Mar 30, Key Financials (1) (1) (2) 2025 2024 2024 (3) $ millions ($ millions) (4) Net Sales $31 $32 $34 (5) (6) Operating Income (7) (8) (1) (7) (7) (8) Adjusted EBITDA (6) (8) - Q1'24 Price Volume / Cost SG&A / Q1'25 Sales Mix
Slide 10: Consolidated Operating Income
Consolidated Operating Income BRIDGE Q1 2024 TO Q1 2025 30 25 ⎔ Lower pricing in Paperboard and High-Yield 20 Pulp offset modest gains in Cellulose 17 Specialties, which came in below guidance 15 due to weaker mix and the timing of orders 10 ⎔ Favorable volume/mix driven by reduction of $ millions c
Slide 11: Capital Structure & Liquidity
Total Liquidity Capital Structure & Liquidity Cash $131 $272 $130 Factoring (France) Million ABL (North America) ⎔ Adjusted Net Debt of $653 million, $90 million reduction from Q1’24 $11 – Net Secured debt of $624 million, $97 million reduction from Q1’24 Amount ⎔ $272 million of liquidity, includin
Slide 12: Navigating 2025: Strategic Initiatives Amid Tariff Challenges
Navigating 2025: Strategic Initiatives Amid Tariff Challenges Immediate Focus: Sustained Commitment: Tariff Mitigation 2025 Strategic Initiatives – Customer Advocacy: – Debt Reduction: – Continuing strategic dialogues and leveraging relationships to mitigate – Gross debt reduced by $15M year-over-ye
Slide 13: Tariffs: Impact & Mitigation Summary
Tariffs: Impact & Mitigation Summary Cellulose Specialties Cellulose Commodities Paperboard Exposed Market ⎔ China ⎔ China ⎔ US Coated Paperboard ⎔ Retaliatory tariff from China ⎔ Retaliatory tariff from China ⎔ US tariff implementation Revenue Exposed ⎔ ~$160 Million ⎔ ~$85 Million ⎔ ~$175 Million
Slide 14: 2025 Guidance
2025 Guidance EBITDA: $175-$185M | ADJUSTED FREE CASH FLOW: $5-$15M ($ Millions) $175-185 Capital allocation $(93) decision to repay debt or invest in high return strategic capital projects $5 $10 $5-15 $(5) $(2) $(85) Adjusted EBITDA Cash Interest (1) Maintenance Enviro/Tax/ Working Capital (2) Fra
Slide 15: Market Outlook
Market Outlook Cellulose Specialties ⎔ 2025 cellulose specialties average sales prices expected to increase mid-single-digit percentage ⎔ Sales volumes expected to decline a mid-single-digit percentage reflecting second-order tariff impacts, accelerated acetate destocking, and the absence of 2024 br
Slide 16: Net Debt/Adjusted EBITDA
Reducing Net Leverage via EBITDA Growth & Debt Reduction 18.0% 10.0x 17% 10.0x 16.0% 15% 13.6% 14.0% 11.7% Net Debt/Adjusted EBITDA 7.5x 12% 12.0% 10.3% EBITDA Margin 11% 9.0% 10.0% 8.5% 5.0x 5.4x 5.2x 7.4% 8.0% 4.0x $1,095 3.5x ~ 3.7x 4.2x 6.0% $937 2.9x 2.9x ~3.1x $859 2.7x < 2.5x 2.5x $797 $778 $
Slide 17: Appendix
Appendix
Slide 18: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA Net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adj
Slide 19: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ MILLIONS) 19
Slide 20: Consolidated Statements of Operations
Consolidated Statements of Operations ($ MILLIONS) 20
Slide 21: Consolidated Balance Sheets
Consolidated Balance Sheets ($ MILLIONS) 21
Slide 22: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ MILLIONS) 22
Slide 23: Reconciliation of EBITDA Guidance
Reconciliation of EBITDA Guidance ($ MILLIONS) 23
Slide 24: Reconciliation of Adjusted Free Cash Flow
Reconciliation of Adjusted Free Cash Flow ($ MILLIONS) 24
Slide 25: Reconciliation of Adjusted Free Cash Flow Guidance
Reconciliation of Adjusted Free Cash Flow Guidance ($ MILLIONS) 25
Slide 26: Reconciliation of Adjusted Net Secured Debt
Reconciliation of Adjusted Net Secured Debt ($ MILLIONS) 26
Slide 27: Reconciliation of Adjusted Net Income (Loss)
Reconciliation of Adjusted Net Income (Loss) ($ MILLIONS) 27
Slide 28: Commodity Prices Mixed
Commodity Prices Mixed Viscose Delivered to China Fluff Delivered to North America 1,100 950 955 970 945 2,300 1,977 1,968 900 905 1,833 1,890 1,873 1,832 850 890 1,747 1,755 900 1,800 PRICE ($ / Tonne) PRICE ($ / Tonne) 700 1,300 500 800 300 300 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023
Rayonier Advanced Materials — Q1 2025 Earnings Presentation on 6ix