Rayonier Advanced Materials Inc. (RYAM) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

and a net secured leverage ratio of 2.9 times Covenant EBITDA. However, given these uncertain market conditions, we've lowered our full year guidance for adjusted EBITDA to a range of $175 to $185 million, and adjusted free cash flow between $5 million and $15 million. With that, I'll hand the call over to Marcus to discuss the financial details. Marcus? Thank you, Delisle. Starting with our cellular specialty segment on slide five, quarterly net sales decreased by 5 million to 201 million. A 2% sales price increase was more than offset by a 2% decline in sales volume and an unfavorable sales mix. The decline in sales volumes resulted from accelerated customer purchases in the prior quarter and stronger prior year volumes ahead of the indefinite suspension. Operating income for the segment was $31 million, down $7 million compared to the same quarter last year due to higher input costs, mainly higher energy, and operating challenges. EBITDA margins reduced from 27% to 23% as a result of the above impacts. Turning to slide six, in cellulose commodities, net sales declined $19 million to $75 million. This decrease reflects the company's shift away from negative margin commodity grades, partially offset by a 2% increase in pricing. Operating results improved by 6 million year-over-year to a loss of 13 million, primarily due to reduced commodity losses partially offset by higher input costs and operational challenges. Slide 7 covers our new biomaterials segment. Net sales remain steady at 7 million, with growth from bioethanol sales partially offset by lower feedstock availability from the Tartas Cellulose Plant. Operating income was flat at $2 million, as increased shared and ancillary costs to support the segment's new operating structure were offset by lower maintenan...