Rayonier Advanced Materials Inc. (RYAM) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

with each subsequent quarter and you're expected to show accelerating growth and profitability. Let me provide an update on tariffs, which is detailed on slide five. First, some context. Ryan is one of the top 50 US exporters. We export about 70% of our US production. So it comes as no surprise that Ryan was impacted by the economic uncertainty caused by the tariff wars. We estimate that the negative impact of uncertainty caused by those tariffs on our 2025 EBITDA is approximately $21 million. Of that, roughly $7 million is tied to direct tariff related disruptions. Issues we anticipate fully recovering from as trade policies stabilize in the coming quarters. The remaining $14 million reflects indirect effects, primarily due to the impact tariffs have had on our customers' abilities to access key geographic markets. While we are actively working to mitigate these challenges and regain lost volumes, we are not assuming a recovery of this portion within the current forecast period. It's important to note that the period of uncertainty in April and May, following the initial imposition of the 125% Chinese tariff rate, had a pronounced short term impact on order activity. That said, since June, we've seen orders return to more normalized levels, reinforcing our view that the worst of the disruption is now behind us. Even more encouragingly, we see the latest development in the tariff talks providing potential tailwinds as trade policies stabilize. To quickly recap, the disruptive Chinese tariffs have largely been resolved. Currently, our cellular specialty and dissolving wood pulp exports to China are tariff free and our paperboard imports into the US remain tariff free under the USMCA Free Trade Agreement. Our only directly tariff product at this point is fluff pulp int...