RYAM Q3 Adjusted EBITDA Rises 30% as HPC Improves

RYAM reported a 30% sequential increase in third-quarter 2026 adjusted EBITDA, driven by stronger High Purity Cellulose results, while a 50% U.S. tariff on Canadian paperboard led the company to idle production at its Temiscaming site after the quarter. The tariff-related disruption has added costs and slowed RYAM’s strategic review, which the company now targets concluding in the first quarter of 2027.

Total adjusted EBITDA rose to $52 million from $40 million in the second quarter. High Purity Cellulose contributed $73 million, up $16 million sequentially, and Paperboard and High Yield Pulp recorded a $9 million adjusted EBITDA loss, a $1 million improvement. Corporate and other costs increased by $5 million to $12 million due to higher legal fees and unfavorable foreign-exchange effects, partly offset by lower professional fees.

High Purity Cellulose leads the improvement

High Purity Cellulose net sales increased to $313 million from $301 million in the previous quarter and $296 million a year earlier. Adjusted EBITDA rose to $73 million from $57 million sequentially and $64 million in the prior-year period, lifting the segment’s adjusted EBITDA margin to 23% from 19% and 22%, respectively.

The sequential gain reflected higher cellulose specialties pricing, a favorable product mix and increased total cellulose shipments, supported by shipment timing and energy credits. Total shipments increased 4% from the second quarter.

Cellulose specialties averaged $2,227 per metric ton in the quarter, compared with $825 for commodity cellulose, representing a 170% premium. RYAM said losses on lower-priced commodity volumes continued to weigh on segment earnings and dilute its average realized cellulose price.

Management is working to shift production more heavily toward cellulose specialties, reduce commodity losses and improve plant performance. Its priorities include expanding specialty volumes, securing longer-term customer commitments for 2027 and beyond, and developing differentiated applications through technical collaboration with customers.

Construction is also underway on the Altamaha Green Energy project at the Jesup site.

Temiscaming idled after U.S. tariff

The Paperboard and High Yield Pulp segment generated third-quarter net sales of $70 million, down from $75 million sequentially but above $57 million a year earlier. Its adjusted EBITDA loss was $9 million, compared with losses of $10 million in the second quarter and $8 million in the prior-year period.

Results included $2 million of costs related to the 50% U.S. tariff on Canadian paperboard that took effect on August 22. RYAM economically idled paperboard and high-yield pulp production at Temiscaming on October 3, while maintaining essential site services. Production remains idled, and the company estimates monthly carrying costs of $2 million to $3 million.

Approximately 70% of Temiscaming’s paperboard production historically was shipped to the United States. RYAM said tariff uncertainty and the production stoppage have complicated and slowed the strategic review as interested parties assess the site’s path forward. The company continues to provide information to those parties and said all options for the facility remain under evaluation.

Cash generation and financial flexibility remain priorities

RYAM ended the quarter with $745 million of adjusted net debt, including $714 million of net secured debt. Net secured leverage was 4.0 times covenant EBITDA, compared with a covenant limit of 4.75 times.

Total liquidity was $143 million, consisting of $61 million in cash, $66 million of availability under the North American asset-based lending facility and $16 million under a French factoring facility. Gross debt was $806 million. Year-to-date net capital expenditures totaled $64 million, including $10 million of strategic spending.

The company continues to target positive adjusted free cash flow for 2026 through working-capital management, controlled capital spending and cost discipline. However, it said that objective remains subject to tariff-related cash effects and Temiscaming’s carrying costs.

RYAM’s full-year modeling assumptions include $80 million of capital expenditures, $85 million of cash interest expense, $5 million of environmental spending, cash taxes of zero to $2 million, and stock-based compensation of $4 million to $5 million.

Management said its near-term focus is to build on High Purity Cellulose’s operating progress, manage Temiscaming’s cash impact and preserve financial flexibility entering 2027. The company also plans to pursue opportunities that use the scale and capabilities of its existing assets and infrastructure.

The outlook remains exposed to tariff and trade uncertainty, commodity pricing and volume volatility, foreign-exchange movements, raw-material and energy costs, customer concentration, manufacturing disruptions and the execution of the company’s specialty-products and strategic-review plans. RYAM also noted that it had not yet filed its Form 10-Q for the quarter ended September 26, 2026, making the reported financial results preliminary and subject to potential adjustments.