Rayonier Advanced Materials (RYQ) Q2 2026 Earnings Report

The call described clear sequential operational and financial improvement (stronger sales, a meaningful uplift in adjusted EBITDA driven by Cellulose Specialties, improving cash generation and maintained liquidity and covenant compliance). Management emphasized an active, disciplined strategic review, operational improvement initiatives and a path to positive full-year free cash flow. Offsetting these positives are persistent weaknesses in Paperboard & High-Yield Pulp (negative EBITDA), pricing pressure in commodity grades, an impairment charge, elevated leverage and uncertainty from tariffs and trade proceedings. Overall, the tone is constructive and focused on execution with visible momentum, but material risks remain tied to refinancing, tariff outcomes and turnaround of weaker segments.

Management reiterated that the strategic review remains a top priority and will be concluded with a clear path in Q4, and that the company remains on track to generate positive free cash flow for full‑year 2026 with the full‑year FCF trajectory aligned with prior expectations. They expect second‑half improvement driven by Cellulose Specialties—Q2 CS pricing was +21% year‑over‑year (+8% sequentially) with CS volumes +19% sequentially and management sees another ~10–15% volumes improvement in the back half—while cellulose commodities should see modest improvement and paperboard a firmer pricing outlook. Q2 results underpinning the guidance included net sales $376M (+18% seq, +11% YoY), adjusted EBITDA $40M (Q1 $8M; prior year $28M), HPC adjusted EBITDA $57M (19% margin), paperboard/high‑yield pulp net sales $75M (Adj. EBITDA -$10M), liquidity $145M (cash $57M, ABL $76M, France $12M), adjusted net debt $755M, net secured debt $726M and net secured leverage 4.2x vs a 4.75x covenant; YTD cash from operations $37M and YTD adjusted free cash flow -$8M (improved $57M YoY).