Rayonier Advanced Materials Q3 sales and EBITDA miss estimates on tariffs, impairments
Overview
US high purity cellulose producer's preliminary Q3 net sales rose yr/yr but missed analyst expectations
Preliminary Q3 adjusted EBITDA missed analyst expectations
Net loss widened sharply due to non-cash impairments after Temiscaming facility idled by U.S. tariffs
Outlook
Company is targeting conclusion of strategic review in Q1 2027
Temiscaming production remains idled due to U.S. tariffs; all site options under evaluation
Company remains focused on increasing Cellulose Specialties volumes and shifting production mix
Result Drivers
PRODUCT MIX SHIFT - Co said lower orders for Cellulose Specialties (CS) led to increased production and sales of lower-priced Cellulose Commodities (CC), reducing average realized cellulose price
TARIFF IMPACT - U.S. tariffs on Canadian paperboard led to economic idling of Temiscaming facility and $2 mln in tariff-related costs in Q3
COST PRESSURES - Higher chemicals, wood, and energy costs weighed on operating income, partially offset by lower logistics and maintenance expenses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Sales | Miss | $383 mln | $387.80 mln (3 Analysts) |
Q3 Loss Per Share | $3.40 | ||
Q3 Net Loss from Cont. Ops. | $229 mln | ||
Q3 Adjusted EBITDA | Miss | $52 mln | $54.67 mln (3 Analysts) |
Q3 Operating Income | -$196 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Rayonier Advanced Materials Inc. is $14.00, about 109.9% above its November 2 closing price of $6.67
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 65 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)