Rayonier Advanced Materials Inc. reported a net loss of $39 million for the fiscal year ending December 31, 2024, a significant improvement from a net loss of $102 million in 2023. The company's total revenue for 2024 was $1.63 billion, a slight decrease from $1.64 billion in the previous year. The decline in revenue was attributed to lower sales prices in the High Purity Cellulose commodity products and the Paperboard and High-Yield Pulp segments, although this was partially offset by increased sales volumes in cellulose specialties and the Paperboard segment. The gross margin improved to 10.2% from 5.4% in 2023, driven by lower costs associated with the indefinite suspension of operations at the Temiscaming High Purity Cellulose plant.
In 2024, Rayonier Advanced Materials made strategic operational changes, including the indefinite suspension of the Temiscaming plant, which resulted in a $25 million non-cash asset impairment. The company also recorded one-time charges of $17 million related to this suspension. The restructuring aims to enhance operational efficiency and reduce exposure to commodity price volatility. Additionally, the company is pursuing the sale of its Paperboard and High-Yield Pulp assets at the Temiscaming site, which it expects to complete at a fair price.
Operationally, Rayonier Advanced Materials has three main segments: High Purity Cellulose, Paperboard, and High-Yield Pulp. The High Purity Cellulose segment generated $1.30 billion in sales, while Paperboard and High-Yield Pulp contributed $228 million and $127 million, respectively. The company’s total production capacity for cellulose specialties and commodity products is 895,000 metric tons, excluding the suspended Temiscaming plant's capacity of 150,000 metric tons. The company employed approximately 2,350 people, with 69% unionized, and reported a significant decrease in its injury rate, reflecting its commitment to employee safety.
Looking ahead, Rayonier Advanced Materials anticipates a mixed demand environment for its products in 2025. The company expects average sales prices for cellulose specialties to increase by a mid-single-digit percentage, while sales volumes are projected to decline slightly due to the previous year's accelerated volumes resulting from the plant suspension. The company is also investing in new biomaterials projects, including a bioethanol facility in France, which is expected to generate $6 million in EBITDA in 2025. Overall, the company remains focused on optimizing its operations and pursuing growth opportunities in renewable products while managing its financial obligations, which include a total debt of $730 million as of December 31, 2024.
About RAYONIER ADVANCED MATERIALS INC.
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