# EDGAR Filing Document

**Accession Number:** 0001597672
**File Stem:** 0001597672-25-000036
**Filing Date:** 2025-8
**Character Count:** 155717
**Document Hash:** 92f339a44613a9643aa80ac0eecdf09e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001597672-25-000036.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001597672-25-000036

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 99

**CONFORMED PERIOD OF REPORT**: 20250628

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RAYONIER ADVANCED MATERIALS INC.
- **CENTRAL INDEX KEY:** 0001597672
- **STANDARD INDUSTRIAL CLASSIFICATION:** PULP MILLS [2611]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 464559529
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36285
- **FILM NUMBER:** 251190553

**BUSINESS ADDRESS:**
- **STREET 1:** 1301 RIVERPLACE BOULEVARD
- **STREET 2:** SUITE 2300
- **CITY:** JACKSONVILLE
- **STATE:** FL
- **ZIP:** 32207
- **BUSINESS PHONE:** (904) 357-4600

**MAIL ADDRESS:**
- **STREET 1:** 1301 RIVERPLACE BOULEVARD
- **STREET 2:** SUITE 2300
- **CITY:** JACKSONVILLE
- **STATE:** FL
- **ZIP:** 32207

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Rayonier Holding Co
- **DATE OF NAME CHANGE:** 20140121

?xml version='1.0' encoding='ASCII'? ryam-20250628

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

**Commission File Number 001-36285**![RYAM_Logo.jpg](ryam-20250628_g1.jpg)

**RAYONIER ADVANCED MATERIALS INC.** 

Incorporated in the State of **Delaware** 

I.R.S. Employer Identification No.: **46-4559529** 

Principal Executive Office:

**1301 RIVERPLACE BOULEVARD, SUITE 2300** 

**JACKSONVILLE, FL 32207** 

Telephone Number: **(904) 357-4600** 

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |
| **Title of each class** | **Trading Symbol** | **Name of exchange on which registered** |
| Common stock, par value $0.01 per share | RYAM | New York Stock Exchange |
| Securities to be registered pursuant to Section 12(g) of the Act: **None** | Securities to be registered pursuant to Section 12(g) of the Act: **None** | Securities to be registered pursuant to Section 12(g) of the Act: **None** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp; No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ⌧&nbsp;&nbsp;&nbsp;&nbsp; No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | □ | Accelerated filer | ⌧ |
| Non-accelerated filer | □ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐&nbsp;&nbsp;&nbsp;&nbsp; No ⌧

The registrant had 67,000,882 shares of common stock outstanding as of August 4, 2025.

------

**Table of Contents**

---

| | |
|:---|:---|
| | **Page** |
| **Part I. Financial Information** | |
| <u>[Item 1. Financial Statements (Unaudited)](#i877ac63c4d624b51a18fe72b0b65fa67_16)</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Operations](#i877ac63c4d624b51a18fe72b0b65fa67_19)</u> | <u>[1](#i877ac63c4d624b51a18fe72b0b65fa67_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Comprehensive](#i877ac63c4d624b51a18fe72b0b65fa67_22)[Income](#i877ac63c4d624b51a18fe72b0b65fa67_22)[(](#i877ac63c4d624b51a18fe72b0b65fa67_22)[Loss](#i877ac63c4d624b51a18fe72b0b65fa67_22)</u>) | <u>[2](#i877ac63c4d624b51a18fe72b0b65fa67_22)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Balance Sheets](#i877ac63c4d624b51a18fe72b0b65fa67_25)</u> | <u>[3](#i877ac63c4d624b51a18fe72b0b65fa67_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Stockholders' Equity](#i877ac63c4d624b51a18fe72b0b65fa67_28)</u> | <u>[4](#i877ac63c4d624b51a18fe72b0b65fa67_28)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Cash Flows](#i877ac63c4d624b51a18fe72b0b65fa67_31)</u> | <u>[5](#i877ac63c4d624b51a18fe72b0b65fa67_31)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Condensed Consolidated Financial Statements](#i877ac63c4d624b51a18fe72b0b65fa67_34)</u> | <u>[6](#i877ac63c4d624b51a18fe72b0b65fa67_34)</u> |
| <u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i877ac63c4d624b51a18fe72b0b65fa67_91)</u> | <u>[22](#i877ac63c4d624b51a18fe72b0b65fa67_91)</u> |
| <u>[Item 3. Quantitative and Qualitative Disclosures about Market Risk](#i877ac63c4d624b51a18fe72b0b65fa67_127)</u> | <u>[37](#i877ac63c4d624b51a18fe72b0b65fa67_127)</u> |
| <u>[Item 4. Controls and Procedures](#i877ac63c4d624b51a18fe72b0b65fa67_130)</u> | <u>[38](#i877ac63c4d624b51a18fe72b0b65fa67_130)</u> |
| **Part II. Other Information** |  |
| <u>[Item 1. Legal Proceedings](#i877ac63c4d624b51a18fe72b0b65fa67_136)</u> | <u>[39](#i877ac63c4d624b51a18fe72b0b65fa67_136)</u> |
| <u>[Item 1A. Risk Factors](#i877ac63c4d624b51a18fe72b0b65fa67_139)</u> | <u>[39](#i877ac63c4d624b51a18fe72b0b65fa67_139)</u> |
| <u>[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#i877ac63c4d624b51a18fe72b0b65fa67_142)</u> | <u>[39](#i877ac63c4d624b51a18fe72b0b65fa67_142)</u> |
| <u>[Item 5. Other Information](#i877ac63c4d624b51a18fe72b0b65fa67_145)</u> | <u>[39](#i877ac63c4d624b51a18fe72b0b65fa67_145)</u> |
| <u>[Item 6. Exhibits](#i877ac63c4d624b51a18fe72b0b65fa67_148)</u> | <u>[40](#i877ac63c4d624b51a18fe72b0b65fa67_148)</u> |
| <u>[Signature](#i877ac63c4d624b51a18fe72b0b65fa67_151)</u> | <u>[41](#i877ac63c4d624b51a18fe72b0b65fa67_151)</u> |

---

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Glossary**

The following terms and abbreviations appearing in the text of this report have the meanings indicated below.

---

| | |
|:---|:---|
| 2024 Form 10-K | RYAM Annual Report on Form 10-K for the year ended December 31, 2024 |
| 2029 Term Loan | $700 million original aggregate principal amount of variable rate term loan entered into October 2024, maturing October 2029 |
| ABL Credit Facility | $175 million 5-year senior secured asset-based revolving credit facility, as amended, maturing November 2029 |
| AETR | Annual effective tax rate |
| AGE | Altamaha Green Energy LLC |
| ASC | Accounting Standards Codification |
| ASU | Accounting Standards Update |
| AOCI | Accumulated other comprehensive income (loss) |
| BioNova | RYAM BioNova S.A.S., a French simplified joint-stock company and a RYAM subsidiary in which SWEN holds a redeemable noncontrolling interest |
| BioNova Term Loan | €37 million aggregate principal amount of variable rate term loans entered into November 2024, maturing November 2031 and November 2032 |
| CAD | Canadian dollar |
| CEWS | Canada Emergency Wage Subsidy |
| DTA | Deferred tax asset |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
| ERP | Enterprise Resource Planning |
| eSAF | Electrofuel Sustainable Aviation Fuel |
| Exchange Act | Securities Exchange Act of 1934, as amended |
| FASB | Financial Accounting Standards Board |
| Financial Statements | Unaudited condensed consolidated financial statements included in Part I Item 1 of this Quarterly Report on Form 10-Q |
| GAAP | United States generally accepted accounting principles |
| Georgia EPD | Georgia Environmental Protection Division |
| GRAS | Generally Recognized As Safe |
| LTF | LignoTech Florida LLC |
| MT | Metric ton |
| OPEB | Other post-employment benefits |
| RCRA | Resource Conservation and Recovery Act |
| ROU | Right-of-use |
| RYAM, the Company, our, we, us | Rayonier Advanced Materials Inc. and its consolidated subsidiaries |
| SAF | Sustainable Aviation Fuel |
| SEC | United States Securities and Exchange Commission |
| SG&A | Selling, general and administrative expense |
| SOFR | Secured Overnight Financing Rate |
| SWEN | SWEN Impact Fund for Transition 3 |
| TSR | Total shareholder return |
| U.S. | United States of America |
| USMCA | United States-Mexico-Canada Agreement |
| Washington DOE | Washington Department of Ecology |
| Washington MTCA | Washington Model Toxics Control Act |

---

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Part I. Financial Information**

**Item 1. Financial Statements**

**Rayonier Advanced Materials Inc.**

**Condensed Consolidated Statements of Operations**

**(Unaudited)**

(in thousands, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net sales | $340048 | $419045 | $696015 | $806701 |
| Cost of sales | (316407) | (370736) | (648320) | (721631) |
| Gross margin | 23641 | 48309 | 47695 | 85070 |
| Selling, general and administrative expense | (17965) | (21809) | (41224) | (42884) |
| Foreign exchange gain (loss) | (3713) | 558 | (4821) | 3469 |
| Indefinite suspension charges (Note 2) | (229) | (6626) | (634) | (6626) |
| Environmental remediation expense | (1312) | (1384) | (14459) | (2018) |
| Other operating income (expense), net | (1761) | 9149 | (2989) | 8261 |
| Operating income (loss) | (1339) | 28197 | (16432) | 45272 |
| Interest expense | (23694) | (21270) | (47297) | (42125) |
| Components of pension and OPEB, excluding service costs (Note 15) | 673 | 197 | 1305 | 1117 |
| Other income (expense), net | (1800) | 651 | (908) | 1921 |
| Income (loss) from continuing operations before income tax | (26160) | 7775 | (63332) | 6185 |
| Income tax (expense) benefit (Note 16) | (339202) | 849 | (333610) | 1321 |
| Equity in loss of equity method investment | (487) | (451) | (859) | (903) |
| Income (loss) from continuing operations | (365849) | 8173 | (397801) | 6603 |
| Income from discontinued operations, net of tax (Note 3) | 2670 | 3217 | 2670 | 3217 |
| Net income (loss) | (363179) | 11390 | (395131) | 9820 |
| Net income attributable to redeemable noncontrolling interest (Note 11) | 18 |  | 36 |  |
| Net income (loss) attributable to RYAM | $(363197) | $11390 | $(395167) | $9820 |
| Basic and Diluted earnings per common share (Note 13) |  |  |  |  |
| Income (loss) from continuing operations | $(5.48) | $0.12 | $(5.99) | $0.10 |
| Income from discontinued operations | 0.04 | 0.05 | 0.04 | 0.05 |
| Net income (loss) | $(5.44) | $0.17 | $(5.95) | $0.15 |

---

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Condensed Consolidated Statements of Comprehensive Income (Loss)**

**(Unaudited)**

(in thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net income (loss) | $(363179) | $11390 | $(395131) | $9820 |
| Other comprehensive income (loss), net of tax (Note 12): |  |  |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustment | 16711 | (2007) | 24389 | (6488) |
| &nbsp;&nbsp;Unrealized gain on derivative instruments | 29 | 39 | 61 | 80 |
| &nbsp;&nbsp;Net (loss) on employee benefit plans | (98) | 2462 | (198) | 2448 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss) | 16642 | 494 | 24252 | (3960) |
| Comprehensive income (loss) | (346537) | 11884 | (370879) | 5860 |
| Comprehensive income attributable to redeemable noncontrolling interest | 937 |  | 1363 |  |
| Comprehensive income (loss) attributable to RYAM | $(347474) | $11884 | $(372242) | $5860 |

---

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Condensed Consolidated Balance Sheets**

**(Unaudited)**

(in thousands, except share and par value amounts)

---

| | | |
|:---|:---|:---|
|  | **June 28, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Current assets |  |  |
| Cash and cash equivalents | $70679 | $125222 |
| Accounts receivable, net (Note 4) | 152583 | 213972 |
| Inventory (Note 5) | 233167 | 208003 |
| Income tax receivable | 900 | 2637 |
| Prepaid and other current assets | 82474 | 51127 |
| &nbsp;&nbsp;Total current assets | 539803 | 600961 |
| Property, plant and equipment (net of accumulated depreciation of $1,938,049 and $1,891,599, respectively) | 1042714 | 1018583 |
| Deferred tax assets | 15369 | 349500 |
| Intangible assets, net | 6900 | 10404 |
| Other assets | 150182 | 150209 |
| &nbsp;&nbsp;Total assets | $1754968 | $2129657 |
| **Liabilities, Redeemable Noncontrolling Interest and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| Accounts payable | $189607 | $196249 |
| Accrued and other current liabilities (Note 7) | 146918 | 170785 |
| Debt due within one year (Note 8) | 25342 | 23379 |
| Current environmental liabilities (Note 9) | 9764 | 9749 |
| &nbsp;&nbsp;Total current liabilities | 371631 | 400162 |
| Long-term debt (Note 8) | 720352 | 706444 |
| Non-current environmental liabilities (Note 9) | 172117 | 160466 |
| Pension and other postretirement benefits (Note 15) | 75966 | 77239 |
| Deferred tax liabilities | 14840 | 13685 |
| Other liabilities | 44989 | 47273 |
| Commitments and contingencies (Note 18) |  |  |
| Redeemable noncontrolling interest (Note 11) | 12755 | 10503 |
| Stockholders' Equity |  |  |
| Common stock: 140,000,000 shares authorized at $0.01 par value, 67,000,882 and 65,966,881 issued and outstanding, respectively | 670 | 660 |
| Additional paid-in capital | 425530 | 425303 |
| Retained earnings (deficit) | (62465) | 333591 |
| Accumulated other comprehensive loss (Note 12) | (21417) | (45669) |
| &nbsp;&nbsp;Total stockholders' equity | 342318 | 713885 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, redeemable noncontrolling interest and stockholders' equity | $1754968 | $2129657 |

---

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Condensed Consolidated Statements of Stockholders' Equity**

**(Unaudited)**

(in thousands, except share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional Paid-in Capital** | **Retained Earnings (Deficit)** | **Accumulated Other Comprehensive Loss** | **Total Stockholders' Equity** |
| | **Shares** | **Par Value** | **Additional Paid-in Capital** | **Retained Earnings (Deficit)** | **Accumulated Other Comprehensive Loss** | **Total Stockholders' Equity** |
| **Three months ended June 28, 2025** | | | | | | |
| Balance at March 29, 2025 | 66754665 | $668 | $424262 | $301213 | $(38059) | $688084 |
| Net loss attributable to RYAM |  |  |  | (363197) |  | (363197) |
| Other comprehensive income, net of tax |  |  |  |  | 16642 | 16642 |
| Issuance of common stock under incentive stock plans | 287728 | 2 | (2) |  |  |  |
| Stock-based compensation |  |  | 1450 |  |  | 1450 |
| Repurchase of common stock<sup>(a)</sup> | (41511) |  | (180) |  |  | (180) |
| Redeemable noncontrolling interest adjustment to redemption value |  |  |  | (481) |  | (481) |
| Balance at June 28, 2025 | 67000882 | $670 | $425530 | $(62465) | $(21417) | $342318 |
| **Three months ended June 29, 2024** |  |  |  |  |  |  |
| Balance at March 30, 2024 | 65554837 | $655 | $420448 | $371018 | $(50371) | $741750 |
| Net income attributable to RYAM |  |  |  | 11390 |  | 11390 |
| Other comprehensive income, net of tax |  |  |  |  | 494 | 494 |
| Issuance of common stock under incentive stock plans | 378301 | 4 | (4) |  |  |  |
| Stock-based compensation |  |  | 1690 |  |  | 1690 |
| Repurchase of common stock<sup>(a)</sup> | (43045) |  | (190) |  |  | (190) |
| Balance at June 29, 2024 | 65890093 | $659 | $421944 | $382408 | $(49877) | $755134 |
| **Six months ended June 28, 2025** |  |  |  |  |  |  |
| Balance at December 31, 2024 | 65966881 | $660 | $425303 | $333591 | $(45669) | $713885 |
| Net loss attributable to RYAM |  |  |  | (395167) |  | (395167) |
| Other comprehensive income, net of tax |  |  |  |  | 24252 | 24252 |
| Issuance of common stock under incentive stock plans | 1450938 | 14 | (14) |  |  |  |
| Stock-based compensation |  |  | 3255 |  |  | 3255 |
| Repurchase of common stock<sup>(a)</sup> | (416937) | (4) | (3014) |  |  | (3018) |
| Redeemable noncontrolling interest adjustment to redemption value |  |  |  | (889) |  | (889) |
| Balance at June 28, 2025 | 67000882 | $670 | $425530 | $(62465) | $(21417) | $342318 |
| **Six months ended June 29, 2024** |  |  |  |  |  |  |
| Balance at December 31, 2023 | 65393014 | $654 | $419122 | $372588 | $(45917) | $746447 |
| Net income attributable to RYAM |  |  |  | 9820 |  | 9820 |
| Other comprehensive loss, net of tax |  |  |  |  | (3960) | (3960) |
| Issuance of common stock under incentive stock plans | 621834 | 6 | (6) |  |  |  |
| Stock-based compensation |  |  | 3470 |  |  | 3470 |
| Repurchase of common stock<sup>(a)</sup> | (124755) | (1) | (642) |  |  | (643) |
| Balance at June 29, 2024 | 65890093 | $659 | $421944 | $382408 | $(49877) | $755134 |

---

<sup>(a)</sup>Repurchased to satisfy tax withholding requirements related to the issuance of stock under the Company's incentive stock plans.

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Condensed Consolidated Statements of Cash Flows**

**(Unaudited)**

(in thousands)

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** |
| **Operating activities** | | |
| Net income (loss) | $(395131) | $9820 |
| Adjustments to reconcile net income (loss) to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;Income from discontinued operations | (2670) | (3217) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 62438 | 66794 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 3255 | 3470 |
| &nbsp;&nbsp;Deferred income tax expense (benefit) | 332705 | (955) |
| &nbsp;&nbsp;Increase in environmental liabilities | 14406 | 1785 |
| &nbsp;&nbsp;&nbsp;Change in fair value of put option liability | 1052 |  |
| &nbsp;&nbsp;&nbsp;Net periodic benefit cost of pension and other postretirement plans | 1274 | 2223 |
| &nbsp;&nbsp;Unrealized (gain) loss on foreign currency | 4343 | (2669) |
| &nbsp;&nbsp;Loss on disposal of property, plant and equipment | 646 | 1637 |
| &nbsp;&nbsp;&nbsp;Other | 4078 | 4343 |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 66487 | (9708) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | (20604) | (18914) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1786 | 3934 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities | (26789) | 4721 |
| &nbsp;&nbsp;&nbsp;&nbsp;Duty refund rights |  | 40111 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (33732) | 89 |
| &nbsp;&nbsp;Contributions to pension and other postretirement plans | (4106) | (4606) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash provided by operating activities | 9438 | 98858 |
| **Investing activities** |  |  |
| Capital expenditures, net of proceeds | (74980) | (58020) |
| &nbsp;&nbsp;Cash used in investing activities | (74980) | (58020) |
| **Financing activities** |  |  |
| Borrowings of long-term debt | 155750 | 222178 |
| Repayments of long-term debt | (149500) | (220235) |
| Short-term financing, net | (2319) | (532) |
| Debt issuance costs |  | (1875) |
| Repurchase of common stock | (3018) | (643) |
| &nbsp;&nbsp;Cash provided by (used in) financing activities | 913 | (1107) |
| Net increase (decrease) in cash and cash equivalents | (64629) | 39731 |
| Net effect of foreign exchange on cash and cash equivalents | 10086 | (1353) |
| Balance, beginning of period | 125222 | 75768 |
| Balance, end of period | $70679 | $114146 |
| Supplemental cash flow information: |  |  |
| Interest paid | $(34208) | $(43793) |
| Income taxes refunded, net | 231 | 4760 |
| Capital assets purchased on account | 29851 | 33804 |

---

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

**1. Nature of Operations and Basis of Presentation**

**Nature of Operations**

RYAM is a global leader in the production of cellulose specialties, a natural polymer used in the manufacturing of various specialty chemical products, including liquid crystal displays, filters, textiles and performance additives for pharmaceutical, food and other industrial applications. The Company's specialized assets also produce bioelectricity, biomaterials, including biofuels, lignin and tall oil soap, and commodity fluff, viscose and paper pulp.

Additionally, RYAM produces a unique, lightweight multi-ply paperboard product and a bulky, high-yield pulp product. The Company's paperboard is used for production in the commercial printing, lottery ticket and high-end packaging sectors. The Company's high-yield pulp is used by paperboard producers as well as in traditional printing, writing and specialty paper manufacturing.

**Basis of Presentation**

The Financial Statements and notes thereto have been prepared in accordance with GAAP for interim financial information and in accordance with the rules and regulations of the SEC. In the opinion of management, the Financial Statements and notes reflect all adjustments, including all normal recurring adjustments, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. The December 31, 2024 consolidated balance sheet was derived from audited annual financial statements but does not contain all the footnote disclosures from the audited annual financial statements. These Financial Statements and notes should be read in conjunction with the consolidated financial statements and supplementary data included in the Company's 2024 Form 10-K.

As a result of the sale of its lumber and newsprint assets in August 2021, the Company presents the historical results for those operations, and any subsequent directly associated impacts, as discontinued operations. Unless otherwise stated, information in these notes to condensed consolidated financial statements relates to continuing operations. See Note 3—Discontinued Operations for further information on the sale.

***New Segment Structure***

In the first quarter of 2025, the Company reorganized its High Purity Cellulose operating segment as a result of changes in its internal operating model, significant developments in its Biomaterials strategy and a successful launch of an enterprise reporting system that significantly enhances the Company's financial reporting and costing capabilities. Specifically, the Company determined, in light of these new developments and capabilities, that the performance and outlook of the High Purity Cellulose business will be better managed as three separate businesses: Cellulose Specialties, Cellulose Commodities and a new Biomaterials business. No changes were made to the composition of the Paperboard and High-Yield Pulp operating segments. As a result of this reorganization, the Company now operates in five operating segments: Cellulose Specialties, Biomaterials, Cellulose Commodities, Paperboard and High-Yield Pulp. Prior period segment results have been recast to align with this new segment reporting structure. See Note 17—Segments for further information.

**Recent Accounting Developments**

***Accounting Standards Updates Implemented***

In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which requires enhanced annual income tax disclosures, primarily through changes to the rate reconciliation and income taxes paid information. The Company is adopting ASU 2023-09 for the fiscal year ending December 31, 2025 on a prospective basis. The adoption of this ASU has no impact on the Company's interim Financial Statements and related disclosures.

In August 2023, the FASB issued ASU 2023-05 "Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement," which provides specific guidance on how a joint venture, upon formation, should recognize and initially measure assets contributed and liabilities assumed. The Company adopted ASU 2023-05 on January 1, 2025 and it will be applied on a prospective basis to all joint ventures with a formation date on or after January 1, 2025. The adoption of this ASU had no impact to the Company's Financial Statements.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

**Subsequent Events**

On July 4, 2025, the United States enacted tax reform legislation resulting in significant modifications to existing law. The most significant impacts to the Company are changes to IRC §163(j) interest deductibility, immediate expensing of capital spend in the U.S., immediate deductions of R&D expenditures and foreign tax regime changes. The Company is currently evaluating the impact of this new legislation on its consolidated financial statements.

**2. Indefinite Suspension of Operations**

In July 2024, the Company indefinitely suspended operations at its Temiscaming cellulose plant. The Temiscaming paperboard and high-yield pulp plants that support the Company's Paperboard and High-Yield Pulp operating segments continue to operate at full capacity. The Temiscaming cellulose plant was idled in a safe and environmentally sound manner, and the Company will assess, on at least an annual basis, the possibility of restarting the Temiscaming cellulose plant.

Indefinite suspension of operations activities began in July 2024 and were mostly completed in the prior year. Since the start of the indefinite suspension in 2024, the Company has incurred total one-time operating charges of $17 million, including $6 million of mothballing costs, $6 million of severance and other employee costs and $5 million of other costs. While most cash costs associated with the indefinite suspension of operations were paid in the third and fourth quarters of 2024, severance and other indefinite suspension costs are expected to be paid over a period of time. Remaining one-time charges to be incurred are not expected to be material.

The following table presents the accrued liability balance activity related to the indefinite suspension during the six months ended June 28, 2025:

---

| | | | |
|:---|:---|:---|:---|
| | **Mothballing Costs** | **Severance and Other Employee Costs** | **Total** |
| Balance at December 31, 2024 | $977 | $5010 | $5987 |
| Charges incurred | 719 | (85) | 634 |
| Payments | (1696) | (2895) | (4591) |
| Balance at June 28, 2025 | $— | $2030 | $2030 |

---

The following table presents total indefinite suspension charges incurred by cost type:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Severance and other employee costs<sup>(a)</sup> | $— | $6206 | $(85) | $6206 |
| Mothballing costs | 229 | 420 | 719 | 420 |
| Indefinite suspension charges | $229 | $6626 | $634 | $6626 |

---

<sup>(a)</sup>Included a $1 million loss on pension curtailment charges during the quarter and six months ended June 29, 2024 associated with early retirements driven by the indefinite suspension of operations. See Note 15—Employee Benefit Plans for further information.

Charges incurred during the periods presented were recorded to the Cellulose Commodities segment in "indefinite suspension charges" in the condensed consolidated statements of operations.

**3. Discontinued Operations** 

In August 2021, the Company completed the sale of its lumber and newsprint facilities and certain related assets located in Canada. As part of the sale of the lumber assets, the Company retained all refund rights and obligations, including interest, to softwood lumber duties generated or incurred through the closing date of the sale. In June 2024, the Company sold these refund rights, including all accrued interest, for $39 million, with the opportunity for additional sale proceeds in the future contingent upon the timing and terms of the ultimate outcome of the trade dispute between the USDOC and Canada. The Company recorded a pre-tax loss of $1 million on the sale.

During the quarters ended June 28, 2025 and June 29, 2024, the Company recognized $4 million and $5 million of pre-tax income related to CEWS benefit claims deferred since 2021. See Note 7—Accrued and Other Current Liabilities for further information.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

Income from discontinued operations was comprised of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Loss on sale of duty refund rights | $— | $(890) | $— | $(890) |
| Other operating income | 3632 | 5267 | 3632 | 5267 |
| Operating income | 3632 | 4377 | 3632 | 4377 |
| Income from discontinued operations before income tax | 3632 | 4377 | 3632 | 4377 |
| Income tax expense | (962) | (1160) | (962) | (1160) |
| Income from discontinued operations, net of tax | $2670 | $3217 | $2670 | $3217 |

---

**4. Accounts Receivable, Net**

Accounts receivable, net included the following:

---

| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| Accounts receivable, trade | $132474 | $191091 |
| Accounts receivable, other<sup>(a)</sup> | 20863 | 23938 |
| Allowance for credit loss | (754) | (1057) |
| Accounts receivable, net | $152583 | $213972 |

---

<sup>(a)</sup>Consists primarily of value-added/consumption taxes, grants receivable and accrued billings due from government agencies.

**5. Inventory**

Inventory included the following:

---

| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| Finished goods | $171720 | $156407 |
| Work-in-progress | 7204 | 5034 |
| Raw materials | 49170 | 40234 |
| Manufacturing and maintenance supplies | 5073 | 6328 |
| Inventory | $233167 | $208003 |

---

**6. Leases**

The Company's operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of June 28, 2025, the Company's leases have remaining lease terms of less than one year to 11.4 years, with standard renewal and termination options available at the Company's discretion. Certain equipment leases have purchase options at the end of the lease term that are not included in the ROU assets, as it is not reasonably certain that the Company will exercise such options. Short-term leases with an initial term of 12 months or less are not recorded in the condensed consolidated balance sheets. The Company's lease agreements do not contain any material residual value guarantees or restrictive covenants. The Company uses its incremental borrowing rate to determine the present value of lease payments unless the lease provides an implicit or explicit interest rate.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

Financial and other information related to the Company's operating and finance leases follow:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Operating lease cost | $2578 | $2136 | $5110 | $3802 |
| Finance lease cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of ROU assets | 116 | 107 | 229 | 213 |
| &nbsp;&nbsp;&nbsp;Interest | 13 | 22 | 29 | 45 |
| Total lease cost | $2707 | $2265 | $5368 | $4060 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Balance Sheet Location** | **June 28, 2025** | **December 31, 2024** |
| **Operating leases** | | | |
| ROU assets | Other assets | $28392 | $31112 |
| Lease liabilities, current | Accrued and other current liabilities | 8218 | 7604 |
| Lease liabilities, non-current | Other liabilities | 21503 | 24035 |
| **Finance leases** |  |  |  |
| ROU assets | Property, plant and equipment, net | $524 | $709 |
| Lease liabilities | Long-term debt | 693 | 921 |

---

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** |
| Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities | $5133 | $3799 |
| Operating lease ROU assets obtained in exchange for lease liabilities<sup>(a)</sup> | 770 | 18092 |

---

<sup>(a)</sup>During the six months ended June 29, 2024, the Company recorded an ROU asset and corresponding lease liability of $14 million related to a new warehouse lease agreement in Canada.

Finance lease cash flows were immaterial during each of the six months ended June 28, 2025 and June 29, 2024.

---

| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| **Operating leases** | | |
| Weighted average remaining lease term (in years) | 4.3 | 4.6 |
| Weighted average discount rate | 8.3% | 8.2% |
| **Finance leases** |  |  |
| Weighted average remaining lease term (in years) | 1.4 | 1.8 |
| Weighted average discount rate | 7.0% | 7.0% |

---

Operating lease maturities as of June 28, 2025 were as follows:

---

| | |
|:---|:---|
| Remainder of 2025 | $5247 |
| 2026 | 9762 |
| 2027 | 8264 |
| 2028 | 6579 |
| 2029 | 2447 |
| Thereafter | 3460 |
| Total minimum lease payments | 35759 |
| Less: imputed interest | (6038) |
| Present value of future minimum lease payments | $29721 |

---

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

**7. Accrued and Other Current Liabilities**

Accrued and other current liabilities included the following:

---

| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| Accrued customer incentives | $39180 | $52153 |
| Accrued payroll and benefits | 23585 | 19465 |
| Accrued interest | 20852 | 12674 |
| Accrued income taxes | 3815 | 4445 |
| Accrued property and other taxes | 6845 | 6265 |
| Deferred revenue<sup>(a)</sup> | 6385 | 11128 |
| Other current liabilities<sup>(b)</sup> | 46256 | 64655 |
| Accrued and other current liabilities | $146918 | $170785 |

---

<sup>(a)</sup>Included at December 31, 2024 was $3 million (CAD $5 million) associated with funds received in 2021 for CEWS. In the second quarter of 2025, the Company recognized this amount in "income from discontinued operations, net of taxes" in the condensed consolidated statements of operations.

<sup>(b)</sup>Included at June 28, 2025 and December 31, 2024 were $19 million and $17 million, respectively, of energy-related payables associated with Tartas facility operations.

**8. Debt and Finance Leases**

Debt and finance leases included the following:

---

| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| ABL Credit Facility due November 2029: $116 million net availability, bearing interest of 6.4% (4.4% adjusted SOFR plus 2.0% margin) at June 28, 2025 | $12450 | $— |
| 2029 Term Loan due October 2029: bearing interest of 11.3% (4.3% three-month Term SOFR plus 7.0% margin) at June 28, 2025 | 698250 | 700000 |
| 5.50% CAD-based term loan due April 2028 | 19537 | 21184 |
| BioNova debt<sup>(a)</sup> | 22524 | 21120 |
| Other loans<sup>(b)</sup> | 34968 | 32536 |
| Short-term factoring facility | 1865 | 2304 |
| Finance lease obligations | 693 | 921 |
| Total principal payments due | 790287 | 778065 |
| Less: unamortized premium, discount and issuance costs | (44593) | (48242) |
| Total debt | 745694 | 729823 |
| Less: debt due within one year | (25342) | (23379) |
| Long-term debt | $720352 | $706444 |

---

<sup>(a)</sup>Consists of green loans associated with the France bioethanol plant, part of the net assets contributed by the Company to its subsidiary, BioNova.

<sup>(b)</sup>Consist of loans for energy projects in France.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

As of June 28, 2025, there were no borrowings outstanding under the BioNova Term Loan.

**Covenants and Debt Maturity**

As of June 28, 2025, the Company was in compliance with all covenants under its debt agreements and the Company's debt principal payments, excluding finance lease obligations, were due as follows:

---

| | |
|:---|:---|
| Remainder of 2025 | $28690 |
| 2026 | 22053 |
| 2027 | 20529 |
| 2028 | 18841 |
| 2029 | 681077 |
| Thereafter | 18404 |
| Total debt principal payments | $789594 |

---

**9. Environmental Liabilities**

The Company's environmental liabilities balance changed as follows during the six months ended June 28, 2025:

---

| | |
|:---|:---|
| Balance at December 31, 2024 | $170215 |
| Increase in liabilities | 14404 |
| Payments | (3161) |
| Foreign currency adjustments | 423 |
| Balance at June 28, 2025 | $181881 |
| Current environmental liabilities | $9764 |
| Non-current environmental liabilities | $172117 |

---

**Port Angeles, Washington**

The Company operated a pulp mill at this site from 1930 until 1997. Since 2000, the Company has been evaluating remediation of the pulp mill site and adjacent marine areas (a portion of Port Angeles harbor) pursuant to an agreed order with the Washington DOE under the Washington MTCA. During this period, the Company has performed several voluntary interim soil cleanup actions. As the next step in collaboration with the Washington DOE, the parties are negotiating a consent order that will formalize approved remedial actions, which include more stringent cleanup standards and an expanded scope. Consequently, in the first quarter of 2025, the Company increased its estimated remediation liability and recorded an expense of $10 million. The associated cash expenditures are not expected to commence before 2028, with outflows anticipated over the subsequent three to five years.

**Augusta, Georgia**

The Company operated this site as a wood treatment plant from 1928 to 1988. This site operates under a 10-year RCRA hazardous waste facility permit managed by the Georgia EPD. The most recent permit was issued in 2015, and it must be renewed. In connection with the Company's submittal of its permit renewal application, Georgia EPD notified the Company that a revised corrective action plan for the site would be required to capture results of a decade long extended investigation performed pursuant to the current permit. The revised corrective action plan is being drafted. It expands the remedial areas for the site and includes an additional off-site area, which were both identified through the investigative studies. To reflect the additional remedial activities in these expanded areas, in the first quarter of 2025, the Company increased the estimated remediation liability and recorded an expense of $2 million. The cash impact associated with this charge is expected in early 2027.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

**Other**

In addition to the estimated liabilities for the above remediation sites, the Company is subject to the risk of reasonably possible additional liabilities in excess of the established liabilities due to potential changes in circumstances and future events, including, without limitation, changes to current laws and regulations; changes in governmental agency personnel, direction, philosophy or enforcement policies; developments in remediation technologies; increases in the cost of remediation, operation, maintenance and monitoring of its environmental liability sites; changes in the volume, nature or extent of contamination to be remediated or monitoring to be undertaken; the outcome of negotiations with governmental agencies or non-governmental parties; and changes in accounting rules or interpretations. Based on information available as of June 28, 2025, the Company estimates this exposure could range up to approximately $77 million. However, no assurances can be given that this amount will not be exceeded given the factors described above. These potential additional costs are attributable to several sites and other applicable liabilities. This estimate excludes liabilities that would otherwise be considered reasonably possible but for the fact that they are not currently estimable, primarily due to the factors discussed above.

Subject to the previous paragraph, the Company believes its estimates of liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its environmental liabilities. However, no assurance is given that these estimates will be sufficient for the reasons described above and additional liabilities could have a material adverse effect on the Company's financial position, results of operations and cash flows.

**10. Fair Value Measurements**

**Liabilities Measured at Fair Value on a Recurring Basis**

***Redeemable Noncontrolling Interest - Put Option***

In November 2024, BioNova issued 111,111 preferred shares to SWEN in return for a redeemable noncontrolling interest of approximately 14 percent. The preferred shares contain an embedded put option that was determined should be bifurcated and recognized separately at fair value, with subsequent changes in fair value recorded in earnings.

SWEN's put option was initially measured at a fair value of $4 million and will be remeasured at the end of each reporting period. The fair value of the put option is estimated using a Monte Carlo simulation model, which is a Level 3 measurement, with changes in fair value recorded in "other income, net" in the condensed consolidated statements of operations. The SWEN put option's liability balance and activity during the three and six months ended June 28, 2025 were as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Financial Statement<br>Line Item** | **Three Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** |
| Balance at December 31, 2024 | Other liabilities |  | $4196 |
| Fair value measurement adjustment | Other income, net | $558 | 1052 |
| Foreign currency translation adjustment | Foreign currency<br>translation adjustment | $385 | 550 |
| Balance at June 28, 2025 | Other liabilities |  | $5798 |

---

There is inherent uncertainty of the fair value measurement of Level 3 securities due to the use of unobservable inputs, including timing and amount of expected cash flows. A material change in the unobservable inputs used may result in a higher or lower fair value measurement. Key inputs into the Monte Carlo simulation model used to determine the fair value of the SWEN put option at the fair value measurement date were as follows:

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| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| Free cash flow to equity volatility<sup>(a)</sup> | 46.0% | 52.0% |
| Risk-free interest rate | Term structure of U.S. Treasury and Euro Government Bond securities | Term structure of U.S. Treasury and Euro Government Bond securities |
| Weighted average cost of capital | 11.8% | 12.1% |

---

<sup>(a)</sup>Based on a peer group of companies in the same or a similar industry.

See Note 11—Redeemable Noncontrolling Interest for further information on the put option.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

**Financial Instruments**

The carrying amounts of the Company's cash and cash equivalents, receivables and payables approximate fair value due to the short-term nature of those instruments. The carrying amount of borrowings outstanding under the ABL Credit Facility, 2029 Term Loan and short-term factoring facility approximate fair value due to their variable interest rates and no significant changes in the Company's credit risk.

The fair value of the Company's fixed rate debt is estimated using quoted market prices for debt with similar terms and maturities, which are Level 2 inputs, and was as follows:

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| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| Carrying amount of fixed rate debt<sup>(a)</sup> | $77270 | $75142 |
| Fair value of fixed rate debt | $79146 | $75272 |

---

<sup>(a)</sup>Excludes finance lease obligations.

**11. Redeemable Noncontrolling Interest**

In November 2024, the Company and one of its subsidiaries entered into a shareholder agreement with SWEN, pursuant to which SWEN will fund up to €30 million in exchange for up to 222,222 preferred shares, representing an expected 20 percent total noncontrolling equity interest in BioNova. Of this commitment, €15 million was funded at the closing of the shareholder agreement in exchange for 111,111 preferred shares, which currently represents an equity interest in BioNova of approximately 14 percent. Subsequent funding is contingent on the achievement of certain project milestones.

The value of SWEN's redeemable noncontrolling interest is reflected in temporary equity and is accreted to its estimated redemption value at each period end using the interest method. The redeemable noncontrolling interest balance and activity during the quarter and six months ended June 28, 2025 were as follows:

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| | | |
|:---|:---|:---|
| | **Three Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** |
| Balance, beginning of period | $11337 | $10503 |
| Adjustment to redemption value | 481 | 889 |
| Net income attributable to redeemable noncontrolling interest | 18 | 36 |
| Comprehensive income adjustments: |  |  |
| Foreign currency translation adjustment on redemption value | 919 | 1327 |
| Balance at June 28, 2025 | $12755 | $12755 |

---

Results attributable to RYAM, after attribution to the redeemable noncontrolling interest, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Income (loss) from continuing operations attributable to RYAM | $(365867) | $8173 | $(397837) | $6603 |
| Income from discontinued operations attributable to RYAM | 2670 | 3217 | 2670 | 3217 |
| Net income (loss) attributable to RYAM | $(363197) | $11390 | $(395167) | $9820 |

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

**12. Accumulated Other Comprehensive Loss**

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| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** |
| **Unrecognized components of employee benefit plans, net of tax** | | |
| Balance, beginning of period | $(21060) | $(33537) |
| Other comprehensive income before reclassifications |  | 3371 |
| Income tax on other comprehensive income |  | (901) |
| Reclassifications to earnings<sup>(a)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of gain | (373) | (391) |
| &nbsp;&nbsp;Amortization of prior service cost | 125 | 359 |
| Income tax on reclassifications | 50 | 10 |
| Net comprehensive income (loss) on employee benefit plans, net of tax | (198) | 2448 |
| Balance, end of period | (21258) | (31089) |
| **Unrealized loss on derivative instruments, net of tax** |  |  |
| Balance, beginning of period | (222) | (373) |
| Reclassifications to earnings - foreign currency exchange contracts<sup>(b)</sup> | 70 | 92 |
| Income tax on reclassifications | (9) | (12) |
| Comprehensive income on derivative instruments, net of tax | 61 | 80 |
| Balance, end of period | (161) | (293) |
| **Foreign currency translation** |  |  |
| Balance, beginning of period | (24387) | (12007) |
| Foreign currency translation adjustment, net of tax<sup>(c)</sup> | 24389 | (6488) |
| Balance, end of period | 2 | (18495) |
| Accumulated other comprehensive loss, end of period | $(21417) | $(49877) |

---

<sup>(a)</sup>The AOCI components for defined benefit pension and post-retirement plans are included in the computation of net periodic benefit cost. See Note 15—Employee Benefit Plans for further information.

<sup>(b)</sup>Reclassifications of foreign currency exchange contracts are recorded in "cost of sales," "other operating income (expense), net" or "other income (expense), net," as appropriate.

<sup>(c)</sup>Foreign currency translation is net of tax effects of $0 for all periods presented, as the French operations are taxed on the foreign functional currency, not the translated reporting currency.

**13. Earnings Per Common Share**

Basic earnings per share is calculated by dividing net income available for common stockholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is calculated by dividing net income available for common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the potentially dilutive effect of outstanding performance-based stock and restricted stock.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

The following table provides the inputs to the calculations of basic and diluted earnings per common share (share amounts not in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Income (loss) from continuing operations | $(365849) | $8173 | $(397801) | $6603 |
| Income from continuing operations attributable to redeemable noncontrolling interest | 18 |  | 36 |  |
| Income (loss) from continuing operations attributable to RYAM | (365867) | 8173 | (397837) | 6603 |
| Redeemable noncontrolling interest adjustment to redemption value | (481) |  | (889) |  |
| Income (loss) from continuing operations attributable to RYAM common stockholders | (366348) | 8173 | (398726) | 6603 |
| Income from discontinued operations, net of tax attributable to RYAM | 2670 | 3217 | 2670 | 3217 |
| Net income (loss) attributable to RYAM common stockholders | $(363678) | $11390 | $(396056) | $9820 |
| Weighted average shares used in determining basic earnings per common share | 66875897 | 65716362 | 66551962 | 65582651 |
| Dilutive effect of: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock options |  |  |  | 3 |
| &nbsp;&nbsp;&nbsp;Performance and restricted stock |  | 3073949 |  | 2423674 |
| Weighted average shares used in determining diluted earnings per common share | 66875897 | 68790311 | 66551962 | 68006328 |

---

Anti-dilutive instruments excluded from the computation of diluted earnings per share included (not in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Stock options |  |  |  | 1497 |
| Performance and restricted stock | 2760125 | 421 | 2760125 | 6376 |
| Total anti-dilutive instruments | 2760125 | 421 | 2760125 | 7873 |

---

**14. Incentive Stock Plans**

Incentive stock plan compensation expense was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Incentive stock plan compensation expense<sup>(a)</sup> | $717 | $2320 | $2878 | $4411 |

---

<sup>(a)</sup>Included equity award expense of $1 million and $2 million during the quarters ended June 28, 2025 and June 29, 2024, respectively, and $3 million during each of the six months ended June 28, 2025 and June 29, 2024.

The Company made new grants of restricted stock units, performance-based stock units and performance-based cash awards during the first and second quarters of 2025. The 2025 restricted stock unit awards cliff vest after three years, except for director awards, which vest after one year. The 2025 performance-based awards cliff vest after three years and are based equally on TSR relative to peers and three-year cumulative adjusted EBITDA. Participants can earn between 0 percent and 200 percent of the target award for each of the TSR and adjusted EBITDA metrics. Performance below the threshold for either metric would result in zero payout for that metric. The performance-based cash award is paid in cash and is classified as a liability and remeasured to fair value at the end of each reporting period until settlement.

In March 2025, the performance-based awards granted in 2022 were settled with an issuance of 654,995 shares of common stock for the stock unit awards, including incremental shares of 165,061, and cash of $2 million for the cash awards.

------

<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

The following table summarizes the 2025 activity of the Company's incentive stock awards (not in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Restricted Stock Units** | **Restricted Stock Units** | **Performance-Based Stock Units** | **Performance-Based Stock Units** |
| | **Awards** | **Weighted Average Grant Date Fair Value** | **Awards** | **Weighted Average Grant Date Fair Value** |
| Outstanding at December 31, 2024 | 1766219 | $5.11 | 1575297 | $5.93 |
| Granted | 517055 | $7.52 | 692155 | $9.55 |
| Forfeited | (60538) | $4.25 | (279125) | $3.14 |
| Exercised or settled | (795943) | $5.08 | (654995) | $7.17 |
| Outstanding at June 28, 2025 | 1426793 | $6.04 | 1333332 | $7.78 |

---

**15. Employee Benefit Plans**

**Defined Benefit Plans**

The Company has defined benefit pension and other long-term and postretirement benefit plans covering certain union and non-union employees, primarily in the U.S. and Canada. The defined benefit pension plans are closed to new participants. The liabilities for these plans are calculated using actuarial estimates and management assumptions. These estimates are based on historical information and certain assumptions about future events.

During the quarter and six months ended June 29, 2024, the Company recorded a $1 million loss on pension curtailment charges associated with early retirements driven by the indefinite suspension of operations at the Temiscaming High Purity Cellulose plant. The loss on curtailment was recognized in "indefinite suspension charges" in the Company's condensed consolidated statements of operations. Additionally, the Company decreased its pension liability by $3 million. See Note 2—Indefinite Suspension of Operations for further information.

The following tables present the components of net periodic benefit costs of these plans:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension** | **Pension** | **Postretirement** | **Postretirement** |
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Service cost | $1188 | $1527 | $111 | $138 |
| Interest cost | 6911 | 6889 | 239 | 247 |
| Expected return on plan assets | (7701) | (8052) |  |  |
| Amortization of prior service cost (credit) | 108 | 203 | (43) | (25) |
| Amortization of (gain) loss | 57 | (11) | (244) | (184) |
| Curtailment |  | 736 |  |  |
| Net periodic benefit cost | $563 | $1292 | $63 | $176 |
|  | **Pension** | **Pension** | **Postretirement** | **Postretirement** |
|  | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Service cost | $2358 | $3064 | $221 | $276 |
| Interest cost | 13740 | 13812 | 476 | 495 |
| Expected return on plan assets | (15273) | (16128) |  |  |
| Amortization of prior service cost (credit) | 211 | 408 | (86) | (49) |
| Amortization of (gain) loss | 114 | (22) | (487) | (369) |
| Curtailment |  | 736 |  |  |
| Net periodic benefit cost | $1150 | $1870 | $124 | $353 |

---

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

Service cost is included in "cost of sales" or "selling, general and administrative expense" in the condensed consolidated statements of operations, as appropriate. Interest cost, expected return on plan assets, amortization of prior service cost (credit) and amortization of gain (loss) are included in "components of pension and OPEB, excluding service costs" in the condensed consolidated statements of operations.

**16. Income Taxes**

**Effective Tax Rate**

The Company's effective tax rates were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Income (loss) from continuing operations before income tax | $(26160) | $7775 | $(63332) | $6185 |
| Effective tax rate | (1296.6)% | (10.9)% | (526.8)% | (21.4)% |

---

The effective tax rates for the quarter and six months ended June 28, 2025 differed from the federal statutory rate of 21 percent primarily due to the full write-off of the Company's Canadian DTAs. See ***Deferred Taxes*** below. Also driving the differences were different statutory tax rates in foreign jurisdictions, valuation allowances on nondeductible U.S. interest expense, U.S. tax credits and nondeductible executive compensation.

The effective tax rates for the quarter and six months ended June 29, 2024 differed from the federal statutory rate of 21 percent primarily due to the release of certain tax reserves, return-to-accrual adjustments, excess deficit on vested stock compensation and changes in the valuation allowance on disallowed interest deductions.

**Deferred Taxes**

The Company assesses the realizability of its DTAs to determine if a valuation allowance is required based on the consideration of all available evidence using a "more-likely-than-not" standard, with significant weight being given to evidence that can be objectively verified. Since the Company operates in multiple jurisdictions, it assesses the need for a valuation allowance on a jurisdiction-by-jurisdiction basis, considering local earnings and effects of local tax law.

As of December 31, 2024, the Company evaluated realizability of its significant Canadian DTAs using the framework of ASC 740 and concluded that a valuation allowance was not required. The Company acknowledged, however, that difficult market conditions could result in the materialization of a cumulative three-year loss, which would constitute significant negative evidence under ASC 740 and likely necessitate a valuation allowance.

As of June 28, 2025, the Company now expects to incur a cumulative adjusted pre-tax loss in Canada over the three most recent fiscal years ending in 2025. As a result of the significant weight of this negative evidence under ASC 740, the Company believes it is more likely than not that its Canadian DTAs will not be fully realizable and have therefore provided for a full valuation allowance against these assets. This results in a current quarter tax expense to write off the previously recognized net DTA of $337 million and current quarter Canadian pretax losses providing zero tax benefit on the financial statements. Barring positive evidence that changes this conclusion, future Canadian earnings will not result in tax expense or benefits on the Company's financial statements. The valuation allowance does not impact the Company's legal right to use the deferred tax assets against cash taxes and future recognition will continue to be evaluated as market conditions evolve.

As of June 28, 2025 and December 31, 2024, the Company's net DTA included $13 million and $15 million, respectively, of disallowed U.S. interest deductions that the Company does not believe will be realized. The decrease in this asset was a result of a $2 million tax expense recognized in the current year. In strict compliance with the American Institute of Certified Public Accountants' Technical Questions and Answers 3300.01-02, which asserts that certain material evidence regarding the realizability of disallowed U.S. interest deductions should be ignored when assessing the need for a valuation allowance, the Company has not recognized a valuation allowance on this portion of the net DTA generated from disallowed interest.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

**17. Segments** 

As discussed in Note 1—Nature of Operations and Basis of Presentation, beginning in the first quarter of 2025, the Company reorganized its segment structure and now operates in five operating segments: Cellulose Specialties, Cellulose Commodities, Biomaterials, Paperboard and High-Yield Pulp. Corporate consists primarily of senior management, accounting, information systems, human resources, treasury, tax and legal administrative functions that provide support services to the operating business units. Prior period segment results have been recast to align with this new segment reporting structure.

The Company uses operating income (loss) as a measure of profitability to evaluate segment performance. Intersegment sales consist primarily of High-Yield Pulp sales to Paperboard, which are eliminated in consolidation. Additionally, there are intersegment sales of chemicals, sugars and energy from the cellulose plants to Biomaterials, also eliminated in consolidation. Intersegment sales prices are at rates that approximate market for the respective operating area.

Net sales, significant operating expenses, operating income (loss) and other financial information by segment were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 28, 2025** | **Three Months Ended June 28, 2025** | **Three Months Ended June 28, 2025** | **Three Months Ended June 28, 2025** | **Three Months Ended June 28, 2025** | **Three Months Ended June 28, 2025** | **Three Months Ended June 28, 2025** |
| | **Cellulose Specialties** | **Biomaterials** | **Cellulose Commodities** | **Paperboard** | **High-Yield Pulp** | **Corporate**<sup>(a)</sup> **and Eliminations** | **Total** |
| Net sales | $207682 | $6531 | $59443 | $46451 | $28858 | $(8917) | $340048 |
| Cost of sales |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Key input costs (wood, chemicals, energy) | 81770 | 1362 | 27482 | 22695 | 17134 | (8685) | 141758 |
| &nbsp;&nbsp;Freight | 9365 | 527 | 4407 | 4617 | 5957 |  | 24873 |
| &nbsp;&nbsp;Depreciation and amortization | 16705 | 579 | 7438 | 2904 | 517 |  | 28143 |
| &nbsp;&nbsp;Fixed and other general costs<sup>(b)</sup> | 67121 | 1708 | 27751 | 14122 | 11410 | (479) | 121633 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | 174961 | 4176 | 67078 | 44338 | 35018 | (9164) | 316407 |
| Selling, general and administrative expense | 3414 | 1308 | 1287 | 2637 | 717 | 8602 | 17965 |
| Indefinite suspension charges |  |  | 229 |  |  |  | 229 |
| Other operating expense, net<sup>(c)</sup> | 761 | 57 | 562 |  | 9 | 5397 | 6786 |
| Operating income (loss) | $28546 | $990 | $(9713) | $(524) | $(6886) | $(13752) | $(1339) |
| Total depreciation and amortization | $16798 | $754 | $7178 | $5382 | $546 | $529 | $31187 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Three Months Ended June 29, 2024** | **Three Months Ended June 29, 2024** | **Three Months Ended June 29, 2024** | **Three Months Ended June 29, 2024** | **Three Months Ended June 29, 2024** | **Three Months Ended June 29, 2024** |
| | **Cellulose Specialties** | **Biomaterials** | **Cellulose Commodities** | **Paperboard** | **High-Yield Pulp** | **Corporate**<sup>(a)</sup> **and Eliminations** | **Total** |
| Net sales | $240642 | $7790 | $85458 | $60299 | $32833 | $(7977) | $419045 |
| Cost of sales |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Key input costs (wood, chemicals, energy) | 90517 | 1587 | 49135 | 31025 | 17708 | (8525) | 181447 |
| &nbsp;&nbsp;Freight | 11087 | 858 | 7410 | 5176 | 5260 |  | 29791 |
| &nbsp;&nbsp;Depreciation and amortization | 17966 | 657 | 10807 | 1494 | 558 |  | 31482 |
| &nbsp;&nbsp;Fixed and other general costs<sup>(b)</sup> | 69571 | 2968 | 34787 | 10276 | 9310 | 1104 | 128016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | 189141 | 6070 | 102139 | 47971 | 32836 | (7421) | 370736 |
| Selling, general and administrative expense | 2928 | 289 | 1893 | 2461 | 767 | 13471 | 21809 |
| Indefinite suspension charges |  |  | 6626 |  |  |  | 6626 |
| Other operating (income) expense, net<sup>(c)</sup> | (893) | (4) | (4461) | (2333) | (1583) | 951 | (8323) |
| Operating income (loss) | $49466 | $1435 | $(20739) | $12200 | $813 | $(14978) | $28197 |
| Total depreciation and amortization | $18578 | $653 | $9796 | $3206 | $563 | $715 | $33511 |

---

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** |
| | **Cellulose Specialties** | **Biomaterials** | **Cellulose Commodities** | **Paperboard** | **High-Yield Pulp** | **Corporate**<sup>(a)</sup> **and Eliminations** | **Total** |
| Net sales | $408790 | $13452 | $134498 | $95644 | $60347 | $(16716) | $696015 |
| Cost of sales |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Key input costs (wood, chemicals, energy) | 161206 | 2587 | 66374 | 49377 | 36274 | (16527) | 299291 |
| &nbsp;&nbsp;Freight | 18653 | 1055 | 10737 | 9465 | 12213 |  | 52123 |
| &nbsp;&nbsp;Depreciation and amortization | 31883 | 1099 | 17136 | 6132 | 1076 |  | 57326 |
| &nbsp;&nbsp;Fixed and other general costs<sup>(b)</sup> | 128792 | 3239 | 57462 | 26859 | 23476 | (248) | 239580 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | 340534 | 7980 | 151709 | 91833 | 73039 | (16775) | 648320 |
| Selling, general and administrative expense | 7432 | 2667 | 3671 | 5514 | 1330 | 20610 | 41224 |
| Indefinite suspension charges |  |  | 634 |  |  |  | 634 |
| Other operating expense, net<sup>(c)</sup> | 1002 | 71 | 922 | 471 | 9 | 19794 | 22269 |
| Operating income (loss) | $59822 | $2734 | $(22438) | $(2174) | $(14031) | $(40345) | $(16432) |
| Total depreciation and amortization | $31650 | $1235 | $16928 | $10634 | $1121 | $870 | $62438 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Six Months Ended June 29, 2024** | **Six Months Ended June 29, 2024** | **Six Months Ended June 29, 2024** | **Six Months Ended June 29, 2024** | **Six Months Ended June 29, 2024** | **Six Months Ended June 29, 2024** |
| | **Cellulose Specialties** | **Biomaterials** | **Cellulose Commodities** | **Paperboard** | **High-Yield Pulp** | **Corporate**<sup>(a)</sup> **and Eliminations** | **Total** |
| Net sales | $445994 | $14577 | $180731 | $113259 | $67159 | $(15019) | $806701 |
| Cost of sales |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Key input costs (wood, chemicals, energy) | 171034 | 2707 | 99667 | 58024 | 36676 | (15452) | 352656 |
| &nbsp;&nbsp;Freight | 20895 | 1735 | 14823 | 10023 | 11004 |  | 58480 |
| &nbsp;&nbsp;Depreciation and amortization | 33761 | 757 | 22285 | 2897 | 1147 |  | 60847 |
| &nbsp;&nbsp;Fixed and other general costs<sup>(b)</sup> | 128590 | 5668 | 76834 | 19660 | 18198 | 698 | 249648 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | 354280 | 10867 | 213609 | 90604 | 67025 | (14754) | 721631 |
| Selling, general and administrative expense | 5588 | 570 | 4177 | 4879 | 1575 | 26095 | 42884 |
| Indefinite suspension charges |  |  | 6626 |  |  |  | 6626 |
| Other operating expense, net<sup>(c)</sup> | (842) | (25) | (4451) | (2333) | (1583) | (478) | (9712) |
| Operating income (loss) | $86968 | $3165 | $(39230) | $20109 | $142 | $(25882) | $45272 |
| Total depreciation and amortization | $35807 | $748 | $21520 | $6436 | $1119 | $1164 | $66794 |

---

<sup>(a)</sup>Includes ERP and certain lease expense shared across operating segments.

<sup>(b)</sup>Includes salaries, wages and benefits, maintenance costs and other costs of sales.

<sup>(c)</sup>Primarily includes foreign exchange gain (loss), environmental remediation expense, gain (loss) on disposal of property, plant and equipment and income (loss) from equity method investments.

Due to their integrated nature, certain operating and production assets are jointly utilized across the Cellulose Specialties and Cellulose Commodities segments. These assets are essential for the production processes of both types of products and are not directly attributable to either segment. As such, direct allocation to a specific segment is not feasible or prudent and they are considered shared assets. The Company allocates related fixed, maintenance and other costs based on a rational and consistent approach that reflects the segments' contribution, usage and economic benefit derived from the shared assets in the production process, which varies from period to period between specialties and commodities products.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

Identifiable assets by segment were as follows:

---

| | | |
|:---|:---|:---|
| | **June 28, 2025** | **December 31, 2024** |
| Cellulose Specialties | $176801 | $214659 |
| Biomaterials | 89373 | 78006 |
| Cellulose Commodities | 170177 | 187996 |
| Paperboard | 96969 | 93600 |
| High-Yield Pulp | 46505 | 49798 |
| Shared/Corporate<sup>(a)</sup> | 1175143 | 1505597 |
| Total assets | $1754968 | $2129657 |

---

<sup>(a)</sup>At June 28, 2025 and December 31, 2024, included $1.1 billion and $1.0 billion, respectively, of assets shared by Cellulose Specialties and Cellulose Commodities. Corporate includes ERP and certain other operating and lease assets shared across segments.

Capital additions by segment were as follows:

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| | **June 28, 2025** | **June 29, 2024** |
| Cellulose Specialties | $— | $— |
| Biomaterials | 1429 | 7590 |
| Cellulose Commodities | 1537 | 6904 |
| Paperboard | 1502 | 1655 |
| High-Yield Pulp | 1895 | 962 |
| Shared/Corporate<sup>(a)</sup> | 55858 | 41488 |
| Total capital additions<sup>(b)</sup> | $62221 | $58599 |

---

<sup>(a)</sup>Includes $54 million and $36 million of asset additions during the six months ended June 28, 2025 and June 29, 2024, respectively, that are shared by Cellulose Specialties and Cellulose Commodities. Corporate includes capital additions for ERP and certain other operational assets shared across segments.

<sup>(b)</sup>Amounts exclude the impact of changes in capital assets purchased on account and government grants.

**18. Commitments and Contingencies**

**Commitments**

The Company had no material changes outside the ordinary course of business to the purchase obligations presented in its 2024 Form 10-K during the six months ended June 28, 2025. The Company's purchase obligations primarily consist of commitments for the purchase of natural gas, electricity and wood chips.

The Company leases certain buildings, machinery and equipment under various operating and finance leases. See Note 6—Leases for further information.

**Litigation and Contingencies**

The Company is engaged in various legal and regulatory actions and proceedings and has been named as a defendant in various lawsuits and claims arising in the ordinary course of business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its business, the Company has, in certain cases, retained some risk through the operation of self-insurance, primarily in the areas of workers' compensation, property insurance, business interruption and general liability. These other lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on the Company's financial position, results of operations or cash flows.

**Guarantees and Other**

The Company provides financial guarantees as required by creditors, insurance programs and various governmental agencies. As of June 28, 2025, the Company had net exposure of $28 million from various standby letters of credit, primarily for financial assurance relating to environmental remediation, credit support for natural gas and electricity purchases and guarantees related to foreign retirement plan obligations. These standby letters of credit represent a contingent liability; the Company would only be liable upon its default on the related payment obligations. The standby letters of credit have various expiration dates and are expected to be renewed as required.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Rayonier Advanced Materials Inc.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

(in thousands unless otherwise stated)

The Company had surety bonds of $92 million as of June 28, 2025, primarily to comply with financial assurance requirements relating to environmental remediation and post-closure care, to provide collateral for the Company's workers' compensation program and to guarantee taxes and duties for products shipped internationally. These surety bonds expire at various dates and are expected to be renewed annually as required.

LTF is a venture in which the Company owns 45 percent, and its partner, Borregaard ASA, owns 55 percent. The Company is a guarantor of LTF's financing agreements and, in the event of default, expects it would only be liable for its proportional share of any repayment under the agreements. The Company's proportion of the LTF financing agreement guarantee was $26 million at June 28, 2025.

The Company has not recorded any liabilities for these financial guarantees in its condensed consolidated balance sheets because the Company has recorded the underlying liability associated with the guarantee, the guarantee is dependent on the Company's own performance and, therefore, is not subject to the measurement requirements or the Company has calculated the estimated fair value of the guarantee and determined it to be immaterial based upon the current facts and circumstances that would trigger a payment obligation.

It is not possible to determine the maximum potential amount of liability under these potential obligations due to the unique set of facts and circumstances likely to be involved with each provision.

On June 30, 2025, collective bargaining agreements covering approximately 640 unionized employees at the Jesup plant expired. The employees continued to work under the terms of the expired contracts during negotiations and on July 18, 2025, new contracts, effective through June 30, 2029, were ratified. All of the Company's other collective bargaining agreements were current as of June 28, 2025.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following analysis of our financial condition and results of operations should be read in conjunction with our Financial Statements and the notes thereto included in this Quarterly Report on Form 10-Q and with our 2024 Form 10-K and information contained in subsequent Forms 8-K and other reports filed with the SEC.*

**Forward-Looking Statements**

Certain statements in this Quarterly Report on Form 10-Q regarding anticipated financial, business, legal or other outcomes, including business and market conditions, outlook and other similar statements relating to future events, developments or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "should," "could," "expect," "estimate," "target," "believe," "intend," "plan," "forecast," "anticipate," "project," "guidance" and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking.

Forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to various risks and uncertainties. The risk factors contained in Item 1A—Risk Factors of our 2024 Form 10-K, among others, could cause actual results or events to differ materially from our historical experience and those expressed in forward-looking statements made in this report.

Forward-looking statements are only as of the date of the filing of this Quarterly Report on Form 10-Q, and we undertake no duty to update forward-looking statements except as required by law. You are advised to review any disclosures that we have made or may make in our filings and other submissions to the SEC, including those on Forms 10-K, 10-Q, 8-K and other reports.

**Business Overview**

We are a global leader in the production of cellulose specialties, a natural polymer used in the manufacturing of various specialty chemical products, including liquid crystal displays, filters, textiles and performance additives for pharmaceutical, food and other industrial applications. Building upon nearly 100 years of experience in cellulose chemistry, we provide some of the highest quality high-purity cellulose pulp products that make up the essential building blocks for our customers' products while providing exceptional service and value. Our specialized assets also produce bioelectricity, biomaterials, including biofuels, lignin and tall oil soap, and commodity fluff, viscose and paper pulp.

Additionally, we produce a unique, lightweight multi-ply paperboard product and a bulky, high-yield pulp product. Our paperboard is used for production in the commercial printing, lottery ticket and high-end packaging sectors. Our high-yield pulp is used by paperboard producers as well as in traditional printing, writing and specialty paper manufacturing.

***New Segment Structure***

In the first quarter of 2025, we reorganized our High Purity Cellulose operating segment as a result of changes in our internal operating model, significant developments in our Biomaterials strategy and the successful launch of an enterprise reporting system that significantly enhances our financial reporting and costing capabilities. Specifically, we determined, in light of these new developments and capabilities, that the performance and outlook of the High Purity Cellulose business will be better managed as three separate businesses: Cellulose Specialties, Cellulose Commodities and a new Biomaterials business. No changes were made to the composition of the Paperboard and High-Yield Pulp operating segments.

As a result of this reorganization, we now operate in five operating segments: Cellulose Specialties, Biomaterials, Cellulose Commodities, Paperboard and High-Yield Pulp. Prior period segment results have been recast to align with this new segment reporting structure.

**Business Outlook**

Our business has been significantly impacted by several extraordinary and primarily non-recurring challenges during the first half of the year, including global trade disruptions, tariff-driven market volatility, operational challenges, softer demand in Paperboard and High-Yield Pulp, a non-cash environmental charge and foreign exchange headwinds.

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While these near-term pressures weighed on second quarter results, they are largely considered to have peaked in the period. Since May, order trends in Cellulose Specialties have improved month over month and operational performance across our cellulose facilities has remained broadly stable. With signs of normalization emerging, RYAM is positioned to rebuild momentum in the second half of the year.

Looking ahead, we expect to meaningfully grow EBITDA over the two years following 2025, supported by focused efforts to increase Cellulose Specialties sales volume from the expected market demand growth, expand Cellulose Specialties margins by increasing prices and investing in high return cost reduction projects and accelerate high-return investments in Biomaterials. These actions are core to RYAM's long-term strategy.

We remain committed to disciplined capital allocation. As previously disclosed, we began a process to explore the sale of our Paperboard and High-Yield Pulp businesses; however, given current market conditions and trade-related uncertainty, the process is now effectively on hold.

The following segment outlooks reflect RYAM's current performance expectations for our operating businesses for the remainder of 2025.

***Cellulose Specialties***

Average cellulose specialties sales prices in 2025 are expected to increase by a mid single-digit percentage compared to the prior year. Sales volumes are anticipated to decline by a high single-digit percentage, reflecting tariff impacts, accelerated destocking of acetate and the absence of 2024 bridge volumes following the indefinite suspension of production at the Temiscaming plant. Acetate demand remains soft due to tariff-driven impacts, accelerated customer destocking and weaker global cigarette market trends. Ethers volumes are anticipated to improve, while demand for other cellulose specialties grades remains strong, supported by tight global supply conditions. Raw material input and logistics costs are expected to increase moderately year-over-year. All cellulose plants are currently running at expected operating rates.

***Biomaterials***

We continue to evaluate investments in new green energy and renewable products to provide both increased end-market diversity and incremental profitability. We intend to proceed only with those projects that are expected to meet our investment hurdles: a minimum 30 percent return on equity and a less than two-year payback period for RYAM equity. In the fourth quarter of 2024, we secured green capital of €67 million, which allows us to advance the biomaterials strategy and further progress towards our goal of generating over $70 million of EBITDA from RYAM's Biomaterials business, inclusive of the projects summarized below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our bioethanol facility in France is operational since the first quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We re-started our lignosulfonate powder plant in France in the first quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We continue to pursue an investment in a bioethanol facility in Fernandina Beach, Florida, similar to our bioethanol facility in France. While the City of Fernandina Beach recently denied the site plan application for this project, we believe the City erred in making its determination and we are pursuing all available legal remedies. In expectation of a favorable outcome, we continue to advance engineering plans and explore potential commercial agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are evaluating investments in crude tall oil facilities in Jesup, Georgia and Tartas and a prebiotics facility at the Jesup plant, and are currently working on permitting, engineering and commercial agreements for these new facilities. In July 2025, we received GRAS status for our prebiotics product with a letter of no objection from the U.S. Food and Drug Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are a partner in AGE, a start-up entity that aims to utilize renewable forestry waste and other biomass generally discarded as waste to generate green electricity for the State of Georgia from a new facility to be constructed adjacent to our Jesup plant. Although the project remains in the development phase, AGE is actively evaluating the construction and financing requirements for the new facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We recently signed Memoranda of Understanding with Verso Energy to explore eSAF opportunities at both our Jesup and Tartas facilities, and with GranBio to develop a pilot-scale SAF plant at the Jesup site.

We expect to make final investment decisions on several of these projects in 2025.

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***Cellulose Commodities***

Chinese retaliatory tariffs continue to disrupt global fluff market dynamics, creating a mismatch between supply and demand. As a result, RYAM's production is being actively shifted toward non-fluff commodities until RYAM's new dissolving wood pulp fluff product is fully qualified in China. While demand remains uncertain, we will continue to adjust production mix to mitigate the impact of direct tariffs and related second-order effects. Raw material input and logistics costs are expected to increase moderately.

***Paperboard***

Paperboard sales volumes are expected to remain soft due to continued economic uncertainty and weaker customer demand. Additionally, prices are expected to decline year-over-year, reflecting increased competitive activity from new U.S. competitor capacity. Input costs are projected to rise as a result of higher purchased pulp prices, increased allocation of Temiscaming custodial site costs and ongoing tariff mitigation efforts. In response to ongoing market weakness and a softer sales outlook, we are idling Paperboard production for two weeks during the third quarter as a proactive measure to align inventory levels with demand and preserve cash flow.

***High-Yield Pulp***

High-Yield Pulp sales prices and volumes are expected to decline in 2025, driven primarily by continued oversupply in the Chinese market. Input costs are also projected to rise due to a higher allocation of custodial site costs at the Temiscaming facility. Given the ongoing market weakness, we continue to take proactive steps to manage production and costs. In response to ongoing market weakness and a softer sales outlook, we are idling High-Yield Pulp production for three weeks during the third quarter to proactively manage inventory levels and preserve cash flow.

***Corporate***

Corporate costs for full year 2025 are expected to be higher compared to the prior year primarily due to the $12 million of non-cash environmental reserve charges recorded in the first quarter and potential continued foreign exchange headwinds from a weaker U.S. dollar. These impacts are expected to be partially offset by lower corporate spending in the second half of the year following the completion of our ERP implementation.

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**Results of Operations**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions, except percentages) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net sales | $340 | $419 | $696 | $807 |
| Cost of sales | (316) | (371) | (648) | (722) |
| Gross margin | 24 | 48 | 48 | 85 |
| Selling, general and administrative expense | (18) | (21) | (41) | (42) |
| Foreign exchange gain (loss) | (4) |  | (5) | 3 |
| Indefinite suspension charges | (1) | (7) | (1) | (7) |
| Other operating (expense), net | (2) | 8 | (17) | 6 |
| Operating income (loss) | (1) | 28 | (16) | 45 |
| Interest expense | (23) | (21) | (47) | (42) |
| Other income (expense), net | (2) | 1 |  | 3 |
| Income (loss) from continuing operations before income tax | (26) | 8 | (63) | 6 |
| Income tax (expense) benefit | (339) | 1 | (334) | 2 |
| Equity in loss of equity method investment | (1) | (1) | (1) | (1) |
| Income (loss) from continuing operations | (366) | 8 | (398) | 7 |
| Income from discontinued operations, net of tax | 3 | 3 | 3 | 3 |
| Net income (loss) | (363) | 11 | (395) | 10 |
| Net income attributable to redeemable noncontrolling interest |  |  |  |  |
| Net income (loss) attributable to RYAM | $(363) | $11 | $(395) | $10 |
| Gross margin % | 7.1% | 11.5% | 6.9% | 10.5% |
| Operating margin % | (0.3)% | 6.7% | (2.3)% | 5.6% |
| Effective tax rate | (1296.6)% | (10.9)% | (526.8)% | (21.4)% |

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***Net Sales***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Cellulose Specialties | $208 | $241 | $409 | $446 |
| Biomaterials | 6 | 8 | 13 | 14 |
| Cellulose Commodities | 59 | 85 | 134 | 181 |
| Paperboard | 47 | 60 | 96 | 113 |
| High-Yield Pulp | 29 | 33 | 60 | 67 |
| Eliminations | (9) | (8) | (16) | (14) |
| Net sales | $340 | $419 | $696 | $807 |

---

Net sales for the quarter and six months ended June 28, 2025 decreased $79 million, or 19 percent, and $111 million, or 14 percent, respectively, compared to the same prior year periods driven by lower sales prices in Paperboard and High-Yield Pulp and lower sales volumes across all segments that were largely a response to imposed tariffs and a labor strike at the Tartas cellulose plant in the current quarter. Partially offsetting the decrease in sales volumes were higher sales prices in Cellulose Specialties and Cellulose Commodities.

See *Operating Results by Segment* below for further discussion.

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***Operating Income (Loss)***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Cellulose Specialties | $29 | $50 | $60 | $87 |
| Biomaterials | 1 | 1 | 3 | 3 |
| Cellulose Commodities | (9) | (21) | (22) | (39) |
| Paperboard |  | 12 | (2) | 20 |
| High-Yield Pulp | (7) | 1 | (14) |  |
| Corporate | (15) | (15) | (41) | (26) |
| Operating income (loss) | $(1) | $28 | $(16) | $45 |

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Operating results for the quarter ended June 28, 2025 declined $29 million, or 104 percent, compared to the same prior year quarter driven primarily by the decrease in net sales, lower production due to operational challenges and the labor strike at the Tartas cellulose plant in the current quarter, unfavorable foreign exchange rates and the one-time prior year recognition of $10 million in CEWS benefit claims. Partially offsetting these decreases were lower indefinite suspension charges and lower variable compensation costs.

Operating results for the six months ended June 28, 2025 declined $61 million, or 136 percent, compared to the same prior year period driven primarily by the decrease in net sales, lower production due to operational challenges and the labor strike at the Tartas cellulose plant in the current period, current period non-cash environmental reserves charges of $12 million, unfavorable foreign exchange rates and the one-time prior year recognition of $10 million in CEWS benefit claims. Partially offsetting these decreases were lower indefinite suspension charges and lower variable compensation costs.

See *Operating Results by Segment* below for further discussion.

***Non-Operating Income & Expense***

Interest expense for the quarter and six months ended June 28, 2025 increased $2 million and $5 million, respectively, compared to the same prior year periods driven primarily by an increase in the average effective interest rate on debt, partially offset by a decrease in the average outstanding principal balance. Total debt decreased $32 million from June 29, 2024 to June 28, 2025.

Unfavorable foreign exchange rates during the quarter and six months ended June 28, 2025 compared to favorable rates in the same prior year periods resulted in net unfavorable impacts of $2 million and $3 million, respectively.

***Income Taxes***

The effective tax rates on the loss from continuing operations for the quarter and six months ended June 28, 2025 were not meaningful as a result of the valuation allowance placed on our Canadian DTAs. Also driving the differences between the effective tax rates and the federal statutory rate of 21 percent were different statutory tax rates in foreign jurisdictions, valuation allowances on nondeductible U.S. interest expense, U.S. tax credits and nondeductible executive compensation.

The effective tax rates on income from continuing operations for the quarter and six months ended June 29, 2024 were benefits of 11 percent and 21 percent, respectively. These rates differed from the federal statutory rate of 21 percent primarily due to the release of certain tax reserves, return-to-accrual adjustments, excess deficit on vested stock compensation and changes in the valuation allowance on disallowed interest deductions.

See Note 16—Income Taxes to our Financial Statements for further details of the Canadian DTA write-off.

***Discontinued Operations***

During the quarter and six months ended June 28, 2025, we recorded pre-tax income from discontinued operations of $4 million related to the remaining CEWS benefit claims deferred since 2021.

During the quarter and six months ended June 29, 2024, we recorded pre-tax income from discontinued operations of $5 million related to CEWS benefit claims deferred since 2021 and a pre-tax loss of $1 million on the sale of our softwood lumber duty refund rights.

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See Note 3—Discontinued Operations to our Financial Statements for further details.

**Operating Results by Segment**

Following the indefinite suspension of Temiscaming cellulose operations in the third quarter of 2024, certain infrastructure assets of the site's cellulose plant continue to run in support of the ongoing energy needs of the Paperboard and High-Yield Pulp operations. As such, beginning in the fourth quarter of 2024, the net impact of the custodial site costs being incurred and the sales of any electricity generated by the running of the cellulose plant assets are reflected within the operating results of the Paperboard and High-Yield Pulp businesses.

***Cellulose Specialties***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions, unless otherwise stated) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net sales | $208 | $241 | $409 | $446 |
| Operating income | $29 | $50 | $60 | $87 |
| Average sales prices ($ per MT) | $1807 | $1750 | $1783 | $1733 |
| Sales volumes (thousands of MTs) | 111 | 130 | 221 | 244 |

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*Net Sales - Three Months Ended*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Three Months Ended June 28, 2025** |
| (in millions) | **Three Months Ended June 29, 2024** | **Price** | **Volume/Mix/Other** | **Three Months Ended June 28, 2025** |
| Net sales | $241 | $6 | $(39) | $208 |

---

Net sales of our Cellulose Specialties segment for the quarter ended June 28, 2025 decreased $33 million, or 14 percent, compared to the same prior year quarter driven by a 15 percent decrease in sales volumes that was in line with expectations and due primarily to a pause in customer orders driven by uncertainty surrounding imposed tariffs, strong sales in the prior year quarter ahead of the indefinite suspension of Temiscaming cellulose operations in July 2024 and the impact of the labor strike at the Tartas cellulose plant in the current quarter. Partially offsetting the sales volume decrease was a 3 percent increase in sales prices.

*Net Sales - Six Months Ended*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Six Months Ended June 28, 2025** |
| (in millions) | **Six Months Ended June 29, 2024** | **Price** | **Volume/Mix/Other** | **Six Months Ended June 28, 2025** |
| Net sales | $446 | $11 | $(48) | $409 |

---

Net sales of our Cellulose Specialties segment for the six months ended June 28, 2025 decreased $37 million, or 8 percent, compared to the same prior year period driven by a 9 percent decrease in sales volumes due primarily to a pause in customer orders driven by uncertainty surrounding imposed tariffs, strong sales in the prior year period ahead of the indefinite suspension of Temiscaming cellulose operations and the impact of the labor strike at the Tartas cellulose plant in the current period. Partially offsetting the sales volume decrease was a 3 percent increase in sales prices.

*Operating Income - Three Months Ended*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Three Months Ended June 28, 2025** |
| (in millions, except percentages) | **Three Months Ended June 29, 2024** | **Sales Price** | **Sales Volume/Mix/Other**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Three Months Ended June 28, 2025** |
| Operating income | $50 | $6 | $(21) | $(4) | $(2) | $29 |
| Operating margin % | 20.7% | 1.9% | (5.8)% | (1.9)% | (1.0)% | 13.9% |

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<sup>(a)</sup>Computed based on contribution margin.

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Operating income of our Cellulose Specialties segment for the quarter ended June 28, 2025 decreased $21 million, or 42 percent, compared to the same prior year quarter driven by the lower sales volumes, higher key input costs, lower production due to operational challenges and the labor strike at the Tartas cellulose plant, and the one-time prior year recognition of $3 million in CEWS benefit claims.

*Operating Income - Six Months Ended*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Six Months Ended June 28, 2025** |
| (in millions, except percentages) | **Six Months Ended June 29, 2024** | **Sales Price** | **Sales Volume/Mix/Other**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Six Months Ended June 28, 2025** |
| Operating income | $87 | $11 | $(27) | $(7) | $(4) | $60 |
| Operating margin % | 19.5% | 1.9% | (4.1)% | (1.7)% | (0.9)% | 14.7% |

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<sup>(a)</sup>Computed based on contribution margin.

Operating income of our Cellulose Specialties segment for the six months ended June 28, 2025 decreased $27 million, or 31 percent, compared to the same prior year period driven by the lower sales volumes, higher key input costs, lower production due to operational challenges and the labor strike at the Tartas cellulose plant, and the one-time prior year recognition of $3 million in CEWS benefit claims.

***Biomaterials***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net sales | $6 | $8 | $13 | $14 |
| Operating income | $1 | $1 | $3 | $3 |

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*Net Sales - Three Months Ended*

Net sales of our Biomaterials segment for the quarter ended June 28, 2025 decreased $2 million, or 25 percent, compared to the same prior year quarter driven by lower production due to operational challenges and the impact of the labor strike at the Tartas cellulose plant in the current quarter, which limited raw material supply due to the bioethanol facility's reliance on the Tartas cellulose plant for feedstock.

*Net Sales - Six Months Ended*

Net sales of our Biomaterials segment for the six months ended June 28, 2025 decreased $1 million, or 7 percent, compared to the same prior year period driven by lower production due to operational challenges and the impact of the labor strike at the Tartas cellulose plant in the current period, which limited raw material supply due to the bioethanol facility's reliance on the Tartas cellulose plant for feedstock.

*Operating Income - Three Months Ended*

Operating income of our Biomaterials segment for the quarter ended June 28, 2025 was flat compared to the same prior year quarter as higher shared and ancillary service costs under the business's newly established cost structure were offset by lower production costs as a result of the current quarter operational challenges and labor strike at the Tartas cellulose plant that reduced feedstock availability.

*Operating Income - Six Months Ended*

Operating income of our Biomaterials segment for the six months ended June 28, 2025 was flat compared to the same prior year period as higher shared and ancillary service costs under the business's newly established cost structure were offset by lower production costs as a result of the current period operational challenges and labor strike at the Tartas cellulose plant that reduced feedstock availability.

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***Cellulose Commodities***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions, unless otherwise stated) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net sales | $59 | $85 | $134 | $181 |
| Operating loss | $(9) | $(21) | $(22) | $(39) |
| Average sales prices ($ per MT) | $911 | $849 | $883 | $850 |
| Sales volumes (thousands of MTs) | 64 | 96 | 149 | 201 |

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*Net Sales - Three Months Ended*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Three Months Ended June 28, 2025** |
| (in millions) | **Three Months Ended June 29, 2024** | **Price** | **Volume/Mix/Other** | **Three Months Ended June 28, 2025** |
| Net sales | $85 | $3 | $(29) | $59 |

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Net sales of our Cellulose Commodities segment for the quarter ended June 28, 2025 decreased $26 million, or 31 percent, compared to the same prior year quarter driven by a 33 percent decrease in sales volumes due primarily to lower non-fluff commodity sales and the impact of the labor strike at the Tartas cellulose plant, partially offset by a 7 percent increase in sales prices driven by market supply dynamics for fluff.

*Net Sales - Six Months Ended*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Six Months Ended June 28, 2025** |
| (in millions) | **Six Months Ended June 29, 2024** | **Price** | **Volume/Mix/Other** | **Six Months Ended June 28, 2025** |
| Net sales | $181 | $3 | $(50) | $134 |

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Net sales of our Cellulose Commodities segment for the six months ended June 28, 2025 decreased $47 million, or 26 percent, compared to the same prior year period driven by a 26 percent decrease in sales volumes due primarily to lower non-fluff commodity sales and the impact of the labor strike at the Tartas cellulose plant, partially offset by a 4 percent increase in sales prices driven by market supply dynamics for fluff.

*Operating Loss - Three Months Ended*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Three Months Ended June 28, 2025** |
| (in millions, except percentages) | **Three Months Ended June 29, 2024** | **Sales Price** | **Sales Volume/Mix/Other**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Three Months Ended June 28, 2025** |
| Operating loss | $(21) | $3 | $(19) | $26 | $2 | $(9) |
| Operating margin % | (24.7)% | 4.3% | (42.3)% | 44.1% | 3.3% | (15.3)% |

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<sup>(a)</sup>Computed based on contribution margin.

Operating loss of our Cellulose Commodities segment for the quarter ended June 28, 2025 improved $12 million, or 57 percent, compared to the same prior year quarter driven by lower non-fluff commodity losses, lower indefinite suspension charges and lower key input costs, partially offset by lower production due to operational challenges and the labor strike at the Tartas cellulose plant, and the one-time prior year recognition of $2 million in CEWS benefit claims.

*Operating Loss - Six Months Ended*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Six Months Ended June 28, 2025** |
| (in millions, except percentages) | **Six Months Ended June 29, 2024** | **Sales Price** | **Sales Volume/Mix/Other**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Six Months Ended June 28, 2025** |
| Operating loss | $(39) | $3 | $(32) | $45 | $1 | $(22) |
| Operating margin % | (21.5)% | 2.0% | (31.2)% | 33.6% | 0.7% | (16.4)% |

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<sup>(a)</sup>Computed based on contribution margin.

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Operating loss of our Cellulose Commodities segment for the six months ended June 28, 2025 improved $17 million, or 44 percent, compared to the same prior year period driven by lower non-fluff commodity losses, lower indefinite suspension charges and lower key input costs, partially offset by lower production due to operational challenges and the labor strike at the Tartas cellulose plant, and the one-time prior year recognition of $2 million in CEWS benefit claims.

***Paperboard***

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions, unless otherwise stated) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net sales | $47 | $60 | $96 | $113 |
| Operating income (loss) | $— | $12 | $(2) | $20 |
| Average sales prices ($ per MT) | $1346 | $1384 | $1333 | $1383 |
| Sales volumes (thousands of MTs) | 34 | 44 | 72 | 82 |

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*Net Sales - Three Months Ended*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Three Months Ended June 28, 2025** |
| (in millions) | **Three Months Ended June 29, 2024** | **Price** | **Volume/Mix** | **Three Months Ended June 28, 2025** |
| Net sales | $60 | $(1) | $(12) | $47 |

---

Net sales of our Paperboard segment for the quarter ended June 28, 2025 decreased $13 million, or 22 percent, compared to the same prior year quarter. Sales prices and volumes decreased 3 percent and 23 percent, respectively, driven by mix, shifting customer dynamics associated with tariff uncertainty and increased competitive activity due to increased European Union imports and the start-up of new U.S. capacity.

*Net Sales - Six Months Ended*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Six Months Ended June 28, 2025** |
| (in millions) | **Six Months Ended June 29, 2024** | **Price** | **Volume/Mix** | **Six Months Ended June 28, 2025** |
| Net sales | $113 | $(4) | $(13) | $96 |

---

Net sales of our Paperboard segment for the six months ended June 28, 2025 decreased $17 million, or 15 percent, compared to the same prior year period. Sales prices and volumes decreased 4 percent and 12 percent, respectively, driven by mix, shifting customer dynamics associated with tariff uncertainty and increased competitive activity due to increased European Union imports and the start-up of new U.S. capacity.

*Operating Income (Loss) - Three Months Ended*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Three Months Ended June 28, 2025** |
| (in millions, except percentages) | **Three Months Ended June 29, 2024** | **Sales Price** | **Sales Volume/Mix**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Three Months Ended June 28, 2025** |
| Operating income (loss) | $12 | $(1) | $(5) | $(4) | $(2) | $— |
| Operating margin % | 20.0% | (1.4)% | (5.9)% | (8.5)% | (4.2)% | —% |

---

<sup>(a)</sup>Computed based on contribution margin.

Operating results of our Paperboard segment for the quarter ended June 28, 2025 declined $12 million, or 100 percent, compared to the same prior year quarter driven by the lower sales, the impact of Temiscaming net custodial site costs and the one-time prior year recognition of $2 million in CEWS benefit claims.

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*Operating Income (Loss) - Six Months Ended*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Six Months Ended June 28, 2025** |
| (in millions, except percentages) | **Six Months Ended June 29, 2024** | **Sales Price** | **Sales Volume/Mix**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Six Months Ended June 28, 2025** |
| Operating income (loss) | $20 | $(4) | $(6) | $(9) | $(3) | $(2) |
| Operating margin % | 17.7% | (3.0)% | (4.3)% | (9.4)% | (3.1)% | (2.1)% |

---

<sup>(a)</sup>Computed based on contribution margin.

Operating results of our Paperboard segment for the six months ended June 28, 2025 declined $22 million, or 110 percent, compared to the same prior year period driven by the lower sales, the impact of Temiscaming net custodial site costs and the one-time prior year recognition of $2 million in CEWS benefit claims.

***High-Yield Pulp***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions, unless otherwise stated) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Net sales | $29 | $33 | $60 | $67 |
| Operating income (loss) | $(7) | $1 | $(14) | $— |
| Average sales prices ($ per MT)<sup>(a)</sup> | $509 | $574 | $514 | $566 |
| Sales volumes (thousands of MTs)<sup>(a)</sup> | 42 | 45 | 90 | 95 |

---

<sup>(a)</sup>External sales only. During the quarters ended June 28, 2025 and June 29, 2024, the High-Yield Pulp segment sold 17,000 MTs and 16,000 MTs of high-yield pulp to the Paperboard segment for $7 million each period, respectively. During the six months ended June 28, 2025 and June 29, 2024, the High-Yield Pulp segment sold 33,000 MTs and 32,000 MTs of high-yield pulp to the Paperboard segment for $14 million and $13 million, respectively.

*Net Sales - Three Months Ended*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Three Months Ended June 28, 2025** |
| (in millions) | **Three Months Ended June 29, 2024** | **Price** | **Volume/Mix** | **Three Months Ended June 28, 2025** |
| Net sales | $33 | $(2) | $(2) | $29 |

---

Net sales of our High-Yield Pulp segment for the quarter ended June 28, 2025 decreased $4 million, or 12 percent, compared to the same prior year quarter. Sales prices and volumes decreased 11 percent and 7 percent, respectively, driven by lower demand, including in China where demand for all grades of market pulp were down, continued oversupply in China and the timing of shipments, primarily related to shipping challenges to customers in India.

*Net Sales - Six Months Ended*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 29, 2024** | **Changes Attributable to:** | **Changes Attributable to:** | **Six Months Ended June 28, 2025** |
| (in millions) | **Six Months Ended June 29, 2024** | **Price** | **Volume/Mix** | **Six Months Ended June 28, 2025** |
| Net sales | $67 | $(5) | $(2) | $60 |

---

Net sales of our High-Yield Pulp segment for the six months ended June 28, 2025 decreased $7 million, or 10 percent, compared to the same prior year period. Sales prices and volumes decreased 9 percent and 5 percent, respectively, driven by lower demand, including in China where demand for all grades of market pulp were down, continued oversupply in China and the timing of shipments, primarily related to shipping challenges to customers in India.

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*Operating Income (Loss) - Three Months Ended*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Three Months Ended June 28, 2025** |
| (in millions, except percentages) | **Three Months Ended June 29, 2024** | **Sales Price** | **Sales Volume/Mix**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Three Months Ended June 28, 2025** |
| Operating income (loss) | $1 | $(2) | $(1) | $(3) | $(2) | $(7) |
| Operating margin % | 3.0% | (6.3)% | (3.7)% | (10.3)% | (6.8)% | (24.1)% |

---

<sup>(a)</sup>Computed based on contribution margin.

Operating results of our High-Yield Pulp segment for the quarter ended June 28, 2025 declined $8 million compared to the same prior year quarter driven by the lower sales, higher logistics costs, the impact of Temiscaming net custodial site costs and the one-time prior year recognition of $2 million in CEWS benefit claims.

*Operating Income (Loss) - Six Months Ended*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended**<br>**June 29, 2024** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | **Gross Margin Changes Attributable to:** | | **Six Months Ended June 28, 2025** |
| (in millions, except percentages) | **Six Months Ended**<br>**June 29, 2024** | **Sales Price** | **Sales Volume/Mix**<sup>(a)</sup> | **Cost** | **SG&A and other** | **Six Months Ended June 28, 2025** |
| Operating income (loss) | $— | $(5) | $— | $(8) | $(1) | $(14) |
| Operating margin % | —% | (8.1)% | (0.3)% | (13.3)% | (1.6)% | (23.3)% |

---

<sup>(a)</sup>Computed based on contribution margin.

Operating results of our High-Yield Pulp segment for the six months ended June 28, 2025 declined $14 million, or 100%, compared to the same prior year period driven by the lower sales, higher logistics costs, the impact of Temiscaming net custodial site costs and the one-time prior year recognition of $2 million in CEWS benefit claims. These negative impacts were partially offset by lower wood costs.

***Corporate***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| (in millions) | **June 28, 2025** | **June 29, 2024** | **June 28, 2025** | **June 29, 2024** |
| Operating loss | $(15) | $(15) | $(41) | $(26) |

---

The Corporate operating loss for the quarter ended June 28, 2025 was flat compared to the same prior year quarter as lower variable compensation costs and a decrease in costs related to our ERP implementation were offset by unfavorable foreign exchange rates in the current quarter compared to favorable rates in the prior year quarter.

The Corporate operating loss for the six months ended June 28, 2025 declined $15 million compared to the same prior year period driven by first quarter non-cash environmental reserves charges of $12 million and unfavorable foreign exchange rates in the current period compared to favorable rates in the prior year period, partially offset by lower variable compensation costs. The environmental reserves charges are associated with recent developments at the Port Angeles, Washington, and Augusta, Georgia, remediation sites. The cash impact associated with the Augusta remediation site is expected in early 2027; the cash impact for the Port Angeles remediation site is not expected to begin before 2028, with outflows in the following three to five years.

**Liquidity and Capital Resources**

***Overview***

Cash flows from operations, primarily driven by operating results, have historically been our primary source of liquidity and capital resources. As operating cash flows can be negatively impacted by fluctuations in market prices for our commodity products and changes in demand for our products, we maintain a key focus on cash, managing working capital closely and optimizing the timing and level of our capital expenditures. We believe our future cash flows from operations, availability under our ABL Credit Facility and our ability to access the capital markets, if necessary or desirable, will be adequate to fund our operations and anticipated long-term funding requirements, including capital expenditures, defined benefit plan contributions and repayment of debt maturities.

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Our Board of Directors suspended our quarterly common stock dividend in September 2019. No dividends have been declared since. The declaration and payment of future common stock dividends, if any, will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements and other factors that the Board of Directors deems relevant. In addition, our debt facilities place limitations on the declaration and payment of future dividends.

In January 2018, our Board of Directors authorized a $100 million common stock share buyback program. We have not repurchased shares under this program since 2018 and do not expect to utilize any of the remaining $60 million in unused authorization in the future.

Our liquidity and capital resources are summarized below:

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| | | |
|:---|:---|:---|
| (in millions, except ratios) | **June 28, 2025** | **December 31, 2024** |
| Cash and cash equivalents | $71 | $125 |
| Availability under the ABL Credit Facility<sup>(a)(b)</sup> | $116 | $141 |
| Total debt<sup>(b)</sup> | $746 | $730 |
| Stockholders' equity | $342 | $714 |
| Total capitalization (total debt plus stockholders' equity) | $1088 | $1444 |
| Debt to capital ratio | 69% | 51% |

---

<sup>(a)</sup>Amounts available under the ABL Credit Facility fluctuate based on eligible accounts receivable and inventory levels. At June 28, 2025, we had $154 million of gross availability and net available borrowings of $116 million after taking into account outstanding letters of credit of $26 million. In addition to the availability under the ABL Credit Facility, we have $15 million available under our accounts receivable factoring line of credit in France.

<sup>(b)</sup>See Note 8—Debt and Finance Leases to our Financial Statements for further information.

As of June 28, 2025, we were in compliance with all financial and other covenants under our debt agreements.

***Other Sources of Cash***

*SWEN Investment*

In November 2024, we secured €30 million to be provided by SWEN in return for a 20 percent preferred equity interest in BioNova. We received €15 million from SWEN in 2024. Subsequent funding is contingent on the achievement of certain project milestones.

*BioNova Term Loan*

In November 2024, we entered into a credit agreement that authorizes up to €37 million in seven- and eight-year secured term loan tranches. As of June 28, 2025, no amounts were outstanding on the BioNova Term Loan.

***Cash Requirements***

*Contractual Commitments*

Our principal contractual commitments include standby letters of credit, surety bonds, guarantees, purchase obligations and leases. We utilize arrangements such as standby letters of credit and surety bonds to provide credit support for certain suppliers and vendors in case of their default on critical obligations, collateral for certain of our self-insurance programs and guarantees for the completion of our remediation of environmental liabilities. As part of our ongoing operations, we also periodically issue guarantees to third parties. Our primary purchase obligation payments relate to natural gas, electricity and wood chips purchase contracts. There have been no material changes outside the ordinary course of business to the purchase obligations presented in our 2024 Form 10-K during the six months ended June 28, 2025. See Note 18—Commitments and Contingencies to our Financial Statements for further information.

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***Cash Flows***

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| (in millions) | **June 28, 2025** | **June 29, 2024** |
| Cash flows provided by (used in): |  |  |
| Operating activities | $10 | $99 |
| Investing activities | (75) | (58) |
| Financing activities | 1 | (1) |

---

Cash provided by operating activities decreased $89 million compared to the prior year period primarily due to the decline in operating results, the one-time prior year proceeds of $39 million from the sale of our softwood lumber duty refund rights and lower income tax net refunds, partially offset by net cash inflows from working capital in the current year compared to net outflows in the prior year and lower interest paid on long-term debt due to the timing of payments.

Cash used in investing activities increased $17 million compared to the prior year period as higher custodial capital spend was partially offset by decreased strategic capital spend.

Cash inflows from financing activities increased $2 million compared to the prior year period due to higher net borrowings of long-term debt and the prior year payment of debt issuance costs, partially offset by higher net repayments of short-term financing and higher repurchases of common stock to satisfy tax withholding requirements.

**Performance and Liquidity Indicators**

The discussion below is presented to enhance the reader's understanding of our operating performance, liquidity and ability to generate cash and satisfy rating agency and creditor requirements. This information includes the non-GAAP financial measures of EBITDA, adjusted EBITDA and adjusted free cash flow. These measures are not defined by GAAP and our discussion of them is not intended to conflict with or change any of our GAAP disclosures provided in this report.

We believe these non-GAAP financial measures provide useful information to our Board of Directors, management and investors regarding our financial condition and results of operations. Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses, to determine management incentive compensation and for budgeting, forecasting and planning purposes. Our management considers these non-GAAP financial measures, in addition to operating income, to be important in estimating our enterprise and stockholder values and for making strategic and operating decisions. In addition, analysts, investors and creditors use these non-GAAP financial measures when analyzing our operating performance, financial condition and cash-generating ability. We use EBITDA and adjusted EBITDA as performance measures and adjusted free cash flow as a liquidity measure.

We do not consider non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in our Financial Statements. In addition, they reflect the exercise of management's judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. To compensate for these limitations, reconciliations of our non-GAAP financial measures to their most directly comparable GAAP financial measures are provided below. Non-GAAP financial measures are not necessarily indicative of results that may be generated in future periods and should not be relied upon, in whole or part, in evaluating our financial condition, results of operations or future prospects.

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***EBITDA and Adjusted EBITDA***

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for items that management believes are not representative of our core operations.

Income (loss) from continuing operations is reconciled to EBITDA and Adjusted EBITDA from continuing operations by segment, as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (in millions) | **Cellulose Specialties** | **Biomaterials** | **Cellulose Commodities** | **Paperboard** | **High-Yield Pulp** | **Corporate** | **Total** |
| **Three Months Ended June 28, 2025** |  |  |  |  |  |  |  |
| Income (loss) from continuing operations | $29 | $1 | $(10) | $(1) | $(7) | $(378) | $(366) |
| Income from continuing operations attributable to redeemable noncontrolling interest |  |  |  |  |  |  |  |
| Income (loss) from continuing operations attributable to RYAM | 29 | 1 | (10) | (1) | (7) | (378) | (366) |
| Depreciation and amortization | 17 |  | 7 | 6 |  | 1 | 31 |
| Interest expense, net |  |  |  |  |  | 23 | 23 |
| Income tax expense |  |  |  |  |  | 339 | 339 |
| EBITDA-continuing operations attributable to RYAM | 46 | 1 | (3) | 5 | (7) | (15) | 27 |
| Indefinite suspension charges |  |  | 1 |  |  |  | 1 |
| Adjusted EBITDA-continuing operations attributable to RYAM | $46 | $1 | $(2) | $5 | $(7) | $(15) | $28 |
| **Three Months Ended June 29, 2024** |  |  |  |  |  |  |  |
| Income (loss) from continuing operations | $50 | $1 | $(21) | $13 | $1 | $(36) | $8 |
| Income from continuing operations attributable to redeemable noncontrolling interest |  |  |  |  |  |  |  |
| Income (loss) from continuing operations attributable to RYAM | 50 | 1 | (21) | 13 | 1 | (36) | 8 |
| Depreciation and amortization | 18 | 1 | 10 | 2 | 1 | 1 | 33 |
| Interest expense, net |  |  |  |  |  | 21 | 21 |
| Income tax benefit |  |  |  |  |  | (1) | (1) |
| EBITDA-continuing operations attributable to RYAM | 68 | 2 | (11) | 15 | 2 | (15) | 61 |
| Indefinite suspension charges |  |  | 7 |  |  |  | 7 |
| Adjusted EBITDA-continuing operations attributable to RYAM | $68 | $2 | $(4) | $15 | $2 | $(15) | $68 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (in millions) | **Cellulose Specialties** | **Biomaterials** | **Cellulose Commodities** | **Paperboard** | **High-Yield Pulp** | **Corporate** | **Total** |
| **Six Months Ended June 28, 2025** | **Six Months Ended June 28, 2025** |  |  |  |  |  |  |
| Income (loss) from continuing operations | $60 | $2 | $(22) | $(2) | $(14) | $(422) | $(398) |
| Income from continuing operations attributable to redeemable noncontrolling interest |  |  |  |  |  |  |  |
| Income (loss) from continuing operations attributable to RYAM | 60 | 2 | (22) | (2) | (14) | (422) | (398) |
| Depreciation and amortization | 32 | 1 | 17 | 11 | 1 |  | 62 |
| Interest expense, net |  |  |  |  |  | 46 | 46 |
| Income tax expense |  |  |  |  |  | 334 | 334 |
| EBITDA-continuing operations attributable to RYAM | 92 | 3 | (5) | 9 | (13) | (42) | 44 |
| Indefinite suspension charges |  |  | 1 |  |  |  | 1 |
| Adjusted EBITDA-continuing operations attributable to RYAM | $92 | $3 | $(4) | $9 | $(13) | $(42) | $45 |
| **Six Months Ended June 29, 2024** | **Six Months Ended June 29, 2024** |  |  |  |  |  |  |
| Income (loss) from continuing operations | $87 | $3 | $(39) | $21 | $— | $(65) | $7 |
| Income from continuing operations attributable to redeemable noncontrolling interest |  |  |  |  |  |  |  |
| Income (loss) from continuing operations attributable to RYAM | 87 | 3 | (39) | 21 |  | (65) | 7 |
| Depreciation and amortization | 36 | 1 | 21 | 6 | 2 | 1 | 67 |
| Interest expense, net |  |  |  |  |  | 41 | 41 |
| Income tax benefit |  |  |  |  |  | (2) | (2) |
| EBITDA-continuing operations attributable to RYAM | 123 | 4 | (18) | 27 | 2 | (25) | 113 |
| Indefinite suspension charges |  |  | 7 |  |  |  | 7 |
| Adjusted EBITDA-continuing operations attributable to RYAM | $123 | $4 | $(11) | $27 | $2 | $(25) | $120 |

---

EBITDA from continuing operations for the quarter ended June 28, 2025 decreased $34 million, or 56 percent, compared to the same prior year quarter. EBITDA from continuing operations for the six months ended June 28, 2025 decreased $69 million, or 61 percent, compared to the same prior year period. The decreases in these periods were driven primarily by the decrease in net sales, lower production due to operational challenges and the labor strike at the Tartas cellulose plant in the current period, unfavorable foreign exchange rates and the one-time prior year recognition of $10 million in CEWS benefit claims. Also driving the decrease in the year-to-date period were current period non-cash environmental reserves charges of $12 million. Partially offsetting the decreases in both periods were lower indefinite suspension charges and lower variable compensation costs.

See *Results of Operations* above for additional discussion of the changes in our operating results.

***Adjusted Free Cash Flow***

Adjusted free cash flow is defined as cash provided by operating activities adjusted for capital expenditures, net of proceeds from the sale of assets and excluding strategic capital expenditures deemed discretionary by management. Adjusted free cash flow is a non-GAAP financial measure of cash generated during a period that is available for debt reduction, strategic capital expenditures, acquisitions and repurchases of our common stock. Adjusted free cash flow is not necessarily indicative of the adjusted free cash flow that may be generated in future periods.

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Cash provided by operating activities is reconciled to adjusted free cash flow as follows:

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| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| (in millions) | **June 28, 2025** | **June 29, 2024** |
| Cash provided by operating activities | $10 | $99 |
| Capital expenditures, net<sup>(a)</sup> | (62) | (30) |
| Adjusted free cash flow | $(52) | $69 |

---

<sup>(a)</sup>Net of proceeds from the sale of assets and excluding strategic capital expenditures. Strategic capital expenditures for the six months ended June 28, 2025 and June 29, 2024 were $13 million and $28 million, respectively.

Adjusted free cash flow decreased $121 million compared to the prior year period primarily due to the decline in operating results and higher custodial capital expenditures. See *Liquidity and Capital Resources—Cash Flows* above for additional discussion of our operating cash flows and capital expenditures.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

**Market and Other Economic Risks**

We are exposed to various market risks, primarily changes in interest rates, currency and commodity prices. Our objective is to minimize the economic impact of these market risks. We may use derivatives in accordance with policies and procedures approved by the Finance and Strategic Planning Committee of our Board of Directors.

***Foreign Currency***

We manage our foreign currency exposures by balancing certain assets and liabilities denominated in foreign currencies. We may also use foreign currency forward contracts to manage these exposures. The principal objective of such contracts is to minimize the potential volatility and financial impact of changes in foreign currency exchange rates. We do not utilize financial instruments for trading or other speculative purposes.

***Prices***

The prices, sales volumes and margins of our Cellulose Commodities and High-Yield Pulp operating segments' products have historically been cyclically affected by economic and market shifts, fluctuations in capacity and changes in foreign currency exchange rates. These products have fewer distinguishing qualities from producer to producer and competition is based primarily on price, which is determined by market supply relative to demand. The overall levels of demand for the products we manufacture, and consequently our sales and profitability, reflect fluctuations in end user demand. Our Cellulose Specialties operating segment's product prices are impacted by market supply and demand, raw material and processing costs, changes in global currencies and other factors.

Certain key input costs, such as wood fiber, chemicals and energy, may experience significant price fluctuations, also impacted by market shifts, fluctuations in capacity and other demand and supply dynamics. We may periodically enter into commodity forward contracts to fix some of our energy costs that are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. Such forward contracts partially mitigate the risk of changes to our gross margins resulting from an increase or decrease in these costs. Forward contracts that are derivative instruments are reported in our consolidated balance sheets at their fair values, unless they qualify for the normal purchase normal sale exception and such exception has been elected, in which case, the fair values of such contracts are not recognized in the balance sheet.

***Variable Interest Rates***

At June 28, 2025 and December 31, 2024, we had $713 million and $702 million, respectively, of variable rate debt subject to interest rate risk. At these borrowing levels, a hypothetical one percent change in interest rates would result in a $7 million annual change in interest expense.

The fair market value of our long-term fixed interest rate debt is also subject to interest rate risk when the debt becomes due or if we do not hold the debt until maturity. The estimated fair value of our fixed rate debt at June 28, 2025 and December 31, 2024 was $79 million and $75 million, respectively, compared to respective $77 million and $75 million carrying values at period end. We use quoted market prices to estimate the fair value of our fixed rate debt. Generally, the fair market value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise.

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**Item 4. Controls and Procedures**

**Management's Evaluation of Disclosure Controls and Procedures**

Our management is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are designed with the objective of ensuring that information required to be disclosed in reports filed under the Exchange Act, such as this Quarterly Report on Form 10-Q, is (1) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Because of the inherent limitations in all control systems, no control evaluation can provide absolute assurance that all control exceptions and instances of fraud have been prevented or detected on a timely basis. Even systems determined to be effective can provide only reasonable assurance their objectives are achieved.

Based on an evaluation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q, our management, including the Chief Executive Officer and Chief Financial Officer, concluded the design and operation of the disclosure controls and procedures were effective as of June 28, 2025.

**Internal Control over Financial Reporting**

In January of 2025, the Company implemented a new financial accounting system for product costing. Our processes, procedures and controls have been updated and evaluated by management, as appropriate. We will continue to refine and further evaluate these control changes as part of our assessment of control design and effectiveness throughout 2025. For the quarter ended June 28, 2025, based upon the evaluation required by SEC Rule 13a-15(d), including the changes related to the new financial accounting system, there were no changes in our internal control over financial reporting that would materially affect or are reasonably likely to materially affect our internal control over financial reporting.

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**Part II. Other Information**

**Item 1. Legal Proceedings**

See Note 18—Commitments and Contingencies to our Financial Statements for information regarding legal proceedings.

**Item 1A. Risk Factors**

There have been no material changes or updates to the risk factors previously disclosed in our 2024 Form 10-K.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Issuer Purchases of Equity Securities**

The following table summarizes our purchases of RYAM common stock during the quarter ended June 28, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Total Number of Shares Purchased**<sup>(a)</sup> | **Average Price Paid per Share** | **Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs** | **Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs**<sup>(b)</sup> |
| March 30 to May 3 | 6397 | $4.76 |  | $60294000 |
| May 4 to May 31 | 30082 | $4.09 |  | $60294000 |
| June 1 to June 28 | 5032 | $3.86 |  | $60294000 |
| Total | 41511 |  |  |  |

---

<sup>(a)</sup>Represents shares repurchased to satisfy tax withholding requirements related to the issuance of stock under our stock incentive plans.

<sup>(b)</sup>As of June 28, 2025, the remaining unused authorization under our share buyback program was $60 million.

**Item 5. Other Information**

During the quarter ended June 28, 2025, no director or officer of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" as defined under Item 408 of Regulation S-K.

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**Item 6. Exhibits**

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| | | |
|:---|:---|:---|
| **Exhibit No.** | **Description** | **Location** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1597672/000159767225000008/ex31amendedandrestatedcert.htm)</u> | Amended and Restated Certificate of Incorporation of Rayonier Advanced Materials Inc., as amended | Incorporated herein by reference to Exhibit 3.1 to the Registrant's Form 10-K filed on March 6, 2025 |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1597672/000119312516678228/d217717dex31.htm)</u> | Certificate of Designations of 8.00% Series A Mandatory Convertible Preferred Stock of Rayonier Advanced Materials Inc., filed with the Secretary of State of the State of Delaware and effective August 10, 2016 | Incorporated herein by reference to Exhibit 3.1 to the Registrant's Form 8-K filed on August 10, 2016 |
| <u>[3.3](https://www.sec.gov/Archives/edgar/data/1597672/000119312522080098/d335170dex31.htm)</u> | Certificate of Designations of Series A Junior Participating Preferred Stock | Incorporated herein by reference to Exhibit 3.1 to the Registrant's Form 8-K filed on March 21, 2022 |
| <u>[3.4](https://www.sec.gov/Archives/edgar/data/1597672/000119312522265314/d410345dex31.htm)</u> | Amended and Restated Bylaws of Rayonier Advanced Materials Inc., effective October 19, 2022 | Incorporated herein by reference to Exhibit 3.1 to the Registrant's Form 8-K filed on October 19, 2022 |
| <u>[31.1](ex311q22025.htm)</u> | Chief Executive Officer's Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith |
| <u>[31.2](ex312q22025.htm)</u> | Chief Financial Officer's Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith |
| <u>[32](ex32q22025.htm)</u> | Certification of Periodic Financial Reports Under Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished herewith |
| 101 | Interactive data files (formatted in Inline XBRL) pursuant to Rule 405 of Regulation S-T | Filed herewith |
| 104 | Cover page interactive data file (formatted in Inline XBRL and contained in Exhibit 101) pursuant to Rule 406 of Regulation S-T | Filed herewith |

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<u>[**Table of Contents**](#i877ac63c4d624b51a18fe72b0b65fa67_7)</u>

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **Rayonier Advanced Materials Inc.** | **Rayonier Advanced Materials Inc.** |
| By: | /s/ MARCUS J. MOELTNER |
|  | Marcus J. Moeltner<br>Chief Financial Officer and Senior Vice President, Finance<br>(Principal Financial Officer) |
|  | Date: August 6, 2025 |

---

## Exhibit 31.1

**Exhibit 31.1** 

**Certification** 

I, De Lyle W. Bloomquist, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rayonier Advanced Materials Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2025

---

| |
|:---|
| /s/ DE LYLE W. BLOOMQUIST |
| De Lyle W. Bloomquist |
| President and Chief Executive Officer |
| Rayonier Advanced Materials Inc. |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification** 

I, Marcus J. Moeltner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rayonier Advanced Materials Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 6, 2025

---

| |
|:---|
| /s/ MARCUS J. MOELTNER |
| Marcus J. Moeltner |
| Chief Financial Officer and Senior Vice President, Finance |
| Rayonier Advanced Materials Inc. |

---

## Ex-32

**Exhibit 32** 

**Certification** 

The undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to our knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The quarterly report on Form 10-Q of Rayonier Advanced Materials Inc. (the "Company") for the period ended June 28, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 6, 2025

---

| | |
|:---|:---|
| /s/ DE LYLE W. BLOOMQUIST | /s/ MARCUS J. MOELTNER |
| De Lyle W. Bloomquist | Marcus J. Moeltner |
| President and Chief Executive Officer | Chief Financial Officer and Senior Vice President, Finance |
| Rayonier Advanced Materials Inc. | Rayonier Advanced Materials Inc. |

---

<br>