Rayonier Advanced Materials Q2 sales beat estimates on cellulose pricing gains
RYAM•Outlook
- Company says full-year trajectory remains on track with prior expectations
- Company expects to generate positive free cash flow in 2026
- Company expects to conclude strategic review and communicate a path forward during Q4
Overview
- U.S. high purity cellulose maker's preliminary Q2 net sales rose 11% yr/yr, beating analyst expectations
- Adjusted EBITDA for Q2 rose 43% yr/yr, driven by higher cellulose specialties pricing and improved operations
- Loss from continuing operations narrowed sharply from $366 mln a year earlier
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Net Sales | Beat | $376 mln | $361.17 mln (3 Analysts) |
| Q2 Loss Per Share | $0.49 | ||
| Q2 Net Loss | $33 mln |
- The one available analyst rating on the shares is "buy"
- The average consensus recommendation for the specialty chemicals peer group is "buy"
- Wall Street's median 12-month price target for Rayonier Advanced Materials Inc. is $14.50, about 60.8% above its August 3 closing price of $9.02
- The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 88 three months ago
