What Rayonier Advanced Materials, Inc. told the SEC could break it.

Rayonier Advanced Materials' cellulose, paperboard and pulp products are highly input-cost-sensitive: key input costs — wood pulp/wood, chemicals and energy — represent roughly 40-50% of its per-metric-ton cost of sales, and its commodity cellulose and pulp products are subject to volatile, cyclical pricing (with periods of extremely low pricing), while operating results are also materially affected by seasonal changes in energy prices; spikes in wood, chemical or energy costs would compress its already-thin margins.

“Key input costs — wood pulp, chemicals and energy — represent approximately 50 percent of our per MT cost of sales.”

Rayonier AM is highly international: sales to customers outside the United States made up 68% of revenue in 2025 (including China, Europe, Japan, India, Canada and South Korea), and it manufactures in the U.S., Canada and France, exposing it to international legal/regulatory/customs risks and to foreign-currency fluctuations (which hedging may not fully offset) that can materially affect results, on top of the trade-barrier exposure of selling across 40+ countries.

“Sales to customers outside the U.S. made up 68 percent of our revenue in 2025.”

Rayonier AM has been managing constrained liquidity: its Board suspended the quarterly common-stock dividend (none declared since) and its debt facilities limit future dividends, it absorbed asset impairments and indefinite-suspension charges from closing/suspending its Temiscaming cellulose plant, and in March 2026 it entered a sale-leaseback of its Georgia chip mills and ERP systems for $20 million for general corporate purposes — indicating reliance on asset monetizations and continued debt-facility access to fund operations.

“Board of Directors suspended our quarterly common stock dividend and no dividends have since been declared. 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 relevant factors. In addition, our debt facilities place limitations on the declaration and payment of future dividends.”

Rayonier AM is materially exposed to trade policy: it had $273 million of 2025 product sales to China ($234M U.S.-made), and China's retaliatory tariffs on U.S. exports — all U.S. wood pulp in 2018 and commodity fluff in 2025 — significantly reduced its operating income for as long as the tariffs remained in place and may continue to do so; manufacturing in the U.S., Canada and France and selling in over 40 countries, it is broadly exposed to tariffs, countervailing/anti-dumping duties, quotas and other trade barriers that could materially reduce revenue and profitability.

“in 2025, China imposed retaliatory tariffs on the U.S., including our commodity fluff sold into China, which significantly impacted our operating income and may continue to do so as long as they remain in place.”