RAYONIER ADVANCED MATERIALS INC.RYAM
RAYONIER ADVANCED MATERIALS INC. Segments Disclosure
22. Segment and Geographical Information
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 the following segments: Cellulose Specialties, Biomaterials, Cellulose Commodities, 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’s segment structure was determined based primarily on how its CODM, the CEO, reviews and evaluates Company operations. Each operating segment is separately managed and has discrete financial information that is utilized by the CODM in determining how to allocate resources and evaluate performance.
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.
No single customer accounted for 10 percent or more of total sales during the years ended December 31, 2025 and 2024. One customer in the Cellulose Specialties operating segment represented 10 percent of total sales for the year ended December 31, 2023.
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.
Significant segment financial data follows:
Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Cellulose Specialties | Biomaterials | Cellulose Commodities | Paperboard | High-Yield Pulp | Corporate(a) and Eliminations | Total | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 862,037 | $ | 30,551 | $ | 312,731 | $ | 179,050 | $ | 112,650 | $ | (30,622) | $ | 1,466,397 | |||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||||||||||||||
| Key input costs (wood, chemicals, energy) | 321,443 | 5,838 | 151,752 | 101,655 | 67,697 | (30,868) | 617,517 | ||||||||||||||||||||||||||||||||||
| Freight | 40,176 | 2,557 | 26,661 | 18,519 | 23,719 | — | 111,632 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 66,307 | 2,914 | 39,444 | 13,468 | 2,145 | — | 124,278 | ||||||||||||||||||||||||||||||||||
Fixed and other general costs(b) | 258,081 | 7,281 | 140,003 | 42,219 | 46,121 | 480 | 494,185 | ||||||||||||||||||||||||||||||||||
| Total cost of sales | 686,007 | 18,590 | 357,860 | 175,861 | 139,682 | (30,388) | 1,347,612 | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative expense | 15,060 | 5,763 | 7,869 | 10,041 | 2,532 | 42,677 | 83,942 | ||||||||||||||||||||||||||||||||||
| Indefinite suspension charges | — | — | 1,275 | — | — | — | 1,275 | ||||||||||||||||||||||||||||||||||
Other operating (income) expense(c) | 928 | 2 | 960 | 527 | 12 | 27,041 | 29,470 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 160,042 | $ | 6,196 | $ | (55,233) | $ | (7,379) | $ | (29,576) | $ | (69,952) | $ | 4,098 | |||||||||||||||||||||||||||
| Depreciation and amortization | $ | 67,065 | $ | 2,914 | $ | 40,046 | $ | 19,946 | $ | 2,145 | $ | 1,842 | $ | 133,958 | |||||||||||||||||||||||||||
Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Cellulose Specialties | Biomaterials | Cellulose Commodities | Paperboard | High-Yield Pulp | Corporate(a) and Eliminations | Total | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 921,411 | $ | 29,684 | $ | 354,633 | $ | 227,628 | $ | 126,897 | $ | (29,945) | $ | 1,630,308 | |||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||||||||||||||
| Key input costs (wood, chemicals, energy) | 352,361 | 4,839 | 181,991 | 117,393 | 71,890 | (30,356) | 698,118 | ||||||||||||||||||||||||||||||||||
| Freight | 44,115 | 3,041 | 28,226 | 20,512 | 20,380 | — | 116,274 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 71,024 | 2,071 | 42,868 | 7,832 | 2,329 | — | 126,124 | ||||||||||||||||||||||||||||||||||
Fixed and other general costs(b) | 261,899 | 9,498 | 171,664 | 41,802 | 38,589 | 758 | 524,210 | ||||||||||||||||||||||||||||||||||
| Total cost of sales | 729,399 | 19,449 | 424,749 | 187,539 | 133,188 | (29,598) | 1,464,726 | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative expense | 9,839 | 4,170 | 6,501 | 11,021 | 2,912 | 57,815 | 92,258 | ||||||||||||||||||||||||||||||||||
| Asset impairment | — | — | 25,169 | — | — | — | 25,169 | ||||||||||||||||||||||||||||||||||
| Indefinite suspension charges | — | — | 16,630 | — | — | — | 16,630 | ||||||||||||||||||||||||||||||||||
Other operating (income) expense(c) | (1,204) | 490 | (5,057) | (2,363) | (1,609) | 1,787 | (7,956) | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 183,377 | $ | 5,575 | $ | (113,359) | $ | 31,431 | $ | (7,594) | $ | (59,949) | $ | 39,481 | |||||||||||||||||||||||||||
| Depreciation and amortization | $ | 71,752 | $ | 2,071 | $ | 43,413 | $ | 14,701 | $ | 2,451 | $ | 2,785 | $ | 137,173 | |||||||||||||||||||||||||||
Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Cellulose Specialties | Biomaterials | Cellulose Commodities | Paperboard | High-Yield Pulp | Corporate(a) and Eliminations | Total | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 825,037 | $ | 28,980 | $ | 461,973 | $ | 219,408 | $ | 135,954 | $ | (28,022) | $ | 1,643,330 | |||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||||||||||||||
| Key input costs (wood, chemicals, energy) | 341,262 | 5,438 | 262,444 | 113,678 | 75,144 | (26,857) | 771,109 | ||||||||||||||||||||||||||||||||||
| Freight | 37,795 | 3,642 | 41,953 | 18,131 | 29,312 | — | 130,833 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 67,077 | 342 | 58,103 | 5,848 | 2,103 | — | 133,473 | ||||||||||||||||||||||||||||||||||
Fixed and other general costs(b) | 257,801 | 8,154 | 190,207 | 35,021 | 29,402 | (824) | 519,761 | ||||||||||||||||||||||||||||||||||
| Total cost of sales | 703,935 | 17,576 | 552,707 | 172,678 | 135,961 | (27,681) | 1,555,176 | ||||||||||||||||||||||||||||||||||
| Selling, general and administrative expense | 12,140 | 1,359 | 4,743 | 9,570 | 2,893 | 45,007 | 75,712 | ||||||||||||||||||||||||||||||||||
| Asset impairment | — | — | 62,300 | — | — | — | 62,300 | ||||||||||||||||||||||||||||||||||
Other operating (income) expense(c) | 675 | 41 | 2,081 | — | 255 | 12,354 | 15,406 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 108,287 | $ | 10,004 | $ | (159,858) | $ | 37,160 | $ | (3,155) | $ | (57,702) | $ | (65,264) | |||||||||||||||||||||||||||
| Depreciation and amortization | $ | 65,869 | $ | 342 | $ | 56,714 | $ | 12,933 | $ | 2,025 | $ | 2,100 | $ | 139,983 | |||||||||||||||||||||||||||
(a)Includes ERP and certain lease expense shared across operating segments.
(b)Includes salaries, wages and benefits, maintenance costs and other costs of sales.
(c)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.
Identifiable assets by segment include the Company’s current assets and were as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cellulose Specialties | $ | 206,267 | $ | 214,659 | |||||||
| Biomaterials | 48,105 | 42,366 | |||||||||
| Cellulose Commodities | 72,913 | 69,082 | |||||||||
| Paperboard | 54,639 | 44,351 | |||||||||
| High-Yield Pulp | 34,841 | 40,694 | |||||||||
Shared/Corporate(a) | 151,618 | 189,809 | |||||||||
| Total assets | $ | 568,383 | $ | 600,961 | |||||||
(a)At both December 31, 2025 and 2024, included $132 million of assets shared by Cellulose Specialties and Cellulose Commodities. Corporate includes certain operating and lease assets shared across segments.
Long-lived assets by country were as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| United States | $ | 714,048 | $ | 719,386 | |||||||
| Canada | 259,243 | 611,647 | |||||||||
| France | 216,542 | 197,290 | |||||||||
| Other | 139 | 373 | |||||||||
| Total long-lived assets | $ | 1,189,972 | $ | 1,528,696 | |||||||
Net sales geographical distribution was as follows:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | % | 2024 | % | 2023 | % | ||||||||||||||||||||||||||||||
| United States | $ | 465,624 | 32 | $ | 560,119 | 34 | $ | 544,864 | 33 | ||||||||||||||||||||||||||
| Europe | 309,524 | 21 | 280,261 | 17 | 222,778 | 13 | |||||||||||||||||||||||||||||
| China | 273,319 | 19 | 352,290 | 22 | 473,778 | 29 | |||||||||||||||||||||||||||||
| Other Asia | 170,635 | 11 | 174,208 | 11 | 126,072 | 8 | |||||||||||||||||||||||||||||
| Japan | 131,382 | 9 | 121,879 | 7 | 158,106 | 10 | |||||||||||||||||||||||||||||
| Canada | 55,199 | 4 | 90,572 | 6 | 62,657 | 4 | |||||||||||||||||||||||||||||
| Latin America | 19,487 | 1 | 17,659 | 1 | 11,073 | — | |||||||||||||||||||||||||||||
| All other | 41,227 | 3 | 33,320 | 2 | 44,002 | 3 | |||||||||||||||||||||||||||||
| Net sales | $ | 1,466,397 | 100 | $ | 1,630,308 | 100 | $ | 1,643,330 | 100 | ||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.