Rayonier's Leadership Transition: Navigating a Sustainable Future Post-Bloomquist

JACKSONVILLE, Fla. – December 10, 2025 – Rayonier Advanced Materials (NYSE: RYAM), a key global supplier of high-purity cellulose for pharmaceutical, food, and industrial applications, is preparing for a significant leadership transition. The company announced that President and CEO De Lyle W. Bloomquist will retire by the May 2026 annual meeting, initiating a pivotal search for a successor who will inherit the helm during a crucial phase of strategic transformation.

Bloomquist, who will remain in his role until a new leader is appointed, has steered RYAM through a complex period of market discipline and strategic repositioning over his tenure. His departure comes as the company doubles down on its 'BioFuture' vision—an ambitious plan to pivot from its traditional base toward becoming a premier producer of innovative, sustainable biomaterials. The Board's choice for the next CEO will be a defining decision, signaling to investors and the market the company's commitment to navigating this capital-intensive evolution while managing the volatilities of its core business.

A Legacy of Discipline and Restructuring

Appointed CEO in May 2022 after serving on the board since 2014, Bloomquist’s tenure has been characterized by a disciplined “value over volume” strategy. This approach was designed to firm up pricing and profitability in the high-purity cellulose market, a critical input for products ranging from pharmaceutical binders to LCD screens and sausage casings. A key move under his leadership was the indefinite suspension of operations at RYAM's Temiscaming, Quebec, high-purity cellulose plant in 2024. This, combined with a competitor’s facility closure, effectively removed about 10% of total industry capacity, helping to rebalance supply-demand dynamics and improve margins.

Financially, Bloomquist’s leadership saw mixed but often resilient results. The company focused heavily on strengthening its balance sheet, achieving a $76 million debt reduction in 2023 and a further $73 million reduction in net secured debt in 2024, part of a $305 million total debt reduction over five years. This fiscal discipline culminated in a strong 2024, with adjusted EBITDA soaring 60% to $222 million and the generation of $130 million in adjusted free cash flow.

However, the path has not been without turbulence. The year 2025 proved challenging, with initial full-year EBITDA guidance of over $215 million being significantly revised downward to a range of $135 million to $140 million. The company cited compounding challenges, including weak paper and pulp pricing and the looming threat of U.S. tariffs on Canadian paperboard exports, which impacted performance and led to a reported loss of $399 million in the first nine months of 2025. Despite these headwinds, Bloomquist demonstrated personal conviction, making a notable insider purchase of RYAM stock in May 2025.

The 'BioFuture' Imperative

The central challenge and opportunity for the next CEO will be the execution of the 'BioFuture' vision. This strategy is RYAM’s answer to the global demand for sustainable alternatives to fossil-fuel-based products. It aims to leverage the company’s existing biorefinery assets and deep expertise in cellulose chemistry to create a new portfolio of high-value biomaterials. The company has set a bold long-term financial target: achieving $325 million in annual EBITDA by the end of 2027, driven largely by these new bio-based ventures.

Progress is already underway. The most significant investment in this vision is a second-generation (2G) bioethanol plant in France, designed to produce advanced biofuels from wood feedstock with a 90% smaller carbon footprint than gasoline. With commercial sales targeted to begin in mid-2023, this project represents a major step into the European biofuels market. Beyond fuel, RYAM is also exploring other novel applications, including the development of a wood-based prebiotic for the poultry market, demonstrating the broad potential of its feedstock.

In her statement on Bloomquist's retirement, Board Chair Lisa Palumbo praised his role in “advancing our BioFuture vision and positioning the Company for sustainable growth.” Her words underscore that the board's mandate for the next leader will be clear: continue this strategic push. The new CEO will need to secure the necessary capital, manage complex project timelines, and successfully commercialize these new technologies to deliver on their promised shareholder value.

The Search for a New Architect

The Board has engaged the executive search firm Spencer Stuart to conduct a comprehensive search for both internal and external candidates. The next leader will require a unique blend of skills: deep operational expertise in the chemicals or materials sector, a proven track record in driving innovation, and the strategic acumen to balance a mature, cyclical core business with a high-growth, emerging one.

Internally, the company has seasoned executives in key roles, including Christian Ribeyrolle, Senior Vice President of Biomaterials, whose responsibilities directly align with the 'BioFuture' strategy. However, an external hire could bring fresh perspectives on navigating the transition from a traditional manufacturer to a cutting-edge biomaterials innovator.

The industry backdrop for this transition is one of immense potential and significant risk. The shift toward a global bio-economy creates powerful tailwinds for companies like RYAM. Yet, the path is fraught with challenges, including supply chain vulnerabilities, inflationary pressures, and navigating complex regulatory landscapes for new products like advanced biofuels. The next CEO must be an adept navigator of these external forces while fostering an internal culture of innovation and operational excellence.

The incoming leader will inherit a company strategically repositioned for a more sustainable future but still grappling with market cyclicality. Their primary task will be to build upon Bloomquist’s foundational work, transforming the ambitious 'BioFuture' blueprint into a tangible and profitable reality, thereby securing RYAM's role as a leader not just in cellulose, but in the broader green economy.