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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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Equity Bottom-Up

Rayonier Advanced Materials / Equity Bottom-Up

<ul><li>2H25 EBITDA guidance reflective of more normalized performance.</li><li>While non-recurring headwinds, such as tariff- related order pattern disruptions, operational challenges, labor strikes, and adverse weather, reduced 1H25 EBITDA by close to $60 million, 2H25 EBITDA guidance of $105-115 million implies a return to more normal operations and profitability levels as RYAM works to improve costs and drive higher volumes and prices.</li><li>Robust pipeline of cost saving and efficiency projects. RYAM has launched a targeted capital deployment of $24 million to drive $30 million in annual cost savings in its core cellulose specialties (CS) business in 2026, with additional projects envisioned for 2027 and beyond, as the company continues to optimize its operations and streamline costs, positioning itself to fully benefit from the market recovery and take advantage of incremental growth opportunities.</li></ul>

2H25 EBITDA guidance reflective of more normalized performance.While non-recurring headwinds, such as tariff- related order pattern disruptions, operational challenges, labor strikes, and adverse weather, reduced 1H25 EBITDA by close to $60 million, 2H25 EBITDA guidance of $105-115 million implies a return to more normal operations and profitability levels as RYAM works to improve costs and drive higher volumes and prices.Robust pipeline of cost saving and efficiency projects. RYAM has launched a targeted capital deployment of $24 million to drive $30 million in annual cost savings in its core cellulose specialties (CS) business in 2026, with additional projects envisioned for 2027 and beyond, as the company continues to optimize its operations and streamline costs, positioning itself to fully benefit from the market recovery and take advantage of incremental growth opportunities.

Rayonier Advanced Materials, Inc.: Having Weathered 1H25 Crosswinds...