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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.

Research from Water Tower Research

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Equity Bottom-Up

Rayonier Advanced Materials / Equity Bottom-Up

<ul><li>2Q26 results exceed expectations. RYAM Q2 results exceeded expectations, with sales increasing 11% Y/Y to $376MM and adjusted EBITDA rising 43% to $40MM as higher Cellulose Specialties pricing, improved operating rates, and lower manufacturing costs more than offset continued volume headwinds.</li><li>While Paperboard &amp; High Yield Pulp remained challenged, the quarter demonstrated that the company’s Cellulose Specialties pricing strategy is beginning to translate into improved earnings as volume leverage returns.</li><li>Recovery shifts into the next phase. With Cellulose Specialties pricing now largely reset, the operating recovery story increasingly depends on higher volumes, improved product mix, and stronger cash generation. </li></ul>

2Q26 results exceed expectations. RYAM Q2 results exceeded expectations, with sales increasing 11% Y/Y to $376MM and adjusted EBITDA rising 43% to $40MM as higher Cellulose Specialties pricing, improved operating rates, and lower manufacturing costs more than offset continued volume headwinds.While Paperboard &amp; High Yield Pulp remained challenged, the quarter demonstrated that the company’s Cellulose Specialties pricing strategy is beginning to translate into improved earnings as volume leverage returns.Recovery shifts into the next phase. With Cellulose Specialties pricing now largely reset, the operating recovery story increasingly depends on higher volumes, improved product mix, and stronger cash generation. 

RYAM: Operational Momentum Builds as Strategic Review Continues