Tariffs are affecting many Jacksonville companies but Rayonier Advanced Materials Inc., or RYAM, may feel the biggest impact.
The maker of cellulose specialties products reported $1.63 billion in sales last year, including $352 million to customers in China, with $251 million coming from goods made in U.S. plants, according to its annual report.
RYAM also has plants in Canada and France.
As RYAM reported first-quarter results May 7, before the U.S. and China announced a 90-day reduction in tariffs, CEO De Lyle Bloomquist said the company expected to take a tariff hit this year.
“Our most significant near-term issue is tariffs, particularly the 125% tariff imposed by China on U.S. sourced cellulose commodities,” Bloomquist said in a conference call.
“These tariffs affect approximately $85 million of our annual revenue,” he said.
RYAM has been struggling financially without tariffs, with six straight years of losses from continuing operations and a first-quarter net loss of $32 million.
Sales in the quarter fell 8% to $356 million.
“The lower revenue was driven primarily by our cellulose specialties customers accelerating purchases into the previous quarter due to concern about supply chain disruptions from potential tariffs and a U.S. East Coast port strike,” Bloomquist said.
Results were also affected by equipment failures and poor weather at its plants, he said.
Because of tariffs and other factors, RYAM lowered its forecast for the full year to adjusted earnings before interest, taxes, depreciation and amortization of $175 million to $185 million, down from its previous forecast of $215 million to $235 million.
Proficient Auto Logistics Inc., which transports automobiles from manufacturers to dealers, is also feeling the impact of tariffs on its business.
In its May 7 conference call, CEO Rick O’Dell said the auto industry experienced increased sales volume in March in anticipation of higher tariffs in April.
“April auto sales and deliveries started very strong on the same basis, but industry data seems to indicate a decelerating sales trend through the month of April and which carried into May,” he said, according to a company transcript of the call.
Proficient was formed by the merger of five auto transport companies following its initial public offering in May 2024.
Its first-quarter revenue of $95.2 million was down 0.4% from the combined revenue of the merged companies last year.
Jacksonville-based Proficient has added two more companies since the IPO, including the acquisition of Pennsylvania-based Brothers Auto Transport completed April 1.
Chief Financial Officer Brad Wright said the company expects higher results for the full year.
“Our current expectations for the year rely more heavily on market share gains and the addition of Brothers to offset a weaker market in the achievement of year-over-year gains,” he said.
Fidelity National Financial Inc. reported a decline in first-quarter revenue, because of lower results from its majority-owned F&G Annuities & Life Inc. unit.
However, revenue at its main business of title insurance rose 12% to $1.8 million.
Jacksonville-based Fidelity’s total revenue fell 17% to $2.7 billion but adjusted earnings rose 3% to $213 million, or 78 cents a share.
In Fidelity’s May 7 conference call, CEO Mike Nolan said there is a range of economic scenarios which will affect its results for the rest of the year.
“While we don’t have a crystal ball to predict, I do know that our seasoned management team has a proven track record of managing our business to the trend in open orders and varying economic conditions,” he said.
Fidelity National Information Services Inc., or FIS, reported first-quarter revenue rose 3% to $2.53 billion and adjusted earnings rose 2% to $643 million, or $1.21 per share.
The Jacksonville-based financial technology company announced a deal in April to sell off its remaining interest in merchant payments business Worldpay to Global Payments Inc. while acquiring Global Payments’ credit processing business called Issuer Solutions.
“We are very excited about our recently announced strategic transactions that will allow us to fully monetize our Worldpay stake at an attractive valuation and strengthen our financial profile with the acquisition of the Issuer Solutions business,” CEO Stephanie Ferris said in a May 6 news release.
“These strategic transactions will expand FIS’ payment product suite, enhancing our relationships with financial institutions and corporate clients,” she said.
Dream Finders Homes Inc. reported May 6 its homebuilding revenue increased 18% to $970 million in the first quarter but earnings were unchanged at 55 cents per share.
The Jacksonville-based home building company said it experienced increased compensation costs in the quarter, because of acquisitions, and it also had increased expenses from forward commitment programs to allow homebuyers to access lower mortgage interest rates on home loans.
Dream Finders also announced May 2 it acquired the majority of the homebuilding assets of Green River Builders Inc., which will expand its operations in the Atlanta market.
Cadre Holdings Inc. reported first-quarter sales fell 6% to $130.1 million, due to the timing of a large order, but earnings rose 33% to $9.2 million, or 23 cents a share.
The company said the higher earnings this year were primarily the result of acquisition-related costs in 2024.
Jacksonville-based Cadre makes products mainly for the law enforcement and first responder markets but in April, it completed the acquisition of two subsidiaries from England-based Carr’s Group plc that provide products and services for nuclear end markets.
“As we look forward, complementing our core organic growth initiatives, M&A remains an essential component of our strategy to continue to build our industry-leading safety platform,” CEO Warren Kanders said in a May 6 news release.
“Consistent with our patient and disciplined approach, we are actively evaluating a robust pipeline of potential transactions focused on complementary businesses with strong margins, leading and defensible market positions, and recurring revenue,” he said.
Firehouse Subs’ first-quarter sales rose 7.3% to $322 million, due to the opening of additional restaurants, parent company Restaurant Brands International Inc. reported May 8.
The chain had 1,352 sandwich shops open at the end of the first quarter, up from 1,277 a year earlier.
Sales at Firehouse restaurants open for more than one year rose 0.6% in the quarter.
Adjusted operating income at Firehouse rose by $1 million to $11 million.
Miami-based RBI, which also operates the Tim Hortons, Burger King and Popeyes chains, acquired Jacksonville-based Firehouse in 2021.
Cadrenal Therapeutics Inc. reported May 8 it had a net loss of $3.8 million in the first quarter, as it continues development of treatments for patients with cardiovascular disease.
Ponte Vedra Beach-based Cadrenal’s main treatment, called tecarfarin, is an anticoagulant, designed to treat patients with certain conditions that are not treatable with other drugs.