Workflow
Ryerson(RYI)
icon
Search documents
Ryerson to Host Earnings Call on Wednesday, October 29th to Discuss Third Quarter 2025 Results
Prnewswire· 2025-10-01 20:31
Accessibility StatementSkip Navigation CHICAGO, Oct. 1, 2025 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, announced today that it will host a conference call to discuss its third quarter 2025 financial results for the period ended September 30, 2025 on Wednesday, October 29 at 10 a.m. Eastern Time. The live online broadcast will be available on the Company's Investor Relations website, ir.ryerson.com. Ryerson will report earni ...
Ryerson (RYI) 2025 Earnings Call Presentation
2025-09-04 13:00
Company Overview - Ryerson's TTM revenue is $4.4 billion, with an adjusted EBITDA of $109 million and an adjusted EBITDA margin of 2.5%[6] - The company's market capitalization is $0.7 billion, and net debt is $479 million[6] - Ryerson aims for a mid-cycle EBITDA of $350-400 million through self-help actions[31] Market Position and Strategy - Ryerson is a leading metal solutions provider with a digital network across North America[9, 10] - The company focuses on improving customer experiences through innovation, integration, and supply-chain optimization[9] - Ryerson is working to increase transactional revenue to over 60% of its business and value-added revenue to 20%[32, 74] - The company is targeting an expense-to-sales ratio of 13-15%[32, 74] Financial Priorities - Ryerson aims to maintain a leverage ratio through the cycle of 0.5x to 2.0x[44, 47] - The company has $38 million remaining in its share repurchase authorization, expiring in April 2026[46] Capital Expenditures - Ryerson's LTM free cash flow generation is $137 million[68] - The company is investing in modernization and value-add initiatives, with capital expenditures of $50 million in 2025E[69]
Ryerson (RYI) Q2 EPS Drops 76%
The Motley Fool· 2025-07-31 00:36
Core Viewpoint - Ryerson's Q2 2025 financial results showed a decline in earnings and revenue, reflecting ongoing challenges in profit margins and industrial demand, despite some operational achievements in market share [1][5][12] Financial Performance - Diluted EPS (GAAP) was $0.06, missing estimates of $0.19, while revenue was $1.17 billion, slightly below the expected $1.18 billion [1][2] - Year-over-year revenue decreased by 4.6% from $1.23 billion in Q2 2024, and net income attributable to Ryerson fell 80.8% to $1.9 million from $9.9 million [2][9] - Adjusted EBITDA (excluding LIFO) increased by 5.6% year-over-year to $45 million, indicating some operational resilience [2][5] Business Overview and Strategy - Ryerson operates a broad metals service center network, distributing carbon steel, stainless steel, and aluminum products across various sectors, which helps mitigate dependence on any single market [3] - The company's strategy focuses on expanding value-added services and increasing market reach through organic growth and targeted acquisitions [4] Operational Highlights - Tons shipped were 501,000, a slight decrease of 1.4% year-over-year, but better than the 2.1% decline in the broader North American service center industry, indicating modest market share gains [5] - Average selling price per ton (GAAP) was $2,334, down 3.2% year-over-year, but showed improvement from the first quarter [6] Sales Mix and Cost Management - The company has shifted its sales mix towards more transactional business, with growth in transactional sales for five consecutive quarters, helping to offset declines in contractual OEM business [7] - Cost management efforts resulted in a 0.7% increase in warehousing, delivery, and administrative expenses from Q1 to Q2 2025, with expenses declining as a percentage of revenue [8] Future Guidance - For Q3 2025, management projects GAAP revenue between $1.14 billion and $1.18 billion, with shipments expected to fall 2% to 4% quarter-over-quarter [11] - Average selling price per ton is anticipated to rise by 1% to 3%, while adjusted EBITDA excluding LIFO is expected to be in the $40 million to $45 million range [11] - Management expressed cautiousness regarding manufacturing and industrial metal demand, particularly from large OEM customers [12]
Ryerson(RYI) - 2025 Q2 - Earnings Call Transcript
2025-07-30 15:00
Financial Data and Key Metrics Changes - Ryerson reported net sales of $1,170 million, an increase of 3% compared to the first quarter, with average selling prices up 2.8% and tons shipped up fractionally [16] - Gross margin during the quarter contracted by 10 basis points to 17.9%, influenced by a higher than anticipated LIFO expense of $13 million [16] - Adjusted EBITDA excluding LIFO achieved $45 million in Q2 2025, compared to $32.8 million in the prior quarter [17] Business Line Data and Key Metrics Changes - North American shipments decreased by 1.2% quarter over quarter, generating incremental market share gains, particularly in carbon long, carbon plate, and stainless long products [7] - The consumer durable sector, especially in appliances and recreational vehicles, showed relative strength, while the construction equipment sector experienced sequential volume contraction [8] - Transactional sales accounted for approximately 46% of the business, with a focus on improving service levels and lead times to gain more transactional opportunities [31][32] Market Data and Key Metrics Changes - North American industry volumes decreased by 2.1% relative to the first quarter, with Ryerson's performance slightly better than the industry average [7] - The company noted bright spots in subsector industries such as data centers and public infrastructure projects driven by federal investment spending [9] - The pricing environment is expected to remain supportive, leading to average selling price appreciation of 1% to 3% in the upcoming quarter [11] Company Strategy and Development Direction - Ryerson continues to operationalize its capital expenditures, having deployed over $650 million since 2021 to modernize its service center network [4] - The company is focused on managing non-value-added costs and precise working capital management to prepare for the next cyclical upturn [6] - Investments in processing capabilities and maintenance projects are ongoing, with a full-year capital expenditure target of $50 million [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about medium to long-term demand trends despite current industry downturn challenges, including high interest rates and tariff uncertainties [4] - The company anticipates a softening of volumes by 2% to 4% in the upcoming quarter, but expects pricing to remain supportive [10] - Management highlighted the importance of improving customer experience through operational efficiencies and better service models [26] Other Important Information - Ryerson ended the second quarter with $510 million of total debt and $479 million of net debt, resulting in a leverage ratio of 4.4 times, above the target range [13] - The company distributed $6 million in dividends during the second quarter and announced a similar cash dividend for the third quarter [14] - The Shelbyville facility is currently at about 67% of its volume ramp-up, with expectations for further improvements as investments mature [42] Q&A Session Summary Question: Can you discuss the North American market share growth in Carbon Long and Plate? - Management noted that investments have improved service models and reduced frictional costs, leading to better customer experiences and market share gains [24][26] Question: What was the tax benefit impact on EPS in the second quarter? - The tax benefit was due to reduced earnings and discrete state tax credits, with an expected effective tax rate of around 25% to 26% going forward [28][29] Question: What is the current split between transactional and contractual sales? - The current split is approximately 46% transactional and 54% contractual, with a focus on increasing transactional sales through improved service [31][32] Question: How is the CapEx trend compared to the $50 million target? - Management indicated that the CapEx is a function of timing, and they remain committed to the $50 million target for the year [36] Question: What are the expectations for second half cash flow and leverage ratio? - Management expects to generate cash through the balance of the year, with the leverage ratio anticipated to move back towards the target range [48]
Ryerson(RYI) - 2025 Q2 - Earnings Call Presentation
2025-07-30 14:00
Q2 2025 Performance - Ryerson generated Q2 2025 revenue of $1.17 billion, aligning with guidance, with average selling prices increasing by 2.8% and tons shipped up fractionally compared to the prior quarter[8] - Net income attributable to Ryerson Holding Corporation was $1.9 million, or diluted income per share of $0.06, and Adjusted EBITDA, excluding LIFO, reached $45.0 million[8] - Ryerson ended Q2 2025 with debt of $510 million and net debt of $479 million, compared to $498 million and $464 million, respectively, at the end of Q1 2025[8] - The company's LTM Free Cash Flow Yield is 19.8%[26] Market Trends and Share - Ryerson gained market share while increasing transactional business mix for the fifth consecutive quarter, partially offsetting recessed contractual business[8] - Ryerson's Q2 shipments reflected relative strength in the consumer durable sector and HVAC sector on a QoQ volume basis, offset by weakness in construction and commercial ground transportation[17] - Ryerson grew North American market share in Q2 2025 compared to the industry as measured by the MSCI, with particular growth in carbon long, carbon plate, and stainless long products[18] - North American Industry shipments declined by 2.1% in the second quarter while Ryerson North American shipments declined by 1.2%, implying Ryerson market share growth[8] Q3 2025 Guidance - Ryerson anticipates Q3 2025 net sales between $1.14 billion and $1.18 billion, net income between $0 million and $2 million, and Adjusted EBITDA, excluding LIFO, between $40 million and $45 million[22] - Q3 2025 guidance assumes shipments will decrease between 2% and 4% due to demand environment challenges and normal seasonality patterns, while average selling prices are expected to increase 1% to 3%[24]
Ryerson Reports Second Quarter 2025 Results
Prnewswire· 2025-07-29 20:29
Core Insights - Ryerson Holding Corporation reported a net income of $1.9 million for Q2 2025, a significant recovery from a net loss of $5.6 million in Q1 2025, indicating improved operational performance amidst challenging market conditions [9][24][29] - The company achieved revenue of $1.17 billion in Q2 2025, reflecting a 3.0% increase from Q1 2025, driven by a slight increase in average selling prices and tons shipped [6][24] - Adjusted EBITDA, excluding LIFO, reached $45.0 million in Q2 2025, up 37.2% from Q1 2025, showcasing effective cost management and operational execution [10][24][29] Financial Highlights - Revenue for Q2 2025 was $1,169.3 million, a decrease of 4.6% year-over-year from $1,225.5 million in Q2 2024 [4] - Tons shipped were 501,000, a slight increase of 0.2% from Q1 2025 but a decrease of 1.4% from Q2 2024 [4] - Average selling price per ton increased to $2,334, up 2.8% from Q1 2025 but down 3.2% year-over-year [4] Gross Margin and Expenses - Gross margin contracted to 17.9% in Q2 2025 from 18.0% in Q1 2025, primarily due to rising costs outpacing price increases [7] - Excluding LIFO, gross margin improved to 19.0%, up 40 basis points from Q1 2025 [7] - Warehousing, delivery, selling, general, and administrative expenses were $203.6 million, a 0.7% increase from Q1 2025, reflecting management's focus on controlling costs [8] Debt and Cash Flow - Total debt increased to $510.2 million, while net debt rose to $479.4 million, reflecting a sequential increase due to operational needs [11] - Cash provided by operating activities was $23.8 million, a recovery from a usage of $41.2 million in Q1 2025, indicating improved cash flow management [11][30] - The company ended Q2 2025 with global liquidity of $485 million, slightly down from $490 million at the end of Q1 2025 [11] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.1875 per share, payable on September 18, 2025, reflecting the company's commitment to returning value to shareholders [12] - During Q2 2025, the total cash return from dividends amounted to approximately $6.0 million [12] Outlook - For Q3 2025, Ryerson anticipates a decrease in customer shipments by 2% to 4% quarter-over-quarter, with expected net sales in the range of $1.14 billion to $1.18 billion [14] - Average selling prices are projected to increase by 1% to 3%, while adjusted EBITDA, excluding LIFO, is expected to be between $40 million and $45 million [14]
Ryerson(RYI) - 2025 Q2 - Quarterly Results
2025-07-29 20:19
[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Ryerson reported strong Q2 2025 results with revenue meeting guidance and adjusted EBITDA at the high end, demonstrating market share growth and a declared Q3 dividend [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Ryerson achieved **$1.17 billion** in revenue for Q2 2025, meeting guidance, and an adjusted EBITDA (excl. LIFO) of **$45 million**, at the high end of guidance, growing market share and transactional business while declaring a Q3 dividend | Financial Highlights | Q2 2025 | Q1 2025 | Q2 2024 | QoQ | YoY | | :------------------- | :------ | :------ | :------ | :-- | :-- | | Revenue (Millions of USD) | $1,169.3 | $1,135.7 | $1,225.5 | 3.0% | (4.6)% | | Net income (loss) attributable to Ryerson Holding Corporation (Millions of USD) | $1.9 | $(5.6) | $9.9 | 133.9% | (80.8)% | | Diluted earnings (loss) per share (USD) | $0.06 | $(0.18) | $0.29 | $0.24 | $(0.23) | | Adj. EBITDA, excl. LIFO (Millions of USD) | $45.0 | $32.8 | $42.6 | 37.2% | 5.6% | | Total debt (Millions of USD) | $510.2 | $497.3 | $525.4 | 2.6% | (2.9)% | | Net debt (Millions of USD) | $479.4 | $463.7 | $497.4 | 3.4% | (3.6)% | - The company achieved **$1.17 billion** in revenue during Q2, consistent with guidance, with average selling prices increasing **2.8%** sequentially and shipments showing slight growth[7](index=7&type=chunk) - Ryerson gained market share and increased its transactional business portfolio for the fifth consecutive quarter, partially offsetting a decline in contract business[7](index=7&type=chunk) - The Board of Directors declared a Q3 2025 dividend of **$0.1875** per share[7](index=7&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) Management emphasized strategic execution and service center improvements driving market share growth amidst challenging industry conditions, with stabilizing steel prices and rising aluminum prices [CEO's Perspective](index=3&type=section&id=CEO's%20Perspective) Ryerson's CEO Eddie Lehner highlighted market share and transactional business growth by enhancing service center fundamentals amidst persistent weak demand in manufacturing and industrial metals, noting stabilizing steel prices, rising aluminum prices, and prevalent market discounts - Amidst persistent weak demand in the manufacturing and industrial metals sectors, the company focused on "self-help and execution" strategies to enhance service center fundamentals, including faster lead times, inventory placement, and on-time delivery[8](index=8&type=chunk) - Ryerson achieved market share and transactional business growth across its network, supported by fully operational and normalized capital expenditure and systems projects, despite continued weakness in OEM project accounts[8](index=8&type=chunk) - Stainless and carbon steel prices began to stabilize, while aluminum prices trended higher, but market discounts remained prevalent[8](index=8&type=chunk) [Second Quarter 2025 Financial Performance](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Ryerson's Q2 2025 financial performance showed sequential revenue growth, a contracted GAAP gross margin due to LIFO, but an expanded gross margin excluding LIFO, alongside controlled operating expenses and improved net income [Revenue Performance](index=3&type=section&id=Revenue%20Performance) Ryerson's Q2 2025 net sales reached **$1.17 billion**, a **3.0%** sequential increase, aligning with guidance, driven by a **2.8%** rise in average selling prices and **0.2%** higher shipments, influenced by tariff-supported carbon steel and aluminum prices | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :----- | :------ | :------ | :--------- | | Net Sales (Billions of USD) | $1.17 | $1.1357 | +3.0% | | Average Selling Prices | +2.8% | - | - | | Tons Shipped | +0.2% | - | - | - Revenue performance was positively impacted by higher average selling prices for tariff-supported carbon steel and aluminum products, but partially offset by slower customer activity following Q1 pre-buying and trade policy uncertainties[9](index=9&type=chunk) [Gross Margin Analysis](index=3&type=section&id=Gross%20Margin%20Analysis) Q2 2025 gross margin contracted by **10 basis points** to **17.9%** due to cost of sales growth exceeding average selling price growth, with LIFO expense increasing to **$13.2 million**, yet gross margin excluding LIFO expanded by **40 basis points** to **19.0%** | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :----- | :------ | :------ | :--------- | | Gross margin | 17.9% | 18.0% | -10 bps | | Gross margin, excl. LIFO | 19.0% | 18.6% | +40 bps | | LIFO expense (Millions of USD) | $13.2 | $6.8 | +$6.4 | - Gross margin contraction resulted from the cost of sales growth for the product mix exceeding the growth in average selling prices[10](index=10&type=chunk) - Higher commodity prices led to increased inventory values, resulting in a higher-than-anticipated LIFO expense[10](index=10&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Q2 2025 warehousing, delivery, selling, general, and administrative expenses rose **0.7%** sequentially to **$203.6 million** due to an extra workday, but decreased as a percentage of revenue and on a daily basis, reflecting strong cost control | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change QoQ | Change YoY | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Warehousing, delivery, selling, general, and administrative expenses (Millions of USD) | $203.6 | $202.1 | $199.0 | +0.7% | +2.3% | | As a percentage of revenue | 17.4% | 17.8% | 16.2% | -40 bps | +120 bps | - Operating expenses increased **0.7%** sequentially due to an additional workday in Q2[11](index=11&type=chunk) - Expenses as a percentage of revenue and daily expenses both decreased sequentially, indicating strong management control over operating costs[11](index=11&type=chunk) - Compared to the prior year, operating expenses increased **2.3%**, primarily driven by higher delivery expenses and the acquisition of Production Metals in August 2024[11](index=11&type=chunk) [Net Income and Adjusted EBITDA](index=3&type=section&id=Net%20Income%20and%20Adjusted%20EBITDA) Ryerson's Q2 2025 net income attributable to Ryerson Holding Corporation was **$1.9 million**, with diluted EPS of **$0.06**, a significant improvement from the prior quarter's net loss of **$5.6 million** (loss per share of **$0.18**), and adjusted EBITDA excluding LIFO reached **$45 million** | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :----- | :------ | :------ | :--------- | | Net income (loss) attributable to Ryerson Holding Corporation (Millions of USD) | $1.9 | $(5.6) | +$7.5 | | Diluted earnings (loss) per share (USD) | $0.06 | $(0.18) | +$0.24 | | Adjusted EBITDA, excluding LIFO (Millions of USD) | $45.0 | $32.8 | +$12.2 | [Liquidity & Debt Management](index=3&type=section&id=Liquidity%20%26%20Debt%20Management) Ryerson demonstrated improved cash flow from operations in Q2 2025, turning positive from the prior quarter, while managing debt levels and maintaining global liquidity [Cash Flow and Debt Levels](index=3&type=section&id=Cash%20Flow%20and%20Debt%20Levels) Ryerson generated **$23.8 million** in cash from operations in Q2 2025, a turnaround from Q1's **$41.2 million** cash usage, with total debt at **$510 million** and net debt at **$479 million**, and global liquidity at **$485 million** | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :----- | :------ | :------ | :--------- | | Net cash provided by (used in) operating activities (Millions of USD) | $23.8 | $(41.2) | +$65.0 | | Total debt (Millions of USD) | $510 | $498 | +$12 | | Net debt (Millions of USD) | $479 | $464 | +$15 | | Global liquidity (Millions of USD) | $485 | $490 | -$5 | - Operating cash flow turned positive, primarily due to the normalization of accounts receivable, but partially offset by moderate inventory replenishment[13](index=13&type=chunk) [Shareholder Return Activity](index=3&type=section&id=Shareholder%20Return%20Activity) Ryerson continued its shareholder return program by declaring a quarterly cash dividend for Q3 2025, though no share repurchases were made in Q2, with remaining authorization available [Dividends](index=3&type=section&id=Dividends) Ryerson's Board of Directors declared a quarterly cash dividend of **$0.1875** per share on July 29, 2025, payable on September 18, 2025, with approximately **$6 million** in quarterly dividend payments in Q2 2025 | Metric | Q3 2025 Dividend | | :----- | :--------------- | | Dividend per share (USD) | $0.1875 | | Cash return (Q2 2025) (Millions of USD) | ~$6.0 | [Share Repurchases](index=3&type=section&id=Share%20Repurchases) Ryerson did not repurchase any shares in Q2 2025, with **$38.4 million** remaining under the existing authorization as of June 30, 2025 - Ryerson did not repurchase any shares in Q2 2025[15](index=15&type=chunk) - As of June 30, 2025, **$38.4 million** remained available for share repurchases under the existing authorization[15](index=15&type=chunk) [Outlook for Third Quarter 2025](index=3&type=section&id=Outlook%20for%20Third%20Quarter%202025) Ryerson provided Q3 2025 guidance anticipating a sequential decline in customer shipments, with projected net sales between **$1.14 billion** and **$1.18 billion**, and adjusted EBITDA (excl. LIFO) between **$40 million** and **$45 million** [Q3 2025 Guidance](index=3&type=section&id=Q3%202025%20Guidance) Ryerson anticipates Q3 2025 customer shipments to decrease by **2%** to **4%** sequentially, with net sales projected between **$1.14 billion** and **$1.18 billion**, average selling prices increasing **1%** to **3%**, LIFO expense between **$9 million** and **$11 million**, and adjusted EBITDA (excl. LIFO) between **$40 million** and **$45 million** | Metric | Q3 2025 Guidance (Low) | Q3 2025 Guidance (High) | | :----- | :--------------------- | :---------------------- | | Customer shipments (QoQ) | -4% | -2% | | Net sales (Billions of USD) | $1.14 | $1.18 | | Average selling prices | +1% | +3% | | LIFO expense (Millions of USD) | $9 | $11 | | Adjusted EBITDA, excluding LIFO (Millions of USD) | $40 | $45 | | Diluted earnings per share (USD) | $0.00 | $0.06 | - Shipment decline reflects normal seasonality and cautious customer behavior due to weak overall manufacturing and industrial metals demand, particularly in large OEM contract customer business[16](index=16&type=chunk) [Major Product Metrics](index=5&type=section&id=Major%20Product%20Metrics) This section details the performance of carbon steel, aluminum, and stainless steel products in Q2 and 1H 2025, showing varied trends in net sales, shipments, and average selling prices [Second Quarter 2025 Product Metrics](index=5&type=section&id=Second%20Quarter%202025%20Product%20Metrics) In Q2 2025, carbon steel net sales increased **2.7%** sequentially but decreased **10.2%** year-over-year; aluminum net sales rose **11.3%** sequentially and **10.5%** year-over-year; stainless steel net sales declined **3.6%** sequentially and **5.2%** year-over-year, with similar trends in shipments and average selling prices Q2 2025 Major Product Net Sales (Millions of USD) | Product | Q2 2025 | Q1 2025 | Q2 2024 | Quarter-over-quarter | Year-over-year | | :------ | :------ | :------ | :------ | :------------------- | :------------- | | Carbon Steel | $578 | $563 | $644 | 2.7% | (10.2%) | | Aluminum | $306 | $275 | $277 | 11.3% | 10.5% | | Stainless Steel | $271 | $281 | $286 | (3.6%) | (5.2%) | Q2 2025 Major Product Shipments (Thousands of Tons) | Product | Q2 2025 | Q1 2025 | Q2 2024 | Quarter-over-quarter | Year-over-year | | :------ | :------ | :------ | :------ | :------------------- | :------------- | | Carbon Steel | 391 | 389 | 397 | 0.5% | (1.5%) | | Aluminum | 50 | 48 | 49 | 4.2% | 2.0% | | Stainless Steel | 60 | 61 | 59 | (1.6%) | 1.7% | Q2 2025 Major Product Average Selling Prices (Per Ton) | Product | Q2 2025 | Q1 2025 | Q2 2024 | Quarter-over-quarter | Year-over-year | | :------ | :------ | :------ | :------ | :------------------- | :------------- | | Carbon Steel | $1,478 | $1,447 | $1,622 | 2.1% | (8.9%) | | Aluminum | $6,120 | $5,729 | $5,653 | 6.8% | 8.3% | | Stainless Steel | $4,517 | $4,607 | $4,847 | (2.0%) | (6.8%) | [First Half 2025 Product Metrics](index=5&type=section&id=First%20Half%202025%20Product%20Metrics) For the first half of 2025, carbon steel net sales decreased **11.4%** year-over-year, aluminum net sales increased **4.5%**, and stainless steel net sales declined **5.3%**, with varied trends in shipments and average selling prices across products 1H 2025 Major Product Net Sales (Millions of USD) | Product | 1H 2025 | 1H 2024 | Year-over-year | | :------ | :------ | :------ | :------------- | | Carbon Steel | $1,141 | $1,288 | (11.4%) | | Aluminum | $581 | $556 | 4.5% | | Stainless Steel | $552 | $583 | (5.3%) | 1H 2025 Major Product Shipments (Thousands of Tons) | Product | 1H 2025 | 1H 2024 | Year-over-year | | :------ | :------ | :------ | :------------- | | Carbon Steel | 780 | 781 | (0.1%) | | Aluminum | 98 | 99 | (1.0%) | | Stainless Steel | 121 | 120 | 0.8% | 1H 2025 Major Product Average Selling Prices (Per Ton) | Product | 1H 2025 | 1H 2024 | Year-over-year | | :------ | :------ | :------ | :------------- | | Carbon Steel | $1,463 | $1,649 | (11.3%) | | Aluminum | $5,929 | $5,616 | 5.6% | | Stainless Steel | $4,562 | $4,858 | (6.1%) | [Company Information & Legal Disclaimers](index=6&type=section&id=Company%20Information%20%26%20Legal%20Disclaimers) This section provides essential company information, investor relations details, definitions of non-GAAP measures, and crucial legal disclaimers regarding forward-looking statements and securities offerings [Earnings Call Details](index=6&type=section&id=Earnings%20Call%20Details) Ryerson will host a conference call on Wednesday, July 30, 2025, at 10:00 AM ET to discuss Q2 2025 financial results, with a live webcast and replay available on the company's investor relations website - Ryerson will host a conference call on Wednesday, July 30, 2025, at 10:00 AM ET to discuss Q2 2025 financial results[19](index=19&type=chunk) - A live webcast and 90-day replay will be available on the company's investor relations website, ir.ryerson.com[19](index=19&type=chunk) [About Ryerson](index=6&type=section&id=About%20Ryerson) Ryerson Holding Corporation (NYSE: RYI) is a leading value-added processor and distributor of industrial metals, operating across the U.S., Canada, Mexico, and China, founded in 1842 with approximately 4,300 employees and over 110 locations - Ryerson is a leading value-added processor and distributor of industrial metals[20](index=20&type=chunk) - The company operates across the U.S., Canada, Mexico, and China, with approximately **4,300** employees and over **110** locations[20](index=20&type=chunk) - Ryerson was founded in 1842[20](index=20&type=chunk) [Investor Relations & Notes](index=6&type=section&id=Investor%20Relations%20%26%20Notes) This section provides investor relations contact information and defines non-GAAP financial measures such as EBITDA, Adjusted EBITDA, net debt, and explains the calculation of market share growth - Investor relations contact information: investorinfo@ryerson.com[21](index=21&type=chunk) - Definitions for EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding LIFO are provided in Schedule 2[21](index=21&type=chunk) - Net debt is defined as long-term debt plus short-term debt less cash and cash equivalents, excluding restricted cash[21](index=21&type=chunk) - Ryerson's market share growth is based on a **2.1%** decline in North American industry shipments versus a **1.2%** decline in Ryerson's North American shipments[21](index=21&type=chunk) [Legal Disclaimer](index=6&type=section&id=Legal%20Disclaimer) This press release is for general information only and does not constitute an offer or solicitation to sell or buy any company securities in any jurisdiction, nor does Ryerson intend to solicit any securities or contractual relationships - The content of this press release is for general informational purposes only and does not constitute an offer or solicitation to sell or buy any company securities[22](index=22&type=chunk) - Ryerson does not intend to solicit any securities or any other contractual relationships[22](index=22&type=chunk) [Safe Harbor Provision](index=6&type=section&id=Safe%20Harbor%20Provision) Certain statements in this press release are "forward-looking statements" under federal securities laws, involving future performance, management expectations, beliefs, intentions, plans, estimates, objectives, or projections, and are not guarantees of future performance, subject to significant risks and uncertainties - Certain statements in this press release constitute "forward-looking statements" concerning the company's future performance, management expectations, beliefs, intentions, plans, estimates, objectives, or projections[23](index=23&type=chunk) - Forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, with actual results potentially differing materially due to various factors[23](index=23&type=chunk) - Factors affecting the company's business include business cyclicality, competition and volatility in the metals industry, geopolitical events, metal price fluctuations, debt, acquisition integration, regulatory risks, influence of a single investor group, work stoppages, employee retirement benefit plans, currency fluctuations, and consolidation in the metals industry[23](index=23&type=chunk) [Financial Statements & Reconciliations](index=7&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents Ryerson's unaudited selected income and cash flow data, condensed consolidated balance sheets, and comprehensive reconciliations for various non-GAAP financial measures, including EBITDA, Adjusted EBITDA, gross profit excluding LIFO, adjusted net income, free cash flow, and Q3 2025 guidance [Selected Income and Cash Flow Data](index=7&type=section&id=Selected%20Income%20and%20Cash%20Flow%20Data) This section presents unaudited selected income and cash flow data for Ryerson Holding Corporation and its subsidiaries for Q2 2025, Q1 2025, Q2 2024, and the first halves of 2025 and 2024, detailing key financial metrics such as net sales, gross profit, operating profit, net income, EPS, shipments, average selling price, LIFO expense, and cash flow Ryerson Holding Corporation and Subsidiaries Selected Income and Cash Flow Data (Unaudited) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :------------------------------------------------ | :------ | :------ | :------ | :------ | :------ | | NET SALES (Millions of USD) | $1,169.3 | $1,135.7 | $1,225.5 | $2,305.0 | $2,464.7 | | Gross profit (Millions of USD) | $209.4 | $204.4 | $223.5 | $413.8 | $441.1 | | OPERATING PROFIT (Millions of USD) | $5.8 | $2.3 | $22.8 | $8.1 | $23.6 | | NET INCOME (LOSS) ATTRIBUTABLE TO RYERSON HOLDING CORPORATION (Millions of USD) | $1.9 | $(5.6) | $9.9 | $(3.7) | $2.3 | | Diluted earnings (loss) per share (USD) | $0.06 | $(0.18) | $0.29 | $(0.12) | $0.07 | | Tons shipped (Thousands of Tons) | 501 | 500 | 508 | 1,001 | 1,005 | | Average selling price/ton (USD) | $2,334 | $2,271 | $2,412 | $2,303 | $2,452 | | LIFO expense (income) (Millions of USD) | $13.2 | $6.8 | $(10.0) | $20.0 | $(9.0) | | Cash flow provided by (used in) operating activities (Millions of USD) | $23.8 | $(41.2) | $25.9 | $(17.4) | $(21.9) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides condensed consolidated balance sheets for Ryerson Holding Corporation and its subsidiaries, presenting assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024, with total assets increasing from **$2.4395 billion** at year-end 2024 to **$2.5381 billion**, primarily due to increased accounts receivable Ryerson Holding Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Millions of USD) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :---------------- | | Total current assets | $1,324.6 | $1,207.6 | | Property, plant, and equipment, net | $619.3 | $636.7 | | Total assets | $2,538.1 | $2,439.5 | | Total current liabilities | $651.2 | $580.1 | | Long-term debt | $508.8 | $466.7 | | Total liabilities | $1,716.9 | $1,615.0 | | Total Ryerson Holding Corporation Stockholders' Equity | $811.5 | $815.3 | | Total Equity | $821.2 | $824.5 | | Total Liabilities and Stockholders' Equity | $2,538.1 | $2,439.5 | - As of June 30, 2025, cash and cash equivalents were **$30.8 million**, accounts receivable were **$532.8 million**, and inventory was **$675.6 million**[27](index=27&type=chunk) - As of June 30, 2025, total debt was **$510.2 million** (short-term debt of **$1.4 million** and long-term debt of **$508.8 million**)[27](index=27&type=chunk) [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides reconciliations for several non-GAAP financial measures, including net income (loss) to EBITDA and Adjusted EBITDA, gross profit to gross profit excluding LIFO, net income (loss) to Adjusted net income (loss) and Adjusted EPS, and cash flow from operating activities to free cash flow, along with Q3 2025 guidance reconciliation [EBITDA and Gross Profit Excl. LIFO Reconciliation](index=9&type=section&id=EBITDA%20and%20Gross%20Profit%20Excl.%20LIFO%20Reconciliation) This reconciliation adjusts net income (loss) attributable to Ryerson Holding Corporation to EBITDA and Adjusted EBITDA, further to Adjusted EBITDA excluding LIFO, and gross profit to gross profit excluding LIFO, providing a basis for comparison with competitors not using the same inventory accounting Net Income (Loss) to EBITDA and Adjusted EBITDA Reconciliation (Millions of USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :----- | :------ | :------ | :------ | :------ | :------ | | Net income (loss) attributable to Ryerson Holding Corporation | $1.9 | $(5.6) | $9.9 | $(3.7) | $2.3 | | EBITDA | $22.7 | $21.5 | $42.2 | $44.2 | $60.0 | | Adjusted EBITDA | $31.8 | $26.0 | $52.6 | $57.8 | $91.8 | | Adjusted EBITDA, excluding LIFO expense (income) | $45.0 | $32.8 | $42.6 | $77.8 | $82.8 | | Adjusted EBITDA, excluding LIFO expense (income), as a percentage of net sales | 3.8% | 2.9% | 3.5% | 3.4% | 3.4% | Gross Profit to Gross Profit Excluding LIFO Reconciliation (Millions of USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :----- | :------ | :------ | :------ | :------ | :------ | | Gross profit | $209.4 | $204.4 | $223.5 | $413.8 | $441.1 | | Gross margin | 17.9% | 18.0% | 18.2% | 18.0% | 17.9% | | Gross profit, excluding LIFO expense (income) | $222.6 | $211.2 | $213.5 | $433.8 | $432.1 | | Gross margin, excluding LIFO expense (income) | 19.0% | 18.6% | 17.4% | 18.8% | 17.5% | - EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding LIFO are used by management as primary metrics for planning and forecasting, analyzing core operating performance, and comparing with competitors[30](index=30&type=chunk) [Adjusted Net Income and EPS Reconciliation](index=11&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) This reconciliation adjusts net income (loss) attributable to Ryerson Holding Corporation to Adjusted net income (loss) and Adjusted diluted earnings per share, providing a means for comparison with periods not including similar adjustments Net Income (Loss) to Adjusted Net Income (Loss) and Adjusted EPS Reconciliation (Millions of USD, except per share data) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :----- | :------ | :------ | :------ | :------ | :------ | | Net income (loss) attributable to Ryerson Holding Corporation | $1.9 | $(5.6) | $9.9 | $(3.7) | $2.3 | | Adjusted net income (loss) attributable to Ryerson Holding Corporation | $2.5 | $(5.6) | $11.2 | $(3.1) | $5.0 | | Adjusted diluted earnings (loss) per share (USD) | $0.08 | $(0.18) | $0.33 | $(0.10) | $0.14 | [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20Reconciliation) This reconciliation adjusts net cash provided by (used in) operating activities to free cash flow and calculates free cash flow yield, considering capital expenditures and proceeds from property, plant, and equipment sales Cash Flow from Operating Activities to Free Cash Flow Yield Reconciliation (Millions of USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :----- | :------ | :------ | :------ | :------ | :------ | | Net cash provided by (used in) operating activities | $23.8 | $(41.2) | $25.9 | $(17.4) | $(21.9) | | Capital expenditures | $(9.9) | $(8.0) | $(22.7) | $(17.9) | $(44.5) | | Proceeds from sales of property, plant, and equipment | $0.2 | $0.1 | $0.1 | $0.3 | $1.5 | | Free cash flow | $14.1 | $(49.1) | $3.3 | $(35.0) | $(64.9) | | Free cash flow yield | 2.0% | (6.6)% | 0.5% | (5.0)% | (9.9)% | [Third Quarter 2025 Guidance Reconciliation](index=12&type=section&id=Third%20Quarter%202025%20Guidance%20Reconciliation) This reconciliation provides the adjustment from Ryerson Holding Corporation's Q3 2025 net income guidance to Adjusted EBITDA (excluding LIFO) guidance, including interest expense, provision for income taxes, depreciation and amortization expense, and other adjustments Q3 2025 Net Income Attributable to Ryerson Holding Corporation to Adjusted EBITDA (Excluding LIFO) Guidance Reconciliation (Millions of USD, except per share data) | Metric | Third Quarter 2025 (Low) | Third Quarter 2025 (High) | | :----- | :----------------------- | :------------------------ | | Net income attributable to Ryerson Holding Corporation | $- | $2 | | Diluted earnings per share (USD) | $- | $0.06 | | EBITDA | $30 | $33 | | Adjusted EBITDA | $31 | $34 | | LIFO expense | $9 | $11 | | Adjusted EBITDA, excluding LIFO expense | $40 | $45 |
Ryerson(RYI) - 2025 Q2 - Quarterly Report
2025-07-29 20:17
[Company Information](index=1&type=section&id=Company%20Information) The company is a publicly traded Delaware corporation listed on the NYSE - **RYERSON HOLDING CORPORATION** is a Delaware corporation, identified by Commission File Number 001-34735[2](index=2&type=chunk) - The company's Common Stock (RYI) is registered on the **New York Stock Exchange**[3](index=3&type=chunk) - Ryerson Holding Corporation is classified as an **accelerated filer**[4](index=4&type=chunk) - As of July 25, 2025, there were **32,198,906 shares** of Common Stock outstanding[6](index=6&type=chunk) [Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This part presents the company's unaudited interim financial statements and management's analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and accompanying notes for the periods ended June 30, 2025 [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This statement details the company's revenues, expenses, and profitability for the three and six-month periods ended June 30, 2025 | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $1,169.3 | $1,225.5 | $2,305.0 | $2,464.7 | | Gross profit | $209.4 | $223.5 | $413.8 | $441.1 | | Operating profit | $5.8 | $22.8 | $8.1 | $23.6 | | Net Income (loss) attributable to Ryerson Holding Corporation | $1.9 | $9.9 | $(3.7) | $2.3 | | Basic EPS | $0.06 | $0.29 | $(0.12) | $0.07 | | Diluted EPS | $0.06 | $0.29 | $(0.12) | $0.07 | | Dividends declared per share | $0.1875 | $0.1875 | $0.3750 | $0.3750 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement outlines cash movements from operating, investing, and financing activities for the six months ended June 30, 2025 | Cash Flow Activity (in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | $(17.4) | $(21.9) | | Net cash used in investing activities | $(21.0) | $(43.4) | | Net cash provided by financing activities | $40.4 | $39.7 | | Net change in cash, cash equivalents, and restricted cash | $2.9 | $(26.2) | | Cash, cash equivalents, and restricted cash—end of period | $32.2 | $29.2 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's assets, liabilities, and equity at June 30, 2025, compared to December 31, 2024 | Balance Sheet Item (in millions) | June 30, 2025 (Unaudited) | December 31, 2024 | | :------------------------------- | :------------------------ | :---------------- | | Total current assets | $1,324.6 | $1,207.6 | | Total assets | $2,538.1 | $2,439.5 | | Total current liabilities | $651.2 | $580.1 | | Long-term debt | $508.8 | $466.7 | | Total liabilities | $1,716.9 | $1,615.0 | | Total equity | $821.2 | $824.5 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed explanations of accounting policies and financial components [NOTE 1: FINANCIAL STATEMENTS](index=8&type=section&id=NOTE%201%3A%20FINANCIAL%20STATEMENTS) This note describes the company's business and the basis of preparation for the unaudited interim financial statements - Ryerson Holding Corporation is a leading value-added processor and distributor of industrial metals with operations in the **U.S., Canada, Mexico, and China**[21](index=21&type=chunk) - The condensed consolidated financial statements are **unaudited** and prepared in accordance with U.S. GAAP for interim reporting, reflecting normal and recurring adjustments[22](index=22&type=chunk) [NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS](index=8&type=section&id=NOTE%202%3A%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This note details recently issued accounting standards and their potential impact on the company's financial statements - No accounting pronouncements have been issued and adopted in 2025 that impact the Company's financial statements[23](index=23&type=chunk) - ASU 2023-09, 'Income Taxes (Topic 740)', effective after December 15, 2024, requires enhanced disclosures for rate reconciliation and income taxes paid[24](index=24&type=chunk) - ASU 2024-03, 'Income Statement – Reporting Comprehensive Income', effective after December 15, 2026, requires disclosure of specific cost categories[25](index=25&type=chunk) [NOTE 3: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH](index=10&type=section&id=NOTE%203%3A%20CASH%2C%20CASH%20EQUIVALENTS%2C%20AND%20RESTRICTED%20CASH) This note provides a reconciliation of cash, cash equivalents, and restricted cash balances | Item (in millions) | June 30, 2025 | December 31, 2024 | | :----------------- | :------------ | :---------------- | | Cash and cash equivalents | $30.8 | $27.7 | | Restricted cash | $1.4 | $1.6 | | Total | $32.2 | $29.3 | - Restricted cash is held for covering letters of credit related to potential insurance claims and material purchases[26](index=26&type=chunk) [NOTE 4: INVENTORIES](index=10&type=section&id=NOTE%204%3A%20INVENTORIES) This note details the valuation methods and composition of the company's inventory - The Company primarily uses the **last-in, first-out (LIFO)** method for valuing inventory, with approximately **88%** of inventories accounted for under LIFO at June 30, 2025[27](index=27&type=chunk)[29](index=29&type=chunk) - If current cost had been used, inventories would have been **$115 million higher** at June 30, 2025, and **$95 million higher** at December 31, 2024[29](index=29&type=chunk) - Consignment inventory totaled **$5.9 million** at June 30, 2025, and **$5.0 million** at December 31, 2024[30](index=30&type=chunk) [NOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS](index=10&type=section&id=NOTE%205%3A%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) This note outlines the changes in goodwill and the status of impairment testing | Asset (in millions) | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :---------------- | | Goodwill | $161.5 | $161.8 | - A **$0.3 million reduction** of goodwill was recorded in the first six months of 2025 related to purchase accounting adjustments[31](index=31&type=chunk) - The most recently completed impairment test of goodwill, performed as of October 1, 2024, determined that **no impairment existed**[32](index=32&type=chunk) [NOTE 6: LONG-TERM DEBT](index=11&type=section&id=NOTE%206%3A%20LONG-TERM%20DEBT) This note provides details on the company's debt facilities, interest rates, and available credit | Debt Component (in millions) | June 30, 2025 | December 31, 2024 | | :--------------------------- | :------------ | :---------------- | | Ryerson Credit Facility | $511.5 | $470.0 | | Foreign debt | $1.4 | $0.7 | | Unamortized debt issuance costs and discounts | $(2.7) | $(3.3) | | Total debt | $510.2 | $467.4 | | Total long-term debt | $508.8 | $466.7 | - The Ryerson Credit Facility was increased to **$1.3 billion** and its maturity extended to June 29, 2027[35](index=35&type=chunk) - At June 30, 2025, **$511.5 million** was outstanding under the Ryerson Credit Facility, with **$407 million available**[36](index=36&type=chunk)[38](index=38&type=chunk) - Foreign debt for Ryerson China totaled **$1.4 million** at June 30, 2025, primarily from letter of credit drawdowns[44](index=44&type=chunk) [NOTE 7: EMPLOYEE BENEFITS](index=12&type=section&id=NOTE%207%3A%20EMPLOYEE%20BENEFITS) This note details the components of net periodic benefit costs for pension and other post-retirement plans | Net Periodic Benefit Cost (Credit) (in millions) | 3 Months Ended June 30, 2025 (Pension) | 3 Months Ended June 30, 2024 (Pension) | 3 Months Ended June 30, 2025 (Other Benefits) | 3 Months Ended June 30, 2024 (Other Benefits) | 6 Months Ended June 30, 2025 (Pension) | 6 Months Ended June 30, 2024 (Pension) | 6 Months Ended June 30, 2025 (Other Benefits) | 6 Months Ended June 30, 2024 (Other Benefits) | | :----------------------------------------------- | :------------------------------------- | :------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------- | :------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Service cost | $0.4 | $0.4 | $0.1 | $0.0 | $0.7 | $0.8 | $0.1 | $0.1 | | Interest cost | $3.6 | $3.8 | $0.4 | $0.4 | $7.3 | $7.5 | $0.8 | $0.8 | | Expected return on assets | $(3.8) | $(3.8) | $0.0 | $0.0 | $(7.6) | $(7.6) | $0.0 | $0.0 | | Net periodic benefit cost (credit) | $1.0 | $0.8 | $(1.2) | $(1.4) | $2.1 | $3.6 | $(2.5) | $(2.8) | - A **$0.5 million settlement gain** was recorded in the first six months of 2025 for the CSW Pension Plan[47](index=47&type=chunk) - The Ryerson Canada Salaried Pension Plan will be **frozen effective June 30, 2027**[49](index=49&type=chunk) - The Company contributed **$10.3 million** to pension plan funds through June 30, 2025, and anticipates a minimum required contribution of approximately **$4.9 million** for the remainder of 2025[50](index=50&type=chunk) [NOTE 8: COMMITMENTS AND CONTINGENCIES](index=13&type=section&id=NOTE%208%3A%20COMMITMENTS%20AND%20CONTINGENCIES) This note confirms the status of commitments and legal matters - There have been **no material changes** to the contingencies and legal matters from those disclosed in the Company's 2024 Form 10-K[51](index=51&type=chunk) [NOTE 9: SEGMENT INFORMATION](index=14&type=section&id=NOTE%209%3A%20SEGMENT%20INFORMATION) This note describes the company's single operating segment and presents segment-related financial data - The Chief Operating Decision Maker (CODM) views the business globally, resulting in **one operating and reportable segment**: metals service centers[52](index=52&type=chunk) | Segment Item (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $1,169.3 | $1,225.5 | $2,305.0 | $2,464.7 | | LIFO (income) expense | $13.2 | $(10.0) | $20.0 | $(9.0) | | Net Income (loss) attributable to Ryerson Holding Corporation | $1.9 | $9.9 | $(3.7) | $2.3 | - Reorganization expense is a non-GAAP financial measure used by management to capture excess costs associated with significant Company projects or changes[53](index=53&type=chunk) [NOTE 10: DERIVATIVES AND FAIR VALUE MEASUREMENTS](index=15&type=section&id=NOTE%2010%3A%20DERIVATIVES%20AND%20FAIR%20VALUE%20MEASUREMENTS) This note details the company's use of derivative instruments to manage market risks - The Company uses derivatives to partially offset business exposure to commodity price, foreign currency, and interest rate fluctuations[56](index=56&type=chunk)[57](index=57&type=chunk) | Derivative Type (Notional Amount) | June 30, 2025 | December 31, 2024 | Unit of Measurement | | :-------------------------------- | :------------ | :---------------- | :------------------ | | Hot roll coil swap contracts | 17,204 | 31,658 | Tons | | Aluminum swap contracts | 8,233 | 15,711 | Tons | | Nickel swap contracts | 389 | 298 | Tons | | Copper swap contracts | 2,274 | 1,319 | Tons | | Natural gas swap contracts | 215,080 | 283,000 | Gallons | | Diesel fuel swap contracts | 1,916,000 | 1,176,000 | Gallons | | Foreign currency exchange contracts | 3.4 million | 1.6 million | U.S. dollars | | Gain/(Loss) on Derivatives (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Metal commodity contracts | $1.0 | $5.3 | $7.1 | $4.4 | | Energy commodity contracts | $(0.2) | $0.0 | $0.0 | $0.0 | | Foreign exchange contracts | $0.0 | $0.0 | $(0.1) | $0.1 | | Total | $0.8 | $5.3 | $7.0 | $4.5 | [NOTE 11: STOCKHOLDERS' EQUITY, ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), AND NONCONTROLLING INTEREST](index=17&type=section&id=NOTE%2011%3A%20STOCKHOLDERS'%20EQUITY%2C%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)%2C%20AND%20NONCONTROLLING%20INTEREST) This note presents the changes and balances in stockholders' equity accounts - The tables detail changes in Ryerson Holding Corporation Stockholders' Equity accounts for the three and six months ended June 30, 2025 and 2024[63](index=63&type=chunk) | Equity Item (in millions) | Balance at January 1, 2025 | Balance at June 30, 2025 | | :------------------------ | :------------------------- | :----------------------- | | Common Stock (Dollars) | $0.4 | $0.4 | | Treasury Stock (Dollars) | $(234.4) | $(237.0) | | Capital in Excess of Par Value | $423.5 | $430.6 | | Retained Earnings | $779.6 | $763.7 | | Accumulated Other Comprehensive Income (Loss) | $(153.8) | $(146.2) | | Total Ryerson Holding Corporation Stockholders' Equity | $815.3 | $811.5 | | Noncontrolling interest | $9.2 | $9.7 | | Total equity | $824.5 | $821.2 | [NOTE 12: REVENUE RECOGNITION](index=19&type=section&id=NOTE%2012%3A%20REVENUE%20RECOGNITION) This note provides disaggregated revenue information by product line and geographic location - Substantially all revenue is derived from the distribution of metals, with the majority recognized upon product delivery[65](index=65&type=chunk)[66](index=66&type=chunk) | Product Line | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Carbon Steel Flat | 28% | 30% | 28% | 29% | | Aluminum Flat | 16% | 16% | 16% | 16% | | Aluminum Long | 6% | 4% | 6% | 4% | | Net Sales by Geographic Location (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | United States | $1,052.2 | $1,107.3 | $2,077.3 | $2,232.6 | | Foreign countries | $117.1 | $118.2 | $227.7 | $232.1 | - Receivables from contracts with customers increased to **$536.2 million** at June 30, 2025, from **$428.1 million** at December 31, 2024[68](index=68&type=chunk)[69](index=69&type=chunk) [NOTE 13: INCOME TAXES](index=20&type=section&id=NOTE%2013%3A%20INCOME%20TAXES) This note explains the components of the income tax provision and changes in tax-related balances | Income Tax (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Provision (benefit) for income taxes | $(8.4) | $3.0 | $(10.0) | $0.9 | - The income tax benefit for the six months ended June 30, 2025, is primarily a result of the **decrease in actual and forecasted earnings**[71](index=71&type=chunk) - The valuation allowance on certain foreign and U.S. federal deferred tax assets remained at **$4.0 million**[72](index=72&type=chunk) - The reserve for uncertain tax benefits decreased from **$2.5 million** to **$1.7 million** due to state tax settlements[73](index=73&type=chunk) [NOTE 14: EARNINGS PER SHARE](index=21&type=section&id=NOTE%2014%3A%20EARNINGS%20PER%20SHARE) This note provides the calculation of basic and diluted earnings per share | EPS (in millions, except per share data) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss) attributable to Ryerson Holding Corporation | $1.9 | $9.9 | $(3.7) | $2.3 | | Basic EPS | $0.06 | $0.29 | $(0.12) | $0.07 | | Diluted EPS | $0.06 | $0.29 | $(0.12) | $0.07 | - Weighted average shares excluded due to their antidilutive effect were **600,000** and **694,546** for the three-month and six-month periods ended June 30, 2025, respectively[74](index=74&type=chunk) [NOTE 15: SUBSEQUENT EVENTS](index=21&type=section&id=NOTE%2015%3A%20SUBSEQUENT%20EVENTS) This note discloses significant events that occurred after the balance sheet date - On July 29, 2025, the Board of Directors declared a quarterly cash dividend of **$0.1875 per share**[76](index=76&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA) was signed into law on July 4, 2025, introducing significant tax amendments[77](index=77&type=chunk)[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, industry trends, liquidity, and capital resources [Industry and Operating Trends](index=22&type=section&id=Industry%20and%20Operating%20Trends) This section describes the cyclical nature of the metals service industry and key economic indicators affecting performance - Ryerson is a metals service center providing value-added processing and distribution of industrial metals across the United States, Canada, Mexico, and China[82](index=82&type=chunk) - The metals service center industry is **cyclical, volatile in demand and pricing**, and difficult to predict[83](index=83&type=chunk) | Metric | Q2 2025 vs Q1 2025 | Q2 2025 vs Q2 2024 | H1 2025 vs H1 2024 | | :----- | :----------------- | :----------------- | :----------------- | | Average Selling Prices | +2.8% | -3.2% | -6.1% | | Shipments | +0.2% | -1.4% | -0.4% | - Key steel industry economic indicators reported **soft industrial activity** in the second quarter of 2025, with the Purchasing Managers' Index (PMI) below the growth threshold of 50[85](index=85&type=chunk) - Ryerson's North American volumes decreased by **1.1%** in the first six months of 2025, outperforming MSCI North American service center volumes[86](index=86&type=chunk) [First Six Months 2025 vs. First Six Months 2024 Performance](index=24&type=section&id=First%20Six%20Months%202025%20vs.%20First%20Six%20Months%202024%20Performance) This section provides a high-level comparison of financial results for the first half of 2025 versus 2024 | Metric (H1 2025 vs H1 2024) | H1 2025 | H1 2024 | Change | | :-------------------------- | :------ | :------ | :----- | | Total Revenues | $2.3B | $2.46B | -7% | | Gross Margin | 18.0% | 17.9% | +10bps | | Net Loss Attributable to Ryerson | $(3.7)M | $2.3M | -$6M | | Diluted Loss Per Share | $(0.12) | $0.07 | -$0.19 | | Cash used in Operating Activities | $(17.4)M | $(21.9)M | +$5M improvement | | Adjusted Metric (in millions, except per share data) | First Six Months 2025 | First Six Months 2024 | | :--------------------------------------------------- | :-------------------- | :-------------------- | | Net income (loss) attributable to Ryerson Holding Corporation | $(3.7) | $2.3 | | Adjusted net income (loss) attributable to Ryerson Holding Corporation | $(3.1) | $5.0 | | Diluted income (loss) per share | $(0.12) | $0.07 | | Adjusted diluted income (loss) per share | $(0.10) | $0.14 | - The adjusted net loss attributable to Ryerson Holding Corporation for the first six months of 2025 was **$3.1 million**, compared to **$5.0 million** of net income in the first six months of 2024[89](index=89&type=chunk) [Recent Developments](index=25&type=section&id=Recent%20Developments) This section discusses recent governmental actions and legislative changes impacting the business - The U.S. government's repeated announcements and retractions of steel and aluminum import tariffs introduce **significant uncertainty**[91](index=91&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA), signed into law on July 4, 2025, includes significant amendments to the Internal Revenue Code[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) [Components of Results of Operations](index=26&type=section&id=Components%20of%20Results%20of%20Operations) This section defines the key line items that constitute the company's results of operations - The Company generates substantially all revenue from sales of metals products, with the majority recognized upon delivery[95](index=95&type=chunk) - **Sales, cost of materials sold, gross profit, and operating expense control** are the principal factors impacting profitability[96](index=96&type=chunk) - Cost of materials sold includes metal purchase, in-bound freight, third-party processing, and direct/indirect internal processing costs[98](index=98&type=chunk) - Gross profit is the difference between net sales and cost of materials sold[99](index=99&type=chunk) - Operating expenses include warehousing, delivery, selling, general, and administrative expenses[100](index=100&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's operational results for the reported periods | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $1,169.3 | $1,225.5 | $2,305.0 | $2,464.7 | | Cost of materials sold | $959.9 | $1,002.0 | $1,891.2 | $2,023.6 | | Gross profit | $209.4 | $223.5 | $413.8 | $441.1 | | Operating profit | $5.8 | $22.8 | $8.1 | $23.6 | | Net income (loss) attributable to Ryerson Holding Corporation | $1.9 | $9.9 | $(3.7) | $2.3 | - Net sales decreased by **4.6%** for the three months and **6.5%** for the six months ended June 30, 2025, primarily due to lower metal commodity prices[104](index=104&type=chunk) - Cost of materials sold decreased due to lower metal commodity prices, with LIFO expense of **$20.0 million** in H1 2025 versus **$9.0 million** LIFO income in H1 2024[105](index=105&type=chunk) - Gross profit decreased by **6.3%** for the three months and **6.2%** for the six months ended June 30, 2025, due to lower average selling prices[106](index=106&type=chunk) - Warehousing, delivery, selling, general, and administrative expenses decreased by **$10.1 million** in H1 2025 versus H1 2024 on a same-store basis[108](index=108&type=chunk) - Operating profit decreased by **74.6%** for the three months and **65.7%** for the six months ended June 30, 2025, due to lower gross profit[110](index=110&type=chunk) - Interest and other expense on debt decreased primarily due to lower interest rates on the revolving credit facility[112](index=112&type=chunk)[113](index=113&type=chunk) - The effective income tax rate was **75.8%** in H1 2025 compared to **23.7%** in H1 2024, primarily due to lower forecasted earnings[114](index=114&type=chunk) [Liquidity and Cash Flows](index=31&type=section&id=Liquidity%20and%20Cash%20Flows) This section analyzes the company's sources and uses of cash, liquidity position, and cash flow activities - Primary sources of liquidity are cash, cash flows from operations, and borrowing availability under the Ryerson Credit Facility[117](index=117&type=chunk) | Liquidity Metric (in millions) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $30.8 | $27.7 | | Total debt outstanding | $510.2 | $467.4 | | Debt-to-capitalization ratio | 38% | 36% | | Total liquidity | $485 | $451 | | Net debt | $479 | $440 | - Net cash used in operating activities improved to **$(17.4) million** in H1 2025 from **$(21.9) million** in H1 2024[121](index=121&type=chunk) - Net cash used in investing activities decreased to **$(21.0) million** in H1 2025 from **$(43.4) million** in H1 2024, as capital expenditures decreased[122](index=122&type=chunk) - Net cash provided by financing activities was **$40.4 million** in H1 2025, primarily due to increased credit facility borrowings[123](index=123&type=chunk) - Off-balance sheet arrangements include letters of credit (**$2 million**) and surety bonds (**$12 million**) as of June 30, 2025[124](index=124&type=chunk) [Capital Resources](index=33&type=section&id=Capital%20Resources) This section details the company's debt obligations, contractual commitments, and pension liabilities - The Company believes cash flow from operations and the Ryerson Credit Facility will provide sufficient funds to meet its obligations[125](index=125&type=chunk) - Total debt increased to **$510.2 million** at June 30, 2025, from **$467.4 million** at December 31, 2024[125](index=125&type=chunk) - The Company expects to make approximately **$513 million** in principal payments to satisfy its debt obligations, primarily in 2027[130](index=130&type=chunk) - Estimated future lease payments total **$480 million**, with **$50 million** due over the next 12 months[132](index=132&type=chunk)[133](index=133&type=chunk) - Pension liabilities exceeded plan assets by **$52.9 million** at December 31, 2024[127](index=127&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines Ryerson's exposure to market risks and the strategies employed to manage them [Interest rate risk](index=34&type=section&id=Interest%20rate%20risk) This section details the company's exposure to fluctuations in interest rates on its variable-rate debt - The Company is exposed to market risk related to its variable-rate long-term debt, with a carrying value of **$510.2 million** at June 30, 2025[136](index=136&type=chunk) - A hypothetical **1% increase** in interest rates would have increased interest expense for H1 2025 by approximately **$3.0 million**[137](index=137&type=chunk) [Foreign exchange rate risk](index=34&type=section&id=Foreign%20exchange%20rate%20risk) This section describes the risks associated with currency fluctuations from international operations - The Company is subject to foreign currency risks primarily through its operations in **Canada, Mexico, and China**[138](index=138&type=chunk) - At June 30, 2025, foreign currency contracts had a U.S. dollar notional amount of **$3.4 million**[138](index=138&type=chunk) [Commodity price risk](index=34&type=section&id=Commodity%20price%20risk) This section outlines the risks from volatile metal and energy prices and the use of derivatives to manage them - Metal prices can fluctuate significantly due to factors including production capacity, raw material availability, and metals consumption[140](index=140&type=chunk)[141](index=141&type=chunk) - Derivative financial instruments are used to manage a limited portion of exposure to fluctuations in commodity costs[141](index=141&type=chunk) | Commodity Swap Contracts (June 30, 2025) | Notional Amount | Net Value (in millions) | | :--------------------------------------- | :-------------- | :---------------------- | | Hot roll coil | 17,204 tons | $(0.1) | | Aluminum | 8,233 tons | $2.2 | | Nickel | 389 tons | $(0.2) | | Copper | 2,274 tons | $1.9 | | Diesel fuel | 1,916,000 gallons | $0.0 | | Natural gas | 215,080 gallons | $0.2 | - A hypothetical **10% change** in commodity and energy prices would alter the fair value of derivative contracts by **$6.9 million**[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and internal controls over financial reporting [Evaluation of Disclosure Controls and Procedures](index=35&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls as of the end of the reporting period - Management concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2025[144](index=144&type=chunk)[145](index=145&type=chunk) [Changes in Internal Controls Over Financial Reporting](index=35&type=section&id=Changes%20in%20Internal%20Controls%20Over%20Financial%20Reporting) This section reports on any material changes to internal controls during the quarter - There have been **no changes** in the Company's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's controls[146](index=146&type=chunk) [Part II. Other Information](index=36&type=section&id=Part%20II.%20Other%20Information) This part provides supplementary information regarding legal proceedings, risk factors, and other corporate matters [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the financial statement notes for information on legal proceedings - For information concerning legal proceedings, refer to **Note 8: Commitments and Contingencies** in Part I, Item 1 of this Report[149](index=149&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section confirms the status of previously disclosed risk factors - There have been **no material changes** to the risk factors from those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates no unregistered sales of equity securities occurred during the period - None[151](index=151&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section confirms no directors or officers modified trading arrangements during the quarter - During the quarter ended June 30, 2025, **none of the Company's directors or officers** adopted, terminated, or modified a Rule 10b5-1 trading arrangement[152](index=152&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q - Exhibits include Certifications pursuant to Section 302 of Sarbanes-Oxley Act, Written Statements pursuant to 18 U.S.C. Section 1350, and Inline XBRL documents[154](index=154&type=chunk) [Signature](index=38&type=section&id=Signature) This section contains the duly authorized signature on behalf of the corporation - The report is signed by **James J. Claussen, Executive Vice President and Chief Financial Officer** of Ryerson Holding Corporation, dated July 29, 2025[157](index=157&type=chunk)
Ryerson to Host Earnings Call on Wednesday, July 30th to Discuss Second Quarter 2025 Results
Prnewswire· 2025-07-02 20:30
Core Points - Ryerson Holding Corporation will host a conference call to discuss its second quarter 2025 financial results on July 30, 2025 [1] - The earnings report will be released after market close on July 29, 2025 [1] Company Overview - Ryerson is a leading value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico, and China [3] - The company was founded in 1842 and currently employs around 4,300 people across over 110 locations [3]
Ryerson(RYI) - 2025 Q1 - Earnings Call Transcript
2025-05-01 15:02
Financial Data and Key Metrics Changes - In Q1 2025, the company reported net sales of $1,140 million, a 12.7% increase from Q4 2024 [17] - Adjusted EBITDA, excluding LIFO, was $32.8 million, compared to $10.3 million in the prior quarter [19] - Gross margin contracted by 100 basis points to 18%, influenced by $7 million in LIFO expense, while excluding LIFO, gross margin expanded by 220 basis points to 18.6% [18] Business Line Data and Key Metrics Changes - Sales volume for Q1 2025 was 500,000 tons, approximately 12% higher quarter over quarter, with North American shipments increasing by almost 14% [9][10] - Average selling prices for carbon products were roughly flat, aluminum products increased by 2%, and stainless steel products decreased by approximately 3% [17] Market Data and Key Metrics Changes - North American industry sales volumes increased by nearly 11% quarter over quarter, indicating a recovery in demand [9] - The company experienced market share gains across most metal product categories, particularly in construction equipment and industrial machinery [10] Company Strategy and Development Direction - The company is focusing on operationalizing significant CapEx investments to improve quality of earnings and customer experiences [4][5] - There is an emphasis on modernizing service center networks and enhancing go-to-market capabilities to drive long-term growth [4] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are challenges in the industrial metal supply and demand dynamics, they anticipate a more robust North American manufacturing economy as trade uncertainties resolve [20] - The outlook for Q2 2025 includes expectations for relatively flat volumes and a revenue range of $1,150 million to $1,190 million, with average selling prices expected to increase by 3% to 4% [11] Other Important Information - The company maintained a $60 million expense reduction target, achieving a $32 expense per ton reduction compared to the previous year [11] - Total debt increased to $498 million, with net debt rising to $464 million, but global liquidity remains healthy at $490 million [14][15] Q&A Session Summary Question: Plans to manage debt levels and drive interest expense lower - Management highlighted the importance of winding down CapEx projects and operationalizing them to improve cash flow and reduce debt [24][26] Question: Second quarter pricing outlook - Management indicated that the OEM contract business has been weak, impacting average selling prices, but noted good transactional growth [29][30] Question: Current split between transactional versus contractual sales - The current split is approximately 47% transactional sales, up from about 43% last year, with a target to reach around 60% [38][40] Question: Portfolio mix and stainless market outlook - Management believes the stainless market will recover and emphasized the importance of maintaining market share while also growing the carbon franchise [42][44]