Core Insights - Ryerson Holding Corporation reported third quarter revenue of $1.16 billion, which is in line with guidance, with average selling prices increasing by 2.6% and tons shipped decreasing by 3.2% compared to the previous quarter [4][5][6] - The company experienced a net loss of $14.8 million, or a diluted loss per share of $0.46, compared to a net income of $1.9 million in the previous quarter [8][4] - Ryerson ended the quarter with total debt of $500 million and net debt of $470 million, reflecting a decrease from the previous quarter [4][8] Financial Highlights - Revenue for Q3 2025 was $1,161.5 million, a decrease of 0.7% from Q2 2025 but an increase of 3.1% year-over-year [3][4] - Tons shipped in Q3 2025 were 485,000, down 3.2% from Q2 2025 and unchanged from Q3 2024 [3][4] - Average selling price per ton increased to $2,395, up 2.6% from Q2 2025 and 3.1% year-over-year [3][4] - Gross margin contracted to 17.2%, down 70 basis points from Q2 2025 [6][3] Operational Insights - The company executed a self-help strategy to manage operations amid ongoing challenges, including weak demand and tariff pricing conditions [5][6] - Areas of weakness included OEM contract shipments and carbon steel margin compression, while strengths were noted in transactional sales growth [5][6] - Operating expenses decreased by 1.5% compared to Q2 2025, driven by lower variable expenses [7][3] Debt and Liquidity - Ryerson recorded a cash outflow from operating activities of $8.3 million in Q3 2025, compared to an inflow of $23.8 million in Q2 2025 [8][4] - The company’s global liquidity, including cash and available credit, was $521 million as of September 30, 2025, up from $485 million at the end of Q2 2025 [8][4] Shareholder Returns - A quarterly cash dividend of $0.1875 per share was declared, payable on December 18, 2025 [9][4] - No share repurchases occurred during the quarter, with $38.4 million remaining under the existing authorization [10][4] Merger Agreement - Ryerson entered into a definitive merger agreement to acquire Olympic Steel, with shares to be converted based on a fixed exchange ratio [11][12] - The completion of the acquisition is subject to customary closing conditions, including stockholder approvals [12][11] Outlook - For Q4 2025, Ryerson expects customer shipments to decrease by 5% to 7% quarter-over-quarter, with anticipated net sales between $1.07 billion and $1.11 billion [13][4] - Average selling prices are expected to remain flat to up 2%, with LIFO expenses projected between $10 million and $14 million [13][4]

Financial Performance - Generated third quarter revenue of $1.16 billion, a decrease of 0.7% compared to the prior quarter, with average selling prices up 2.6% and tons shipped down 3.2%[5] - Net loss attributable to Ryerson Holding Corporation was $14.8 million, or diluted loss per share of $0.46, compared to net income of $1.9 million in the previous quarter[10] - Adjusted EBITDA, excluding LIFO, was $40.3 million in Q3 2025, down from $45.0 million in Q2 2025[10] - Net sales for the third quarter of 2025 were $1,161.5 million, a decrease of 3.5% compared to $1,169.3 million in the second quarter of 2025 and a decrease of 3.9% from $1,126.6 million in the third quarter of 2024[30] - Gross profit for the third quarter of 2025 was $199.5 million, down from $209.4 million in the second quarter of 2025 and $202.0 million in the third quarter of 2024, reflecting a gross margin of approximately 17.2%[30] - Operating loss for the third quarter of 2025 was $(1.0) million, compared to an operating profit of $5.8 million in the second quarter of 2025 and $5.3 million in the third quarter of 2024[30] - Net loss attributable to Ryerson for the third quarter of 2025 was $(14.8) million, compared to a net income of $1.9 million in the second quarter of 2025 and a net loss of $(6.6) million in the third quarter of 2024[30] - Earnings per share (EPS) for the third quarter of 2025 was $(0.46), compared to $0.06 in the second quarter of 2025 and $(0.20) in the third quarter of 2024[30] Debt and Assets - Total debt decreased to $499.7 million from $510.2 million in the previous quarter, while net debt decreased to $469.9 million from $479.4 million[11] - Total assets increased to $2,490.0 million as of September 30, 2025, compared to $2,439.5 million at December 31, 2024, reflecting a growth of 2.1%[32] - Total current liabilities rose to $656.9 million as of September 30, 2025, from $580.1 million at December 31, 2024, an increase of 13.2%[32] - Long-term debt increased to $498.2 million as of September 30, 2025, compared to $466.7 million at December 31, 2024, reflecting a rise of 6.7%[32] Cash Flow and Capital Expenditures - Cash flow used in operating activities for the third quarter of 2025 was $(8.3) million, compared to $23.8 million in the second quarter of 2025 and $134.6 million in the third quarter of 2024[30] - Capital expenditures for the third quarter of 2025 were $(12.8) million, compared to $(9.9) million in the second quarter of 2025 and $(31.6) million in the third quarter of 2024[30] - Free cash flow for Q3 2025 was $(18.8) million, a decrease from $14.1 million in Q2 2025 and $103.4 million in Q3 2024[40] Future Projections - For Q4 2025, Ryerson expects customer shipments to decrease by 5% to 7% quarter-over-quarter, with net sales anticipated in the range of $1.07 billion to $1.11 billion[15] - Adjusted EBITDA for Q4 2025 is projected to be between $19 million and $27 million, with adjusted EBITDA excluding LIFO expense expected between $33 million and $37 million[43] - The net loss attributable to Ryerson Holding Corporation for Q4 2025 is estimated to be between $(9) million and $(7) million, translating to a diluted loss per share of $(0.28) to $(0.22)[43] - EBITDA for Q4 2025 is projected to be between $18 million and $23 million[43] - LIFO expense for Q4 2025 is expected to be between $10 million and $14 million[43] Market and Operational Changes - Declared a fourth-quarter 2025 dividend of $0.1875 per share, amounting to a cash return of $6.0 million during Q3 2025[12] - Entered into a definitive merger agreement to acquire Olympic Steel, Inc., subject to customary closing conditions[14] - Ryerson is in the process of a proposed transaction with Olympic Steel, which may impact future financial and operational results[22] Margins and Pricing - Gross margin contracted by 70 basis points to 17.2% in Q3 2025, compared to 17.9% in Q2 2025[8] - Average selling prices for carbon steel increased by 3.7% quarter-over-quarter to $1,533 per ton[17] - Average selling price per ton in the third quarter of 2025 was $2,395, an increase from $2,334 in the second quarter of 2025 but a decrease from $2,410 in the third quarter of 2024[30] - Gross margin excluding LIFO expense for the first nine months of 2025 was 18.6%, compared to 17.2% in the same period of 2024[34]

Financial Performance - For the first nine months of 2025, total revenues were $3.5 billion, a 4% decrease year-over-year, with a net loss attributable to Ryerson of $18.5 million[95] - Adjusted net loss attributable to Ryerson for the first nine months of 2025 was $17.8 million, compared to a net loss of $1.7 million in the same period of 2024[96] - Ryerson's diluted loss per share for the first nine months of 2025 was $(0.58), compared to $(0.13) in the same period of 2024[97] - Net loss for the first nine months of 2025 was $(17.6) million, compared to $(3.1) million in the same period of 2024[129] - Net loss attributable to Ryerson Holding Corporation for the three months ended September 30, 2025, was $(14.8) million, compared to a net loss of $(6.6) million in the same period in 2024[109] Sales and Pricing - In Q3 2025, Ryerson's average selling prices increased by 2.6% while shipments declined by 3.2% compared to Q2 2025[91] - Net sales for the three months ended September 30, 2025, increased by $34.9 million, or 3.1%, to $1,161.5 million compared to the same period in 2024[111] - Net sales for the nine months ended September 30, 2025, decreased by $124.8 million, or 3.5%, to $3,466.5 million compared to the same period in 2024[111] - Average selling price per ton sold for the three months ended September 30, 2025, increased by $72, or 3.1%, to $2,395 compared to the same period in 2024[111] - Tariff policies and rising input prices supported average selling price increases despite a soft demand environment[91] Operational Metrics - Ryerson's North American volumes decreased by 0.9% in the first nine months of 2025, indicating market share gains despite a broader industry decline of 2.5%[93] - Tons sold for the three months ended September 30, 2025, remained flat at 485, compared to the same period in 2024[111] - Gross profit for the three months ended September 30, 2025, decreased by $2.5 million, or 1.2%, to $199.5 million compared to the same period in 2024[114] - Operating loss for the three months ended September 30, 2025, was $(1.0) million, a decrease of $6.3 million compared to an operating profit of $5.3 million in the same period in 2024[118] Costs and Expenses - Cost of materials sold for the three months ended September 30, 2025, increased by $37.4 million, or 4.0%, to $962.0 million compared to the same period in 2024[113] - Average cost of materials sold per ton sold for the three months ended September 30, 2025, increased by $78, or 4.1%, to $1,984 compared to the same period in 2024[113] - Warehousing, delivery, selling, general, and administrative expenses for the three months ended September 30, 2025, increased by $3.6 million, or 1.8%, to $200.5 million compared to the same period in 2024[116] Debt and Liquidity - Total debt increased to $499.7 million at September 30, 2025, up from $467.4 million at December 31, 2024, resulting in a debt-to-capitalization ratio of 39%[126] - Cash and cash equivalents rose to $29.8 million at September 30, 2025, compared to $27.7 million at December 31, 2024, contributing to total liquidity of $521 million[126] - The company anticipates making approximately $502 million in principal payments to satisfy debt obligations, including $500 million related to the Ryerson Credit Facility due in 2027[139] Market Conditions and Risks - The U.S. imposed a 50% Section 232 tariff on nearly all steel and aluminum products, creating uncertainty in supply chains[98] - The Institute for Supply Management's PMI reported a reading of 49.1 in September 2025, indicating continued contraction in industrial activity[92] - The effective income tax rate was 39.8% in Q3 2025, compared to 6.3% in Q3 2024, reflecting changes in state and foreign income taxes[122] - The company is exposed to market risks related to interest rates, foreign currency exchange rates, and commodity prices, and it continually monitors these risks[144] Foreign Currency and Derivatives - Foreign currency translation losses of $1.6 million were recorded in the first nine months of 2025, partially offset by a $0.7 million settlement gain related to the CSW pension plan[121] - The company had foreign currency contracts with a U.S. dollar notional amount of $3.4 million outstanding at September 30, 2025, with zero value recognized[147] - For the nine months ended September 30, 2025, the company recognized zero gain or loss associated with its foreign currency contracts[147] - The company recognized a gain of $6.3 million associated with its metal and energy commodity derivatives for the nine months ended September 30, 2025[151] - A hypothetical strengthening or weakening of 10% in commodity and energy prices would increase or decrease the fair value of derivative contracts by $7.1 million[152] - The company uses derivative financial instruments to manage a limited portion of its exposure to fluctuations in the cost of certain metal and energy commodities[150] - The company does not currently account for its foreign currency and commodity swap contracts as hedges, marking them to market with a corresponding offset to current earnings[151] Shareholder Actions - The company repurchased 2,526,467 shares of common stock during 2024, resulting in fewer shares outstanding in 2025[123]

Group 1 - Ryerson Holding Corporation will host a conference call to discuss its third quarter 2025 financial results on October 29, 2025, at 10 a.m. Eastern Time [1] - The earnings report will be released after market close on October 28, 2025 [1] - The conference call can be accessed via dial-in numbers for U.S. & Canada and international participants, with a conference ID provided [1] Group 2 - Ryerson is a leading value-added processor and distributor of industrial metals, operating in the U.S., Canada, Mexico, and China [2] - The company was founded in 1842 and currently employs around 4,300 people across over 110 locations [2]

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]

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]

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]

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]

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]

[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 |