Ryerson(RYI) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights 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 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] - Ryerson gained market share and increased its transactional business portfolio for the fifth consecutive quarter, partially offsetting a decline in contract business[7] - The Board of Directors declared a Q3 2025 dividend of $0.1875 per share[7] Management Commentary 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 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] - 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] - Stainless and carbon steel prices began to stabilize, while aluminum prices trended higher, but market discounts remained prevalent[8] Second Quarter 2025 Financial Performance 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 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] Gross Margin Analysis 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] - Higher commodity prices led to increased inventory values, resulting in a higher-than-anticipated LIFO expense[10] Operating Expenses 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] - Expenses as a percentage of revenue and daily expenses both decreased sequentially, indicating strong management control over operating costs[11] - 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] Net Income and Adjusted EBITDA 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 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 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] Shareholder Return Activity 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 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 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] - As of June 30, 2025, $38.4 million remained available for share repurchases under the existing authorization[15] Outlook for Third Quarter 2025 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 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] Major Product Metrics 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 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 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 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 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] - A live webcast and 90-day replay will be available on the company's investor relations website, ir.ryerson.com[19] About Ryerson 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] - The company operates across the U.S., Canada, Mexico, and China, with approximately 4,300 employees and over 110 locations[20] - Ryerson was founded in 1842[20] Investor Relations & Notes 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] - Definitions for EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding LIFO are provided in Schedule 2[21] - Net debt is defined as long-term debt plus short-term debt less cash and cash equivalents, excluding restricted cash[21] - 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] Legal Disclaimer 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] - Ryerson does not intend to solicit any securities or any other contractual relationships[22] Safe Harbor Provision 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] - 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] - 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] Financial Statements & Reconciliations 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 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 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] - 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] Reconciliation of Non-GAAP Measures 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 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] Adjusted Net Income and EPS Reconciliation 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 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 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 |