Ryerson(US:RYI)2025-10-28 20:25Financial 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]