Ryerson(RYI) - 2025 Q3 - Quarterly Results

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]