Ryerson(US:RYI)2026-02-23 12:01Company Overview - As of December 31, 2025, Ryerson Holding has approximately 4,300 employees across 103 facilities in North America and three facilities in China, serving around 40,000 customers[17]. - The company employs around 4,100 persons in North America and 200 in China as of December 31, 2025[113]. - Ryerson Canada operates eight facilities, with four leased facilities having lease terms expiring through 2032[154]. - Ryerson China has three service and processing centers, all owned, located in Guangzhou, Kunshan, and Tianjin[156]. - Ryerson Mexico operates five leased facilities, with lease terms expiring at various times through 2029[157]. Financial Performance - In 2025, Ryerson reported total revenues of $4.6 billion, a 1% decrease compared to 2024, with a net loss attributable to Ryerson of $56.4 million, or $1.76 per diluted share[186][187]. - Net sales for the year ended December 31, 2025, were $4,571.3 million, a decrease of $27.4 million or 0.6% compared to $4,598.7 million in 2024[202]. - The operating loss for 2025 was $(30.8) million, a decrease of $62.3 million compared to an operating profit of $31.5 million in 2024, reflecting a significant decline in profitability[214]. - The company recorded a net loss attributable to Ryerson Holding Corporation of $56.4 million in 2025, compared to a net loss of $8.6 million in 2024[202]. - Ryerson's gross margin contracted by 100 basis points from 2024, reflecting challenges in the soft demand environment[187]. Capital Expenditures and Investments - The company reported capital expenditures of $437.4 million over the five-year period ending December 31, 2025, aimed at enhancing value-added processing capabilities[40]. - Capital expenditures for 2025 resulted in a net increase of $352.8 million, with anticipated expenditures of up to $50 million for 2026[56]. - The company continues to invest in processing capabilities and modernization of facilities, including the Shelbyville, KY center[56]. - Investment in new technology R&D increased by 30%, totaling $200 million this quarter[153]. Customer and Supplier Relationships - For the year ended December 31, 2025, no single customer accounted for more than 6% of sales, with the top 10 customers representing approximately 15% of total sales[32]. - The company maintains strong relationships with suppliers, often being one of the largest customers, which aids in securing favorable pricing and service[33]. - The top 25 suppliers represented approximately 76% of purchase dollars for the year ended December 31, 2025[52]. - The top 25 suppliers represented approximately 76% of the company's purchases for the year ended December 31, 2025[93]. Market and Industry Trends - The industry outlook indicates a contraction in factory activity for 2025, with a PMI reading of 52.6 in January 2026 signaling potential recovery[35]. - Ryerson's diverse customer base spans various industries, including commercial transportation and renewable energy, reducing risk associated with downturns in specific sectors[28]. - Economic and industry trends, including inflation, could result in lower revenues and decreased margins[95]. - Global metal overcapacity and imports have adversely affected U.S. metal prices, impacting sales and results of operations[92]. Risks and Challenges - The company faces significant risks from economic downturns, which could negatively impact sales growth and results of operations[81]. - Changes in metals prices have adversely affected liquidity, net sales, gross margins, operating income, and net income in recent years[87]. - The company may not be able to retain or expand its customer base if the North American manufacturing industry experiences consolidation[91]. - The integration of future acquisitions, such as the Olympic Steel Merger, may disrupt operations and lead to unanticipated costs[99]. - The company is experiencing increased pressure from online businesses that compete on price transparency[85]. - Disruptions in supply chains due to external factors could negatively impact customer relationships and results of operations[88]. - The company is subject to risks from currency fluctuations, particularly between the U.S. dollar and the Canadian dollar, which could adversely affect financial results[105]. - The company faces cybersecurity risks that could disrupt operations and lead to significant financial losses[111]. Sustainability and Corporate Governance - The company maintains a focus on sustainability, with a 2025 report highlighting corporate governance and environmental initiatives[66]. - The company anticipates no significant environmental liabilities affecting financial conditions based on current information[61]. - Environmental liabilities may arise from compliance with stringent environmental laws, potentially resulting in substantial costs[120]. - Compliance with environmental standards may increase operating costs and necessitate future investments in facilities and equipment[123]. Employee Relations and Workforce - The company has a professional sales force of approximately 850 employees, enhancing customer relationships and product knowledge[54]. - Approximately 17% of the company's plant employees are union members, which may impact operational stability[113]. - The company has implemented a paid parental leave policy and various wellness programs to support employee health and retention[71]. - Five renewal contracts covering 145 employees were successfully negotiated in 2025, while eight contracts covering 162 employees are set to expire in 2026[114]. Stock and Shareholder Information - Ryerson Holding's common stock was first traded on the NYSE under the symbol "RYI" on August 13, 2014[162]. - The company paid cash dividends of $0.1875 per share in each quarter of 2025[164]. - As of December 31, 2025, $38.4 million remains outstanding under the share repurchase program, with no repurchases made during the year[170]. - Ryerson Holding's stock price performance showed a cumulative total return of 195.06% from December 31, 2020, to December 31, 2025[169]. - Affiliates of Platinum Equity, LLC own approximately 12.2% of Ryerson Holding's issued and outstanding common stock[176]. - Platinum owns approximately 3,924,478 shares, representing about 12.2% of the issued and outstanding common stock, allowing it to influence stockholder approval matters[142]. Recent Developments and Future Outlook - Ryerson's merger with Olympic Steel, completed on February 13, 2026, positions the company as North America's second-largest metals service center, enhancing its product offerings and geographic reach[20]. - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, driven by new product launches[153]. - Customer retention rates improved by 5%, now standing at 85%[153]. - The company is focusing on enhancing its digital marketing strategy, allocating an additional $50 million for the upcoming year[153].