Ryerson Reports Fourth Quarter and Full-Year 2024 Results

Core Insights - Ryerson Holding Corporation reported a fourth quarter revenue of $1.01 billion, a decrease of 10.6% from the previous quarter and 9.4% year-over-year, influenced by lower average selling prices and seasonal volume declines [6][8][12] - The company incurred a net loss of $4.3 million in Q4 2024, compared to a net income of $25.8 million in Q4 2023, reflecting significant year-over-year challenges [11][15] - Operating cash flow for Q4 2024 was $92.2 million, with a full-year operating cash flow of $204.9 million, indicating improved working capital management despite the overall decline in revenue [6][16] Financial Highlights - Revenue for Q4 2024 was $1,007.4 million, down from $1,126.6 million in Q3 2024 and $1,112.4 million in Q4 2023 [4][31] - Tons shipped in Q4 2024 totaled 447,000, a decrease of 7.8% quarter-over-quarter and 0.7% year-over-year [4][31] - Average selling price per ton in Q4 2024 was $2,254, down 3.0% from Q3 2024 and 8.8% from Q4 2023 [4][31] Gross Margin and Expenses - Gross margin for Q4 2024 was 19.0%, an increase of 110 basis points from Q3 2024 but a decrease of 320 basis points from Q4 2023 [4][9] - Warehousing, delivery, selling, general, and administrative expenses decreased by 4.3% to $188.5 million in Q4 2024 compared to Q3 2024 [10][31] - For the full year 2024, gross margin contracted to 18.1% from 20.0% in 2023, driven by declining metals prices [13][15] Debt and Cash Flow Management - Total debt at the end of Q4 2024 was $467.4 million, down 10.5% from Q3 2024, while net debt was $439.7 million, reflecting a 9.7% decrease [4][16] - The cash conversion cycle improved to 78.6 days in Q4 2024, down from 84.6 days in Q4 2023 [4][16] - Free cash flow for Q4 2024 was $68.9 million, with a full-year free cash flow of $107.4 million [6][38] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.1875 per share, payable on March 20, 2025 [17][18] - In 2024, Ryerson returned $24.8 million to shareholders through its dividend program [18][19] Outlook - For Q1 2025, Ryerson expects customer shipments to increase by 11% to 13% quarter-over-quarter, with anticipated net sales between $1.12 billion and $1.15 billion [20]