Ryerson Reports Second Quarter 2025 Results

Core Insights - Ryerson Holding Corporation reported a net income of $1.9 million for Q2 2025, a significant recovery from a net loss of $5.6 million in Q1 2025, indicating improved operational performance amidst challenging market conditions [9][24][29] - The company achieved revenue of $1.17 billion in Q2 2025, reflecting a 3.0% increase from Q1 2025, driven by a slight increase in average selling prices and tons shipped [6][24] - Adjusted EBITDA, excluding LIFO, reached $45.0 million in Q2 2025, up 37.2% from Q1 2025, showcasing effective cost management and operational execution [10][24][29] Financial Highlights - Revenue for Q2 2025 was $1,169.3 million, a decrease of 4.6% year-over-year from $1,225.5 million in Q2 2024 [4] - Tons shipped were 501,000, a slight increase of 0.2% from Q1 2025 but a decrease of 1.4% from Q2 2024 [4] - Average selling price per ton increased to $2,334, up 2.8% from Q1 2025 but down 3.2% year-over-year [4] Gross Margin and Expenses - Gross margin contracted to 17.9% in Q2 2025 from 18.0% in Q1 2025, primarily due to rising costs outpacing price increases [7] - Excluding LIFO, gross margin improved to 19.0%, up 40 basis points from Q1 2025 [7] - Warehousing, delivery, selling, general, and administrative expenses were $203.6 million, a 0.7% increase from Q1 2025, reflecting management's focus on controlling costs [8] Debt and Cash Flow - Total debt increased to $510.2 million, while net debt rose to $479.4 million, reflecting a sequential increase due to operational needs [11] - Cash provided by operating activities was $23.8 million, a recovery from a usage of $41.2 million in Q1 2025, indicating improved cash flow management [11][30] - The company ended Q2 2025 with global liquidity of $485 million, slightly down from $490 million at the end of Q1 2025 [11] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.1875 per share, payable on September 18, 2025, reflecting the company's commitment to returning value to shareholders [12] - During Q2 2025, the total cash return from dividends amounted to approximately $6.0 million [12] Outlook - For Q3 2025, Ryerson anticipates a decrease in customer shipments by 2% to 4% quarter-over-quarter, with expected net sales in the range of $1.14 billion to $1.18 billion [14] - Average selling prices are projected to increase by 1% to 3%, while adjusted EBITDA, excluding LIFO, is expected to be between $40 million and $45 million [14]