Chief Financial Officer Jim Claussen said North American industry volumes, as measured by the Metal Service Center Institute (MSCI), declined seasonally in the fourth quarter, falling 5.8% sequentially and down 1.5% for full-year 2025 versus 2024.Looking ahead, Lehner outlined priorities for 2026 that include integrating operations while maintaining customer experience and culture, executing on service-center fundamentals to improve earnings quality, and reducing leverage to within a targeted range . He add ...

Core Viewpoint - Reliance, Inc. is a significant player in the metals service industry, providing a variety of metal processing and distribution services, and competes with major companies like Ryerson Holding Corporation and Olympic Steel [1] Group 1: Company Overview - Reliance operates a network of service centers across North America, offering products such as carbon steel, aluminum, and stainless steel [1] Group 2: Financial Performance - Seaport Global maintained a "Buy" rating for Reliance, increasing the price target from $315 to $340, reflecting confidence in the company's future performance [2][5] - The stock is currently priced at $318.95, with a market capitalization of approximately $16.68 billion [4][5] - During the trading day, the stock fluctuated between a low of $315.24 and a high of $322.15, reflecting market activity [4] Group 3: Earnings Call Insights - RS held its Q4 2025 earnings call, which provided insights into the company's financial performance and strategic direction, highlighting significant achievements or challenges faced during the period [3][5]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net sales of $1.1 billion, a decrease of approximately 5% compared to the previous quarter, but an increase of 9.7% year-over-year [19] - The net loss for the quarter was $38 million, or $1.18 per share, compared to a net loss of $4.3 million in Q4 2024 [21] - Adjusted EBITDA, excluding LIFO, was $20.4 million for Q4 2025, compared to $10.3 million in Q4 2024 [21] - Gross margin contracted by 190 basis points to 15.3% during Q4 2025 [20] Business Line Data and Key Metrics Changes - The company experienced a decrease in North American shipments by 6.8% sequentially, but less than 0.5 percentage points for the full year, indicating market share gains [11] - The fabrication and welding sector saw the most year-over-year volume growth, while the commercial transportation sector experienced weakness [12] Market Data and Key Metrics Changes - North American industry volumes decreased by 5.8% sequentially in Q4 2025, while Ryerson's total company tons shipped were down just under 5% quarter-over-quarter [11] - The company anticipates first-quarter 2026 tons shipped to be up 13%-15% compared to Q4 2025, indicating a positive market outlook [13] Company Strategy and Development Direction - The company aims to realize $120 million in annual run rate synergies from the merger with Olympic Steel, focusing on optimizing asset utilization and capturing cost and revenue benefits [5][9] - Priorities for 2026 include integrating the combined organization, improving earnings quality, and reducing leverage [9] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging strength in customer quote and order activity, expecting gross margin expansion and operating income improvements in 2026 [7][8] - The company is optimistic about the manufacturing economy's recovery, marking the best demand start to a year since 2022 [8] Other Important Information - The company generated $113 million in cash from operating activities in Q4 2025, allowing for a $37 million reduction in debt [16] - The company ended the quarter with $502 million in liquidity and extended its revolving credit facility from $1.3 billion to $1.8 billion [17] Q&A Session Summary Question: Impact of price increases on customer acceptance - Management noted a positive increase in business activity and quoting rates, indicating that price increases are starting to be accepted in the market [26][27] Question: Capital allocation post-merger - The focus will be on achieving merger synergies and deleveraging, with dividends being an important part of capital allocation [31][32] Question: Challenges in passing through rising mill prices - Aluminum has been the slowest commodity to see price increases accepted, but there are signs of improvement [40] Question: First-quarter volume guidance and market activity - The company is seeing stronger market conditions and restocking activity from major industrial customers [41][42] Question: Future M&A opportunities - While the company is open to exceptional opportunities, the priority remains on achieving synergies from the recent merger [50][51]

Financial Data and Key Metrics Changes - For Q4 2025, Ryerson reported net sales of $1.1 billion, a decrease of approximately 5% compared to the previous quarter, but an increase of 9.7% compared to Q4 2024 [20] - The company experienced a net loss of $38 million or $1.18 per share, compared to a net loss of $4.3 million or $0.13 per share in Q4 2024 [21][22] - Adjusted EBITDA, excluding LIFO, was $20.4 million for Q4 2025, compared to $10.3 million in Q4 2024 [22] Business Line Data and Key Metrics Changes - Ryerson's North American shipments decreased by 6.8% sequentially in Q4 2025, while total company tons shipped were down just under 5% quarter-over-quarter, indicating market share gains for the full year [11] - The fabrication and welding sector saw the most year-over-year volume growth, followed by the machine shop and machinery and equipment sectors, while the commercial transportation sector experienced weakness [12] Market Data and Key Metrics Changes - North American industry volumes, as measured by the MSCI, experienced a normal seasonal decline of 5.8% sequentially in Q4 2025 [11] - The company anticipates first-quarter 2026 tons shipped to be up 13%-15% compared to Q4 2025, indicating a positive market outlook [13] Company Strategy and Development Direction - The company aims to realize $120 million in annual run rate synergies from the merger with Olympic Steel, focusing on optimizing asset utilization and capturing targeted cost and revenue benefits [5][9] - Priorities for 2026 include continuing integration of the combined organization, improving earnings quality, and reducing leverage [9] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging strength in customer quote and order activity, expecting gross margin expansion year-over-year and sequentially as better pricing propagates through the industrial metals value chain [7][8] - The company is optimistic about the market dynamics and believes the merger positions them well for future growth [60] Other Important Information - The company generated $113 million in cash from operating activities in Q4 2025, decreasing net debt by $34 million compared to the prior quarter [17][18] - Ryerson distributed $6.1 million in dividends during Q4 2025 and announced a similar dividend for the first quarter [19] Q&A Session Summary Question: Impact of price increases on customer acceptance - Management noted that while there has been some pushback, overall business activity has increased, and price increases are starting to be accepted [28] Question: Specific challenges in passing through rising mill prices - Aluminum was identified as the commodity with the slowest price propagation, but improvements are being seen [41] Question: First-quarter volume guidance and customer activity - Management indicated that stronger market conditions and investments are contributing to the anticipated volume increase [43][45] Question: Future M&A considerations post-merger - Management emphasized the focus on achieving merger synergies and reducing debt before considering further M&A opportunities [52]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net sales of $1.1 billion, a decrease of approximately 5% compared to the previous quarter, but an increase of 9.7% year-over-year [18] - The net loss for the quarter was $38 million, or $1.18 per share, compared to a net loss of $4.3 million in Q4 2024 [20] - Adjusted EBITDA, excluding LIFO, was $20.4 million for Q4 2025, compared to $10.3 million in Q4 2024 [20] - Gross margin contracted by 190 basis points to 15.3% during Q4 2025 [19] Business Line Data and Key Metrics Changes - The fabrication and welding sector saw the most year-over-year volume growth, followed by the machine shop and machinery and equipment sectors [10] - The commercial transportation sector experienced weakness, along with the climate and heavy equipment sectors [10] Market Data and Key Metrics Changes - North American industry volumes decreased by 5.8% sequentially in Q4 2025, while Ryerson's shipments decreased by 6.8% [9] - For the full year 2025, Ryerson's total company tons shipped were up by 0.5 percentage points compared to the previous year [10] Company Strategy and Development Direction - The company aims to realize $120 million in annual run rate synergies from the merger with Olympic Steel, focusing on optimizing asset utilization and capturing cost and revenue benefits [4] - Priorities for 2026 include integrating the combined organization, improving earnings quality, and reducing leverage [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving manufacturing conditions and expects gross margin expansion and operating income improvements in 2026 [6] - The company anticipates strong activity in Q1 2026, with tons shipped expected to increase by 13%-15% compared to Q4 2025 [12] Other Important Information - The company generated $113 million in cash from operating activities in Q4 2025 and reduced net debt by $34 million [15] - Ryerson distributed $6.1 million in dividends during Q4 2025 and plans to continue dividends in Q1 2026 [17] Q&A Session Summary Question: Impact of price increases on customer acceptance - Management noted that there has been a pleasant surprise in business activity, with quoting and conversion rates improving, indicating that price increases are starting to be accepted [25] Question: Capital allocation post-merger - The focus will be on achieving the $120 million in synergies and deleveraging, with dividends being an important part of capital allocation [29][31] Question: Challenges in passing through rising mill prices - Aluminum has been the slowest commodity to see price increases accepted, but there is now momentum in getting those prices through the value chain [38] Question: First quarter volume guidance - The company is seeing stronger market conditions, with improvements in transactional business and a positive outlook for growth [40][42] Question: Future M&A considerations - Management emphasized the importance of focusing on current synergies and performance before considering additional M&A opportunities [48]

Ryerson Quarterly Release Presentation Q4 2025 Certain statements made in this release and other written or oral statements made by or on behalf of the Company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding our future performance, as well as management's expectations, beliefs, intentions, plans, estimates, objectives, or projections relating to the future. Such statements can be identified by the use of forward-looking terminology su ...

Core Viewpoint - The article emphasizes the importance of a versatile investment strategy that caters to various investor profiles, including those focused on dividends, value propositions, or growth opportunities [1]. Group 1: Investment Strategy - The investment strategy described is adaptable for any investor type, whether they prioritize dividends, value, or growth [1]. Group 2: Analyst Background - The analyst has a Master's degree in Business Economics and possesses a strong managerial and economic background, along with a solid quantitative foundation [1]. - The analyst covers all sectors and types of stocks, indicating a broad expertise in the investment landscape [1].

Core Viewpoint - The proposed sale of Olympic Steel, Inc. to Ryerson Holding Corporation is under investigation to assess whether the transaction adequately values Olympic Steel and the process leading to this valuation [1]. Group 1: Transaction Details - Shareholders of Olympic Steel will receive 1.7105 shares of Ryerson common stock for each share of Olympic Steel owned [1]. - Post-transaction, shareholders of Olympic Steel will own approximately 37% of the combined company [1]. Group 2: Legal Investigation - Kahn Swick & Foti, LLC is investigating the proposed sale to determine if the consideration is adequate or if it undervalues Olympic Steel [1]. - The law firm is open to discussions regarding legal rights related to the proposed sale without obligation or cost to interested parties [2].

Business Segments - The company operates in three reportable segments: specialty metals flat products, carbon flat products, and tubular and pipe products[87]. - The specialty metals flat products segment has expanded its geographical footprint and product offerings through acquisitions, including stainless steel and aluminum products[87]. - The carbon flat products segment has increased its product offerings to include service station canopies and other fabricated parts following the acquisition of MetalWorks on November 11, 2024[87]. Financial Performance - Net sales increased by $20.7 million, or 4.4%, to $490.7 million in Q3 2025 compared to $470.0 million in Q3 2024[110]. - Specialty metals flat products accounted for 28.7% of total net sales in Q3 2025, up from 26.7% in Q3 2024[110]. - Gross profit as a percentage of net sales increased to 24.0% in Q3 2025 from 22.7% in Q3 2024, driven by higher average selling prices[114]. - Operating expenses rose by $11.3 million, or 11.4%, to $110.4 million in Q3 2025, increasing as a percentage of net sales to 22.5% from 21.0%[115]. - Net income for Q3 2025 was $2.2 million, or $0.18 per share, compared to $2.7 million, or $0.23 per share, in Q3 2024[121]. - Net sales decreased by $42.8 million, or 2.8%, to $1.48 billion in the first nine months of 2025 compared to $1.52 billion in the same period of 2024[111]. - Operating income for Q3 2025 was $7.3 million, down from $7.8 million in Q3 2024[118]. - Operating income in the first nine months of 2025 totaled $12.0 million, or 5.0% of net sales, down from $20.6 million, or 7.8% of net sales, in the first nine months of 2024[145]. Costs and Expenses - Cost of materials sold increased by $9.9 million, or 2.7%, to $373.0 million in Q3 2025 from $363.1 million in Q3 2024[112]. - Corporate expenses increased by $1.1 million, or 8.7%, to $14.0 million in the first nine months of 2025 from $12.9 million in the same period of 2024, primarily due to higher payroll and professional service fees[146]. - Gross profit as a percentage of net sales decreased to 30.9% in Q3 2025 from 35.1% in Q3 2024, attributed to average inventory costs increasing more than average selling prices[143]. Inventory and Supply Chain - The company maintains substantial inventories of metals to meet customer demands, which are influenced by market conditions and pricing fluctuations[90]. - The company maintains substantial inventories of metals to meet customer demands, with no long-term fixed-price purchase contracts[168]. Risks and Challenges - The company faces risks related to supply disruptions, inflationary pressures, and the impact of tariffs on imported steel[83]. - Significant declines in metals prices could impact compliance with financial covenants in the ABL Credit Facility[168]. - Inflation has not materially affected operations during the first nine months of 2025, but may have a significant impact in future years[171]. - The company is exposed to fluctuating metals prices and interest rate changes, entering into metals swaps at customer requests[172]. Cash Flow and Financing - Net cash from operating activities was $59.5 million for the nine months ended September 30, 2025, compared to $19.1 million for the same period in 2024[150]. - Net cash used for investing activities was $24.9 million during the nine months ended September 30, 2025, compared to $22.3 million in the same period of 2024, primarily for capital expenditures[153]. - During the first nine months of 2025, $39.0 million of cash was used for financing activities, including $31.5 million of net repayments under the ABL Credit Facility[154]. - As of September 30, 2025, the company had approximately $312 million of availability under the ABL Credit Facility[161]. Market Trends - Rising metals prices have generally favorably affected net sales and net income, while declining prices have adversely affected them[169]. - Rising metals prices result in higher working capital requirements for both the company and its customers[169]. - Approximately 43% of consolidated net sales during the first nine months of 2025 were related to industrial machinery and equipment manufacturers[170]. - Approximately 48% of consolidated net sales during the first nine months of 2024 were also related to industrial machinery and equipment manufacturers[170]. Employee Relations - As of September 30, 2025, the company employed approximately 2,181 people, with 229 hourly plant personnel represented by collective bargaining units[91]. - The company has not experienced a work stoppage and maintains good relationships with employees, although prolonged stoppages could adversely affect operations[92].

Financial Data and Key Metrics Changes - In Q3 2025, Ryerson reported net sales of $1.16 billion, a decrease of $7.8 million, or less than 1%, compared to the previous quarter [12] - Adjusted EBITDA excluding LIFO for Q3 was $40.3 million, down from $45 million in the prior quarter [13] - The company experienced a net loss of $14.8 million, or $0.46 per diluted share, compared to a net income of $1.9 million and diluted earnings per share of $0.06 in the prior quarter [12][13] - Gross margin contracted by 70 basis points to 17.2%, with gross margin excluding LIFO also contracting to 18.3% [12] Business Line Data and Key Metrics Changes - The company saw average selling prices increase by 2.6%, while tons shipped decreased by 3.2% due to rising prices [12] - The OEM book of business has seen activity below customer forecasts and historical mid-cycle trends, indicating a challenging environment [4] Market Data and Key Metrics Changes - The market backdrop remains difficult, characterized by falling industry shipments year over year and sequentially, with notable carbon steel margin compression [3] - Demand remains depressed, with customers quoting less and buying less throughout Q3 [4] Company Strategy and Development Direction - The company is focused on improving customer experience and optimizing its service center network to enhance performance [5] - Ryerson announced a merger agreement with Olympic Steel, which is expected to create a stronger financial profile and enhance market presence as the second largest metal service center in North America [18][29] - The merger is projected to yield $120 million in synergies phased in over two years, contributing to future margin enhancement [18][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing recessionary conditions in the industry and anticipates that demand challenges will persist at least through the end of the year [8] - The company expects Q4 volumes to soften by 5% to 7%, aligning with typical seasonality patterns [8] - Management remains optimistic about the potential for the OEM side of the commercial portfolio to eventually inflect positively [4] Other Important Information - The company ended Q3 with $500 million in total debt and $470 million in net debt, representing a decrease compared to the prior quarter [9] - The cash conversion cycle increased to 68 days from 66 days in the prior quarter [11] Q&A Session Summary Question: Expectations for cash generation in Q4 - Management expects a decent working capital release and cash flow from operations in Q4, typically seeing between $70 million and $80 million of working capital release [72][76] Question: Opportunities for market share growth post-merger - Management highlighted cross-selling and upselling opportunities as key to gaining market share, with Ryerson having about 40,000 active accounts and Olympic around 8,000 to 9,000 [80] Question: Plans for segment reporting post-merger - Management indicated that they will determine the best approach for segment reporting between signing and closing the merger [82] Question: Costs associated with achieving synergies - Management acknowledged that there will be costs to realize synergies, potentially up to $40 million, but emphasized that these synergies are based on current market conditions [93] Question: Incremental EBITDA margins with market improvement - Management suggested that with market tailwinds, EBITDA margins could improve to the 6% to 8% range, compared to the current pro forma margin of 6% [96]