Financial Data and Key Metrics Changes - Ryerson reported net sales of $1,170 million, an increase of 3% compared to the first quarter, with average selling prices up 2.8% and tons shipped up fractionally [16] - Gross margin during the quarter contracted by 10 basis points to 17.9%, influenced by a higher than anticipated LIFO expense of $13 million [16] - Adjusted EBITDA excluding LIFO achieved $45 million in Q2 2025, compared to $32.8 million in the prior quarter [17] Business Line Data and Key Metrics Changes - North American shipments decreased by 1.2% quarter over quarter, generating incremental market share gains, particularly in carbon long, carbon plate, and stainless long products [7] - The consumer durable sector, especially in appliances and recreational vehicles, showed relative strength, while the construction equipment sector experienced sequential volume contraction [8] - Transactional sales accounted for approximately 46% of the business, with a focus on improving service levels and lead times to gain more transactional opportunities [31][32] Market Data and Key Metrics Changes - North American industry volumes decreased by 2.1% relative to the first quarter, with Ryerson's performance slightly better than the industry average [7] - The company noted bright spots in subsector industries such as data centers and public infrastructure projects driven by federal investment spending [9] - The pricing environment is expected to remain supportive, leading to average selling price appreciation of 1% to 3% in the upcoming quarter [11] Company Strategy and Development Direction - Ryerson continues to operationalize its capital expenditures, having deployed over $650 million since 2021 to modernize its service center network [4] - The company is focused on managing non-value-added costs and precise working capital management to prepare for the next cyclical upturn [6] - Investments in processing capabilities and maintenance projects are ongoing, with a full-year capital expenditure target of $50 million [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about medium to long-term demand trends despite current industry downturn challenges, including high interest rates and tariff uncertainties [4] - The company anticipates a softening of volumes by 2% to 4% in the upcoming quarter, but expects pricing to remain supportive [10] - Management highlighted the importance of improving customer experience through operational efficiencies and better service models [26] Other Important Information - Ryerson ended the second quarter with $510 million of total debt and $479 million of net debt, resulting in a leverage ratio of 4.4 times, above the target range [13] - The company distributed $6 million in dividends during the second quarter and announced a similar cash dividend for the third quarter [14] - The Shelbyville facility is currently at about 67% of its volume ramp-up, with expectations for further improvements as investments mature [42] Q&A Session Summary Question: Can you discuss the North American market share growth in Carbon Long and Plate? - Management noted that investments have improved service models and reduced frictional costs, leading to better customer experiences and market share gains [24][26] Question: What was the tax benefit impact on EPS in the second quarter? - The tax benefit was due to reduced earnings and discrete state tax credits, with an expected effective tax rate of around 25% to 26% going forward [28][29] Question: What is the current split between transactional and contractual sales? - The current split is approximately 46% transactional and 54% contractual, with a focus on increasing transactional sales through improved service [31][32] Question: How is the CapEx trend compared to the $50 million target? - Management indicated that the CapEx is a function of timing, and they remain committed to the $50 million target for the year [36] Question: What are the expectations for second half cash flow and leverage ratio? - Management expects to generate cash through the balance of the year, with the leverage ratio anticipated to move back towards the target range [48]

Q2 2025 Performance - Ryerson generated Q2 2025 revenue of $1.17 billion, aligning with guidance, with average selling prices increasing by 2.8% and tons shipped up fractionally compared to the prior quarter[8] - Net income attributable to Ryerson Holding Corporation was $1.9 million, or diluted income per share of $0.06, and Adjusted EBITDA, excluding LIFO, reached $45.0 million[8] - Ryerson ended Q2 2025 with debt of $510 million and net debt of $479 million, compared to $498 million and $464 million, respectively, at the end of Q1 2025[8] - The company's LTM Free Cash Flow Yield is 19.8%[26] Market Trends and Share - Ryerson gained market share while increasing transactional business mix for the fifth consecutive quarter, partially offsetting recessed contractual business[8] - Ryerson's Q2 shipments reflected relative strength in the consumer durable sector and HVAC sector on a QoQ volume basis, offset by weakness in construction and commercial ground transportation[17] - Ryerson grew North American market share in Q2 2025 compared to the industry as measured by the MSCI, with particular growth in carbon long, carbon plate, and stainless long products[18] - North American Industry shipments declined by 2.1% in the second quarter while Ryerson North American shipments declined by 1.2%, implying Ryerson market share growth[8] Q3 2025 Guidance - Ryerson anticipates Q3 2025 net sales between $1.14 billion and $1.18 billion, net income between $0 million and $2 million, and Adjusted EBITDA, excluding LIFO, between $40 million and $45 million[22] - Q3 2025 guidance assumes shipments will decrease between 2% and 4% due to demand environment challenges and normal seasonality patterns, while average selling prices are expected to increase 1% to 3%[24]