Ryerson(US:RYI)2026-02-20 16:02Financial 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]