RYI Ryerson Holding Corporation

Quarterly business highlights include strong operating cash flow generation of $92.2 million, continued modernization of the Shelbyville, KY non-ferrous processing center, and progress scaling and optimizing newly placed-in-service assets across our North America service center network

CHICAGO, Feb. 20, 2025 /PRNewswire/ -- Ryerson Holding Corporation (NYSE: RYI), a leading value-added processor and distributor of industrial metals, today reported results for the fourth quarter and year ended December 31, 2024.

Highlights: 

• Generated fourth quarter revenue of $1.01 billion on 447,000 tons shipped at an average selling price of $2,254 per ton
• Incurred Net Loss attributable to Ryerson Holding Corporation of $4.3 million, or Diluted Loss Per Share of $0.13 and Adjusted EBITDA¹, excluding LIFO of $10.3 million
• Generated Fourth Quarter Operating Cash Flow of $92.2 million and Free Cash Flow of $68.9 million. Generated Full-Year 2024 Operating Cash Flow of $204.9 million and Free Cash Flow of $107.4 million
• Ended the quarter with debt of $468 million and net debt² of $440 million as of December 31, 2024, compared to $522 million and $487 million, respectively, on September 30, 2024
• Achieved target of $60 million in annualized operating expense reduction³
• Continued start-up, commissioning and operationalizing of major capex projects at our service centers located in Shelbyville, KY, Norcross, GA, Dallas, TX, and Los Angeles, CA
• Declared a first-quarter 2025 dividend of $0.1875 per share

 A reconciliation of non-GAAP financial measures to the comparable GAAP measure is included below in this news release.

Management Commentary
Eddie Lehner, Ryerson's President, Chief Executive Officer & Director, said, "I want to thank all of my Ryerson teammates for working safely during the quarter while supporting our ongoing investments toward further improving Ryerson's operating model and customer experience. In 2024, Ryerson accomplished two important milestones of our growth and our network optimization strategy. First, Ryerson made important strides in bringing major capex projects online, highlighted by the opening of our 900,000 square foot service center in University Park, IL, and start-up of our service center modernization project in Shelbyville, KY, the launch of our revamped e-commerce platform at www.ryerson.com, and further end-market diversification through the acquisition of Production Metals, LLC to name a few. Second, Ryerson launched its 'integration and optimization' phase, which contributed to realizing $60 million in annualized expense reductions while further weaving capex, systems, and acquisition investments made over the past three years into a cohesive intelligent service center network. Ryerson achieved these operational milestones while navigating through a counter-cyclical environment, marked by depressed demand, decreasing prices, and ongoing margin compression across stainless, carbon, and aluminum commodity bellwethers. Despite the difficult macro-metals and manufacturing environment, Ryerson gained market share across our metal mix, reduced same-store costs, and got back to good working capital management execution. During the fourth quarter, Ryerson met its guidance expectations on sales and Adjusted EBITDA, excluding LIFO, while exceeding guidance on earnings per share and generating $92.2 million in operating cash flow. During 2024, we generated $205 million in operating cash flow, primarily driven by improved working capital management, and returned $75.8 million to shareholders in the form of dividends and share repurchases. Looking ahead to the first quarter and 2025, after a slow start to the year marked by the carry-over from an unusually slow holiday season and weather disruptions, we are encouraged by quoting and order trends which have improved notably since mid-January. The timing of these improvements in business conditions, should they sustain, along with a strong dose of Ryerson self-help, should intersect well with the ongoing operationalization of investments we have made in the business over the past three years to improve earnings and the quality of those earnings through the cycle.

Fourth Quarter and Full-Year Results
Ryerson generated net sales of $1.01 billion in the fourth quarter of 2024, a decrease of 10.6%, compared to the third quarter of 2024, and within our guidance expectations. Revenue performance during the quarter was influenced by slightly better-than-expected seasonal volume declines of 7.8% and lower than expected average selling prices, which fell by 3.0%.

Gross margin expanded sequentially by 110 basis points to 19.0% in the fourth quarter of 2024, compared to 17.9% in the third quarter of 2024. Due to further declines in inventory costs in the fourth quarter of 2024, LIFO income of $25 million exceeded guidance expectations of LIFO income of $10 million. Excluding the impact of LIFO, gross margin expanded 10 basis points to 16.4% in the fourth quarter of 2024, compared to 16.3% in the third quarter. Gross margin expansion in the quarter resulted from the decline in average inventory costs outpacing the decline in average selling prices.

Warehousing, delivery, selling, general, and administrative expenses decreased 4.3%, or $8.4 million, to $188.5 million in the fourth quarter of 2024, compared to $196.9 million in the third quarter of 2024. Cost reductions were noted in personnel-related expenses, operating expenses, and delivery expenses. Decreases in overall expenses were partially offset by increases in professional fees as well as increases in depreciation & amortization expense from our capital spending on major projects.

Net Loss Attributable to Ryerson Holding Corporation for the fourth quarter of 2024 was $4.3 million, or $0.13 per diluted share, compared to net loss of $6.6 million, or $0.20 per diluted share, in the previous quarter. Ryerson generated Adjusted EBITDA, excluding LIFO of $10.3 million in the fourth quarter of 2024, compared to the third quarter of 2024 Adjusted EBITDA, excluding LIFO of $21.0 million.

Ryerson generated net sales of $4.6 billion for the full-year 2024, a decrease of 10.0% compared to full-year 2023 sales of $5.1 billion. Revenue performance for the year was influenced by 9.7% lower average selling prices and 0.3% lower tons shipped.

Gross margin contracted by 190 basis points for the full-year 2024 to 18.1% compared to 20.0% for 2023. Driven by declines in metals commodities prices, decreases in inventory costs over the year generated LIFO income of $52.5 million in 2024, which was 46.3%, or $45.2 million, lower in 2024 compared to 2023. Excluding the impact of LIFO, full-year 2024 gross margin contracted 110 basis points to 17.0% compared with 18.1% for 2023. Gross margin, excluding the impact of LIFO, contraction in 2024 was driven by average selling prices, which decreased 9.7% year-over-year, outpacing the decline in cost of materials sold.

Warehousing, delivery, selling, general, and administrative expenses increased 1.0%, or $7.7 million, to $801.2 million for the full-year 2024, compared to $793.5 million for 2023, driven by the addition of expenses associated with companies acquired during 2023 and 2024. These increases were partially offset by decreases in personnel-related expenses, operating expenses, and delivery expenses.

Net Loss Attributable to Ryerson Holding Corporation for the full-year 2024 was $8.6 million, or $0.26 per diluted share, compared to net income of $145.7 million, or $4.10 per diluted share, in 2023. Ryerson generated Adjusted EBITDA, excluding LIFO of $114.1 million in 2024, compared to $231.1 million in 2023.

Liquidity & Debt Management
Ryerson generated operating cash flow of $92.2 million in the fourth quarter of 2024 due to a working capital release of $71 million. The Company ended the fourth quarter of 2024 with debt of $468 million and net debt of $440 million, sequential decreases of $54 million and $47 million, respectively, compared to the third quarter of 2024. For the full-year 2024, Ryerson generated operating cash flow of $204.9 million, partially attributable to a working capital release of $154 million. Ryerson's net leverage ratio of 3.9x, as of the fourth quarter of 2024, was above the Company's target leverage range of 0.5x – 2.0x, but below Ryerson's prior 10-year average of 4.2x. Ryerson's global liquidity, composed of cash and cash equivalents and availability on its revolving credit facilities, decreased to $451 million as of December 31, 2024, compared to $491 million as of September 30, 2024, due to a decline in inventory values as metals commodity prices for our product mix receded during 2024.

Shareholder Return Activity

Dividends. On February 20, 2025, the Board of Directors declared a quarterly cash dividend of $0.1875 per share of common stock, payable on March 20, 2025, to stockholders of record as of March 6, 2025. During the fourth quarter of 2024, Ryerson's quarterly dividend amounted to a cash return of approximately $6.0 million. For the full-year 2024, Ryerson returned $24.8 million to shareholders through its dividend program.  

Share Repurchases and Authorization. Ryerson did not repurchase shares during the fourth quarter of 2024. Over the full-year 2024, Ryerson repurchased 2,526,467 shares for $51.0 million. Ryerson acquired stock in the open market in accordance with Ryerson's share repurchase authorization. As of December 31, 2024, $38.4 million remained under the existing authorization.

Outlook Commentary
For the first quarter of 2025, Ryerson expects customer shipments to increase 11% to 13% quarter-over-quarter due to seasonality, improved company driven transactional activity, and restocking. The Company anticipates first quarter net sales to be in the range of $1.12 billion to $1.15 billion, with average selling prices increasing 0% to 2%. LIFO expense in the first quarter of 2025 is expected to be between $6 million to 8 million. We expect adjusted EBITDA, excluding LIFO in the range of $28 million to $32 million on lagging price margin resets and loss per diluted share in the range of $0.27 to $0.20.

Earnings Call Information
Ryerson will host a conference call to discuss fourth quarter and full-year 2024 financial results for the period ended December 31, 2024, on Friday, February 21, 2025, at 10 a.m. Eastern Time. The live online broadcast will be available on the Company's investor relations website, ir.ryerson.com. A replay will be available at the same website for 90 days.

About Ryerson
Ryerson is a leading value-added processor and distributor of industrial metals, with operations in the United States, Canada, Mexico, and China. Founded in 1842, Ryerson has approximately 4,200 employees and over 110 locations. Visit Ryerson at www.ryerson.com.

Notes:
¹For EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding LIFO please see Schedule 2
²Net debt is defined as long term debt plus short term debt less cash and cash equivalents and excludes restricted cash
³Operating expenses are Warehousing, delivery, selling, general, and administrative expenses

Legal Disclaimer
The contents herein are provided for general information purposes only and do not constitute an offer to sell or buy, or a solicitation of an offer to buy, any security ("Security") of the Company or its affiliates ("Ryerson") in any jurisdiction. Ryerson does not intend to solicit, and is not soliciting, any action with respect to any Security or any other contractual relationship with Ryerson. Nothing in this release, individually or taken in the aggregate, constitutes an offer of securities for sale or buy, or a solicitation of an offer to buy, any Security in the United States, or to U.S. persons, or in any other jurisdiction in which such an offer or solicitation is unlawful.

Safe Harbor Provision
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 such as "objectives," "goals," "preliminary," "range," "believes," "expects," "may," "estimates," "will," "should," "plans," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. The Company cautions that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. Among the factors that significantly impact our business are: the cyclicality of our business; the highly competitive, volatile, and fragmented metals industry in which we operate; the impact of geopolitical events; fluctuating metal prices; our indebtedness and the covenants in instruments governing such indebtedness; the integration of acquired operations; regulatory and other operational risks associated with our operations located inside and outside of the United States; the influence of a single investor group over our policies and procedures; work stoppages; obligations under certain employee retirement benefit plans; currency fluctuations; and consolidation in the metals industry. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth above and those set forth under "Risk Factors" in our most recent our annual report on Form 10-K and in our other filings with the Securities and Exchange Commission. Moreover, we caution against placing undue reliance on these statements, which speak only as of the date they were made. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise.

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SOURCE Ryerson Holding Corporation