Ryerson (RYZ) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $1.13 billion, down 8.1% sequentially and 9.6% year-over-year, with 485,000 tons shipped at an average price of $2,323 per ton, reflecting ongoing industry downturn and seasonal bottoming.

• Net loss attributable to Ryerson was $6.6 million, or $0.20 per diluted share, compared to net income of $9.9 million in the prior quarter; adjusted EBITDA, excluding LIFO, was $21.0 million.

• Generated $135 million in operating cash flow and $103 million in free cash flow, with inventory reduced by $80.8 million.

• Investments in modernization, facility expansions, and the Production Metals acquisition position the company for future upturns.

• Service levels, account churn, and on-time delivery improved, with spot transactional business outperforming OEM contracts.

Financial highlights

• Net sales of $1.13 billion, down 8.1% from Q2 2024; gross margin was 17.9%, or 16.3% excluding LIFO.

• Adjusted EBITDA excluding LIFO was $21 million, at the low end of guidance, and adjusted EBITDA margin was 1.9%.

• Net loss of $6.6 million, or $0.20 per diluted share; adjusted diluted loss per share was down $0.53 sequentially.

• Operating profit for Q3 2024 was $5.3 million (0.5% margin), down 90.6% from Q3 2023.

• Returned $42 million to shareholders via $36 million in share repurchases and $6 million in dividends.

Outlook and guidance

• Q4 2024 shipments expected to decrease 8–10% sequentially; net sales forecasted at $1.00–$1.04 billion.

• Average selling prices expected to be flat to ±1% in Q4; adjusted EBITDA excluding LIFO forecasted at $10–$12 million.

• Loss per share expected between $0.53 and $0.47; net loss guidance of $16–17 million.

• CapEx expected to decrease to $50 million in 2025; ongoing investment cycle initiatives to improve operations.

• Recent trade actions in the US and Canada are expected to support domestic supply and may benefit pricing and volumes.