22-02-2025
Ryerson Holding Corp (RYI) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...
Revenue: Q4 2024 net sales of $1.01 billion, down 10.6% from Q3 2024.
Sales Volume: Q4 2024 sales volume of 447,000 tons, 7.8% lower quarter over quarter.
Average Selling Price (ASP): Q4 2024 ASP of $2,254 per ton, a decrease of 3% quarter over quarter.
Gross Margin: Q4 2024 gross margin expanded by 110 basis points to 19%.
Net Loss: Q4 2024 net loss attributable to Ryerson was $4.3 million or $0.13 per diluted share.
Adjusted EBITDA (excluding LIFO): Q4 2024 adjusted EBITDA of $10.3 million.
Capital Expenditures: Q4 2024 capital expenditures of $24 million.
Cash Flow from Operations: Q4 2024 cash flow from operations was $92 million.
Total Debt: End of Q4 2024 total debt was $468 million.
Net Debt: End of Q4 2024 net debt was $440 million.
Dividends: Q4 2024 dividends of $6 million, with a quarterly dividend of $0.1875 per share.
Full Year 2024 Revenue: $4.6 billion, down from $5.1 billion in 2023.
Full Year 2024 Net Loss: $8.6 million or $0.26 per diluted share.
Full Year 2024 Adjusted EBITDA (excluding LIFO): $114 million.
Warning! GuruFocus has detected 5 Warning Signs with RYI.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Ryerson Holding Corp (NYSE:RYI) completed a record Capex cycle aimed at modernizing operations, which is expected to generate higher and less volatile earnings in the future.
The company reported a significant increase in sales quote and order activity since mid-January, reaching the highest levels since Q2 2021.
Ryerson Holding Corp (NYSE:RYI) achieved market share gains in North America, particularly in stainless steel and aluminum, despite operating in a contractionary environment.
The company successfully reduced operating expenses by $60 million annually through cost reduction plans, including personnel and freight expenses.
Ryerson Holding Corp (NYSE:RYI) generated $92 million in cash flow from operations in Q4, maintaining a healthy liquidity profile with $451 million in available global liquidity.
Ryerson Holding Corp (NYSE:RYI) experienced a 7.8% decrease in sales volume quarter over quarter, reflecting a challenging demand environment.
The company reported a net loss of $4.3 million in Q4 2024, with a diluted loss per share of $0.13.
Average selling prices decreased by 3% quarter over quarter, with carbon products seeing a 6% decline.
Ryerson Holding Corp (NYSE:RYI) ended the quarter with a net debt leverage of 3.9 times, above their target range of 0.5 to 2 times.
The company faced challenges with ERP system implementation, although improvements have been noted, the process was described as tough and complex.
Q: How are you all thinking about Capex for 2025? A: Edward Lehner, President and CEO, stated that they are dialing back Capex to the $50 million to $55 million range. This decision follows an extended Capex investment cycle, and the focus is now on operationalizing and integrating these assets into the network to generate returns.
Q: Can you take us through some of the progress on University Park since the September showing? A: Edward Lehner explained that University Park has seen a 20% increase in bookings from their bottom. The facility is now providing consistent high-quality service with short lead times, and productivity is improving as the equipment is working well.
Q: How did your core unit gross margins trend through the fourth quarter and into the first quarter? A: Edward Lehner noted that Q4 saw significant margin compression, particularly in non-ferrous metals. However, transactional margins are now inflecting higher, and they expect contract business margins to improve as lagging prices reset through 2025.
Q: How are you managing your business around tariffs, particularly outside the US? A: Edward Lehner mentioned that while there may be currency headwinds in Canada, Mexico, and China, the majority of revenue is generated in the US. They are well-positioned with strong inventory and supply chains, and they expect prices to increase as tariffs take effect.
Q: Why is net debt reduction not part of your capital allocation if you are so far out of your leverage target? A: Edward Lehner clarified that net debt reduction is a priority. They expect to bring leverage down as they operationalize Capex investments and as industry conditions normalize through 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
