Latest news with #RyersonHoldingCorp
Yahoo
02-05-2025
- Business
- Yahoo
Ryerson Holding Corp (RYI) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amidst Market ...
Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ryerson Holding Corp (NYSE:RYI) reported a 12.7% increase in net sales for Q1 2025 compared to Q4 2024, reaching $1.14 billion. The company achieved a 14% increase in North American shipments, outperforming the industry average by 3 percentage points. Ryerson Holding Corp (NYSE:RYI) saw significant improvements in working capital management and market share gains in the spot transactional market. The company maintained its $60 million expense reduction target, achieving a $32 expense per ton reduction year-over-year. Ryerson Holding Corp (NYSE:RYI) is progressing with significant CapEx investments aimed at modernizing its service center network, which are expected to improve earnings quality. The company experienced a net loss of $5.6 million or $0.18 per diluted share in Q1 2025, compared to a net loss of $4.3 million in the prior quarter. Gross margin contracted by 100 basis points to 18% due to rising commodity prices and lagging contract price adjustments. The stainless steel market remains a headwind, with depressed conditions affecting Ryerson Holding Corp (NYSE:RYI)'s performance. The company's leverage ratio increased to 4.3 times, above the target range of 2 times, due to countercyclical volume and pricing conditions. Ryerson Holding Corp (NYSE:RYI) used $41 million of cash in operations during Q1 2025, primarily due to increased accounts receivable from higher customer sales volumes. Warning! GuruFocus has detected 5 Warning Signs with RYI. Q: Despite the overall debt load increasing, how does Ryerson plan to manage debt levels and reduce interest expenses? A: Eddie Lehner, CEO, explained that as CapEx projects wind down and become operational, cash flow and EBITDA are expected to improve, allowing for debt reduction and lower interest expenses. Jim Clawson, CFO, added that higher cash flows and lower CapEx will help decrease leverage ratios over time. Q: The second quarter pricing outlook seems lower than expected. Are there specific areas in the portfolio affecting this? A: Eddie Lehner noted that OEM contract business was a significant headwind, with average selling prices bottoming in January. However, transactional growth and CapEx investments are starting to pay off, despite challenges in the OEM contract segment. Q: Can you update us on the current split between transactional and contractual sales? A: Jim Clawson stated that transactional sales increased to about 47% in the first quarter, up from 43% at the end of the previous year. The target remains to reach approximately 60% transactional sales. Q: How is Ryerson addressing the challenges in the stainless steel market, and are there plans to diversify away from it? A: Eddie Lehner mentioned that while the stainless steel market has been challenging, Ryerson has gained market share and made investments in this area. The company plans to grow its carbon franchise transactionally, complementing its existing portfolio rather than moving away from stainless steel. Q: Could you discuss the progress and impact of 3.0 on transactional sales? A: Eddie Lehner highlighted that transactional customer visits and sales on have increased, with new customers establishing accounts and utilizing the platform. The company is seeing positive trends as the platform matures. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
22-02-2025
- Business
- Yahoo
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.
