Ryerson Holding 2025 Q2 Earnings Misses Targets with Net Income Down 79.6%

Ryerson Holding (RYI) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. Despite efforts to maintain market share, Ryerson Holding fell short of expectations with net income declining significantly from the previous year. The company did not adjust guidance, maintaining cautious optimism about price stabilization in certain metals. The anticipated benefits from improved service center execution and operationalized capex projects remain in focus as Ryerson navigates weak demand conditions. Ryerson continues to monitor market trends closely, aiming to preserve growth in transactional business despite subdued sector demand.

Revenue
The total revenue of Ryerson Holding decreased by 4.6% to $1.17 billion in 2025 Q2, down from $1.23 billion in 2024 Q2.

Earnings/Net Income
Ryerson Holding's EPS declined 79.3% to $0.06 in 2025 Q2 from $0.29 in 2024 Q2. Meanwhile, the company's net income declined to $2.10 million in 2025 Q2, down 79.6% from $10.30 million reported in 2024 Q2. This indicates a poor EPS performance for the quarter.

Price Action
The stock price of Ryerson Holding has dropped 5.50% during the latest trading day, has tumbled 8.25% during the most recent full trading week, and has climbed 3.12% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Ryerson Holding (RYI) shares after a quarter-over-quarter revenue drop on the financial report release date and holding for 30 days has delivered impressive returns over the past three years. This strategy achieved a 245.14% return, significantly outperforming the benchmark return of 87.35%. The excess return of 157.79% highlights the strategy's ability to capitalize on price movements following revenue declines. With a compound annual growth rate (CAGR) of 28.29% and a maximum drawdown of 0.00%, the strategy showcases robust risk-adjusted returns and minimal downside risk. Investors who follow this approach have seen substantial gains, reflecting its effectiveness in navigating the market dynamics associated with revenue drop scenarios.

CEO Commentary
Eddie Lehner, President, Chief Executive Officer & Director of Ryerson, emphasized the importance of self-help and execution amid ongoing subdued demand in the manufacturing and industrial metals sectors. He noted that macro indicators, including PMI, align with internal demand metrics, such as quoting activity and order rates. Ryerson has achieved market share growth and an increase in transactional business due to operationalized capex and systems projects, despite sluggishness in OEM accounts. On pricing, Lehner mentioned stabilization in stainless and carbon prices, while aluminum prices are rising, indicating a cautious outlook due to ongoing market discounting.

Guidance
Ryerson anticipates continued benefits from improved service center execution, including faster lead times and on-time delivery, as they navigate the current market environment. The company expects to maintain its market share and transactional business growth despite the challenges posed by weak demand conditions. Ryerson is cautiously optimistic regarding the stabilization of prices in certain metals, while remaining vigilant about the potential for price discounting in the market.

Additional News
Ryerson Holding recently announced the election of Lt. Gen. Bruce T. Crawford (U.S. Army Ret.) to its Board of Directors, bringing a wealth of military service experience and strategic development expertise. Crawford's addition is expected to strengthen Ryerson's leadership team, enhancing its focus on innovation and cybersecurity policies. Additionally, Ryerson declared a quarterly dividend of $0.1875 per share, payable on September 18, 2025, to shareholders of record on September 4, 2025, reflecting the company's ongoing commitment to return value to shareholders despite challenging market conditions. The company also continues to focus on strategic growth, including acquisitions that enhance its value-added offerings.