Ryerson's Q2 2025: Key Contradictions on Sales Targets, Pricing, and CapEx Plans

Transactional sales target, pricing outlook and market conditions, capital expenditure plans, market share growth and strategic focus, leverage ratio and financial goals are the key contradictions discussed in Ryerson's latest 2025Q2 earnings call.



Market Trends and Demand:
- Ryerson reported a 2.1% decrease in North American industry volumes as measured by the MSCI in Q2 compared to Q1, with relative strength in consumer durable sectors like appliances and recreational vehicles.
- The decline was due to cautious customer activity within the OEM contract book and ongoing bellwether price declines in carbon and stainless steel commodity indexes.

Investment in CapEx and Network Modernization:
- Ryerson has deployed $650 million in capital since 2021 to modernize its service centers, focusing on improving lead times, service levels, and on-time delivery.
- These investments are expected to drive improvements in performance and customer experience as the network stabilizes around greater consistency at scale.

Financial Performance and LIFO Impact:
- Ryerson achieved adjusted EBITDA, excluding LIFO, at the high end of its guidance range in Q2, with revenue and shipments within the range.
- A higher LIFO charge of $13 million due to rising commodity prices impacted net income, which was at the low end of the company's guidance range.

Capital Expenditure and Cash Flow Management:
- Ryerson's capital expenditures totaled $10 million in Q2, with year-to-date investments reaching $18 million, aligning with the full-year target of $50 million.
- The company generated $24 million in cash from operations in Q2, effectively managing working capital with a cash conversion cycle of 66 days, 11 days lower than the year-ago period.