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- **Merger Synergies**: $120 million annual savings (fully realized by Q2 2027) from complementary product mixes (25% stainless/aluminum vs. 67% carbon), expanded footprint, and operational efficiency.
- **Financial Resilience**: Q3 net loss of $14.8 million despite 1% revenue decline; Q4 guidance reflects 5-7% volume decline but maintains revenue stability through tariffs.
- **Cash Flow Strength**: Expect $70-80 million Q4 working capital release, supporting deleveraging to target 0.5-2.0x leverage ratio.
- **Growth Catalysts**: Cross-selling opportunities (e.g., Ryerson's nonferrous + Olympic's carbon tube), $480 million modernization investments, and potential 6-10% EBITDA margins in recovery.

**【CEO Summary Section】**
- **Market Challenges**: Third quarter characterized by industry-wide contraction, falling shipments, and margin compression due to demand weakness and trade policy headwinds.
- **Merger with Olympic Steel**: Announced all-stock merger targeting Q1 2026 close, creating North America's second-largest metal service center with $6.5 billion pro forma revenue. Expected $120 million annual synergies (fully phased in by Q2 2027), driven by complementary product mixes (Ryerson: 25% stainless, 25% aluminum; Olympic: 67% carbon), expanded geographic reach, and operational efficiency improvements.
- **Customer Focus**: Emphasized service center fundamentals—shorter lead times, higher service levels, and on-time delivery—as key differentiators in a challenging market.
- **Long-Term Vision**: Despite 13-quarter industry downturn, confident in eventual recovery and benefits of recent $480 million CapEx investments in modernization and digital infrastructure.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: Adjusted EBITDA (excl. LIFO) of $40.3 million, within guidance range. Net loss of $14.8 million ($0.46 per share) due to gross margin contraction (70 bps to 17.2%) amid soft demand and elevated input costs.
- **Q4 2025 Outlook**: Volumes expected to decline 5-7% due to seasonal slowdown and persistent demand challenges. Revenue projected at $1.07-1.11 billion, with LIFO expense of $10-14 million. Net loss per share forecast at $0.22-0.28, reflecting higher depreciation and CapEx ($50-55 million).
- **Balance Sheet**: Total debt of $500 million, leverage ratio of 3.7x (target 0.5-2.0x). Liquidity improved to $521 million, with cash conversion cycle of 68 days.

**【Q&A Highlights】**
- **Cash Flow Expectations**: CFO Jim Claussen confirmed Q4 typically generates $70-80 million in working capital release, supporting free cash flow despite net loss.
- **Market Share Growth**: CEO Eddie Lehner highlighted cross-selling opportunities (e.g., Ryerson's nonferrous expertise + Olympic's carbon tube capabilities) and proximity to customers as key drivers of incremental share. Olympic's 8,000 active accounts vs. Ryerson's 40,000 present significant upselling potential.
- **Synergy Costs**: Rick Marabito (Olympic CEO) noted $40 million in one-time integration costs, but emphasized synergies (e.g., $14/ton procurement savings) are achievable under current market conditions.
- **EBITDA Margins**: Post-merger, pro forma EBITDA margin of 6% is achievable in current environment; normalization of demand could push margins to 6-8% (mid-cycle) or 8-10% (peak cycle).

Ryerson Holding Corporation (RYI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RYI

RYI fundamentals

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