Ryerson Holding Corporation · Q2 2023 earnings

Briefing

Ryerson's financial performance decreased due to counter-cyclical industry conditions and subdued manufacturing macro environment.

Ryerson reported a decrease in net income and revenue compared to the previous quarter and the same quarter last year. The company generated strong cash flow and continued to integrate recent acquisitions and invest in organic growth initiatives.

• Net Income attributable to Ryerson Holding Corporation was $37.6 million with Adjusted EBITDA, excluding LIFO of $70.1 million.
• Diluted EPS was $1.06 on revenue of $1.3 billion.
• Operating Cash Flow was $115.3 million and Free Cash Flow was $69.1 million.
• Net Leverage ratio was maintained within target range at 1.4x, with debt of $396 million and net debt of $366 million as of June 30, 2023.

Headline financials

Revenue & EPS history

For the third quarter of 2023, Ryerson expects a continuation of slowing demand conditions, with customer shipments expected to decrease approximately 2% to 4%, quarter-over-quarter. The Company anticipates third-quarter net sales to be in the range of $1.25 billion to $1.30 billion, with average selling prices decreasing 1% to 2%. LIFO income in the third quarter of 2023 is expected to be $2 million. We expect adjusted EBITDA, excluding LIFO in the range of $43 million to $47 million and earnings per diluted share in the range of $0.31 to $0.43.