NYSE$RYZ

Ryerson Holding Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Ryerson's financial performance reflected strong cash flow and expense management, marked by a dividend increase.

Ryerson Holding Corporation reported a net income of $35.0 million, with revenue reaching $1.25 billion. The company generated $79.3 million in operating cash flow and $56.9 million in free cash flow. Despite counter-cyclical conditions, Ryerson maintained its net leverage ratio within the target range and invested in growth through acquisitions and service center expansions.

  • Net income attributable to Ryerson Holding Corporation was $35.0 million and Adjusted EBITDA, excluding LIFO, was $45.0 million.
  • Diluted earnings per share reached $1.00 on revenue of $1.25 billion.
  • Operating Cash Flow generation amounted to $79.3 million, while Free Cash Flow reached $56.9 million.
  • The company maintained a Net Leverage ratio of 1.4x, with debt at $366 million and net debt at $329 million as of September 30, 2023.

Headline financials

Total Revenue

$1.25B

Previous: $1.54B-19.2%
EPS (adj)

$1.00

Previous: $1.48-32.4%
Tons shipped

478.0K

No prior period
Gross margin

20.0%

No prior period
Gross margin, excl. LIFO

17.3%

No prior period
Capital Expenditures

-$96.5M

Previous: -$71.2M-35.5%
Free Cash Flow

-$61.5M

Previous: -$16.1M-282.0%
Net Income

$35M

Previous: $55.1M-36.5%
Operating Income

$56.3M

Previous: $84.5M-33.4%
Gross Profit

$249M

Previous: $271M-8.0%
Cash & Equivalents

$37.4M

Previous: $50.9M-26.5%
Total Assets

$2.43B

Previous: $2.55B-4.4%
Stock-Based Comp

$3.8M

Previous: $2.6M+46.2%

Revenue & EPS history

Ryerson · Revenue · Quarterly

$1.25B

Q3 2023-19.2%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Ryerson · $1.22B total across 3 segments · Q3 2023

  • Carbon Steel
    $647M
  • Stainless Steel
    $304M
  • Aluminum
    $273M

Forward guidance

For the fourth quarter of 2023, Ryerson anticipates seasonal demand conditions, expecting customer shipments to decrease approximately 4% to 7% quarter-over-quarter. The company projects net sales to range from $1.00 to $1.15 billion, with average selling prices decreasing 3% to 5%. LIFO income is expected to be $8 to $12 million, with adjusted EBITDA, excluding LIFO, in the range of $28 million to $32 million and earnings per diluted share between $0.18 and $0.22.

Tailwinds

  • Net sales are expected to be between $1.00B to $1.15B
  • LIFO income is expected to be $8M to $12M
  • Adjusted EBITDA, excluding LIFO is expected to be between $28M and $32M
  • Earnings per diluted share is expected to be between $0.18 and $0.22
  • Normal industry seasonal demand conditions are expected

Headwinds

  • Customer shipments are expected to decrease approximately 4% to 7%, quarter-over-quarter
  • Average selling prices decreasing 3% to 5%
  • Counter-cyclical conditions that emerged in the second quarter of 2023 continued to impact our industry
  • Prices across our product mix decreased during the quarter
  • Lower transactional customer quoting activity and reduced OEM customer order sizes put downward pressure on average selling prices and compressed gross margins

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.6%

Avg return

Earnings day

-3.0%

Avg return

5 days after

+2.3%

Avg return

30 days after

40%

19 / 47 earnings

Positive

+35.2%

Q1 2015

Best reaction

-26.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.5%-15.3%-4.0%
Q4 2025+17.5%-6.7%-20.7%
Q3 2025-6.6%-11.2%-2.8%
Q1 2025-14.8%-9.6%-11.2%
Q4 2024+5.9%+12.7%-0.3%
Q3 2024-2.7%-5.0%+12.7%
Q2 2024-5.9%-19.4%-21.2%
Q1 2024-19.4%-25.7%-24.8%
Q4 2023-6.2%+1.4%+11.0%
Q3 2023+6.6%+6.3%+11.9%
Q2 2023-15.0%-28.1%-27.4%
Q1 2023+1.9%-8.7%-10.0%
Q4 2022-3.9%-8.5%-10.9%
Q3 2022-26.6%-21.4%-8.7%
Q2 2022-1.2%-1.8%+5.6%
Q1 2022-11.6%-14.7%-19.4%
Q4 2021-8.1%+7.5%+57.8%
Q3 2021+1.8%+9.6%-9.8%
Q2 2021+18.6%+24.9%+55.6%
Q1 2021+3.9%+2.3%+0.8%
Q4 2020-15.0%-11.7%+13.0%
Q3 2020+12.1%+13.9%+56.8%
Q2 2020+2.4%-1.4%-2.6%
Q1 2020+2.5%+1.8%+45.8%
Q4 2019+7.9%-6.8%-50.3%
Q3 2019-3.8%+1.6%+20.1%
Q2 2019-7.4%-9.7%-8.3%
Q1 2019+13.3%+25.0%-10.8%
Q4 2018-7.0%+1.7%+12.7%
Q3 2018-6.4%+1.1%-10.8%
Q2 2018-6.9%+0.0%-10.0%
Q1 2018+11.7%+17.9%+29.6%
Q4 2017-8.8%-3.4%-18.6%
Q3 2017-0.6%-0.6%+2.8%
Q2 2017-0.6%-4.1%+0.6%
Q1 2017-20.9%-25.5%-34.2%
Q4 2016+8.9%+24.1%+31.9%
Q3 2016-14.9%-9.5%+46.8%
Q2 2016-10.7%-20.2%-10.8%
Q1 2016+8.4%
Q4 2015-5.5%
Q3 2015-5.4%
Q2 2015+12.6%
Q1 2015+35.2%
Q4 2014+3.0%
Q3 2014-16.9%
Q4 2013-0.4%
Q1 2014
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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