RYZ — Ryerson Holding Corporation

Summary of Ryerson Holding Corporation Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: $1.57 billion, up 37.9% year-over-year; $1.29 billion on a same-store basis, up 17.1% sequentially.
• Net Income: $4.5 million ($0.10 per diluted share); adjusted net income of $13.1 million ($0.30 per diluted share).
• Adjusted EBITDA: $67.4 million (excluding LIFO), more than double the $32.8 million from Q1 2025.
• Tons Shipped: Increased by 31.2% year-over-year; 42.3% sequential growth.
• Gross Margin: Expanded to 18% on a same-store basis, up 270 basis points year-over-year.
• Debt: Increased to $908 million, with a leverage ratio of 5.1x, up from 3.1x in the previous quarter.

2. Strategic Updates and Business Highlights:

• Integration with Olympic Steel: Early integration efforts are progressing well, with a unified leadership structure established. Initial synergy realization is on track, with $1 million in savings achieved in the first 6 weeks and expectations of $4 million to $6 million in Q2.
• Market Position: Ryerson gained market share, particularly in carbon products, with strong performance in transactional business.
• Operational Improvements: Focus on enhancing capabilities and expanding product offerings to better serve customers, leveraging the combined footprint of Ryerson and Olympic Steel.

3. Forward Guidance and Outlook:

• Q2 Expectations: Anticipated shipments to be 1% to 3% higher sequentially, with total revenue projected between $1.86 billion and $1.93 billion. Expected net income for Q2 is between $20 million and $22 million ($0.38 to $0.42 per diluted share).
• Synergy Goals: Targeting $120 million in annual run rate synergies over the next two years, with confidence in achieving the first-year target of $40 million.
• Long-term Outlook: Optimism for improved demand conditions in the second half of 2026, particularly from large OEMs, with expectations for better contract business performance.

4. Bad News, Challenges, or Points of Concern:

• Debt Levels: The increase in net debt to $908 million raises concerns about leverage, although management expects improvement as cash flow stabilizes.
• Contract Business Stagnation: The contract business remains sluggish, lagging behind transactional growth by 4% to 5%. Large OEMs continue to show demand stagnation due to high interest rates and geopolitical uncertainties.
• Inflationary Pressures: Rising diesel prices and tight trucking markets are inflating delivery costs, which could impact margins if not managed properly.

5. Notable Q&A Insights:

• Divergence Between Transactional and Contract Business: Management acknowledged the stronger performance in transactional business, while the contract side remains uneven. They expect improvements in the second half of the year.
• Capital Allocation: Discussions around the new share repurchase program were highlighted, with a focus on balancing shareholder returns while managing debt levels. Management expressed confidence in improving leverage ratios as synergies and cash flows increase.
• Integration Challenges: While the integration of Olympic Steel is progressing well, management remains vigilant about potential challenges and is focused on achieving synergy targets.

Overall, Ryerson demonstrated strong financial performance in Q1 2026, driven by growth in transactional business and effective integration with Olympic Steel, while facing challenges related to debt levels and the sluggish contract market. The outlook remains positive with expectations for continued improvement in demand and synergy realization.