Ryerson Holding Corporation Reports Mixed Results in Q3 2025 Despite Revenue Growth

Ryerson Holding Corporation Reveals Third Quarter 2025 Results

On October 28, 2025, Ryerson Holding Corporation (NYSE: RYI), a prominent value-added processor and distributor of industrial metals, released its financial results for the third quarter ended September 30, 2025. The report highlights several key aspects of the company’s performance amid challenging market conditions.

Financial Overview

The company generated a robust revenue of $1.16 billion for Q3 2025, which fell slightly by 0.7% compared to the previous quarter yet remained within the anticipated range. The average selling price for the metals increased by 2.6%, though the volume of tons shipped experienced a decrease of 3.2% compared to Q2 2025. This change signifies a complex landscape for Ryerson, characterized by declining demand and tariff-related pricing challenges.

Ryerson reported a net loss of $14.8 million, translating to a diluted loss per share of $0.46. This is a stark contrast to the net income of $1.9 million recorded in the second quarter of 2025, reflecting a significant loss attributed to prolonged pressure on the market. Adjusted EBITDA, excluding LIFO (Last In, First Out), amounted to $40.3 million, down from $45.0 million in Q2 2025. The company’s gross margin also declined, contracting by 70 basis points to 17.2%.

Commentary from Management

Eddie Lehner, the President and CEO, expressed that the company successfully executed its self-help strategy, focusing on fundamental service center principles despite the persistent challenges faced over the past three years. According to Lehner, the Purchasing Manager's Index (PMI) has remained low, indicating a buyer's market that reflects on factors such as smaller order sizes and discounting.

He remarked, “We effectively managed the business amidst a procession of challenges that have endured for 36 months running,” highlighting the company's strategic focus on operational efficiency and cost management. The emphasis on service delivery, inventory management, and customer relationships has been pivotal amid weak demand, particularly in original equipment manufacturer (OEM) contract shipments and carbon steel margin pressures.

Operational Insights

The report delves into operational metrics, displaying a decrease in tons shipped, which stood at 485,000 for the third quarter in comparison to 501,000 in the previous quarter. However, the price per ton saw incremental growth, reflecting a strategy to leverage pricing power in a challenging environment. Ryerson’s metrics revealed that while gross margins were pressurized, effective cost management allowed them to maneuver through weak demand while still providing value to stakeholders.

Liquidity and Debt Management

As of the end of Q3 2025, Ryerson’s total debt was reported at $500 million, with net debt at approximately $470 million. Compared to the preceding quarter, this resulted in a slight decline, indicating a cautious approach to liquidity management. Notably, Ryerson’s global liquidity, which includes cash reserves and available credit lines, totaled $521 million.

Shareholder Return Strategy

In recognition of its shareholders, Ryerson declared a quarterly cash dividend of $0.1875 per share, to be distributed to stockholders on December 18, 2025. Furthermore, the company did not engage in share repurchases during the quarter, maintaining a focus on preserving cash amidst market volatility.

Future Outlook

Looking ahead to Q4 2025, Ryerson anticipates a decline in customer shipments between 5% to 7%, influenced by typical seasonal patterns along with softer demand for industrial metals. Projected net sales for the fourth quarter are projected to range between $1.07 billion to $1.11 billion, with expectations of margin stabilization moving into the final months of the year. The adjusted EBITDA, excluding LIFO, is anticipated to be in the range of $33 million to $37 million.

In summary, while Ryerson's third quarter exhibited indicators of resilience through revenue growth and price increases, market dynamics portrayed notable pressures requiring strategic adaptation. The company's sustained focus on liquidity management and operational efficiency will be critical as it prepares for the year-end amidst fluctuating demand in the industrial metals sector.