Ryerson Holding Corp
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
RYZ$27.60+3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-29.
0000950170-24-118254
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0000950170-25-061080
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 80 previous paragraphs and 67 current paragraphs.
30 unchanged; 30 reworded; 7 added; 20 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Ryerson’s year-over-year sales volume increase of 0.6% was driven by increased volumes in the Construction Equipment, Metal Fabrication & Machine Shop, and Oil & Gas sectors, partially offset by decreased volumes in the Commercial Ground Transportation, Consumer Durable, Food Processing & Agricultural Equipment, and HVAC sectors.
Current report
Ryerson’s quarter-over-quarter sales volume increase of 11.9% was driven by increased volumes across all sectors representing our end-markets, with Construction Equipment, Metal Fabrication & Machine Shops, Industrial Machinery & Equipment, and HVAC driving the largest gains.
Current report
In 2025, the U.S. government has announced and retracted tariffs repeatedly on imports, including imports of steel and aluminum from all countries, as well as on all U.S. imports not covered under section 232 of the Trade Expansion Act ("Section 232"). All of the individual country exemptions related to quotas and tariff rate quotas were eliminated. While some individual exemptions still exist under Section 232, they are all set to expire on their next anniversary date. Additionally, many governments including the Chinese government, announced reciprocal tariffs on U.S. imports, creating further uncertainty in global trade. It is unclear at this time what the final tariff actions will be. The tariffs introduce significant uncertainty towards customer's supply chains and the impact they will have on our financial position, results of operations, and cash flows remains to be determined.
Current report
Gross profit decreased in the three-month period ended March 31, 2025 compared to the year-ago period primarily due to the impact of lower metals commodity prices which reduced average selling prices.
Current report
Our operating profit increased slightly in the three months ended March 31, 2025 compared to the three months ended March 31, 2024, as lower expenses offset the decreased gross profit as discussed above.
Current report
Investing activities. The Company's main investing activities are capital expenditures and acquisitions. Capital expenditures have decreased year-over-year as the Company completed its three-year investment cycle in 2024, which focused on organic growth through the expansion and modernization of existing facilities, addition of new state-of-the-art facilities, and additions of processing equipment to support value-added business.
Current report
For further information regarding our pension and postretirement benefit plans, see Note 7: Employee Benefits in Part I, Item I - Notes to Condensed Consolidated Financial Statements.
Removed paragraphs (20)
Previous report
During the first nine months of 2024, Ryerson has accomplished key milestones of our record three-year investment cycle, including start-up of operations at our state-of-the-art 900,000 square foot University Park, Illinois, service center, ongoing assimilation of our ERP conversion in our southern service centers, launch of our redesigned e-commerce platform atwww.Ryerson.com, and nearing the final stages of equipment installation for our Shelbyville, Kentucky, processing center, as well as the acquisition of Production Metals, LLC, which introduces valuable Aerospace & Defense exposure to Ryerson’s end-market mix. While our investment cycle initiatives have occurred against the backdrop of volatile pricing and contracting demand, we believe that our initiatives will translate into an improved operating model that can provide better customer experiences.
Previous report
On August 26, 2024, Canada announced notice of intent to impose 25% surtaxes on Chinese steel and aluminum imports under Section 53 of the Custom Tariff Law. Additionally, a 100% surtax will be assessed on all Chinese-made electric vehicles effective October 1, 2024. The move is intended to protect Canada’s workers and domestic investment in steel and aluminum related production and processing. We believe the impact of these regulatory measures can be supportive of North American supply and may be beneficial to Ryerson’s average selling prices for our Canadian service centers.
Previous report
On July 11, 2024, the US government announced that it will impose a “melt and pour” requirement for imports of steel products from Mexico and will impose tariffs of 25% for steel products that are melted and poured in a country other than Mexico, Canada, or the US. The move is expected to help close a loophole in section 232 of the Trade Expansion Act ("Section 232") that has allowed steel produced outside of North America to avoid the tariffs by shipping via Mexico for further processing before being exported to the US. Additionally, the US will impose a “smelt and cast” requirement for aluminum imports from Mexico. Specifically, any product from Mexico whose “primary country of smelt, secondary country of smelt, or country of most recent cast” is China, Russia, Belarus, or Iran will be subject to 10% 232 duties upon entering the US. We believe the impact of these regulatory measures are supportive of US domestic supply and may be beneficial to Ryerson’s volumes and average selling prices.
Previous report
On May 14, 2024, the U.S. government announced trade actions that increased tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products. The tariff rate on certain steel and aluminum products under Section 301 of the Trade Act of 1974 ("Section 301") will increase from between zero to 7.5% to 25% in 2024. We anticipate that these actions will provide limited support for metal commodity prices, given China steel and aluminum imports represent a small portion of overall U.S. imports at 2.2% and 3.6%, respectively, in 2023.
Previous report
On April 12, 2024, the U.S. and United Kingdom governments prohibited metal-trading exchanges from accepting new aluminum, copper, and nickel produced by Russia and barred the import of the metals into the U.S. and Britain. We anticipate these actions will provide support for metal commodity prices, but ultimately the impact on the Company's operations is unclear.
Previous report
On February 24, 2023, the US government announced trade actions targeting goods and entities from Russia, which included a proclamation to impose 200% ad valorem tariffs on Russian-origin aluminum products and derivative products and other articles made from Russian primary aluminum or Russian aluminum castings. The duties will be imposed under Section 232 and cited by the White House due to (1) challenges faced by US aluminum producers in the face of high levels of aluminum imports and high energy prices; (2) recent increases in imports of aluminum from Russia, whose market is especially export-oriented, by 53 percent between March and July 2022; and (3) the fact that the Russian aluminum industry is a key part of Russia's defense industrial base. Ryerson has communicated to all vendors that we will not accept any Russian originating metal. The trade actions announced by the US government should support prices for Ryerson's product sales mix as the underlying domestic and North American supply-demand balance is protected from oversupply.
Previous report
Gross profit decreased in the three-month and nine-month periods ended September 30, 2024 compared to the year ago periods as average selling price decreased faster than the decrease in the average cost of materials sold, resulting in a decrease in gross margin.
Previous report
Warehousing, delivery, selling, general, and administrative expenses increased $3.9 million in the third quarter of 2024 compared to the third quarter of 2023 while expenses increased $22.9 million in the nine-month period ended September 30, 2024 compared to the year ago period. Expenses in the third quarter of 2024 included $8.5 million of expenses from companies acquired during 2024 and the fourth quarter of 2023, while the first nine months of 2024 included expenses of $23.9 million from companies acquired in 2024 and the fourth quarter of 2023. Excluding the impact of acquisitions, expenses decreased $4.6 million in the third quarter of 2024 compared to the third quarter of 2023 and expenses decreased $1.0 million in the nine-month period ended September 30, 2024 compared to the year ago period. On a same-store basis, expenses in the three-month and nine-month periods changed in the following categories from the prior year periods:
Previous report
lower incentive compensation expense of $4.1 million in the third quarter of 2024 and $10.4 million in the first nine months of 2024;
Previous report
lower benefit expense of $2.6 million in the third quarter of 2024 and $7.1 million in the first nine months of 2024 primarily due to lower medical expense;
Previous report
lower overtime and temporary help expense of $1.5 million in the third quarter of 2024 and $5.8 million in the first nine months of 2024;
Previous report
lower operating expenses of $0.5 million in the third quarter of 2024 and $4.6 million in the first nine months of 2024; and
Previous report
lower delivery expense of $1.3 million in the third quarter and $2.7 million in the first nine months of 2024; partially offset by:
Previous report
higher selling, general, and administrative expenses of $0.3 million in the third quarter of 2024 and $2.2 million in the first nine months of 2024 resulting from higher credit loss accruals and higher consulting fees.
Previous report
The three-month and nine-month periods ended September 30, 2024 include restructuring charges of $1.1 million and $2.8 million, respectively, related to severance costs for headcount reductions as we work on optimizing our operating model and improving productivity. The three-month and nine-month periods ended September 30, 2024 also included a $1.3 million gain on an insurance settlement.
Previous report
Our operating profit decreased in the three-month and nine-month periods ended September 30, 2024 compared to the three-month and nine-month periods ended September 30, 2023, primarily due to the decrease in average selling prices and gross profit discussed above.
Previous report
Investing activities. The Company's main investing activities are capital expenditures and acquisitions. Capital expenditures have decreased year-over-year as the Company is nearing completion of its investment in a new facility in University Park, Illinois, a project which began in 2022. In the first nine months of 2024, the Company paid $44.1 million to acquire Production Metals, LLC. In the first nine months of 2023, the Company paid $39.9 million to acquire BLP Holdings, LLC and $9.7 million to purchase certain assets from ExOne Operating, LLC. See Note 6: Acquisitions within Part I, Item I of this report, for further discussion of the 2024 and 2023 acquisitions.
Previous report
Due to the closure of the CSW headquarters in Chicago, IL and move to University Park, IL, a significant reduction in the service years of employees occurred between the fourth quarter of 2023 and first quarter of 2024, triggering curtailment accounting. The CSW Pension and Postretirement Benefits plans were remeasured as of February 29, 2024, resulting in a curtailment gain. As the curtailment was a net gain, the gain is required to be reflected in the periods in which the terminations occur, resulting in a curtailment gain of $0.3 million recognized in the first quarter of 2024 and $0.5 million recognized in the fourth quarter of 2023 for those terminations occurring during the respective periods. Additionally, the CSW Pension Plan is expecting lump sum payments for 2024 to be in excess of service cost and interest cost and therefore, a settlement gain of $1.6 million was recorded in the first nine months of 2024. The discount rate for measuring obligations of the CSW pension plan increased from 5.24% at December 31, 2023 to 5.57% as of February 29, 2024. The expected long-term rate of return on pension assets has remained unchanged from December 31, 2023 at 3.85%.
Previous report
In the first quarter of 2024, the Ryerson Canada Bargaining Unit Pension Plan made $1.2 million of lump sum payments to plan participants and purchased $5.0 million of annuities on behalf of plan participants. The lump sum payments and annuity purchases consisted of all of the existing liabilities of the Ryerson Canada Bargaining Unit Pension Plan, resulting in the termination of the plan. The Ryerson Canada Bargaining Unit Pension Plan was fully funded as of the termination date, and as such, all lump sum payments and annuity purchases were funded with pension plan assets. As a result, the Company recorded a $2.2 million settlement loss in February of 2024.
Previous report
The net settlement loss and the curtailment gain were recorded within Other income and (expense), net in the Condensed Consolidated Statement of Comprehensive Income as of September 30, 2024.
Reworded paragraphs (30)
Previous wording
The contents herein are provided for general information purposes only and do not constitute an offer to sell or buy, or a solicitation of an offer to buy, any security (“Security”) of Ryerson Holding or its affiliates in any jurisdiction. Ryerson does not intend to solicit and is not soliciting, any action with respect to any Security or any other contractual relationship with Ryerson. Nothing in this Form 10-Q, individually or taken in the aggregate, constitutes an offer of securities for sale or buy, or a solicitation of an offer to buy, any Security in the United States, or to US persons, or in any other jurisdiction in which such an offer or solicitation is unlawful.
Current wording
The contents herein are provided for general information purposes only and do not constitute an offer to sell or purchase, or a solicitation of an offer to purchase, any security (“Security”) of Ryerson Holding or its affiliates in any jurisdiction. Ryerson does not intend to solicit and is not soliciting, any action with respect to any Security or any other contractual relationship with Ryerson. Nothing in this Form 10-Q, individually or taken in the aggregate, constitutes an offer of securities for sale or purchase, or a solicitation of an offer to purchase, any Security in the United States, or to US persons, or in any other jurisdiction in which such an offer or solicitation is unlawful.
Previous wording
The following Management’s Discussion and Analysis ("MD&A") of Financial Condition and Results of Operations is intended to help the reader understand the Company’s results of operations and financial condition as it is viewed by our management. The MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and related Notes thereto in Item 1, “Financial Statements” in this Quarterly Report on Form 10-Q and our Consolidated Financial Statements and related Notes thereto for the year ended December 31, 2023, in our Annual Report on Form 10-K filed on February 21, 2024.
Current wording
The following Management’s Discussion and Analysis ("MD&A") of Financial Condition and Results of Operations is intended to help the reader understand the Company’s results of operations and financial condition as viewed by our management. The MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and related Notes thereto in Item 1, “Financial Statements” in this Quarterly Report on Form 10-Q and our Consolidated Financial Statements and related Notes thereto for the year ended December 31, 2024, in our Annual Report on Form 10-K filed on February 20, 2025.
Previous wording
We are a metals service center providing value-added processing and distribution of industrial metals with operations in the United States, Canada, Mexico, and China. We purchase large quantities of metal products from primary producers and sell these materials in smaller quantities to a wide variety of metals-consuming industries. We carry a full line of nearly 75,000 products in stainless steel, aluminum, carbon steel, and alloy steels and a limited line of nickel and red metals in various shapes and forms. In addition to our metals products, we offer numerous value-added processing and fabrication services, and nearly 80% of the metals products we sell are processed by us by bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, polishing, punching, rolling, sawing, scribing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials to a specified thickness, length, width, shape, and surface quality pursuant to specific customer orders.
Current wording
We are a metals service center providing value-added processing and distribution of industrial metals with operations in the United States, Canada, Mexico, and China. We purchase large quantities of metal products from primary producers and sell these materials in smaller quantities to a wide variety of metals-consuming industries. We carry a full line of approximately 75,000 products in stainless steel, aluminum, carbon steel, and alloy steels and a limited line of nickel and red metals in various shapes and forms. In addition to our metals products, we offer numerous value-added processing and fabrication services, and nearly 80% of the metals products we sell are processed by us by bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, flattening, forming, grinding, laser cutting, machining, notching, painting, polishing, punching, rolling, sawing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials to a specified thickness, length, width, shape, and surface quality pursuant to specific customer orders.
Previous wording
Similar to other metals service centers, we maintain substantial inventories of metals to accommodate the short lead times and just-in-time delivery requirements of our customers. Accordingly, we purchase metals to maintain our inventory at levels that we believe to be appropriate to satisfy the anticipated needs of our customers based upon customer forecasts, historic buying practices, supply agreements with customers, mill lead times, and market conditions. Our commitments to purchase metals are generally at prevailing market prices in effect at the time we place our orders. We may enter into swaps in order to mitigate our customers’ risk of volatility in the price of metals, as well as metal hedges to mitigate our own risk of volatility in the price of metals. We have no long-term, fixed-price metals purchase contracts. When metals prices decline, customer demands for lower prices and our competitors’ responses to those demands could result in lower sale prices and, consequently, lower gross profits and earnings as we sell existing metals inventory. When metals prices increase, competitive conditions will influence how much of the price increase we may pass on to our customers. Changes in average selling prices are primarily driven by commodity metals prices, which impact Ryerson’s selling prices over the subsequent three to six-month period.
Current wording
Similar to other metals service centers, we maintain substantial inventories of metals to accommodate the short lead times and just-in-time delivery requirements of our customers. Accordingly, we purchase metals to maintain our inventory at levels that we believe to be appropriate to satisfy the anticipated needs of our customers based upon customer forecasts, historic buying practices, supply agreements with customers, mill lead times, and market conditions. Our commitments to purchase metals are generally at prevailing market prices in effect at the time we place our orders. At the request of our customers, we may enter into swaps in order to mitigate our customers’ risk of volatility in the price of metals, as well as metal hedges to mitigate our own risk of volatility in the price of metals. We have no long-term, fixed-price metals purchase contracts. When metals prices decline, customer demands for lower prices and our competitors’ responses to those demands could result in lower sale prices and, consequently, lower gross profits and earnings as we sell existing metals inventory. When metals prices increase, competitive conditions will influence how much of the price increase we may pass on to our customers. Changes in average selling prices are primarily driven by commodity metals prices, which impact Ryerson’s selling prices over the subsequent three to six-month period.
Previous wording
The metals service center industry is cyclical, volatile in demand and pricing, and difficult to predict. In the third quarter of 2024, Ryerson experienced lower average selling prices of 3.7% and a decrease in shipments of 4.5%, compared to the second quarter of 2024, as the period was characterized by slower sequential demand in a declining pricing environment. In the first nine months of 2024, Ryerson experienced lower average selling prices of 10.0% and a decrease in shipments of 0.2% compared to the first nine months of 2023, due to the effects of contracting industrial manufacturing demand, which influenced both lower pricing as well as lower volume.
Current wording
The metals service center industry is cyclical, volatile in demand and pricing, and difficult to predict. In the first quarter of 2025, Ryerson experienced higher average selling prices of 0.8% and an increase in shipments of 11.9% compared to the fourth quarter of 2024, as the period was characterized by restocking leading to an increase in seasonal manufacturing demand as well as increasing input prices supporting our metals commodities mix. Compared to the first three months of 2024, Ryerson experienced lower average selling prices of 8.9% and higher shipments of 0.6% in the first three months of 2025, as global oversupply underlying the pricing of our metals product mix compressed our average selling prices between the periods while volumes were roughly comparable.
Previous wording
Key steel industry economic indicators continued to report a contraction in industrial activity during the third quarter of 2024. This is evidenced by the Institute for Supply Management’s Purchasing Managers’ Index (“PMI”), which reported readings below the growth threshold of 50, with a reading of 47.2 in September and readings of 47.2 and 46.8 in August and July, respectively. Excluding March 2024, with a reading of 50.3, eleven out of the past twelve months have recorded a contractionary, or below 50, PMI reading. U.S. Industrial Production, which measures industrial sector business output, reported contractionary year-over-year output for most of the third quarter, with a July reading of a 0.7% decline followed by zero year-over-year growth in August.
Current wording
In the first quarter of 2025, key steel industry economic indicators reversed the recent trend of contractionary reports in industrial activity. This is evidenced by the Institute for Supply Management’s Purchasing Managers’ Index (“PMI”), which reported readings above the growth threshold of 50, with a readings of 50.9 and 50.3 in January and February, respectively, after contractionary readings in every month of 2024. However, the March 2025 reading of 49.0 was a return to contractionary territory. U.S. Industrial Production, which measures industrial sector business output, reported expansionary year-over-year output for each month of the first quarter of 2025, with January’s 0.5% growth reading occurring after five consecutive months of contractionary industrial production readings.
Previous wording
According to the Metal Service Center Institute ("MSCI"), North American service center volumes decreased by 3.2% in the first nine months of 2024 compared to the first nine months of 2023. Ryerson's North American volumes decreased 1.4% over the same period. Compared to the first nine months of 2023, Ryerson's overall consolidated end market demand, as measured by sales volumes, has decreased by 0.2% for the first nine months of 2024, with decreased volumes in Consumer Durables, Commercial Ground Transportation, Industrial Machinery & Equipment, and Oil & Gas sectors. Decreases in these end-markets were partially offset by increased volumes in HVAC, Food Processing & Agricultural Equipment, Construction Equipment, and the Metal Fabrication & Machine Shops sectors. On a quarterly sequential basis, the industry volume as reported by the MSCI, decreased 5.1% compared to a decrease in Ryerson's North American volume of 5.5%. On a quarterly sequential basis, Ryerson's overall consolidated volumes decreased by 4.5%, with decreased volumes in Food Processing & Agricultural Equipment, Consumer Durables, Commercial Ground Transportation, Industrial Machinery & Equipment and the Oil & Gas sectors. Decreases in these end-markets were partially offset by increased volumes in the HVAC sector.
Current wording
According to the Metal Service Center Institute ("MSCI"), North American service center volumes decreased by 1.3% in the first three months of 2025 compared to the first three months of 2024. Ryerson's North American volumes increased 0.3% over the same period. On a quarterly sequential basis, the industry volume increase of 10.9% compared to Ryerson’s North American volume increase of 13.9%.
Previous wording
First Nine Months 2024 vs. First Nine Months 2023 Performance
Current wording
First Three Months 2025 vs. First Three Months 2024 Performance
Previous wording
To provide greater insight into the Company’s operating trends apart from the period’s one-time transactions, Ryerson provides adjusted net income (loss) and adjusted diluted earnings (loss) per share figures, which are not U.S. generally accepted accounting principles (“GAAP”) financial measures, to compliment the reported GAAP net income (loss) and diluted earnings (loss) per share figures. Management uses these metrics to assess year-over-year performance excluding non-recurring transactions. Adjusted net income (loss) and adjusted diluted earnings (loss) per share do not represent, and should not be used as a substitute for, net income (loss) or diluted earnings (loss) per share determined in accordance with GAAP. As illustrated in the below table, the net loss attributable to Ryerson Holding Corporation of $4.3 million includes a restructuring charge of $2.8 million, as well as a pension settlement loss of $2.2 million, a $1.3 gain on an insurance settlement, and a $0.3 million curtailment gain related to various retirement benefit plans. After adjusting for these non-core business transactions and the related income taxes, the adjusted net loss attributable to Ryerson Holding Corporation for the first nine months of 2024 is $1.7 million, a decrease of $121.6 million compared to net income attributable to Ryerson Holding Corporation of $119.9 million in the first nine months of 2023 which had no adjustments.
Current wording
To provide greater insight into the Company’s operating trends apart from the period’s one-time transactions, Ryerson provides adjusted net income (loss) and adjusted diluted earnings (loss) per share figures, which are not U.S. generally accepted accounting principles (“GAAP”) financial measures, to complement the reported GAAP net loss and diluted loss per share figures. Management uses these metrics to assess year-over-year performance excluding non-recurring transactions. Adjusted net loss and adjusted diluted loss per share do not represent, and should not be used as a substitute for, net loss or diluted loss per share determined in accordance with GAAP. As illustrated in the below table, the first three months of 2025 had no adjustments to the net loss attributable to Ryerson Holding Corporation of $5.6 million compared to the net loss attributable to Ryerson Holding Corporation in the first three months of 2024 of $7.6 million which includes a pension settlement loss of $2.2 million and a $0.3 million curtailment gain related to various retirement benefit plans. After adjusting for these non-core business transactions and the related income taxes, the adjusted net loss attributable to Ryerson Holding Corporation for the first three months 2025 is $5.6 million compared to a $6.2 million net loss attributable to Ryerson Holding Corporation in the first three months of 2024.
Previous wording
The following table sets forth our condensed consolidated statements of income data for the three-month and nine-month periods ended September 30, 2024 and 2023 (certain percentages may not calculate due to rounding):
Current wording
The following table sets forth our condensed consolidated statements of income data for the three months ended March 31, 2025 and 2024 (certain percentages may not calculate due to rounding):
Previous wording
The following charts show the Company’s percentage of sales by major product lines for the nine months ended September 30, 2024 and 2023:
Current wording
The following charts show the Company’s percentage of sales by major product lines for the three months ended March 31, 2025 and 2024:
Previous wording
Revenue for the three-month and nine-month periods ended September 30, 2024 decreased from the same periods a year ago due to lower average selling prices caused by lower commodity prices in 2024 due to the effects of contracting industrial manufacturing demand. Compared to the year ago periods, average selling prices decreased for nearly all of our product lines in the three-month and nine-month periods ended September 30, 2024 with the largest decreases in our stainless flat, stainless long, stainless plate, and carbon plate products. Tons sold decreased slightly in the nine-month period while increasing slightly in the three months ended September 30, 2024, compared to the year ago periods. The product lines with the largest decreases in tons sold in 2024 are our carbon long, aluminum long, and aluminum plate product lines partially offset by an increase in carbon flat and stainless steel flat tons sold in the nine-month period ended September 30, 2024. In the third quarter of 2024, the largest increases in tons sold were in our carbon flat and stainless steel flat products partially offset by decreases in tons sold in our carbon long, aluminum long, and aluminum plate product lines compared to the third quarter of 2023.
Current wording
Revenue for the three-month period ended March 31, 2025 decreased from the same period a year ago due to lower metal commodity prices caused by the effects of contracting industrial manufacturing demand. Compared to the year-ago period, average selling prices decreased for all of our carbon and stainless product lines in the three months ended March 31, 2025 with the largest decreases in our carbon plate, carbon flat, and carbon long products, partially offset by increases in all of our aluminum products lines. Tons sold increased slightly in the three months ended March 31, 2025, compared to the year-ago period. The product lines with the largest increases in tons sold in 2025 are our stainless long, stainless plate, and aluminum long product lines partially offset by a decrease in carbon long and aluminum flat tons sold.
Previous wording
The decrease in cost of materials sold in the three-month and nine-month periods ended September 30, 2024 compared to the year ago periods is primarily due to a decrease in average cost of materials sold per ton caused by lower commodity prices in 2024. Compared to the year ago periods the average cost of materials sold decreased across all product lines with the largest decreases in our stainless flat, stainless long, stainless plate, and carbon plate product lines. During the third quarter of 2024, LIFO income was $18.1 million compared to LIFO income of 33.4 million in the third quarter of 2023. During the first nine months of 2024, LIFO income was $27.1 million compared to LIFO income of $38.4 million in the first nine months of 2023.
Current wording
The decrease in cost of materials sold in the three-month period ended March 31, 2025 compared to the year-ago period is primarily due to lower metal commodity prices. Compared to the year-ago period the average cost of materials sold decreased across all of our carbon and stainless product lines with the largest decreases in our carbon plate, carbon long, and stainless plate product lines, partially offset by increases in the average cost of materials sold for all of our aluminum product lines. During the first quarter of 2025, LIFO expense was $6.8 million compared to LIFO expense of $1.0 million in the first quarter of 2024.
Previous wording
higher reorganization costs of $5.9 million in the third quarter of 2024 and $30.3 million in the first nine months of 2024 primarily due to start up costs associated with our new state of the art University Park location as well as system conversion activity; and
Current wording
Warehousing, delivery, selling, general, and administrative expenses decreased $14.7 million in the first quarter of 2025 compared to the first quarter of 2024. Expenses in the first quarter of 2025 included $2.7 million of expenses from an acquisition made during the third quarter of 2024. Excluding the impact of the acquisition, expenses decreased $17.4 million in the first quarter of 2025 compared to the first quarter of 2024. On a same-store basis, the expense decrease in the first quarter of 2025 was primarily due to lower reorganization costs as the first quarter of 2024 included start up costs associated with our new state of the art University Park, IL location as well as Enterprise Resource Planning ("ERP") conversion and integration activities. In addition, benefit expenses were lower in the first quarter of 2025 primarily due to lower medical expenses, and selling, general, and administrative expenses declined primarily due to lower consulting and travel and entertainment expenses. Partially offsetting the expense decreases was an increase in delivery expenses and incentive compensation.
Previous wording
Interest and other expense on debt increased in the three-month and nine-month periods ended September 30, 2024 compared to the year ago periods primarily due to a higher level of borrowings outstanding under our $1.3 billion revolving credit facility (“the Ryerson Credit Facility”) and higher interest rates on the Ryerson Credit Facility borrowings in the first nine months of 2024.
Current wording
Interest and other expense on debt decreased in the three-month period ended March 31, 2025 compared to the year-ago period primarily due to lower interest rates on our $1.3 billion revolving credit facility (“the Ryerson Credit Facility”) partially offset by a higher level of borrowings outstanding under the Ryerson Credit Facility in the first three months of 2025.
Previous wording
The other expense in the first nine months of 2024 includes a $2.2 million settlement loss resulting from the termination of the Ryerson Canada Bargaining Unit Pension Plan. Partially offsetting the $2.2 million settlement loss was a $1.6 million settlement gain and a $0.3 million curtailment gain related to lump-sum buyouts and a reduction in future years of service for the Central Steel & Wire ("CSW") pension and other post-employment benefit plans resulting from workforce reductions at CSW related to the move of the CSW headquarters and main operations to a new facility in University Park, IL. Other income and (expense), net in the first nine months of 2024 also includes foreign currency translation gains of $1.0 million. Other income and (expense), net in the first nine months of 2023 is primarily related to foreign currency translation gains.
Current wording
The other income in the first three months of 2025 includes a $0.2 million settlement gain related to lump-sum buyouts for the Central Steel & Wire ("CSW") pension plan. The other expense in the first three months of 2024 includes a $2.2 million settlement loss resulting from the termination of the Ryerson Canada Bargaining Unit Pension Plan. Partially offsetting the $2.2 million settlement loss was a $0.5 million settlement gain and a $0.3 million curtailment gain related to lump-sum buyouts and a reduction in future years of service for the CSW pension and other post-employment benefit plans resulting from workforce reductions associated with the move of the CSW headquarters and main operations to a new facility in University Park, IL. Other income and (expense), net in the first three months of 2024 also includes foreign currency translation gains of $1.2 million.
Previous wording
Provision for income taxes. Our effective income tax rate was 6.3% in the third quarter of 2024 and 19.2% in the first nine months of 2024 compared to 26.8% in the third quarter of 2023 and 24.8% in the first nine months of 2023. The differences between our effective income tax rates and the U.S. federal statutory rate of 21.0% were mainly due to state and foreign income taxes adversely offset by the effects of certain discrete items recorded during the periods which have a disproportionate effect on the overall tax rate due to the low level of pretax loss in the first nine months of 2024.
Current wording
Provision for income taxes. Our effective income tax rate was 23.2% in the first quarter of 2025 compared to 22.1% in the first quarter of 2024. The differences between our effective income tax rates and the U.S. federal statutory rate of 21.0% were mainly due to state and foreign income taxes partially offset by the effects of certain discrete items recorded during the periods.
Previous wording
Earnings (loss) per share. Basic loss per share was $0.20 in the third quarter of 2024 and $0.13 in the first nine months of 2024 compared to basic earnings per share of $1.02 in the third quarter of 2023 and $3.40 in the first nine months of 2023. Diluted loss per share was $0.20 in the third quarter of 2024 and $0.13 in the first nine months of 2024 compared to diluted earnings per share of $1.00 in the third quarter of 2023 and $3.34 in the first nine months of 2023. The changes in earnings per share are due to the results of operations discussed above as well as having fewer shares outstanding in the third quarter of 2024 and the first nine months of 2024 after the repurchase of 2,746,081 shares of common stock since October 1, 2023.
Current wording
Earnings (loss) per share. The changes in loss per share are due to the results of operations discussed above as well as having fewer shares outstanding in 2025 after the repurchase of 2,526,467 shares of common stock during 2024.
Previous wording
Our primary sources of liquidity are cash and cash equivalents, cash flows from operations, and borrowing availability under the Ryerson Credit Facility. Our principal source of operating cash is from the sale of metals and other materials. Our principal uses of cash are for payments associated with the procurement and processing of metals and other materials inventories, costs incurred for the warehousing and delivery of inventories, the selling and administrative costs of the business, and capital expenditures.
Current wording
Our primary sources of liquidity are cash and cash equivalents, cash flows from operations, and borrowing availability under the Ryerson Credit Facility. Our principal source of operating cash is from the sale of metals. Our principal uses of cash are for payments associated with the procurement and processing of metals, costs incurred for the warehousing and delivery of inventories, the selling and administrative costs of the business, capital expenditures, and for interest payments on debt.
Previous wording
We had cash and cash equivalents of $35.0 million at September 30, 2024, compared to $54.3 million at December 31, 2023. Our total debt outstanding at September 30, 2024 increased to $522.1 million compared to $436.5 million at December 31, 2023. We had a debt-to-capitalization ratio of 38% and 32% at September 30, 2024 and December 31, 2023, respectively. We had total liquidity (defined as cash and cash equivalents and availability under the Ryerson Credit Facility and foreign debt facilities) of $491 million at September 30, 2024 versus $656 million at December 31, 2023. Our net debt (defined as total debt less cash and cash equivalents) was $487 million and $382 million at September 30, 2024 and December 31, 2023, respectively. Total liquidity and net debt are not U.S. generally accepted accounting principles (“GAAP”) financial measures. We believe that total liquidity provides additional information for measuring our ability to fund our operations. Total liquidity does not represent, and should not be used as a substitute for, net income or cash flows from operations as determined in accordance with GAAP and total liquidity is not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. We believe that net debt provides a clearer perspective of the Company’s overall debt profile. Net debt should not be used as a substitute for total debt outstanding as determined in accordance with GAAP.
Current wording
We had cash and cash equivalents of $33.6 million at March 31, 2025, compared to $27.7 million at December 31, 2024. Our total debt outstanding at March 31, 2025 increased to $497.3 million compared to $467.4 million at December 31, 2024. We had a debt-to-capitalization ratio of 38% and 36% at March 31, 2025 and December 31, 2024, respectively. We had total liquidity (defined as cash and cash equivalents and availability under the Ryerson Credit Facility and foreign debt facilities) of $490 million at March 31, 2025 versus $451 million at December 31, 2024. Our net debt (defined as total debt less cash and cash equivalents) was $464 million and $440 million at March 31, 2025 and December 31, 2024, respectively. Total liquidity and net debt are not U.S. generally accepted accounting principles (“GAAP”) financial measures. We believe that total liquidity provides additional information for measuring our ability to fund our operations. Total liquidity does not represent, and should not be used as a substitute for, net income or cash flows from operations as determined in accordance with GAAP and total liquidity is not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements. We believe that net debt provides a clearer perspective of the Company’s overall debt profile. Net debt should not be used as a substitute for total debt outstanding as determined in accordance with GAAP.
Previous wording
Of the total cash and cash equivalents as of September 30, 2024, $10.6 million was held in subsidiaries outside the U.S. which is deemed to be permanently reinvested. Ryerson does not currently foresee a need to repatriate earnings from its non-U.S. subsidiaries. Although Ryerson has historically satisfied needs for more capital in the U.S. through debt or equity issuances, Ryerson could elect to repatriate earnings held in foreign jurisdictions, which could result in higher effective tax rates. We have not recorded a deferred tax liability for the effect of a possible repatriation of these earnings as management intends to permanently reinvest these earnings outside of the U.S. Specific plans for reinvestment include funding for future international acquisitions and funding of existing international operations.
Current wording
Of the total cash and cash equivalents as of March 31, 2025, $10.3 million was held in subsidiaries outside the U.S. which is deemed to be permanently reinvested. Ryerson does not currently foresee a need to repatriate earnings from its non-U.S. subsidiaries. Although Ryerson has historically satisfied needs for more capital in the U.S. through debt or equity issuances, Ryerson could elect to repatriate earnings held in foreign jurisdictions, which could result in higher effective tax rates. We have not recorded a deferred tax liability for the effect of a possible repatriation of these earnings as management intends to permanently reinvest these earnings outside of the U.S. Specific plans for reinvestment include funding for future international acquisitions and funding of existing international operations.
Previous wording
Operating activities. Working capital fluctuates throughout the year based on business needs. Working capital needs tend to be counter-cyclical, meaning that in periods of expansion the Company will use cash to fund working capital requirements, but in periods of contraction the Company will generate cash from reduced working capital requirements. In the first nine months of 2024, working capital requirements decreased mainly due to a decrease in inventory, as market prices for metals decreased in the first nine months of 2024 along with lower tons in inventory to better align inventory levels with expected sales volumes. Partially offsetting the decrease in inventory was an increase in accounts receivable from higher sales levels during the third quarter of 2024 compared to the fourth quarter of 2023 and a decrease in accounts payable driven by reduced inventory purchases as discussed above. In the first nine months of 2023, working capital requirements decreased primarily due to decreased inventory costs as market prices for metals decreased in the first nine months of 2023. Material purchases were higher at the end of the third quarter of 2023 compared to the end of the fourth quarter of 2022 resulting in an increase in accounts payable in the third quarter of 2023. The remaining cash flows generated in the first nine months of 2023 were due to net income generation.
Current wording
Operating activities. Working capital fluctuates throughout the year based on business needs. Working capital needs tend to be counter-cyclical, meaning that in periods of expansion the Company will use cash to fund working capital requirements, but in periods of contraction the Company will generate cash from reduced working capital requirements. In the first three months of 2025, working capital requirements increased mainly due to higher sales levels during the first quarter of 2025 compared to the fourth quarter of 2024, driving an increase in accounts receivables and a slight decrease in inventory quantities, as tons were sold faster than they were replaced after stock was built through 2024 year-end buys. Increased operating activity and timing of payments at the end of the first quarter of 2025 resulted in an increase in accounts payable. In the first three months of 2024, working capital requirements increased due to an increase in accounts receivable from higher sales levels compared to the fourth quarter of 2023. Inventory levels also increased in the first quarter of 2024 as inventory was purchased to meet higher sales levels. Material purchases were higher at the end of the first quarter of 2024 compared to the end of the fourth quarter of 2023 resulting in an increase in accounts payable in the first quarter of 2024.
Previous wording
Financing activities. The Company's main source of liquidity to fund working capital requirements is borrowings on the Ryerson Credit Facility. In the first nine months of 2024, we increased credit facility borrowings to fund our acquisitions and capital expenditures. In the first nine months of 2023, cash generated from operating activities was sufficient to fund capital expenditures and acquisitions, as well as share repurchases and dividends. Book overdrafts fluctuate based on the timing of payments. Cash dividends paid in the first nine months of 2024 were $18.8 million compared to $18.5 million paid to shareholders in the first nine months of 2023. We repurchased $51.0 million of common stock during the first nine months of 2024 compared to $107.6 million of common stock repurchased in the first nine months of 2023. Share repurchases were higher in the first nine months of 2023 compared to the first nine months of 2024 due to our participation in repurchasing shares from Platinum's secondary offerings in 2023 (see Note 11: Stockholders Equity within Part I, Item 1 for additional details). In the first nine months of 2024, the Company paid $1.9 million and $3.4 million in holdback payments for the 2022 acquisitions of Howard Precision Metals, Inc. and Excelsior, Inc., respectively.
Current wording
Financing activities. The Company's main source of liquidity to fund working capital requirements is borrowings on the Ryerson Credit Facility. In the first three months of 2025 and 2024, we increased credit facility borrowings to fund our working capital requirements as business activity increased compared to each prior year's fourth quarter. Book overdrafts fluctuate based on the timing of payments. Cash dividends paid decreased from $6.4 million in the first three months of 2024 to $6.0 million in the first three months of 2025 due to fewer shares outstanding.
Previous wording
Total debt in the Condensed Consolidated Balance Sheet increased to $522.1 million at September 30, 2024 from $436.5 million at December 31, 2023, mainly due to cash utilized for capital expenditures and the Production Metals acquisition.
Current wording
Total debt in the Condensed Consolidated Balance Sheet increased to $497.3 million at March 31, 2025 from $467.4 million at December 31, 2024, mainly due to cash utilized in operating activities in the first three months of 2025 related to increased working capital requirements.
Previous wording
Total debt outstanding as of September 30, 2024 consisted of the following amounts: $524.0 million of borrowings under the Ryerson Credit Facility, $1.8 million of foreign debt, less $3.7 million of unamortized debt issuance costs. For further information, see Note 7: Long Term Debt in Part I, Item I - Notes to Condensed Consolidated Financial Statements.
Current wording
Total debt outstanding as of March 31, 2025 consisted of the following amounts: $500.0 million of borrowings under the Ryerson Credit Facility, $0.3 million of foreign debt, less $3.0 million of unamortized debt issuance costs. For further information, see Note 6: Long Term Debt in Part I, Item I - Notes to Condensed Consolidated Financial Statements.
Previous wording
At December 31, 2023, pension liabilities exceeded plan assets by $63.9 million. Through the nine months ended September 30, 2024, we have made $8.8 million in pension contributions and we anticipate an additional minimum required pension contribution of approximately $2.1 million in the remaining three months of 2024 under the Employee Retirement Income Security Act of 1974 (“ERISA”) and Pension Protection Act in the U.S. and Ontario Pension Benefits Act in Canada. Future contribution requirements depend on the investment returns on plan assets, the impact of discount rates on pension liabilities, and changes in regulatory requirements. We are unable to determine the amount or timing of any such contributions required by ERISA or whether any such contributions would have a material adverse effect on our financial position or cash flows.
Current wording
At December 31, 2024, pension liabilities exceeded plan assets by $52.9 million. Through the three months ended March 31, 2025, we have made $7.8 million in pension contributions and we anticipate an additional minimum required pension contribution of approximately $7.4 million in the remaining nine months of 2025 under the Employee Retirement Income Security Act of 1974 (“ERISA”) and Pension Protection Act in the U.S. and Ontario Pension Benefits Act in Canada. Future contribution requirements depend on the investment returns on plan assets, the impact of discount rates on pension liabilities, and changes in regulatory requirements. We are unable to determine the amount or timing of any such contributions required by ERISA or whether any such contributions would have a material adverse effect on our financial position or cash flows.
Previous wording
The Company expects to make approximately $526 million in principal payments to satisfy its debt obligations, consisting of $2 million of foreign debt coming due within a year, and $524 million for the Ryerson Credit Facility coming due in 2027. Please refer to Part I, Item I - Notes to the Condensed Consolidated Financial Statements, Note 7: Long-term Debt for further information.
Current wording
The Company expects to make approximately $500 million in principal payments to satisfy its debt obligations related to the Ryerson Credit Facility, which come due in 2027. Please refer to Part I, Item I - Notes to the Condensed Consolidated Financial Statements, Note 6: Long-term Debt for further information.
Previous wording
The Company expects to pay approximately $34 million of interest on the Ryerson Credit Facility and foreign debt over the next 12 months and $60 million thereafter. Interest payments related to the variable rate debt were estimated using the weighted average interest rate for the respective debt instrument.
Current wording
The Company expects to pay approximately $28 million of interest on the Ryerson Credit Facility over the next 12 months and $36 million thereafter. Interest payments related to the variable rate debt were estimated using the weighted average interest rate for the debt instrument.
Previous wording
The Company leases various assets including real estate, trucks, trailers, mobile equipment, processing equipment, and IT equipment. We have noncancelable operating leases expiring at various times through 2043 and finance leases expiring at various times through 2031. The total amount of future lease payments is estimated to be $482 million, with $49 million due over the next 12 months. We did not have any material leases signed but not yet commenced as of September 30, 2024.
Current wording
The Company leases various assets including real estate, trucks, trailers, mobile equipment, processing equipment, and IT equipment. We have non-cancelable operating leases expiring at various times through 2045 and finance leases expiring at various times through 2031. The total amount of future lease payments is estimated to be $487 million, with $49 million due over the next 12 months. We did not have any material leases signed but not yet commenced as of March 31, 2025.
Previous wording
Purchase obligations with suppliers are entered into when we receive firm sales commitments with certain of our customers. As of September 30, 2024, we had outstanding purchase obligations of approximately $20 million expiring within a year.
Current wording
Purchase obligations with suppliers are entered into when we receive firm sales commitments with certain of our customers. As of March 31, 2025, we had outstanding purchase obligations of approximately $25 million expiring within a year