Ryerson Holding Corporation (NYSE: RYI) Reports Q4 and Full-Year 2025 Results: Major Olympic Steel Merger, Credit Facility Expansion, and Mixed Financials

Key Highlights

• Merger with Olympic Steel Completed: Ryerson has successfully closed its merger with Olympic Steel, cementing its position as North America’s second-largest metals service center. This transformative move is expected to unlock \$120 million in annual run-rate synergies over the next two years.
• Credit Facility Extended and Expanded: Subsequent to quarter-end, Ryerson extended the maturity of its revolving credit facility and expanded borrowing capacity from \$1.3 billion to \$1.8 billion, enhancing financial flexibility for future growth and integration post-merger.
• Quarterly Results: Q4 2025 revenue was \$1.10 billion, with tons shipped down 4.9% and average selling prices flat compared to Q3. This was in line with management’s guidance amid ongoing industrial demand contraction and typical seasonal patterns.
• Profitability and Leverage: Ryerson ended Q4 with total debt of \$463 million and net debt of \$436 million, both improved from Q3. The company exceeded its net leverage and cash flow targets for the quarter.
• Dividend Declared: A quarterly dividend of \$0.1875 per share was announced, payable March 19, 2026, to shareholders of record as of March 5, 2026.

Financial Details

Management Commentary

Eddie Lehner, CEO of Ryerson, acknowledged the challenging industrial metals and manufacturing environment in 2025, citing “asynchronous commodity price volatility and ongoing contractionary demand” as key issues. Margin compression was sharper than anticipated due to mill prices rising faster than average selling prices, while buyers resisted increases and demand remained soft. Despite these headwinds, Ryerson met its top-line guidance and outperformed leverage and cash flow targets.

Lehner expressed optimism about the integration with Olympic Steel, emphasizing that quote and order activity is tracking well ahead of both year-over-year and sequential levels in Q1 2026. He anticipates margin recovery and improved operating income in the coming quarter. The company expects to realize \$120 million in annual synergies from the merger within two years, which could have a significant impact on future earnings.

Jim Claussen, CFO of Ryerson, highlighted the strategic importance of the expanded credit facility, which supports both ongoing operations and future growth opportunities made possible by the merger.

Shareholder and Price-Sensitive Information

• Merger Synergies: The projected \$120 million in cost synergies from the Olympic Steel merger is a critical future driver for profitability and value creation. This integration is likely to attract investor attention and could be a significant share price catalyst.
• Credit Facility Expansion: The increase of the revolving credit line to \$1.8 billion provides enhanced financial flexibility, supporting both day-to-day operations and the strategic merger integration process.
• Dividend Continuity: Despite a challenging year, Ryerson continues to return cash to shareholders via a quarterly dividend, signaling management’s confidence in cash flow generation.
• Near-Term Outlook: Management’s comments on improved demand environment and expected margin recovery in Q1 2026 set a positive tone for the next quarter, possibly impacting investor sentiment.
• Leverage and Cash Flow: Ryerson ended Q4 with improved net debt and exceeded leverage/cash flow targets, indicating prudent financial management amid industry volatility.

Risks and Forward-Looking Statements

Ryerson’s management cautions that while the merger and expanded credit facility offer significant potential, risks remain. These include the possibility that integration synergies may not be fully realized, or may take longer than expected; potential adverse impacts from economic and industry cyclicality; customer or supplier consolidation; and other operational or market risks. Investors should be aware that actual results may differ materially from management’s forward-looking statements.

Operational and Financial Metrics

• Market Capitalization: \$810.4 million as of December 31, 2025.
• Free Cash Flow Yield: 11.3% for Q4 2025 (significantly improved from -2.6% in Q3 2025).
• Gross Margins: Q4 2025 gross margin was 15.3% (down from 19.0% in Q3 2025).
• Q1 2026 EBITDA Guidance: Ryerson expects Adjusted EBITDA (excl. LIFO) of \$55–\$61 million, with net income attributable to shareholders forecast at \$10–\$12 million.

Conclusion

The latest results from Ryerson are a mix of cautious optimism and ongoing industry challenges. While the company reported a quarterly loss and margin compression, its successful merger with Olympic Steel, improved cash flow, and expanded credit facility position it for potentially significant growth and value creation in the coming quarters. The company’s ability to deliver on its synergy targets and capitalize on an improving demand environment will be closely watched by investors, and could serve as major share price catalysts in 2026.

Investors should monitor: Progress on merger integration and synergy realization, trends in industrial metals demand and pricing, and updates on cash flow and leverage metrics. The company’s next earnings call and guidance updates will be crucial for ongoing assessment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Investors should conduct their own research and consult with a financial advisor before making investment decisions.

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