NYSE:RYZ
Ryerson Holding Corp
A diversified steel distributor and fabricator facing significant margin pressure and declining revenue trends in a capital-intensive industry.
Key Metrics
Investment Thesis
Bull Case
Despite recent losses, the company maintains substantial total assets of $2.4B and shareholders equity of $763.6M, providing a solid balance sheet foundation if market conditions improve. The positive operating cash flow of $87M suggests that core business operations are still generating liquidity, which could be deployed for debt reduction or strategic acquisitions once profitability stabilizes.
Bear Case
Revenue has contracted by nearly 28% over the last two years while net income turned deeply negative, signaling a severe deterioration in market demand or pricing power. The company is accumulating significant losses with a retained earnings deficit of $698.8M and negative non-controlling interest profits, indicating structural issues within its business model.
About Ryerson Holding Corp
Ryerson Holding Corp is a leading global provider of steel products and fabrication services operating primarily in North America. The company serves diverse markets including construction, energy, transportation, and industrial sectors through its extensive network of distribution centers. Key offerings include carbon and stainless steels, structural shapes, and specialized metal value-added solutions tailored to customer specifications.
Analysis
Management Discussion
Recent financial performance highlights a sharp deterioration in profitability, with net income plunging from $146.4M in 2023 to a $55.1M loss in 2025, while revenue also contracted significantly. Operating expenses remain elevated at over $800M despite the drop in sales volume, indicating potential inefficiencies or cost-cutting challenges. The cash flow from operations turned positive at $87M yet failed to offset investing outflows of $53.6M and financing outflows of $36.5M, resulting in a net cash decline.
Industry Overview
The steel distribution industry is highly cyclical and capital-intensive, heavily influenced by global macroeconomic conditions, housing starts, and infrastructure spending. Companies in this sector compete on service levels, inventory availability, and the ability to offer value-added fabrication capabilities rather than just price alone.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.32B | $5.11B | $4.60B | $4.57B |
| Cost of Revenue | $5.01B | $4.09B | $3.76B | $3.79B |
| Gross Profit | $1.31B | $1.02B | $834.2M | $782.2M |
| Operating Expenses | $731.4M | $793.5M | $802.7M | $813.0M |
| Operating Income | $578.7M | $228.1M | $31.5M | $-30.8M |
| G&A | $735.2M | $793.5M | $801.2M | $809.6M |
| Stock-Based Comp | $9.1M | $13.8M | $11.6M | $8.7M |
| D&A | $59.0M | $62.5M | $77.6M | $79.7M |
| Other OpEx | $-3.8M | $0 | $1.5M | $3.4M |
| Non-Operating Income | $-55.8M | $-34.4M | $-38.9M | $-40.4M |
| Pre-Tax Income | $522.9M | $193.7M | $-7.4M | $-71.2M |
| Income Tax | $131.4M | $47.3M | $-100.0K | $-16.1M |
| Continuing Ops | $391.5M | $146.4M | $-7.3M | $-55.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $391.5M | $146.4M | $-7.3M | $-55.1M |
| Minority Interest | $500.0K | $700.0K | $1.3M | $1.3M |
| Net to Common | $391.0M | $145.7M | $-8.6M | $-56.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.44B | $1.38B | $1.21B | $1.22B |
| Cash & Equivalents | $39.2M | $54.3M | $27.7M | $26.9M |
| Inventory | $798.5M | $782.5M | $684.6M | $648.3M |
| Prepaid Expenses | $88.2M | $77.8M | $68.1M | $85.9M |
| Other Current Assets | $515.7M | $468.8M | $427.2M | $461.7M |
| Long-Term Assets | $892.7M | $1.19B | $1.23B | $1.18B |
| PP&E (Net) | $458.4M | $589.6M | $636.7M | $609.8M |
| Goodwill | $129.2M | $157.8M | $161.8M | $161.5M |
| Operating Leases | $240.5M | $349.4M | $344.6M | $323.9M |
| Other LT Assets | $64.6M | $89.4M | $88.8M | $86.7M |
| Total Assets | $2.33B | $2.57B | $2.44B | $2.40B |
| Current Liabilities | $619.2M | $633.9M | $580.1M | $668.1M |
| Accounts Payable | $438.4M | $463.4M | $440.8M | $516.0M |
| Current Debt | $5.8M | $8.2M | $700.0K | $1.9M |
| Current Leases | $25.2M | $30.5M | $32.1M | $34.0M |
| Other Current Liab | $149.8M | $131.8M | $106.5M | $116.2M |
| Long-Term Liabilities | $822.1M | $1.02B | $1.03B | $973.0M |
| LT Operating Leases | $215.1M | $336.8M | $334.6M | $318.6M |
| Other LT Liab | $607.0M | $684.4M | $700.3M | $654.4M |
| Total Liabilities | $1.44B | $1.66B | $1.61B | $1.64B |
| Shareholders' Equity | $893.0M | $914.5M | $824.5M | $763.6M |
| Retained Earnings | $692.5M | $813.2M | $779.6M | $698.8M |
| AOCI | $-144.4M | $-140.0M | $-153.8M | $-141.7M |
| Treasury Stock | $61.1M | $179.3M | $234.4M | $237.0M |
| Total L&E | $2.33B | $2.57B | $2.44B | $2.40B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $391.5M | $146.4M | $-7.3M | $-55.1M |
| Non-Cash Adjustments | $416.1M | $309.7M | $437.1M | $69.2M |
| Working Capital Changes | $-306.4M | $-91.0M | $-224.9M | $72.9M |
| Cash from Operations | $501.2M | $365.1M | $204.9M | $87.0M |
| Capital Expenditures | $105.1M | $121.9M | $99.6M | $51.5M |
| Cash from Investing | $-160.0M | $-262.1M | $-142.7M | $-53.6M |
| Debt Repayments | $321.3M | $1.7M | $2.2M | $0 |
| Share Buybacks | $50.0M | $113.9M | $51.0M | $0 |
| Dividends Paid | $19.9M | $24.8M | $24.8M | $24.1M |
| Cash from Financing | $-350.1M | $-88.3M | $-86.8M | $-36.5M |
| FX Effect | $-3.0M | $200.0K | $-1.5M | $1.6M |
| Net Change in Cash | $-11.9M | $14.9M | $-26.1M | $-1.5M |
| Beginning Cash | $52.4M | $40.5M | $55.4M | $29.3M |
| Ending Cash | $40.5M | $55.4M | $29.3M | $27.8M |
Frequently Asked Questions
How does Ryerson Holding Corp make money?
The company's revenue is derived from the sale of various steel products such as flat rolled steel, structural shapes, and pipes, alongside fabrication services including cutting, bending, and welding. These operations cater to both domestic and international clients across the industrial manufacturing and infrastructure development sectors.
What are the main risks for RYZ?
The company faces significant exposure to volatile raw material prices, particularly steel futures, which can severely impact gross margins if not hedged effectively. Declining revenue trends over the last three years suggest a challenging market environment or loss of market share that requires urgent strategic attention. High levels of debt and negative cash flow from operations raise concerns about liquidity and the ability to fund necessary capital expenditures.
What is RYZ's competitive advantage?
Ryerson benefits from its extensive physical distribution network with strategically located warehouses that enable rapid order fulfillment and high customer service levels. The company's deep product knowledge and legacy relationships allow it to provide complex value-added fabrication solutions that smaller competitors cannot easily replicate.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.