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Jun 30, 2021
Ryerson Q2 2021 Earnings Report
Ryerson's Q2 2021 earnings were reported with record results and significant leverage reductions.
Key Takeaways
Ryerson Holding Corporation reported record second-quarter results, driven by strong revenues and effective expense management. The company achieved record Adjusted EBITDA, reduced net debt, and announced a quarterly dividend and share repurchase program.
Generated second quarter revenues of $1.4 billion.
Achieved record Adjusted EBITDA, excluding LIFO of $197 million.
Reduced net debt to $563 million and achieved leverage ratio of 1.5x.
Announced a quarterly cash dividend of $0.08 per share and a $50 million share repurchase program.
Revenue by Segment
Forward Guidance
Ryerson anticipates third quarter 2021 revenues in the range of $1.5 billion to $1.6 billion with sequential average selling prices 10 to 12% higher and shipments flat to down 3% compared to the second quarter of 2021. Adjusted EBITDA, excluding LIFO is expected to be in the range of $208 to $212 million and earnings per diluted share is expected to be in the range of $1.63 to $1.73.
Positive Outlook
- Pricing across all three of Ryerson’s primary product lines continues to increase.
- Company expects volumes to follow normal seasonality patterns.
- Revenues are expected to be in the range of $1.5 billion to $1.6 billion.
- Sequential average selling prices 10 to 12% higher.
- Adjusted EBITDA, excluding LIFO is expected to be in the range of $208 to $212 million.
Challenges Ahead
- Shipments flat to down 3% compared to the second quarter of 2021.
- LIFO expense in the third quarter is expected to be in the range of $88 to $92 million provided average inventory costs continue to rise.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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