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Sep 30, 2023
Ryerson Q3 2023 Earnings Report
Ryerson's financial performance reflected strong cash flow and expense management, marked by a dividend increase.
Key Takeaways
Ryerson Holding Corporation reported a net income of $35.0 million, with revenue reaching $1.25 billion. The company generated $79.3 million in operating cash flow and $56.9 million in free cash flow. Despite counter-cyclical conditions, Ryerson maintained its net leverage ratio within the target range and invested in growth through acquisitions and service center expansions.
Net income attributable to Ryerson Holding Corporation was $35.0 million and Adjusted EBITDA, excluding LIFO, was $45.0 million.
Diluted earnings per share reached $1.00 on revenue of $1.25 billion.
Operating Cash Flow generation amounted to $79.3 million, while Free Cash Flow reached $56.9 million.
The company maintained a Net Leverage ratio of 1.4x, with debt at $366 million and net debt at $329 million as of September 30, 2023.
Revenue by Segment
Forward Guidance
For the fourth quarter of 2023, Ryerson anticipates seasonal demand conditions, expecting customer shipments to decrease approximately 4% to 7% quarter-over-quarter. The company projects net sales to range from $1.00 to $1.15 billion, with average selling prices decreasing 3% to 5%. LIFO income is expected to be $8 to $12 million, with adjusted EBITDA, excluding LIFO, in the range of $28 million to $32 million and earnings per diluted share between $0.18 and $0.22.
Positive Outlook
- Net sales are expected to be between $1.00B to $1.15B
- LIFO income is expected to be $8M to $12M
- Adjusted EBITDA, excluding LIFO is expected to be between $28M and $32M
- Earnings per diluted share is expected to be between $0.18 and $0.22
- Normal industry seasonal demand conditions are expected
Challenges Ahead
- Customer shipments are expected to decrease approximately 4% to 7%, quarter-over-quarter
- Average selling prices decreasing 3% to 5%
- Counter-cyclical conditions that emerged in the second quarter of 2023 continued to impact our industry
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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