Wed, Apr 30, 8:21 PM (23 days ago)
**RYERSON HOLDING CORPORATION (RYI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,135.7 million, down 8.4% YoY due to lower metal commodity prices. - **Gross Profit:** $204.4 million (18.0% of net sales), down 6.1% YoY. - **Operating Profit:** $2.3 million (0.2% of net sales), up 187.5% YoY. - **Net Loss:** $5.3 million, improved by $2.1 million YoY. - **EPS:** $(0.18), improved by $0.04 YoY. **Profit Margins:** - **Gross Margin:** 18.0%, up 0.4 percentage points YoY. - **Operating Margin:** 0.2%, up 0.1 percentage points YoY. **Cash Flow:** - **Operating Cash Flow:** $(41.2) million, improved by $6.6 million YoY. - **Capital Expenditures:** $8.0 million, down $13.8 million YoY. - **Free Cash Flow:** $(49.2) million, improved by $7.0 million YoY. **Earnings Changes:** - **Net Income:** Improved by $2.1 million YoY. - **EPS:** Improved by $0.04 YoY. **Quarterly Performance Discussion:** - **Revenue Decline:** Due to lower metal commodity prices and global oversupply. - **Gross Profit Decline:** Due to lower selling prices and increased competition. - **Operating Profit Improvement:** Due to lower expenses, including reorganization costs and consulting fees. - **Net Loss Improvement:** Due to lower expenses and a $0.2 million settlement gain. **Trends and Uncertainties:** - **Industry Trends:** Cyclical and volatile demand, pricing pressure, and competitive conditions. - **Uncertainties:** Tariffs, trade policies, and global economic conditions. - **Future Operations Impact:** Continued focus on cost control, operational efficiency, and strategic investments. **Future Outlook:** - **Debt Obligations:** $500 million in principal payments due in 2027. - **Interest Payments:** $28 million expected over the next 12 months. - **Lease Payments:** $49 million due over the next 12 months. - **Pension Contributions:** $7.4 million expected for the remaining nine months of 2025. **Market Risks:** - **Interest Rate Risk:** Variable-rate debt, but no outstanding interest rate swaps. - **Foreign Exchange Risk:** Operations in Canada, Mexico, and China, with foreign currency contracts. - **Commodity Price Risk:** Metal and energy commodity derivatives used to manage exposure. **Controls and Procedures:** - **Disclosure Controls:** Effective as of March 31, 2025. - **Internal Controls:** No material changes during the quarter.