Ryerson Q4 results pressured by soft demand, higher costs

Overview

• Metal distributor's preliminary Q4 revenue meets expectations amid soft industrial demand

• Adjusted EBITDA for Q4 missed estimates due to higher LIFO expenses

• Company anticipates strong Q1 2026 performance with increased bookings

Outlook

• Ryerson expects Q1 2026 net sales between $1.26 bln and $1.30 bln

• Company expects Q1 2026 net income of $10 to $12 mln before merger fees

• Ryerson anticipates Q1 adjusted EBITDA excluding LIFO of $51 to $54 mln

Result Drivers

• MATERIAL COSTS - Rising input costs led to compressed gross margins as resale prices remained flat

• LIFO EXPENSES - Higher LIFO expenses than anticipated impacted adjusted EBITDA

• MERGER FEES - Advisory service fees related to Olympic Steel merger increased expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy."

• Wall Street's median 12-month price target for Ryerson Holding Corp is $24.00, about 19.2% below its February 5 closing price of $29.70

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.