Ryerson Quarterly Release Presentation
Q4 2024
1
Q4 2024 HIGHLIGHTS
- Generated fourth quarter revenue of $1.01 billion on 447,000 tons shipped at an average selling price of $2,254 per ton
- Incurred Net Loss attributable to Ryerson Holding Corporation of $4.3 million, or Diluted Loss Per Share of $0.13 and Adjusted EBITDA1, excluding LIFO of $10.3 million
- Generated Fourth Quarter Operating Cash Flow of $92.2 million and Free Cash Flow of $68.9 million. Generated Full-Year2024 Operating Cash Flow of $204.9 million and Free Cash Flow of $107.4 million
- Ended the quarter with debt of $468 million and net debt2 of $440 million as of December 31, 2024, compared to $522 million and $487 million, respectively, on September 30, 2024
- Achieved target of $60 million annualized operating expenses reduction, compared to the first quarter of 20243
- Continued start-up,commissioning and operationalizing of major capex projects at our service centers located in Shelbyville, KY, Norcross, GA, Dallas, TX, and Los Angeles, CA
- Declared a first quarter 2025 dividend of $0.1875 per share
1For EBITDA, Adjusted EBITDA and Adj EBITDA excluding LIFO please see Appendix; 2Net Debt is defined as Long Term Debt plus Short-Term Debt less Cash | 3 |
and Cash Equivalents and excludes Restricted Cash 3Operating Expenses defined as Warehousing, delivery, selling, general, and administrative expenses; | |
REVERSING AN INVESTMENT DEFICIT
Acquisitions | Adj. Net Capex1 | Depreciation | $121 | |||||||
$97 | $98 | |||||||||
$56 | $68 | |||||||||
$40 | $38 | $37 | $41 | $46 | $51 | $47 | $52 | $54 | ||
$37 | ||||||||||
$26 | $49 | |||||||||
$14 | $12 | $20 | $21 | $33 | ||||||
$20 | $9 | $1 | $49 | $170 | $- | $- | $15 | $57 | $138 | $44 |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Adj. Net Capex1 vs Depreciation
($136M) vs Depreciation
+$149M vs Depreciation
$67
$45$30
$7
($26) | ($26) | ($17) | ($20) | ($14) | ($14) | ($21) | ||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
1Adjusted Net Capex Does not include the impact of significant sale-leaseback transactions in 2019 and 2021 | 4 |
INVESTING IN THE BUSINESS
University Park - New CS&W HQ
- 900,000 sq ft facility
- Significant automation and technological enhancements
Shelbyville expansion
- State-of-the-artcut-to-length line (CTL) and automated storage and retrieval system for sheet products
Centralia Pacific NW
- 214,000 sq ft facility
- Advanced processing capabilities for sheet, plate, and long products
Ryerson.com 3.0 | | Atlanta Tube Laser Center | ERP Integration Progress |
• Hub targeting transactional sales | • Expanded tube processing facility | • Opened cross-selling opportunities |
5
NEXT PHASE TARGET SEQUENCE
PHASE 1 PHASE 2 PHASE 3
De-lever | Invest in modernization and | Market share |
high-yield debt | automation. Cure legacy | Gains vs MSCI |
investment deficit | ||
Monetize | Integrate North American | Margin accretion |
led by value-added | ||
legacy assets | ||
service center network through | and transactional sales growth, | |
and supply chain and cost to | ||
common digital and ERP platforms | ||
serve efficiencies | ||
Re-orient | ||
Optimize network to | Next phase targets | |
focus toward public | ||
shareholders | increase efficient operating leverage | $350 - $400M thru-the-cycle |
and improve the customer | ||
Adjusted EBITDA | ||
experience | ||
6
UNIVERSITY PARK PRODUCTIVITY
Productivity
1.4x
1.2x Investment Thesis
1.0x Ryerson Average
0.8x
0.6x
0.4x
0.2x
0.0x
CS&W Kedzie | CS&W University Park | ||||||||
(Legacy location) | (New Location) | ||||||||
2021 2022 2023 2024 2025E
Productivity is measured in lines per hour | 7 |
BRIGHT METALS CONSTELLATION STRATEGY PIECE
2017 | 2021 | 2023 | Q4 2024 | ||
Guy Metals | Specialty Metals | TSA | Shelbyville, KY | ||
Processing | Processing | Service Center | |||
Shelbyville, KY expansion
Target IRR = ~35%
Type | • | Value-Add | • | Value-Add | • | Value-Add | • | Distribution |
Process • | Polishing | • | Finishing | • | Tolling | • Cut-to-length | ||
Markets • | Food | • | Aerospace & | • | Oil & Gas | • | Metal Fab | |
• | Dairy | Defense | • | Construction | • | Machinery | ||
• | Pharmaceutical |
1 - 4 hours away from 4 major Aluminum and Stainless producers
7 - 9 hours away from 3 major Aluminum and Stainless producers
Texarkana
Aluminum
NAS Ghent
Arconic IN
Commonwealth
Aluminum RYI
Shelbyville
Arconic TN
Aluminum
Dynamics
• Beverage | • | Medical | • | Ships | Equipment |
• | Nuclear | • | Water treatment | • Ground Transport |
OTK Calvert
- Strategy is to achieve non-ferrous franchise growth driven by Bright Metals Sheet Products Hub and greater service offering from acquisitions and capex investments
8
MACRO & COMMODITIES
Commodity prices since Dec. 2017
3.5 | CRU HRC | |||||
LME Aluminum | ||||||
3.0 | LME Nickel | |||||
2.5 | ||||||
2.0 | ||||||
1.5 | ||||||
1.0 | ||||||
0.5 | Futures | |||||
Dec-17 | Dec-18 Dec-19 | Dec-20 | Dec-21 | Dec-22 | Dec-23 | Dec-24 Dec-25 |
U.S. Industrial Production
0.8 | 0.9 | 0.5 | |||
0.0 | |||||
(0.1) | (0.3) | (0.5) | (0.1) | (0.5) | (0.6) |
(1.2) | (0.8) | (0.7) | |||
Dec-23 | Mar-24 | Jun-24 | Sep-24 | Dec-24 |
U.S. ISM Purchasing Managers Index
49.1 | 49.8 | 49.2 | 48.7 | 48.5 | 48.4 | 49.2 | |||
47.8 | 47.2 | 47.2 | |||||||
47.1 | |||||||||
46.8 | 46.5 | ||||||||
Dec-23 | Mar-24 | Jun-24 | Sep-24 | Dec-24 |
PMI | 50% Threshold | |
• Futures pricing inflecting upwards; Demand environment contractionary in 4Q24
1Sources: Bloomberg: prices through December 31, 2024; Futures prices as of February 10, 2025; Bloomberg, US Industrial Production Index Month YoY Change; Bloomberg, U.S. Manufacturing PMI
9
SEQUENTIAL END-MARKET TRENDS
FY volume change | 2024 | Commentary | |
Sales Mix1 | |||
Metal Fab and Machine Shop | 23% | Ryerson's fourth quarter | |
Industrial Equipment | 16% | ||
shipments reflected a seasonal | |||
slowdown in customer buying | |||
Commercial Ground Transportation | 18% | ||
patterns as well as a slowdown | |||
in demand from transportation, | |||
Food & Ag | 9% | ||
consumer and industrial | |||
manufacturing sectors | |||
Consumer Durable | 9% | ||
Ryerson's 2024 shipments | |||
Construction Equipment | 9% | ||
were slightly lower than 2023, | |||
with decreases in the | |||
HVAC | 8% | ||
transportation sector partially | |||
offset by increases in | |||
Oil & Gas | 4% | ||
consumer and industrial | |||
manufacturing sectors |
12024 Sales Mix by tons Excludes Other Industry Sectors which represent approximately 4% of Ryerson sales mix; Sales Mix based on 2024 results as disclosed in Ryerson's Annual Report on Form 10-K
for the year ended December 31, 2024 | 10 |
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