Ryerson Posts Wider-Than-Expected Loss Amid Merger Countdown

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Preliminary fourth-quarter 2025 results from Ryerson Holding reveal a complex financial picture. The metals distributor reported a net loss that exceeded market forecasts, though this was counterbalanced by robust cash generation and significant progress in reducing its debt load. Investor attention is now squarely focused on the company's pending merger with Olympic Steel.

• Revenue: $1.10 billion
• Net Loss: $37.9 million ($1.18 per share)
• Operating Cash Flow: $112.7 million
• Leverage Ratio: Improved from 3.7x to 3.1x

Management successfully generated substantial liquidity through a disciplined release of working capital. This powerful cash flow enabled the company to reduce its net debt to $463 million. The strengthening of the balance sheet comes at a strategically critical moment, as financial stability is a key factor for the impending business combination.

The quarter's significant loss was primarily driven by margin pressure. Ryerson's gross margin contracted to 15.3%, down from 17.2% in the prior quarter. Rising material costs negatively impacted the bottom line, as the company was unable to pass these increases on to customers through pricing quickly enough. While average selling prices remained generally stable, the volume of products sold decreased by nearly five percent compared to the third quarter.

Shareholder Vote and Forward Guidance

Ryerson and Olympic Steel have scheduled a special shareholder meeting for this Thursday, February 12, to vote on the proposed merger. The process recently encountered some investor scrutiny after a shareholder letter criticized a lack of detail in the merger disclosure documents. It remains to be seen whether this challenge could affect the transaction's timeline.

Looking ahead, Ryerson has issued an optimistic forecast for the first quarter of 2026. The company anticipates shipment volumes will increase by 13 to 15 percent. This is expected to drive revenue as high as $1.3 billion, which would translate to a projected net profit in the range of $10 to $12 million. Ryerson will release its final, audited 2025 financial results after the U.S. market closes on February 19, followed by its annual report on February 23.

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