Gross margins have compressed from a peak of 22.2% in 2023Q4 to 17.2% in 2025Q3, highlighting the company's struggle to maintain pricing power amidst industrial production volatility.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Sales/Revenue | 4.47B | 4.6B | 5.11B | 6.32B | 5.68B | 3.47B | 4.5B | 4.41B | 3.36B | 2.86B | 3.17B | 3.62B | 3.46B | 4.02B | 4.73B | 3.9B | 3.07B | 5.31B | 6B |
| Revenue Growth % | -4.89% | -9.98% | -19.21% | 11.42% | 63.71% | -22.99% | 2.11% | 31.02% | 17.66% | -9.71% | -12.56% | 4.68% | -14.02% | -14.91% | 21.42% | 27.05% | -42.26% | -11.53% | - |
| Cost of Goods Sold | 3.67B | 3.76B | 4.09B | 5.01B | 4.53B | 2.85B | 3.67B | 3.65B | 2.78B | 2.29B | 2.6B | 3.03B | 2.84B | 3.32B | 4.07B | 3.36B | 2.61B | 4.6B | 5.14B |
| COGS % of Revenue | - | 81.86% | 80% | 79.28% | 79.79% | 82.08% | 81.61% | 82.8% | 82.69% | 80.05% | 82.08% | 83.61% | 82.18% | 82.37% | 86.07% | 86.14% | 85.12% | 86.57% | 85.58% |
| Gross Profit | 804.4M | 834.2M | 1.02B | 1.31B | 1.15B | 621.1M | 827.9M | 758.1M | 582.5M | 570.6M | 567.7M | 593.8M | 616.6M | 709.6M | 658.8M | 539.8M | 456.1M | 712.9M | 865.7M |
| Gross Margin % | 17.98% | 18.14% | 20% | 20.72% | 20.21% | 17.92% | 18.39% | 17.2% | 17.31% | 19.95% | 17.92% | 16.39% | 17.82% | 17.63% | 13.93% | 13.86% | 14.88% | 13.43% | 14.42% |
| Gross Profit Growth % | - | -18.34% | -22.02% | 14.24% | 84.64% | -24.98% | 9.21% | 30.15% | 2.09% | 0.51% | -4.4% | -3.7% | -13.11% | 7.71% | 22.05% | 18.35% | -36.02% | -17.65% | - |
| Operating Expenses | 794.7M | 802.7M | 793.5M | 731.4M | 601.6M | 556.5M | 617.1M | 614.7M | 472.5M | 436.4M | 450.8M | 509.2M | 480.1M | 508.9M | 539.7M | 506.9M | -478.5M | 586.1M | 689.2M |
| OpEx % of Revenue | - | 17.45% | 15.53% | 11.57% | 10.6% | 16.05% | 13.71% | 13.94% | 14.04% | 15.26% | 14.23% | 14.06% | 13.87% | 12.64% | 11.41% | 13.01% | -15.61% | 11.04% | 11.48% |
| Selling, General & Admin | 779.3M | 784.5M | 777M | 722.1M | 698.1M | 537.3M | 620.6M | 614.7M | 472.5M | 436.4M | 450.8M | 509.2M | 480.1M | 508.9M | 539.7M | 506.9M | -481.8M | 586.1M | 696.4M |
| SG&A % of Revenue | - | 17.06% | 15.21% | 11.42% | 12.3% | 15.5% | 13.79% | 13.94% | 14.04% | 15.26% | 14.23% | 14.06% | 13.87% | 12.64% | 11.41% | 13.01% | -15.71% | 11.04% | 11.6% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 18.2M | 16.5M | 9.3M | -96.5M | 19.2M | -3.5M | 0 | -2.3M | 0 | 0 | 0 | -200K | 0 | 0 | 0 | 3.3M | 0 | 689.2M |
| Operating Income | 9.7M | 31.5M | 228.1M | 578.7M | 545.2M | 64.6M | 210.8M | 139.2M | 110M | 133.2M | 108.6M | 86.4M | 124.6M | 200.3M | 98.7M | 20.1M | -41.7M | 126.8M | 171.4M |
| Operating Margin % | 0.22% | 0.69% | 4.46% | 9.15% | 9.61% | 1.86% | 4.68% | 3.16% | 3.27% | 4.66% | 3.43% | 2.39% | 3.6% | 4.98% | 2.09% | 0.52% | -1.36% | 2.39% | 2.86% |
| Operating Income Growth % | - | -86.19% | -60.58% | 6.14% | 743.96% | -69.35% | 51.44% | 26.55% | -17.42% | 22.65% | 25.69% | -30.66% | -37.79% | 102.94% | 391.04% | 148.2% | -132.89% | -26.02% | - |
| EBITDA | 91.2M | 109.1M | 290.6M | 637.7M | 601.1M | 118.5M | 269.2M | 192.1M | 157.1M | 175.7M | 152.3M | 132M | 171.2M | 247.3M | 141.7M | 58.5M | -4.8M | 164.4M | 211.2M |
| EBITDA Margin % | 2.04% | 2.37% | 5.69% | 10.08% | 10.59% | 3.42% | 5.98% | 4.36% | 4.67% | 6.14% | 4.81% | 3.64% | 4.95% | 6.14% | 3% | 1.5% | -0.16% | 3.1% | 3.52% |
| EBITDA Growth % | -38.13% | -62.46% | -54.43% | 6.09% | 407.26% | -55.98% | 40.14% | 22.28% | -10.59% | 15.36% | 15.38% | -22.9% | -30.77% | 74.52% | 142.22% | 1318.75% | -102.92% | -22.16% | - |
| D&A (Non-Cash Add-back) | 81.5M | 77.6M | 62.5M | 59M | 55.9M | 53.9M | 58.4M | 52.9M | 47.1M | 42.5M | 43.7M | 45.6M | 46.6M | 47M | 43M | 38.4M | 36.9M | 37.6M | 39.8M |
| EBIT | 9M | 34.8M | 231.1M | 575.1M | 436.6M | 70M | 192.2M | 215.9M | 107.7M | 133.9M | 98.2M | 80.5M | 136.5M | 166.8M | 103.3M | 16.9M | -51.8M | 156M | 172.8M |
| Net Interest Income | -39.5M | -43M | -34.7M | -33.2M | -51M | -76.4M | -93.2M | -99.2M | -91M | -89.9M | -96.3M | -107.4M | -110.5M | -126.5M | -123.1M | -107.5M | -72.9M | -109.9M | -85.9M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 39.5M | 43M | 34.7M | 33.2M | 51M | 76.4M | 93.2M | 99.2M | 91M | 89.9M | 96.3M | 107.4M | 110.5M | 126.5M | 123.1M | 107.5M | 72.9M | 109.9M | 85.9M |
| Other Income/Expense | -38M | -38.9M | -34.4M | -55.8M | -156.1M | -154.7M | -95.6M | -22.5M | -84.4M | -96M | -106.7M | -113.3M | -110.7M | -160M | -118.5M | -110.7M | -83M | -80.7M | -84.5M |
| Pretax Income | -28.3M | -7.4M | 193.7M | 522.9M | 389.1M | -90.1M | 115.2M | 116.7M | 16.7M | 26.1M | 1.9M | -26.9M | 13.9M | 40.3M | -19.8M | -90.6M | -124.7M | 46.1M | 86.9M |
| Pretax Margin % | -0.63% | -0.16% | 3.79% | 8.27% | 6.86% | -2.6% | 2.56% | 2.65% | 0.5% | 0.91% | 0.06% | -0.74% | 0.4% | 1% | -0.42% | -2.33% | -4.07% | 0.87% | 1.45% |
| Income Tax | -6.5M | -100K | 47.3M | 131.4M | 93.7M | -24.8M | 32.5M | 10.3M | -1.3M | 7.2M | 3.7M | -700K | -112.3M | -5.5M | -11M | 13.1M | 67.5M | 14.8M | 30M |
| Effective Tax Rate % | 22.97% | 1.35% | 24.42% | 25.13% | 24.08% | 27.52% | 28.21% | 8.83% | -7.78% | 27.59% | 194.74% | 2.6% | -807.91% | -13.65% | 55.56% | -14.46% | -54.13% | 32.1% | 34.52% |
| Net Income | -22.8M | -8.6M | 145.7M | 391M | 294.3M | -65.8M | 82.4M | 106M | 17.1M | 18.7M | -500K | -25.7M | 127.3M | 47.1M | -8.1M | -104M | -190.7M | 32.5M | 56.9M |
| Net Margin % | -0.51% | -0.19% | 2.85% | 6.18% | 5.19% | -1.9% | 1.83% | 2.4% | 0.51% | 0.65% | -0.02% | -0.71% | 3.68% | 1.17% | -0.17% | -2.67% | -6.22% | 0.61% | 0.95% |
| Net Income Growth % | -206.05% | -105.9% | -62.74% | 32.86% | 547.26% | -179.85% | -22.26% | 519.88% | -8.56% | 3840% | 98.05% | -120.19% | 170.28% | 681.48% | 92.21% | 45.46% | -686.77% | -42.88% | - |
| Net Income (Continuing) | -21.8M | -7.3M | 146.4M | 391.5M | 295.4M | -65.3M | 82.7M | 106.4M | 18M | 18.9M | -1.8M | -26.2M | 126.2M | 45.8M | -8.8M | -103.7M | -192.2M | 31.3M | 56.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 10.1M | 9.2M | 8.6M | 7.9M | 7.4M | 6.3M | 6M | 2.7M | 2.6M | 1.5M | 800K | 2.6M | 3.2M | 4.4M | 3.7M | 4.2M | 16.5M | 18.2M | 0 |
| EPS (Diluted) | -0.71 | -0.26 | 4.10 | 10.21 | 7.56 | -1.72 | 2.17 | 2.81 | 0.46 | 0.54 | -0.02 | -1.01 | 3.97 | 1.47 | -0.25 | -3.25 | -5.95 | 1.01 | 1.77 |
| EPS Growth % | -216.61% | -106.34% | -59.84% | 35.05% | 539.53% | -179.26% | -22.78% | 510.87% | -14.81% | 3561.54% | 98.46% | -125.44% | 170.07% | 688% | 92.31% | 45.38% | -689.11% | -42.94% | - |
| EPS (Basic) | - | -0.26 | 4.17 | 10.41 | 7.67 | -1.72 | 2.19 | 2.84 | 0.46 | 0.55 | -0.02 | -1.01 | 3.97 | 1.47 | -0.25 | -3.25 | -5.95 | 1.01 | 1.77 |
| Diluted Shares Outstanding | 32.17M | 32.75M | 35.57M | 38.28M | 38.91M | 38.03M | 37.96M | 37.67M | 37.29M | 34.4M | 32.06M | 25.44M | 32.04M | 32.04M | 32.04M | 32.04M | 32.04M | 32.04M | 32.04M |
| Basic Shares Outstanding | 32.17M | 32.75M | 34.96M | 37.55M | 38.36M | 38.03M | 37.7M | 37.33M | 37.18M | 34.3M | 32.06M | 25.44M | 32.04M | 32.04M | 32.04M | 32.04M | 32.04M | 32.04M | 32.04M |
| Dividend Payout Ratio | - | - | 17.02% | 5.09% | 2.17% | - | - | - | - | - | - | - | - | 74.31% | - | - | - | - | 7.21% |
Cyclical margin compression
According to quarterly financial data, Ryerson's revenue growth has fluctuated significantly, moving from a double-digit contraction of 22.9% in 2023Q2 to a modest 3.1% expansion by 2025Q3, suggesting that the company's top-line performance remains highly sensitive to broader industrial production cycles and metal pricing volatility.
The recent shift to positive revenue growth in 2025Q3 appears to be a fragile recovery rather than a sustained trend, given the preceding string of quarterly declines. Investors should monitor whether this growth is driven by volume increases or merely reflects a stabilization in average selling prices for carbon and stainless steel products.
As reported in recent income statements, Ryerson's gross margin has compressed from a peak of 22.2% in 2023Q4 to 17.2% in 2025Q3, indicating that the company struggles to maintain pricing power in a competitive metal distribution environment where commodity price fluctuations directly impact profitability.
The inability to sustain gross margins above 18% suggests that Ryerson lacks the value-added processing depth required to decouple its performance from raw material price swings. This margin profile leaves the company with minimal buffer to absorb operational costs, as evidenced by the recent slide into negative operating margins.
Based on the provided income statement figures, Ryerson's operating income has deteriorated from $58.3 million in 2023Q2 to a loss of $1.0 million in 2025Q3, demonstrating that the company's fixed SG&A costs are not scaling efficiently with the current revenue base.
The company appears to be carrying a rigid cost structure that fails to adjust in tandem with revenue contractions, leading to significant operating leverage risk. This lack of flexibility suggests that management's efforts to modernize operations have yet to yield the necessary efficiency gains to protect the bottom line during cyclical downturns.
Analysis of the reported financial statements reveals that Ryerson's net income has swung from a $37.6 million profit in 2023Q2 to a $14.8 million loss in 2025Q3, highlighting the impact of non-operating items and inventory accounting methods on the company's bottom-line earnings quality.
The frequent oscillation between profitability and losses warrants further investigation into the impact of LIFO inventory adjustments, which may be distorting the true cash-generating capacity of the business. Investors should be cautious of relying on headline EPS figures, as they appear heavily influenced by cyclical inventory valuation changes rather than core operational success.
Data from recent filings suggests that Ryerson's transition to negative net margins of -1.3% in 2025Q3 challenges the narrative of a modernized, resilient business model, indicating that the company remains fundamentally exposed to the same cyclical risks that have historically plagued metal service center operators.
Short-sellers may focus on the company's inability to maintain positive net income despite a relatively healthy balance sheet, suggesting that the current business model may be structurally incapable of generating consistent returns through the cycle. The persistent reliance on commodity-heavy revenue streams appears to be a significant hurdle to achieving the valuation multiples seen in more diversified industrial peers.
Quick answers to the most common questions about buying RYI stock.
For fiscal year 2024, Ryerson Holding Corporation (RYI) reported total revenue of $4.60B. This represents a 23.4% decline compared to $6.00B in 2007.
Ryerson Holding Corporation (RYI) reported a net loss of $8.6M for the fiscal year ending 2024.
Ryerson Holding Corporation (RYI) reported an operating income of $31.5M, resulting in an operating profit margin of 0.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Ryerson Holding Corporation (RYI) generated $834.2M in gross profit for the year, representing a gross profit margin of 18.1%. This demonstrates the company's core pricing power and production efficiency.