Ryerson Holdings (7RY) AI Stock Analysis

Company Guidance

For the fourth quarter, Ryerson expects shipments to decline by 6%-8% sequentially, average selling prices to be flat to up by 2%, and revenues to be in the range of $1.96 billion-$2.04 billion; excluding residual inventory purchase accounting adjustments, net income generation is expected to be in the range of $16 million-$20 million or $0.30-$0.38 per diluted share, LIFO expense is expected to be in the range of $28 million-$32 million, and adjusted EBITDA excluding LIFO is expected to be in the range of $100 million-$104 million, with $28 million-$30 million contributed by Olympic Steel. Ryerson expects its leverage ratio to be below 3.0x by year-end, approximately $14 million-$15 million in fourth quarter synergies, or $56 million-$60 million on an annualized run rate basis, including approximately $6 million from procurement synergies, approximately $2.5 million from efficiency and public company cost savings, approximately $2 million from network optimization actions, and approximately $4 million in realized commercial synergies, which annualizes to $16 million; it expects full year 2026 capital expenditures to be approximately $75 million, with $50 million allocated to legacy Ryerson and $25 million to Olympic Steel, and remains increasingly confident in achieving its two-year target of $120 million in annual run rate synergies.