Ryerson Burned $176 Million In Cash In Nine Months, Yet Paid Dividends And Bought Back Stock
Third-quarter profit was $32.0 million, but receivables and inventory swallowed cash and the credit line paid for the gap.
Ryerson used $176.0 million in cash in operations over the first nine months of 2026, against $22.3 million generated a year earlier, even as the metals distributor reported a $32.0 million third-quarter profit. Rising steel and aluminum prices pushed receivables and inventory sharply higher, and borrowing covered what operations did not.
Profit up, cash out
Ryerson, which processes and distributes industrial metals such as stainless steel, aluminum and carbon steel, earned $0.61 per diluted share in the third quarter, against a loss of $0.46 a year earlier, according to its 10-Q. Net sales were $2,177.8 million, up from $1,161.5 million, helped by the Olympic Steel merger that closed on February 13, 2026.
Operations consumed $18.2 million in the third quarter alone, the company said in its earnings release, as higher working capital offset net income. Over nine months, the company still paid $29.2 million in dividends and spent $6.2 million on buybacks.
Where the cash went
Working capital swelled from December 31, 2025 to September 30: receivables rose from $460.8 million to $1,017.5 million, inventories from $648.3 million to $1,302.6 million, and accounts payable from $516.0 million to $887.8 million. The filing ties the increase to stronger demand and rising metal prices.
Borrowing filled the gap. Ryerson Credit Facility debt stood at $1,014.0 million at September 30, against $962.0 million at June 30 in the prior quarter's filing. The facility's maturity now runs to February 13, 2031. Total liquidity rose to $865 million from $757 million at June 30 and $502 million at December 31, as the borrowing base grew with working capital.
Trade rules cloud the outlook
Washington declined on July 1 to extend the North American trade pact as written. The agreement stays in force, but the outcome of discussions "remain uncertain."
Washington also imposed additional tariffs on certain Canadian products, covering some steel and aluminum products from September 15, and Canada modified its retaliatory tariffs effective September 8.
Merger and the next dates
Ryerson issued about 19.5 million shares and paid $270.0 million, net of cash acquired, to retire Olympic Steel's debt. Management expects a fourth-quarter net income of $16 million to $20 million.
The company hosts its earnings call Thursday at 10 a.m. Eastern. The declared $0.1875 dividend is payable December 17 to holders of record December 3.
Ryerson's market value was $1.5 billion in Wednesday's report, against $1,014.0 million drawn on its credit line.
Sources
- 10-Q Filing — Ryerson (RYZ) — SEC EDGAR
- 10-Q Filing — Ryerson (RYZ), Q2 FY2026 filed 2026-07-29 (comparison basis) — SEC EDGAR
- 8-K Filing — Ryerson, filed 2026-10-28 (Items 2.02, 8.01) — SEC EDGAR
- Earnings release (8-K Item 2.02, ryz-ex99_1.htm) — Ryerson, filed 2026-10-28 — SEC EDGAR
- Constellium vs. Ryerson: Which Metal Stock Should You Invest in Now? — Yahoo Finance
- Ryerson Holding Non-GAAP EPS of $0.61 beats by $0.15, revenue of $2.17B beats by $190M (RYZ:NYSE) | Seeking Alpha — seekingalpha.com
- Ryerson: Q3 Earnings Snapshot | 9news.com — Associated Press
- MYR: Q3 Earnings Snapshot – WTOP News — wtop.com
- Ryerson: Q3 Earnings Snapshot | khou.com — Associated Press
