Ryerson's Olympic Steel Savings Hit $52 Million Annualized, Topping Its $40 Million First-Year Target

Ryerson Holding, which processes and distributes industrial metals, said Wednesday that savings from its Olympic Steel merger reached about $52 million on an annualized basis, above the $40 million first-year target. Third-quarter adjusted EBITDA excluding LIFO, an inventory-cost adjustment, came in at $115.0 million against guidance of $88 million to $92 million.

Profit swings from a year-ago loss

Net income attributable to Ryerson was $32.0 million, or $0.61 per diluted share, versus $15.5 million in the second quarter and a loss of $14.8 million in the third quarter of 2025. Revenue was $2.18 billion, up 8.6% from the second quarter, with tons shipped up 1.2% and average selling prices up 7.2%.

Olympic Steel contributed $602 million of revenue and $30.2 million of adjusted EBITDA excluding LIFO, above management's expectation of $21 million to $23 million. Excluding Olympic, same-store shipments rose 1.8% to their highest quarterly level in more than five years.

CEO Eddie Lehner said daily shipment volumes and invoice counts "defied normal industry seasonality, with AI infrastructure and power generation investment elevating overall demand through the quarter." A company presentation put data center and power generation projects at an estimated 9% of revenue, against a revised 6% in the second quarter.

Synergies running ahead of plan

Ryerson realized about $13 million of merger savings in the quarter. It expects $14 million to $15 million in the fourth quarter, and management says it remains confident in its $120 million two-year annualized target.

Ryerson, which stocks about 75,000 products and serves roughly 40,000 customers, closed the Olympic deal in February 2026. Gross margin slipped 50 basis points to 17.2% from the second quarter as higher material costs flowed through ahead of price adjustments to program customers.

Cash use, debt and fourth-quarter outlook

Operations used $18.2 million in cash in the quarter as higher working capital absorbed earnings. Debt rose $51 million to $1.01 billion, and net debt was $966 million, or 3.2 times trailing adjusted EBITDA excluding LIFO. Global liquidity climbed to $865 million from $757 million at June 30 on a larger borrowing base.

For the fourth quarter, Ryerson guided to net sales of $1.96 billion to $2.04 billion and net income of $16 million to $20 million. It expects shipments to fall 6% to 8% from the third quarter on three fewer business days and holiday softness. Management is targeting year-end leverage below 3.0 times.

The board declared a quarterly dividend of $0.1875 per share, payable December 17 to holders of record December 3. Ryerson also repurchased about 159,000 shares for $3.8 million at an average $23.85, leaving $96.2 million under its authorization.

Ryerson hosts its earnings call Thursday at 10 a.m. Eastern.

Sources

• 8-K Filing — Ryerson Holding Corp (RYZ) — SEC EDGAR
• Exhibit ryz-ex99_1.htm — Ryerson Holding Corp 8-K exhibit — SEC EDGAR
• Exhibit ryz-ex99_2.htm — Ryerson Holding Corp 8-K exhibit — SEC EDGAR
• Ryerson Reports Third Quarter 2026 Results — prnewswire.com