Ryerson Holding Corporation — Q3 2026 Form 10-Q
Reporting period: Three and nine months ended September 30, 2026. Amounts are in U.S. dollars; financial statement amounts are in millions except per-share data. Ryerson distributes and processes industrial metals in North America and China. Comparisons are significantly affected by the February 13, 2026 acquisition of Olympic Steel; reported 2025 results exclude Olympic Steel.
Financial performance and position
| Metric | Q3 2026 | Q3 2025 | Nine months 2026 | Nine months 2025 |
|---|---|---|---|---|
| Net sales | $2,177.8 | $1,161.5 | $5,750.5 | $3,466.5 |
| Gross profit / margin | $373.7 / 17.2% | $199.5 / 17.2% | $1,017.7 / 17.7% | $613.3 / 17.7% |
| Operating profit (loss) | $51.5 | $(1.0) | $109.1 | $7.1 |
| Net income (loss) attributable to Ryerson | $32.0 | $(14.8) | $52.0 | $(18.5) |
| Diluted EPS | $0.61 | $(0.46) | $1.05 | $(0.58) |
- Sales and operating trends: Nine-month reported sales increased 65.9%; $1,439.0 of the increase came from Olympic Steel. Same-store sales rose 24.4%, reflecting higher prices and volume. Same-store tons sold rose 9.1% for the nine months and 14.2% in Q3 year over year; same-store average selling price per ton rose 14.0% and 18.7%, respectively. Q3 gross margin remained 17.2% year over year.
- Cash flow: Operating activities used $176.0 in the first nine months, versus $22.3 generated in 2025, primarily as receivables increased $361.4 and inventories increased $198.7 amid higher sales, prices, and demand. Investing used $311.1, including $270.0 net cash consideration for Olympic Steel and $49.8 in capital expenditures. Financing provided $501.0. Cash, cash equivalents, and restricted cash ended at $41.9.
- Debt and liquidity: Total debt was $1,006.1 at September 30, versus $463.1 at year-end 2025; net debt was $965.6 versus $436.2. Total liquidity was $865, including $777 available under the $1.8 billion Ryerson Credit Facility and $47 available under foreign credit lines. Facility borrowings totaled $1,014.0 at a 5.1% weighted-average rate; the facility matures in February 2031. Debt-to-capitalization was 43%, up from 38%.
- Other metrics: Current assets were $2,467.3 and current liabilities $1,143.5. The quarterly dividend was $0.1875 per share, unchanged year over year. Nine-month capital expenditures were $49.8.
Material changes and unusual items
- Olympic Steel was acquired for stated fair-value consideration of $837.3, including approximately 19.5 million Ryerson shares and $270.0 net cash paid. Its results contributed $602.1 of Q3 sales and $1,439.0 of nine-month sales. Purchase accounting remains preliminary and may be adjusted materially.
- The acquisition drove much of the increase in debt, working capital, assets, and shares outstanding. The company issued approximately 19.5 million shares; weighted-average diluted shares for the first nine months rose to 49.5 million from 32.1 million.
- Nine-month 2026 net income included $19.7 of purchase-accounting inventory adjustments and $7.3 of Olympic Steel advisory fees, as well as $0.9 impairment charges and gains of $2.1 on insurance and $2.4 on litigation settlements. Management’s non-GAAP adjusted net income was $73.1 and adjusted diluted EPS was $1.48; these exclude specified items and are not GAAP measures.
- Q3 LIFO expense was $30.0, compared with $13.2 a year earlier; nine-month LIFO expense was $57.0 versus $33.2. Interest and other debt expense rose to $41.2 for the nine months from $29.4, principally due to higher borrowings.
Outlook, commentary, and risks
- Management expects approximately $120 million in annual synergies from the Olympic Steel combination by the beginning of 2028, through procurement scale, efficiency, commercial improvements, and network optimization. The filing provides no specific near-term earnings or revenue guidance.
- Management described improving demand: North American service-center volumes rose 5.0% in the first nine months, while Ryerson’s North American same-store volumes rose 8.8%, which management characterized as market-share gains. Q3 sequential average selling prices increased 7.2%; shipments increased 1.2% overall and 1.8% excluding Olympic Steel.
- Tariffs and changing trade rules may affect sourcing, prices, supply chains, and customer demand. Ryerson said most metal purchases are domestic and tariff effects had not been significant to its financial statements to date, but full cost pass-through is not assured. USMCA discussions remain uncertain.
- Conflict-related shipping disruption around the Persian Gulf may affect materials, freight, fuel, and insurance costs. The company is reducing exposure to affected suppliers and routes where practicable.
- The company is a metals distributor exposed to cyclical demand, volatile metal prices, and inventory-price risk. All debt is variable rate; a hypothetical 1% rate increase would have raised first-nine-month interest expense by approximately $7.5. Derivatives are marked to market through earnings and may not fully offset underlying exposures.
- For the Portland Harbor Superfund Site, responsibility and final remediation costs have not been allocated; management cannot predict the outcome or estimate a loss range. Management believes other pending claims are not expected to materially affect the company. The company reported no material changes to its previously disclosed risk factors.
- Management expects no additional minimum required pension contributions in the final three months of 2026; future funding needs remain dependent on investment returns, discount rates, and regulation. Management stated that cash flow and facility availability should fund normal operating and contractual requirements.
Most important facts for investors to verify
- Whether Olympic Steel integration, preliminary purchase accounting, and the targeted $120 million of annual synergies progress as expected.
- Whether working-capital investment converts to operating cash flow and whether inventory and receivables remain supportable as metal prices and demand change.
- Debt, borrowing-base availability, variable-rate exposure, and compliance with credit-facility covenants as borrowings remain elevated.
- The extent to which tariffs, trade-policy changes, and geopolitical shipping disruption affect customer demand, input costs, and margins.
- Developments in the Portland Harbor matter, including the anticipated 2027 cost allocation and any resulting estimate of Ryerson’s exposure.