Ryerson (RYZ) Q1 2026 earnings summary

Executive summary

• Completed the Olympic Steel merger on February 13, 2026, creating the second-largest North American metals service center and expanding product offerings and geographic reach.

• Q1 2026 revenue reached $1.57B, up 37.9% year-over-year, with net income of $4.5M and adjusted EBITDA (excl. LIFO) of $67.4M, surpassing guidance.

• Tons shipped increased 31.2% year-over-year, and average selling prices rose 5.2%, indicating strong demand and market share gains.

• Adjusted net income was $13.1M, excluding merger-related advisory fees and impairment charges.

• Early integration efforts with Olympic Steel are yielding synergy momentum, targeting $120M in annual run-rate synergies by early 2028.

Financial highlights

• Gross profit increased 41.3% to $288.8M, with gross margin rising to 18.4% (up 40 bps YoY); excluding LIFO, gross margin was 19.1%.

• Operating profit rose to $23.2M from $2.3M, a 908.7% increase.

• Adjusted EBITDA (excl. LIFO) was $67.4M, with $12.5M contributed by Olympic Steel.

• Adjusted diluted EPS was $0.30, up $0.48 YoY.

• Cash used in operating activities was $179.2M, reflecting increased working capital needs.

Outlook and guidance

• Q2 2026 net sales expected between $1.86B and $1.93B, with net income of $20–22M and adjusted EBITDA (excl. LIFO) of $88–92M.

• Shipments projected to increase 18–20% sequentially, with average selling prices up 2–4% on a same-store basis.

• Full quarter inclusion of Olympic Steel expected to shift product mix toward carbon products.

• Management expects approximately $120M in annual synergies from the Olympic Steel merger by early 2028.

• Sufficient liquidity is anticipated to meet contractual obligations and operating requirements.