Ryerson (RYZ) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $2.01 billion, up 28.1% sequentially, with shipments and adjusted EBITDA exceeding guidance; Olympic Steel contributed $564 million in revenue and $23.5 million in adjusted EBITDA.

• Realized $5 million in Q2 synergy benefits from the Olympic Steel merger, with integration progressing ahead of schedule and expectations to exceed the $40 million first-year synergy run-rate target.

• Shipment volumes reached a five-year high, driven by broad-based end-market demand and improved operational scale.

• Net income was $15.5 million ($0.30/share), impacted by a $15.7 million purchase accounting adjustment; adjusted net income was $27.6 million ($0.52/share).

• Completed the Olympic Steel Merger on February 13, 2026, issuing 19.5 million shares and paying $270 million to extinguish Olympic Steel's debt.

Financial highlights

• Net sales: $2.01 billion in Q2 2026, up 28.1% from Q1; tons shipped up 22.6%, average selling prices up 4.5%.

• Adjusted EBITDA excluding LIFO: $101 million, above guidance; margin improved to 5.0% from 4.3% in Q1.

• Gross margin contracted to 17.7% due to purchase accounting, but adjusted gross margin excluding LIFO expanded to 19.3%.

• Net debt increased to $913 million at June 30, 2026, leverage ratio improved to 4.0x from 5.1x.

• Free cash flow was negative at $(17.5) million in Q2 2026, reflecting working capital investments.

Outlook and guidance

• Q3 2026 revenues expected between $1.87 billion and $1.95 billion, with shipments 3–5% lower sequentially and average selling prices flat to up 2%.

• Adjusted EBITDA excluding LIFO forecasted at $88–$92 million; net income (excluding adjustments) expected at $19–$21 million.

• Additional $5–$7 million in inventory purchase accounting charges expected through year-end.

• Synergy run rate expected to reach $52–$56 million annually in Q3, with a long-term target of $120 million by 2028.