Ryerson reports Q4 revenue dip, maintains steady dividend growth

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Ryerson reports Q4 revenue dip, maintains steady dividend growth
Credit: © Reuters.

CHICAGO - Ryerson Holding Corporation (NYSE: RYI), an industrial metals processor and distributor, announced its fourth-quarter and full-year financial results for the period ending December 31, 2023. The company reported a fourth-quarter net income of $26 million with an Adjusted EBITDA, excluding LIFO, of the same amount.

Despite a decrease in quarterly revenue to $1.1 billion, a 10.8% drop from the previous quarter, Ryerson achieved a diluted earnings per share of $0.74.

The company's operating cash flow for the quarter stood at $90 million, contributing to a full-year operating cash flow of $365 million. Ryerson's free cash flow for the fourth quarter was $65 million, part of a full-year total of $244 million. This financial performance comes amidst the backdrop of three acquisitions in the fourth quarter: Norlen Incorporated, TSA Processing, and Hudson (NYSE: HUD ) Tool Steel Corporation.

Ryerson also published its 2023 Sustainability Report and announced a first-quarter 2024 dividend of $0.1875 per share, marking the tenth consecutive quarter of dividend growth. The company's net leverage ratio was reported within the target range at 1.7x, with a debt of $436 million and net debt of $382 million as of December 31, 2023.

For the full year, Ryerson's net income attributable to the corporation was $146 million, with an Adjusted EBITDA, excluding LIFO, of $231 million. The company delivered a full-year diluted earnings per share of $4.10 on revenue of $5.1 billion.

Ryerson's management pointed out that the year 2023 marked a significant investment cycle for the company, emphasizing their focus on creating a next-generation operating model and improving customer experience. Despite a slowdown in manufacturing activity and corrections in industry volumes, the company believes its investments will yield higher through-cycle earnings with less volatility.

Looking ahead to the first quarter of 2024, Ryerson anticipates a seasonal uptick in demand with customer shipments expected to rise by 8% to 10% quarter-over-quarter. The company forecasts first-quarter revenue to be in the range of $1.21 to $1.25 billion, with average selling prices expected to increase by 1% to 3%.

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