0001193125-26-209016
SEC filingRevenue surged 38% to $1.6B, driven by the Olympic Steel acquisition, and profitability improved sharply, though cash flow turned deeply negative due to working capital build.
Net cash used in operating activities was $179.2 million, compared to $41.2 million in the prior year, driven by increased working capital requirements due to stronger demand and higher metal commodity prices. Capital expenditures were $12.2 million, up from $8.0 million, resulting in free cash flow of -$191.4 million. The company's main source of liquidity is borrowings on the Ryerson Credit Facility.
The acquisition of Olympic Steel was financed through debt, increasing leverage. While specific debt figures were not provided, the company noted that working capital requirements increased due to stronger demand and higher metal prices. The tariffs introduce uncertainty towards customers' supply chains and may adversely affect end-market demand.
Looking ahead, the company faces risks from tariffs that may cause customers to defer orders or adjust sourcing strategies. However, management remains focused on optimizing business processes and asset utilization to maintain a low fixed cost structure. Specific plans for reinvestment include funding for future international acquisitions and existing international operations.