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What changed in Ryerson Holding Corp's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Ryerson Holding Corp's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+276 added−289 removedSource: 10-K (2025-02-20) vs 10-K (2024-02-21)

Top changes in Ryerson Holding Corp's 2024 10-K

276 paragraphs added · 289 removed · 225 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe believe few of our customers have the capability to process metal into the desired sizes, forms, or finishes or they are unwilling to incur the significant capital expenditures to acquire the necessary equipment. We are growing and diversifying our product mix mainly as a result of our targeted growth strategy to provide increased levels of value-added processing services.
Biggest changeMost of the products that we carry require expensive specialized equipment for material handling and processing. We believe few of our customers have the capability to process metal into the desired sizes, forms, or finishes or they are unwilling to incur the significant capital expenditures to acquire the necessary equipment.
Due to this, many customers have reduced their in-house processing capabilities, opting to source processed metal from service centers like us. This 4 saves our customers time, labor, and expense, reducing their overall manufacturing costs, while permitting us to increasingly focus on value-added services and expanding our mix of fabrication products, which typically sell at higher margins.
Due to this, many 4 customers have reduced their in-house processing capabilities, opting to source processed metal from service centers like us. This saves our customers time, labor, and expense, reducing their overall manufacturing costs, while permitting us to increasingly focus on value-added services and expanding our mix of fabrication products, which typically sell at higher margins.
While the costs of compliance could be significant, given the uncertain outcome and timing of future action by the U.S. federal government on this issue, we cannot accurately predict the full financial impact of current and future greenhouse gas regulations on our operations or our customers at this time.
While the costs of compliance could be significant, given the uncertain outcome and timing of future action by the U.S. federal government on this issue, we cannot accurately 9 predict the full financial impact of current and future greenhouse gas regulations on our operations or our customers at this time.
Please refer to the Section titled “Acquisitions” of Item 7, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations,” and Note 2 — “Acquisitions” of Part II, Item 8 "Financial Statements and Supplementary Data" for further information regarding all acquisitions made in 2023.
Please refer to the Section titled “Acquisitions” of Item 7, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations,” and Note 2 — “Acquisitions” of Part II, Item 8 "Financial Statements and Supplementary Data" for further information regarding all acquisitions made in 2024 and 2023.
We do not currently anticipate any new programs disproportionately impacting us compared to our competitors. 9 Some of the properties currently or previously owned or leased by us are located in industrial areas or have a long history of heavy industrial use.
We do not currently anticipate any new programs disproportionately impacting us compared to our competitors. Some of the properties currently or previously owned or leased by us are located in industrial areas or have a long history of heavy industrial use.
We are generally able to meet our materials requirements because we use many suppliers, there is a substantial overlap of product offerings from these suppliers, and there are several other suppliers able to provide identical or similar 8 products.
We are generally able to meet our materials requirements because we use many suppliers, there is a substantial overlap of product offerings from these suppliers, and there are several other suppliers able to provide identical or similar products.
Available Information All periodic and current reports and other filings that we are required to file with the Securities and Exchange Commission (“SEC”), including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant Section 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge from the SEC’s website (www.sec.gov) or through our Investor Relations website at http://ir.ryerson.com.
Available Information All periodic and current reports and other filings that we are required to file with the Securities and Exchange Commission (the "SEC"), including our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to 11 those reports filed or furnished pursuant Section 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge from the SEC’s website (www.sec.gov) or through our Investor Relations website at http://ir.ryerson.com.
Our recruitment and talent management teams lead our mission to attract, retain and develop diverse talent. These teams are organized under our Talent Management Office ("TMO"), which includes our Chief Human Resources Officer, our Director of Talent Management, and other senior leaders.
Our recruitment and talent management teams lead our mission to attract, retain, and develop talent. These teams are organized under our Talent Management Office ("TMO"), which includes our Chief Human Resources Officer, our Director of Talent Management, and other senior leaders.
Based on sales, we are one of the largest service center companies for carbon, stainless steel, and aluminum in the North American market where we have a broad geographic presence with 110 facilities. Our service centers are located near our customer locations, enabling us to timely deliver to customers across numerous geographic markets.
Based on sales, we are one of the largest service center companies for carbon, stainless steel, and aluminum in the North American market where we have a broad geographic presence with 107 facilities. Our service centers are located near our customer locations, enabling us to timely deliver to customers across numerous geographic markets.
We strive, and expect our suppliers, to comply with all applicable laws and regulations as well as Ryerson's Human Rights Policy, Conflict Minerals Policy, and Code of Ethics and Business Conduct. Human Capital In order to provide best in class customer experiences, it is crucial that we continue to work to attract and retain top talent.
We strive, and expect our suppliers, to comply with all applicable laws and regulations as well as Ryerson's Human Rights Policy, Conflict Minerals Policy, and Code of Ethics and Business Conduct. 10 Human Capital In order to provide best in class customer experiences, it is crucial that we continue to attract and retain top talent.
Substantially all of our sales are attributable to our U.S. operations and substantially all of our long-lived assets are located in the U.S. 7 The following pie charts show the Company’s percentage of sales by metal consuming industry for 2023 and 2022: Our customers are primarily located throughout the U.S., but we also have international customers.
Substantially all of our sales are attributable to our U.S. operations and substantially all of our long-lived assets are located in the U.S. 7 The following pie charts show the Company’s percentage of sales by metal consuming industry for 2024 and 2023: Our customers are primarily located throughout the U.S., but we also have international customers.
In addition to our office sales staff, we market and sell our products through the use of our field sales force that we believe has extensive product and customer knowledge and offers a comprehensive catalog of our products. Our office and field sales staff, which together consist of approximately 850 employees, include technical personnel.
In addition to our office sales staff, we market and sell our products through the use of our field sales force that we believe has extensive product and customer knowledge and offers a comprehensive catalog of our products. Our office and field sales staff, which together consist of approximately 825 employees, include technical personnel.
The amount of liability, if any, for those claims and actions as of December 31, 2023 is not determinable but, in the opinion of management, such liability, if any, will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.
The amount of liability, if any, for those claims and actions as of December 31, 2024 is not determinable but, in the opinion of management, such liability, if any, will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.
ITEM 1. B USINESS. Ryerson Holding Corporation (“Ryerson Holding”), a Delaware corporation, is the parent company of Joseph T. Ryerson & Son, Inc. (“JT Ryerson”), a Delaware corporation. Affiliates of Platinum Equity, LLC (“Platinum”) own approximately 3,924,478 shares of our common stock, which is approximately 11.5% of our issued and outstanding common stock.
ITEM 1. B USINESS. Ryerson Holding Corporation (“Ryerson Holding”), a Delaware corporation, is the parent company of Joseph T. Ryerson & Son, Inc. (“JT Ryerson”), a Delaware corporation. Affiliates of Platinum Equity, LLC (“Platinum”) own approximately 3,924,478 shares of our common stock, which is approximately 12.3% of our issued and outstanding common stock.
Our commitment towards a zero-injury workplace is constant and driven by an Environmental, Health, and Safety policy that reinforces the goal. Our 2023 performance at our facilities, measured as the number of OSHA recordable injuries per 200,000 labor hours, was 2.26, which was better than the industry average as reported by the Bureau of Labor Statistics.
Our commitment towards a zero-injury workplace is constant and driven by an Environmental, Health, and Safety policy that reinforces the goal. Our 2024 performance at our facilities, measured as the number of OSHA recordable injuries per 200,000 labor hours, was 2.31, which was better than the industry average as reported by the Bureau of Labor Statistics.
We have approximately 4,600 employees across 110 facilities in North America and four facilities in China. Through this network we serve approximately 40,000 customers across a wide range of manufacturing end-markets. Our customers range from local, independently owned fabricators and machine shops to large, international original equipment manufacturers.
We have approximately 4,200 employees across 107 facilities in North America and four facilities in China. Through this network we serve approximately 40,000 customers across a wide range of manufacturing end-markets. Our customers range from local, independently owned fabricators and machine shops to large, international original equipment manufacturers.
The Company also posts its Code of Ethics on its website. See Part III, Item 10 for more information regarding our Code of Ethics. Our website address is included in this report for informational purposes only. Our website and the information contained therein or connected thereto are not incorporated into this annual report on Form 10-K.
See Part III, Item 10 for more information regarding our Code of Ethics. Our website address is included in this report for informational purposes only. Our website and the information contained therein or connected thereto are not incorporated into this annual report on Form 10-K.
The TMO is responsible for our recruiting efforts, attracting the best talent, increasing diversity and hiring efficiencies, facilitating onboarding, and continuing education opportunities to engage employees as they join Ryerson and build their careers with us.
The TMO is responsible for our recruiting efforts, attracting the best talent, increasing opportunity, identifying hiring efficiencies, facilitating onboarding, and providing continuing education opportunities to engage employees as they join Ryerson and build their careers with us.
We provide supply chain solutions, including just-in-time delivery and value-added processing, to many original equipment manufacturing customers. 5 For the year ended December 31, 2023, no single customer, including their subcontractors, accounted for more than 8% of our sales, and our top 10 customers, including their subcontractors accounted for less than 16% of our sales. Strong Relationships with Suppliers.
We provide supply chain solutions, including just-in-time delivery and value-added processing, to many original equipment manufacturing customers. 5 For the year ended December 31, 2024, no single customer, including their subcontractors, accounted for more than 8% of our sales, and our top 10 customers, including their subcontractors accounted for approximately 18% of our sales. Strong Relationships with Suppliers.
The Department of Commerce announced that real GDP increased 2.5 percent in 2023 and the Federal Reserve Bank of Philadelphia projected that the median growth rate in real GDP would be 1.7 percent, 1.8 percent, and 2.1 percent for 2024, 2025, and 2026, respectively.
The Department of Commerce announced that real GDP increased 2.8 percent in 2024 and the Federal Reserve Bank of Philadelphia projected that the median growth rate in real GDP would be 2.2 percent, 2.1 percent, and 2.1 percent for 2025, 2026, and 2027, respectively.
Investments by us in property, plant, and equipment, together with asset retirements for the five years ended December 31, 2023, excluding the initial purchase price of acquisitions are set forth below. The net capital change during such period aggregated to an increase of $223.2 million.
Investments by us in property, plant, and equipment, together with asset retirements for the five years ended December 31, 2024, excluding the initial purchase price of acquisitions are set forth below. The net capital change during such period aggregated to an increase of $332.0 million.
Such documents are available as soon as reasonably practicable after electronic filing of the material with the SEC. Copies of these reports (excluding 11 exhibits) may also be obtained free of charge, upon written request to: Investor Relations, Ryerson Holding Corporation, 227 W. Monroe St., 27th Floor, Chicago, Illinois 60606.
Such documents are available as soon as reasonably practicable after electronic filing of the material with the SEC. Copies of these reports (excluding exhibits) may also be obtained free of charge, upon written request to: Investor Relations, Ryerson Holding Corporation, 227 W. Monroe St., 27th Floor, Chicago, Illinois 60606. The Company also posts its Code of Ethics on its website.
The report builds on the Company’s inaugural 2022 report and provides an update on ongoing sustainability efforts, the investments being made in its people and service center network, and how it is serving its communities.
This annual report provides an update on the Company's ongoing sustainability efforts, the investments being made in its people and service center network, and how it is serving its communities.
While we consider all our intellectual property rights as a whole to be important, we do not consider any single right to be essential to our operations as a whole. Sustainability In December 2023, Ryerson released its second Sustainability Report.
While we consider all our intellectual property rights as a whole to be important, we do not consider any single right to be essential to our operations as a whole. Sustainability In January 2025, Ryerson released its third Sustainability Report.
As part of retaining and developing talent, Ryerson offers employees competitive compensation, expanded benefits including a parental leave policy, career growth through its learning platform, mentorship and tuition reimbursement programs, and engagement through all-employee surveys conducted periodically. Diversity and Inclusion.
As part of retaining and developing talent, Ryerson offers employees competitive compensation, expanded benefits including a paid parental leave policy, career growth through its learning platform, mentorship and tuition reimbursement programs, and engagement through all-employee surveys conducted periodically. Balanced and Bias-Free Employment Practices.
As a result, additional costs and liabilities may be incurred to comply with future requirements, including California and the proposed SEC climate disclosure requirements, or to address newly discovered conditions, and these costs and liabilities could have a material adverse effect on the results of operations, financial condition, or cash flows.
As a result, additional costs and liabilities may be incurred to comply with future requirements, which may include climate disclosure requirements passed by the state of California, or to address newly discovered conditions, and these costs and liabilities could have a material adverse effect on our results of operations, financial condition, or cash flows.
Consequently, we are required to carry sufficient inventory to meet the short lead time and just-in-time delivery requirements of our customers. We have international facilities located in Canada, Mexico, and China. Net sales of our international locations (based on where the shipments originated) accounted for 9.1% of our consolidated 2023 net sales, or $466.4 million.
Consequently, we are required to carry sufficient inventory to meet the short lead time and just-in-time delivery requirements of our customers. We have international facilities located in Canada, Mexico, and China. Net sales of our international locations (based on where the shipments originated) accounted for 10.0% of our consolidated 2024 net sales, or $457.6 million.
Recently, Ryerson has focused on bolt-on acquisitions. In 2023, Ryerson's acquisitions included BLP Holdings, LLC, Norlen Incorporated, TSA Processing, and Hudson Tool Steel Corporation.
Recently, Ryerson has focused on bolt-on acquisitions. In 2024, we acquired Production Metals, LLC while in 2023, Ryerson's acquisitions included BLP Holdings, LLC, Norlen Incorporated, TSA Processing, and Hudson Tool Steel Corporation.
For the year ended December 31, 2023, no single customer, including their subcontractors, accounted for more than 8% of our sales, and our top 10 customers, including their subcontractors, accounted for less than 16% of our sales.
For the year ended December 31, 2024, no single customer, including their subcontractors, accounted for more than 8% of our sales, and our top 10 customers, including their subcontractors, accounted for approximately 18% of our sales.
Our end markets reflect the performance of the manufacturing economy, and according to the latest Livingston Survey, published by the Federal Reserve Bank of Philadelphia, U.S. industrial production is expected to have expanded by 0.3 percent in 2023 and is further expected to grow by 0.5 percent in 2024 and 1.4 percent in 2025.
Our end markets reflect the performance of the manufacturing economy, and according to the latest Livingston Survey, published by the Federal Reserve Bank of Philadelphia, U.S. industrial production is expected to have contracted by 0.2 percent in 2024 and is expected to expand by 0.9 percent in 2025 and 1.5 percent in 2026.
To facilitate talent attraction and retention, we strive to create a diverse, inclusive, and safe workplace, with opportunities for our 10 employees to grow and develop in their careers, supported by strong compensation, benefits, and wellness programs, and by programs that build connections between our employees and their communities. Talent and Future Workforce.
To facilitate talent attraction and retention, we strive to create an inclusive and safe workplace, open to all who are qualified, with opportunities for our employees to grow and develop in their careers, supported by strong compensation, benefits, and wellness programs, as well as initiatives that build connections between our employees and their communities. Talent and Future Workforce.
We believe that our various and diverse offerings, ways-to-market, and end markets reduce the volatility of our business in the aggregate, thus somewhat reducing earnings volatility. A portion of our customers experience seasonal slowdowns.
We believe that our various and diverse offerings, ways-to-market, and end markets reduce the volatility of our business in the aggregate, thus somewhat reducing earnings volatility. A portion of our customers experience seasonal slowdowns, see Seasonality discussion below. Suppliers We purchase the majority of our inventories from key domestic metals suppliers.
While the metals producing supply base has experienced significant consolidation and supply interruptions in the past, we believe both our size and our long-term relationships with our suppliers has enabled us to meet our material requirements and will continue to allow us to do so in the future. Sales and Marketing We maintain our own professional sales force.
While the metals producing supply base has experienced significant consolidation and supply interruptions in the past, we believe both our size and our long-term relationships with our suppliers has enabled us to meet our material requirements and will continue to allow us to do so in the future. 8 Seasonality Seasonal factors cause demand fluctuations during the year.
We currently perform processing services on nearly 80% of the materials sold by us. 6 The following pie charts show our percentage of sales by major product lines for 2023 and 2022: We are not dependent on any particular customer group or industry because we process and distribute a variety of metals.
The following pie charts show our percentage of sales by major product line for 2024 and 2023: We are not dependent on any particular customer group or industry because we process and distribute a variety of metals.
Jim Claussen, Executive Vice President & CFO, has 29 years of industry experience. Industry Outlook The Institute for Supply Management’s Purchasing Managers’ Index (“PMI”) reported contracting factory activity throughout 2023 with readings consistently below the growth threshold of 50.
Industry Outlook The Institute for Supply Management’s Purchasing Managers’ Index (“PMI”) reported contracting factory activity throughout 2024 with readings consistently below the growth threshold of 50.
We believe our enhanced processing capabilities will increase our ability to sell higher-margin metals processing services to a larger group of customers. We expect this, together with our focus on maintaining pricing discipline related to our processing services, will increase our gross profit margin. We had capital expenditures of $358.1 million in the five-year period ended December 31, 2023.
We expect this, together with our focus on maintaining pricing discipline related to our processing services, will increase our gross profit margin. We had capital expenditures of $411.9 million in the five-year period ended December 31, 2024.
Edward Lehner, who joined the Company in August 2012 as Chief Financial Officer (“CFO”) and became CEO in June 2015, has 32 years of experience, predominantly in the metals industry. Mr. Mike Burbach, our Chief Operating Officer, has over 40 years of experience with the Company and previously served as the President of the North-West Region of the Company. Mr.
Edward Lehner, who joined the Company in August 2012 as Chief Financial Officer (“CFO”) and became CEO in June 2015, has 33 years of experience, predominantly in the metals industry. Mr.
We will continue to evaluate and execute each growth project in light of the economic conditions and outlook at the time of investment and may significantly reduce our capital expenditures if economic conditions warrant a more conservative approach to capital allocation. For the long term, we expect capital expenditures to normalize to a rate that approximates depreciation.
We expect all of the 2025 capital expenditures to be funded using proceeds from the cash generated by operations. We will continue to evaluate and execute each growth project in light of the economic conditions and outlook at the time of investment and may significantly reduce our capital expenditures if economic conditions warrant a more conservative approach to capital allocation.
Our sales, as measured in tonnage sold, in the months of July, November, and December traditionally have been lower than in other months because of a reduced number of shipping days and holiday or vacation closures for some customers. Consequently, our sales in the first two quarters of the year are usually higher than in the third and fourth quarters.
Depending on the severity of the fluctuations, our results of operations may be impacted. Our sales, as measured in tonnage sold, in the months of July, November, and December traditionally have been lower than in other months because of a reduced number of shipping days and holiday or vacation closures for some customers.
We are increasing our investments in processing equipment to offer more value-added processing to our customers in an effort to increase our margins and profitability.
We are increasing our investments in processing equipment to offer more value-added processing to our customers in an effort to increase our margins and profitability. We currently perform processing services on nearly 80% of the materials sold by us.
Ryerson is embracing diversity and inclusion via our Diversity, Equity, and Inclusion council ("DEI Council") that focuses on employee engagement, DEI training, and community outreach efforts with the mission of fostering an environment across the organization that values diversity of experiences and perspectives and encourages inclusivity in all aspects of the business.
Ryerson respects, embraces, and encourages a variety of experiences and backgrounds and has an Employee Engagement Council ("Council") that focuses on employee engagement, training, and community outreach efforts with the mission of fostering an environment across the organization that values a variety of experiences and perspectives and encourages bias-free practices in all aspects of the business.
In 2023, Ryerson’s DEI Council announced the establishment of three employee resource groups ("ERGs") to be available to employees in 2024: Women in Search of Excellence (WISE), Next Generation of Leaders (NextGen), and Leveraging All Diversity (LEAD). These ERGs are voluntary, employee-led groups that work to foster a more inclusive workplace by uniting people with common interests, identities, or backgrounds.
In 2023, Ryerson’s Council announced the establishment of employee resource groups ("ERGs"). Made available to employees in 2024, these ERGs are voluntary, employee-led groups that work to foster a more welcoming workplace by uniting people with common interests, identities, or backgrounds. Each of the ERGs is purposefully aligned with Ryerson’s mission and strategic goals.
Suppliers We purchase the majority of our inventories from key domestic metals suppliers. Because of our total volume of purchases and our long‑term relationships with our suppliers, we believe that we are generally able to purchase inventory at the best prices offered by our suppliers.
Because of our total volume of purchases and our long‑term relationships with our suppliers, we believe that we are generally able to purchase inventory at the best prices offered by our suppliers. For the year ended December 31, 2024, our top 25 suppliers, including their subcontractors, accounted for approximately 77% of our purchase dollars.
Capital Expenditures In 2023, we continued to focus on organic growth by expanding and modernizing existing facilities, adding new state-of -the-art facilities, and adding processing equipment to support value-added business.
Capital Expenditures In 2024, we completed our three-year investment cycle, which focused on organic growth through the expansion and modernization of existing facilities, addition of new state-of-the-art facilities, and additions of processing equipment to support value-added business.
Each of the three ERGs established is purposefully aligned with Ryerson’s DEI mission and strategic goals. Further, Ryerson is invested in DEI training by providing employees with training on being inclusive, avoiding bias, and workplace intervention. Training is available at any time on the Company’s learning platform, where employees can select from a growing catalog of DEI courses.
Throughout 2024, employees attended ERG communities that supported and created networking opportunities for up-and-coming leaders and other employee groups. Further, Ryerson is invested in providing employees with training on fair practices, avoiding bias, and workplace intervention. Training is available at any time on the Company’s learning platform, where employees can select from a growing catalog of courses.
The contractionary trend indicated by PMI began with readings dropping below 50 starting in November 2022 and continuing through December of 2023, marking 14 consecutive months, with the most recent reading of 47.4 for December 2023.
The contractionary trend indicated by PMI has lasted for the last 26 months, beginning with readings dropping below 50 starting in November 2022 and continuing through December of 2024, with a reading of 49.2 for December 2024. This trend was broken with a January 2025 reading of 50.9.
Additions Retirements or Sales Net (In millions) 2023 $ 121.9 $ 0.4 $ 121.5 2022 105.1 8.3 96.8 2021 59.3 68.5 (9.2 ) 2020 26.0 0.2 25.8 2019 45.8 57.5 (11.7 ) The net reductions in 2019 and 2021 are related to sale lease-back transactions.
Additions Retirements or Sales Net (In millions) 2024 $ 99.6 $ 2.5 $ 97.1 2023 121.9 0.4 121.5 2022 105.1 8.3 96.8 2021 59.3 68.5 (9.2 ) 2020 26.0 0.2 25.8 The lower amount of additions in 2020 was caused by capital expenditures deferred to 2021 and 2022 as spending was reduced due to uncertainties surrounding the COVID-19 pandemic.
Similar to the inaugural report, the 2023 edition illustrates the Company’s focus on energy and emissions reductions, sustainable products, data security, diversity, equity, and inclusion ("DEI"), and talent and future workforce while also providing updates on Ryerson’s advancement in these categories.
The 2024 edition, consistent with prior iterations, illustrates the Company’s focus on energy and emissions reductions, sustainable products, data security, embracing diversity of experiences and backgrounds, and talent and future workforce. A few achievements highlighted in the 2024 report include Ryerson’s recognition by Forbes, Times, and U.S.
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We also provide a wide variety of processing services to meet our customers’ needs. Most of the products that we carry require expensive specialized equipment for material handling and processing.
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Jim Claussen, Executive Vice President & CFO, who joined the Company in 2002 and became CFO in 2021 after holding various senior management and leadership positions at the Company, including President of Central Steel & Wire, LLC, has 30 years of industry experience.
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For the year ended December 31, 2023, our top 25 suppliers, including their subcontractors, accounted for approximately 78% of our purchase dollars.
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We also provide a wide variety of processing services to meet our customers’ needs and nearly 80% of the metals products we sell are processed by us by bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, flattening, forming, grinding, laser cutting, machining, notching, painting, polishing, punching, rolling, sawing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials to a specified thickness, length, width, shape, and surface quality pursuant to specific customer orders.
Removed
See Part II, Item 8, Note 5: Property, Plant, and Equipment for additional information on the 2021 sale-leaseback transactions. The lower amount of additions in 2020 was caused by capital expenditures deferred to 2021 and 2022 as spending was reduced due to uncertainties surrounding the COVID-19 pandemic.
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We are growing and diversifying our product mix mainly as a result of our targeted growth strategy to provide increased levels of value-added processing services. We believe our 6 enhanced processing capabilities will increase our ability to sell higher-margin metals processing services to a larger group of customers.
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We currently anticipate capital expenditures, excluding acquisitions, of up to approximately $110 million for 2024, much of which is related to purchases geared towards highly accretive strategic initiatives, IT infrastructure investment, and growth, along with maintenance projects. We expect all of the 2024 capital expenditures to be funded using proceeds from the cash generated by operations.
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Consequently, our sales in the first two quarters of the year are usually higher than in the third and fourth quarters. Results of any one or more quarters are therefore not necessarily indicative of annual results. Sales and Marketing We maintain our own professional sales force.
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A few achievements include Ryerson’s recognition by Forbes as one of America’s best mid-sized companies to work for, its launch of the award-winning Ryerson Illuminator app, and its continued role in the circular metals economy.
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The net reduction in 2021 is related to sale lease-back transactions. We currently anticipate capital expenditures, excluding acquisitions, of up to approximately $50 million for 2025, as we pivot from a necessary, but difficult, three-year investment cycle to a rate that approximates depreciation for the long term.
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News & World Report as a great place to work, the new, 15-acre solar farm in operation at its University Park location, the integration of its first electric vehicle into a local plant fleet, its new employee resource groups, its partnership with veteran organization Hiring Our Heroes, and its continued role in the circular metals economy.
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Ryerson does not tolerate any discriminatory or illegal preferences and is in compliance with applicable state and federal anti-discrimination laws.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese risks also include the increased pressure to make commitments, set targets, or establish additional goals and take actions to meet them, which could expose us to market, operational, execution, and reputation costs or risks. Regulations related to conflict-free minerals may force us to incur additional expenses and place us at a competitive disadvantage.
Biggest changeFurther, the customers we serve may impose emissions reduction or other environmental standards and requirements. As a result, we may experience increased compliance burdens and costs as well as increased pressure to make commitments, set targets, or establish additional goals and take actions to meet them, which could expose us to market, operational, execution, and reputation costs or risks.
ITEM 1A. RIS K FACTORS. Our business faces many risks. You should carefully consider the risks and uncertainties described below, together with the other information in this report, including the consolidated financial statements and notes to consolidated financial statements. We cannot assure you that any of the events discussed in the risk factors below will not occur.
ITEM 1A. RIS K FACTORS. Our business faces many risks. You should carefully consider the risks and uncertainties described below, together with the other information in this report, including the consolidated financial statements and notes to the consolidated financial statements. We cannot assure you that any of the events discussed in the risk factors below will not occur.
While we believe that our current arrangements with local partners provide us with experienced business partners in foreign countries, events or issues, including disagreements with our partners, may occur that require attention of our senior executives and may result in expenses or losses that erode the profitability of our foreign operations or cause our capital investments abroad to be unprofitable.
While we believe that our current arrangements with local partners provide us with experienced business partners in foreign countries, events or issues, including disagreements with our partners, may occur that require the attention of our senior executives and may result in expenses or losses that erode the profitability of our foreign operations or cause our capital investments abroad to be unprofitable.
Legislative, regulatory, or other efforts to combat climate change or other environmental concerns could result in future increases in taxes, restrictions on or increases in the costs of supplies, transportation, and utilities, any of which could increase our operating costs, and necessitate future investments in facilities and equipment.
Legislative, regulatory, or other efforts to combat climate change or other environmental concerns could result in future increases in taxes, restrictions on or increases in the costs of supplies, transportation, and utilities, any of which could increase our operating costs and/or necessitate future investments in facilities and equipment.
In addition, any negative change in ratings could make it more difficult for us to raise capital on acceptable terms, impact the ability to obtain adequate financing, and result in higher interest costs for our existing credit facilities, including the Ryerson Credit Facility, or on future financings.
In addition, any negative change in ratings could make it more difficult for us to raise capital on acceptable terms, impact our ability to obtain adequate financing, and result in higher interest costs for our existing credit facilities, including the Ryerson Credit Facility, or on future financings.
Our indebtedness may: • make it difficult for us to satisfy our financial obligations, including making scheduled principal and interest payments on our indebtedness; • limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions, or other general corporate purposes; 20 • limit our ability to use our cash flow for future working capital, capital expenditures, acquisitions, or other general corporate purposes; • require us to use a substantial portion of our cash flow from operations to make debt service payments; • limit our flexibility to plan for, or react to, changes in our business and industry; • place us at a competitive disadvantage compared to our less leveraged competitors; and • increase our vulnerability to the impact of adverse economic and industry conditions.
Our indebtedness may: • make it difficult for us to satisfy our financial obligations, including making scheduled principal and interest payments on our indebtedness; • limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions, or other general corporate purposes; • limit our ability to use our cash flow for future working capital, capital expenditures, acquisitions, or other general corporate purposes; • require us to use a substantial portion of our cash flow from operations to make debt service payments; • limit our flexibility to plan for, or react to, changes in our business and industry; • place us at a competitive disadvantage compared to our less leveraged competitors; and • increase our vulnerability to the impact of adverse economic and industry conditions.
On August 22, 2012, under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), the SEC adopted new requirements for reporting companies that use certain minerals and metals, known as “conflict minerals”, in their products, whether or not these products are manufactured by third parties.
On August 22, 2012, under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), the SEC adopted new requirements for reporting companies that use certain minerals and metals, known as “conflict minerals”, in their products, regardless of whether or not these products are manufactured by third parties.
In particular, although the passage of the Tax Cut and Jobs Act of 2017 reduced the U.S. tax rate to 21%, our future earnings could be negatively impacted by changes in tax legislation including changing tax rates and tax base such as 18 limiting, phasing-out, or eliminating deductions or tax credits, changing rules for earnings repatriations, and changing other tax laws in the U.S. or other countries.
In particular, although the passage of the Tax Cut and Jobs Act of 2017 reduced the U.S. tax rate to 21%, our future earnings could be negatively impacted by changes in tax legislation including changing tax rates and tax base such as limiting, phasing-out, or eliminating deductions or tax credits, changing rules for earnings repatriations, and changing other tax laws in the U.S. or other countries.
In addition, complying with these covenants may also cause us to take actions that are not favorable to our stockholders and may make it more difficult for us to successfully execute our business strategy and compete against companies that are not subject to such restrictions. We may not be able to generate sufficient cash to service all of our indebtedness.
In addition, complying with these covenants may also cause us to take actions that are not favorable to our stockholders and may make it more difficult for us to successfully execute our business strategy and compete against companies that are not subject to such restrictions. 21 We may not be able to generate sufficient cash to service all of our indebtedness.
These provisions: • establish a classified Board of Directors so that not all members of our Board of Directors are elected at one time; • authorize the issuance of undesignated preferred stock, the terms of which may be established and the shares of which may be issued without stockholder approval, and which may include super voting, special approval, dividend, or other rights or preferences superior to the rights of the holders of common stock; • provide that the Board of Directors is expressly authorized to make, alter, or repeal our amended and restated bylaws; • prohibit stockholders from acting by written consent if less than a majority of the voting power of our outstanding stock is controlled by Platinum; and • establish advance notice requirements for nominations for elections to our Board of Directors or for proposing matters that can be acted upon by stockholders at stockholder meetings.
These provisions: • establish a classified Board of Directors so that not all members of our Board of Directors are elected at one time; • authorize the issuance of undesignated preferred stock, the terms of which may be established and the shares of which may be issued without stockholder approval, and which may include super voting, special approval, dividend, or other rights or preferences superior to the rights of the holders of common stock; • provide that the Board of Directors is expressly authorized to make, alter, or repeal our amended and restated bylaws; • prohibit stockholders from acting by written consent when less than a majority of the voting power of our outstanding stock is controlled by Platinum; and • establish advance notice requirements for nominations for elections to our Board of Directors or for proposing matters that can be acted upon by stockholders at stockholder meetings.
This volatility can significantly 12 affect the availability and cost of materials for us. Our ability to pass on increases in costs in a timely manner depends on market conditions and may result in lower gross margins. In addition, higher prices could impact demand for our products, resulting in lower sales volumes.
This volatility can significantly affect the availability and cost of materials for us. Our ability to pass on increases in costs in a timely manner depends on market conditions and may result in lower gross margins. In addition, higher prices could impact demand for our products, resulting in lower sales volumes.
Our future results could be adversely affected by changes in the effective tax rate or changes in the treatment of deferred tax assets as a result of changes in Ryerson’s overall profitability, changes in the mix of earnings in countries with differing statutory tax rates, changes in tax legislation, the results of the examination of previously filed tax returns, and continuing assessment of the Company’s tax exposures.
Our future results could be adversely affected by changes in the effective tax rate or changes in the treatment of deferred tax assets as a result of changes in Ryerson’s overall profitability, changes in the mix of earnings in countries with differing statutory tax 18 rates, changes in tax legislation, the results of the examination of previously filed tax returns, and continuing assessment of the Company’s tax exposures.
In addition, Platinum may have an interest in pursuing acquisitions, divestitures, and other transactions that, in their judgment, could enhance their equity investment, even though such transactions might involve risks to holders of our common stock. ITEM 1B. UNRESOLVE D STAFF COMMENTS. Not applicable. 22
In addition, Platinum may have an interest in pursuing acquisitions, divestitures, and other transactions that, in their judgment, could enhance their equity investment, even though such transactions might involve risks to holders of our common stock. ITEM 1B. UNRESOLVE D STAFF COMMENTS. Not applicable.
Certain of our facilities are located in industrial areas, have a history of heavy industrial use, and have been in operation for many years and, over time, we and other predecessor operators of these facilities have generated, used, handled, and disposed of 17 hazardous and other regulated wastes.
Certain of our facilities are located in industrial areas, have a history of heavy industrial use, and have been in operation for many years and, over time, we and other predecessor operators of these facilities have generated, used, handled, and disposed of hazardous and other regulated wastes.
In addition, we may be subject to fines and civil or criminal sanctions, third party claims for property damage or personal injury, worker’s compensation or personal injury claims, cleanup costs, or temporary or permanent discontinuance of operations.
In addition, we may be subject to fines and civil or criminal sanctions, third party claims for property 17 damage or personal injury, worker’s compensation or personal injury claims, cleanup costs, or temporary or permanent discontinuance of operations.
These requirements require companies to diligence, disclose, and report whether or not such minerals originate from the Democratic Republic of Congo and adjoining countries. Since our supply chain is complex, we may not be able to conclusively verify the origins for all metals used in our products and we may face reputational challenges with our customers.
These requirements require companies to diligence, disclose, and report whether or not such minerals originate from the Democratic Republic of Congo and adjoining countries. Since our supply chain is complex, we may not be able to conclusively verify the origins for all metals used in our products and we may face reputation challenges with our customers.
Moreover, insufficient cash flow may make it more difficult for us to obtain financing on terms that are acceptable to us, or at all. Because the majority of our indebtedness bears interest at rates that fluctuate with changes in certain prevailing short-term interest rates, we are vulnerable to interest rate increases.
Moreover, insufficient cash flow may make it more difficult for us to obtain financing on terms that are acceptable to us, or at all. Because all of our indebtedness bears interest at rates that fluctuate with changes in certain prevailing short-term interest rates, we are vulnerable to interest rate increases.
We do not expect the cyclical nature of our industry to change and any downturn in our customers’ industries could reduce our revenues and profitability or a significant or prolonged slowdown in activity in the U.S., Canada, or any other major world economy, or a segment of any such economy, could negatively impact our sales growth and results of operations.
We do not expect the cyclical nature of our customer base to change and any downturn in our customers’ industries could reduce our revenues and profitability or a significant or prolonged slowdown in activity in the U.S., Canada, or any other major world economy, or a segment of any such economy, could negatively impact our sales growth and results of operations.
RISKS RELATED TO OUR STOCKHOLDER BASE Platinum owns a substantial percentage of our stock and has the right to nominate two members of the Corporation’s board and will be able to exert influence over matters subject to stockholder approval. Platinum owns approximately 3,924,478 shares of our common stock, which is approximately 11.5% of our issued and outstanding common stock.
RISKS RELATED TO OUR STOCKHOLDER BASE Platinum owns a substantial percentage of our stock and has the right to nominate two members of the Corporation’s board and will be able to exert influence over matters subject to stockholder approval. Platinum owns approximately 3,924,478 shares of our common stock, which is approximately 12.3% of our issued and outstanding common stock.
Total credit availability is limited by the amount of eligible accounts receivable, inventory, and qualified cash pledged as collateral under the agreement insofar as the Company is subject to a borrowing base comprised of the aggregate of these three amounts, less applicable reserves. As of December 31, 2023, total credit availability under the Ryerson Credit Facility was $560 million.
Total credit availability is limited by the amount of eligible accounts receivable, inventory, and qualified cash pledged as collateral under the agreement insofar as the Company is subject to a borrowing base comprised of the aggregate of these three amounts, less applicable reserves. As of December 31, 2024, total credit availability under the Ryerson Credit Facility was $376 million.
The market price for our common stock may be influenced by many factors, including the following: • investor reaction to our business strategy; • the success of competitive products or technologies; • any developments with respect to our pursuit of strategic alternatives, including a potential sale or merger of the Company, sale of part of the Company, strategic minority investment, or licensing and other transactions; • changes in regulatory or industry standards applicable to our products; • variations in our financial and operating results or those of companies that are perceived to be similar to us; • developments concerning our collaborations or partners; • developments or disputes with any third parties that supply, manufacture, sell, or market any of our products; • actual or perceived defects in any of our products, if commercialized, and any related product liability claims; • our ability or inability to raise additional capital and the terms on which we raise it; • declines in the market prices of stocks generally; • trading volume of our common stock; • sales of our common stock by us or our stockholders; • general economic, industry, and market conditions; and • other events or factors, including those resulting from such events, or the prospect of such events, including war, terrorism, and other international conflicts, public health issues including health epidemics or pandemics, and natural disasters such as fire, hurricanes, earthquakes, tornadoes, or other adverse weather and climate conditions, whether occurring in the U.S. or elsewhere, could disrupt our operations, disrupt the operations of our suppliers, or result in political or economic instability.
The market price for our common stock may be influenced by many factors, including the following: • investor reaction to our business strategy; • the success of competitive products or technologies; • any developments with respect to our pursuit of strategic alternatives, including a potential sale or merger of the Company, sale of part of the Company, strategic minority investment, or licensing and other transactions; • changes in regulatory or industry standards applicable to our products; • variations in our financial and operating results or those of companies that are perceived to be similar to us; • developments concerning our collaborations or partners; • developments or disputes with any third parties that supply, manufacture, sell, or market any of our products; • actual or perceived defects in any of our products, if commercialized, and any related product liability claims; • our ability or inability to raise additional capital and the terms on which we raise it; • declines in the market prices of stocks generally; • trading volume of our common stock; • sales of our common stock by us or our stockholders; • general economic, industry, and market conditions; and • other events or factors, including those resulting from such events, or the prospect of such events, including war, terrorism, and other international conflicts, public health issues including health epidemics or pandemics, and natural disasters such as fire, hurricanes, earthquakes, tornadoes, or other adverse weather and climate conditions, whether occurring in the U.S. or elsewhere, could disrupt our operations, disrupt the operations of our suppliers, or result in political or economic instability. 19 In the past, following periods of volatility in the market, securities class-action litigation has often been instituted against companies.
Our implementation of these evolving rules and regulations will require additional resources and implementation of new practices and reporting processes, all entailing additional compliance risk. Moreover, the progress and disclosure of our initiatives within the ESG scope could be criticized for accuracy, adequacy, and completeness, or may not advance at a sufficient pace.
Our adherence to these rules and regulations will require additional resources and the implementation of new reporting processes, all entailing additional compliance risk. Moreover, the progress and disclosure of our initiatives within the ESG scope could be criticized for accuracy, adequacy, and completeness, or may not advance at a sufficient pace.
Refer to Item 1C: "Cybersecurity" for further information on our Cybersecurity processes, policies, and programs. RISKS RELATED TO OPERATING OUR BUSINESS Any significant work stoppages can harm our business. As of December 31, 2023, we employed approximately 4,300 persons in North America and 300 persons in China.
Refer to Item 1C: "Cybersecurity" for further information on our Cybersecurity processes, policies, and programs. RISKS RELATED TO OPERATING OUR BUSINESS Any significant work stoppages can harm our business. As of December 31, 2024, we employed approximately 4,000 persons in North America and 200 persons in China.
For the year ended December 31, 2023, our top 25 suppliers represented approximately 78% of our purchases. We could be significantly and adversely affected if delivery were disrupted from a major supplier.
For the year ended December 31, 2024, our top 25 suppliers represented approximately 77% of our purchases. We could be significantly and adversely affected if delivery were disrupted from a major supplier.
Please refer to the Section titled “Critical Accounting Estimates - Goodwill,” of Item 7, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations,” and Note 1 — “Summary of Accounting and Financial Policies” of Part II, Item 8 "Financial Statements and Supplementary Data" for further information.
Please refer to the Section titled “Critical Accounting Estimates - Goodwill,” of Item 7, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations,” and Note 1 — “Summary of Accounting and Financial Policies” of Part II, Item 8 "Financial Statements and Supplementary Data" for further information. Changes in inflation may adversely affect financial performance.
Rapid or significant inflation could continue to increase the costs we incur to procure, process, package, and deliver our metal to customers and we may not be able to increase selling prices to customers at the same rate, resulting in decreased margins and operating profits.
Fluctuations in inflation could result in lower revenues, higher costs, and decreased margins, profits, and earnings. Rapid or significant inflation could increase the costs we incur to procure, process, package, and deliver our metal to customers and we may not be able to increase selling prices to customers at the same rate, resulting in decreased margins and operating profits.
The majority of our indebtedness, including the Ryerson Credit Facility, bears interest at rates that fluctuate with changes in certain short-term prevailing interest rates. As of December 31, 2023, we had $433.0 million of outstanding borrowings under the Ryerson Credit Facility, with an additional $560 million available for borrowing under such facility.
All of our indebtedness, including the Ryerson Credit Facility, bears interest at rates that fluctuate with changes in certain short-term prevailing interest rates. As of December 31, 2024, we had $470.0 million of outstanding borrowings under the Ryerson Credit Facility, with an additional $376 million available for borrowing under such facility.
Eight contracts covering 152 employees are currently scheduled to expire in 2024. 16 Certain employee retirement benefit plans are underfunded and the actual cost of those benefits could exceed current estimates, which would require us to fund the shortfall.
Five contracts covering 133 employees are currently scheduled to expire in 2025. Certain employee retirement benefit plans are underfunded and the actual cost of those benefits could exceed current estimates, which would require us to fund the shortfall.
As of December 31, 2023, our pension plan had an unfunded liability of $63.9 million and our other postretirement benefits plan had an unfunded liability of $35.7 million. Our actual costs for benefits required to be paid may exceed those projected and future actuarial assessments.
As of December 31, 2024, our pension plans had an unfunded liability of $52.9 million and our other postretirement benefits plans had an unfunded liability of $31.7 million. Our actual costs for benefits required to be paid may exceed those projected and future actuarial assessments.
The metals services industry as a whole is cyclical and, at times, pricing and availability of metal can be volatile due to numerous factors beyond our control, including, but not limited to, general domestic and international economic conditions, labor costs, sales levels, competition, levels of inventory held by other metals service centers, consolidation of metals producers, higher raw material costs for the producers of metals, import duties and tariffs, and currency exchange rates.
Changing metals prices may have a significant impact on our liquidity, net sales, gross margins, operating income, and net income. 12 The metals services industry as a whole is cyclical and, at times, pricing and availability of metal can be volatile due to numerous factors beyond our control, including, but not limited to, general domestic and international economic conditions, labor costs, sales levels, competition, levels of inventory held by other metals service centers, consolidation of metals producers, higher raw material costs for the producers of metals, import duties and tariffs, and currency exchange rates.
Our North American workforce was comprised of approximately 1,900 office employees and approximately 2,400 plant employees. Sixteen percent of our plant employees were members of various unions, including the United Steel Workers and The International Brotherhood of Teamsters. Eight renewal contracts covering 160 employees were successfully negotiated in 2023.
Our North American workforce was comprised of approximately 1,700 office employees and approximately 2,300 plant employees. Sixteen percent of our plant employees were members of various unions, including the United Steel Workers and The International Brotherhood of Teamsters. 16 Eight renewal contracts covering 154 employees were successfully negotiated in 2024.
Assuming a consistent level of 21 debt through-out 2023 a 100 basis point increase in the interest rate on our floating rate debt effective from the beginning of the year would increase our interest expense under the Ryerson Credit Facility and the China credit facility by approximately $4.7 million, on an annual basis.
Assuming a consistent level of debt through-out 2024 a 100 basis point increase in the interest rate on our floating rate debt effective from the beginning of the year would increase our interest expense under the Ryerson Credit Facility by approximately $5.8 million, on an annual basis.
If our ESG-related data, processes, and reporting are incomplete or inaccurate, or if we fail to achieve progress with respect to our sustainability goals, or at all, our reputation, business, financial performance, and growth could be adversely affected.
If our ESG-related data, processes, and reporting are incomplete or inaccurate, or if we fail to achieve progress with respect to our sustainability goals, or at all, our reputation, business, financial performance, and growth could be adversely affected. More broadly, stakeholders have expressed increasing interest in ESG practices and reporting.
As a result, Platinum may influence our policies and operations, including the appointment of management, future issuances of our common stock or other securities, and the payment of dividends, as well as impact decisions to enter into any other corporate transaction.
As a result, Platinum may influence our policies and operations, including the appointment of management, future issuances of our common stock or other securities, and the payment of dividends, as well as impact decisions to enter into any other corporate transaction. 22 The interests of Platinum may not in all cases be aligned with the interests of the other holders of our common stock.
The Federal Reserve has continued to increase interest rates in 2023, increasing our interest expense on the Ryerson Credit Facility. If interest rates continue to rise in the future, we could be unable to service our debt, which could have a material adverse effect on our business, financial condition, results of operations, or cash flows.
The Federal Reserve has decreased rates in 2024, reducing our interest rate on the Ryerson Credit Facility in the fourth quarter of 2024. If interest rates rise in the future, we could be unable to service our debt, which could have a material adverse effect on our business, financial condition, results of operations, or cash flows.
We may suffer prolonged disruption in the operations of any of these facilities, whether due to labor or technical difficulties, destruction, or damage sustained as a result of natural disasters or climate-related events to any of the facilities or otherwise, which could adversely affect our operating results.
We may suffer prolonged disruption in the operations of any of these facilities, whether due to labor or technical difficulties, destruction, or damage sustained as a result of natural disasters or climate-related events, which could adversely affect our operating results. If we are unable to retain, attract, and motivate management and key personnel, it may adversely affect our business.
If we are unable to grow sales or reduce costs, among other actions, to wholly or partially offset the effect on profitability of our pricing actions, our results of operations and financial condition may be adversely affected. Changing metals prices may have a significant impact on our liquidity, net sales, gross margins, operating income, and net income.
If we are unable to grow sales or reduce costs, among other actions, to wholly or partially offset the effect on profitability of our pricing actions, our results of operations and financial condition may be adversely affected.
The performance of the debt and equity markets affect the value of plan assets. A decline in the market value may increase the funding requirements for these plans.
We provide defined benefit pension plans for certain eligible employees and retirees. The performance of the debt and equity markets affect the value of plan assets. A decline in the market value of plan assets may increase the funding requirements for these plans.
We may not have the resources or technical sophistication to anticipate or prevent rapidly evolving types of cyberattacks.
We may not have the resources or technical sophistication to anticipate or prevent rapidly evolving and sophisticated cyberattacks, including through the use of artificial intelligence.
Future changes to environmental, health, and safety laws, including those related to climate change, could result in material liabilities and costs, constrain operations, or make such operations more costly for us, our suppliers, and our customers.
Such liabilities may be imposed without regard to fault or the legality of a party’s conduct and may, in certain circumstances, be joint and several. Future changes to environmental, health, and safety laws, including those related to climate change, could result in material liabilities and costs, constrain operations, or make operations more costly for us, our suppliers, and our customers.
The interests of Platinum may not in all cases be aligned with the interests of the other holders of our common stock. For example, a sale of a substantial number of shares of stock in the future by Platinum could cause our stock price to decline.
For example, a sale of a substantial number of shares of stock in the future by Platinum could cause our stock price to decline.
In addition, these systems are vulnerable to, among other things, damage or interruption from fire, flood, tornado, and other natural disasters, power loss, computer system and network failures, operator negligence, physical and electronic loss of data, or security breaches and computer viruses. We are subject to cybersecurity risks and may incur increasing costs in an effort to minimize those risks.
The upgrade or integration of these systems may disrupt our business or lead to operating inefficiencies. In addition, these systems are vulnerable to, among other things, damage or interruption from fire, flood, tornado, and other natural disasters, power loss, computer system and network failures, operator negligence, physical and electronic loss of data, or security breaches and computer viruses.
We believe that our success is due, in part, to our experienced management team. Losing the services of one or more members of our management team such as our CEO, Edward J. Lehner, could adversely affect our business and possibly prevent us from improving our operational, financial, and information management systems and controls.
Losing the services of one or more members of our management team such as our CEO, Edward J. Lehner, could adversely affect our business and possibly prevent us from improving our operational, financial, and information management systems and controls. We compete to hire employees and then must train them and develop their skills and competencies.
The potential issuance of preferred stock may delay or prevent a change in control of us, discouraging bids for our common stock at a premium over the market price, and adversely affect the market price and the voting and other rights of the holders of our common stock.
The potential issuance of preferred stock may delay or prevent a change in control of us, discouraging bids for our common stock at a premium over the market price, and adversely affect the market price and the voting and other rights of the holders of our common stock. 20 RISKS RELATED TO OUR CAPITAL STRUCTURE We have indebtedness under our Ryerson Credit Facility, which could adversely affect our financial position and prevent us from fulfilling our financial obligations.
If we are unable to retain, attract, and motivate management and key personnel, it may adversely affect our business. In order to compete and have continued growth, we must attract, retain, and motivate executives and other key employees, including those in managerial, technical, sales, marketing, and support positions.
In order to compete and have continued growth, we must attract, retain, and motivate executives and other key employees, including those in managerial, technical, sales, marketing, and support positions. We believe that our success is due, in part, to our experienced management team.
Poor investment performance or other factors could require us to make significant unplanned contributions to our pension plan and future funding for postretirement employee benefits other than pensions also may require substantial payments from current cash flow. We provide defined benefit pension plans for certain eligible employees and retirees.
The onset, duration, and severity of an inflationary period cannot be estimated with precision Poor investment performance or other factors could require us to make significant unplanned contributions to our pension plan and future funding for postretirement employee benefits other than pensions also may require substantial payments from current cash flow.
We evaluate goodwill annually on October 1 and whenever events or changes in circumstances indicate potential impairment.
RISKS RELATED TO MARKET AND ECONOMIC VOLATILITY The volatility of the market could result in a material impairment of goodwill. We evaluate goodwill annually on October 1 and whenever events or changes in circumstances indicate potential impairment.
Therefore, management cannot predict the ultimate outcome of this matter or estimate a range of potential loss at this time.
Therefore, management cannot predict the ultimate outcome of this matter or estimate a range of potential loss at this time. Environmental, social, and governance matters, and any related reporting obligation may impact our business.
From time to time, we may use fixed-price and/or fixed-volume supplier contracts to offset contracts with customers. Some of our existing supply agreements have required minimum purchase quantities. Under adverse economic conditions, those minimums may exceed our needs.
Some of our existing supply agreements have required minimum purchase quantities. Under adverse economic conditions, those minimums may exceed our needs.
We paid cash dividends on our common stock in each quarter of 2023, but any future dividend payments are at the discretion of our Board of Directors. Since the third quarter of 2021 we have paid regular quarterly cash dividends on our common stock.
Since the third quarter of 2021, we have paid regular quarterly cash dividends on our common stock.
Disruptions could occur due to factors beyond our control, including economic downturns, political unrest, port slowdowns, trade issues, including increased export or import duties or trade restrictions, health crises, climate related disruptions, and other factors. Recent unrest in the Red Sea has increased both shipping times and costs presenting new challenges to the metals industry.
Disruptions could occur due to factors beyond our control, including economic downturns, political unrest, port slowdowns, trade issues, including increased export or import duties or trade restrictions, health crises, climate related disruptions, and other factors. Any of the aforementioned items could adversely affect a supplier’s ability to manufacture or deliver products to us.
Such litigation, if instituted against us, could result in substantial costs and diversion of management's attention and resources, which could materially and adversely affect our business, financial condition, results of operations, and growth prospects. 19 There can be no guarantee that our stock price will remain at current levels or that future sales of our common stock will not be at prices lower than those sold to investors.
Such litigation, if instituted against us, could result in substantial costs and diversion of management's attention and resources, which could materially and adversely affect our business, financial condition, results of operations, and growth prospects.
Environmental, social, and governance matters, and any related reporting obligation may impact our business Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social, and governance matters ("ESG"), that could expose us to numerous risks.
Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social, and governance matters ("ESG"), that could expose us to numerous risks. These rules and regulations may continue to change as the federal administration transitions and the state of California provides further guidance on the state's new climate laws.
Our ability to implement our business plan is dependent on our ability to retain, hire, and train a large number of qualified employees each year. Our results of operations could be adversely affected by increased costs due to increased competition for employees, higher employee turnover, or increased employee benefit costs. Our risk management strategies may result in losses.
Our results of operations could be adversely affected by increased costs due to increased competition for employees, higher employee turnover, or increased employee benefit costs. Our risk management strategies may result in losses. From time to time, we may use fixed-price and/or fixed-volume supplier contracts to offset contracts with customers.
We compete to hire employees and then must train them and develop their skills and competencies. In the future, we may need to retain and hire additional qualified sales, marketing, administrative, operating, and technical personnel, and to train and manage new personnel.
In the future, we may need to retain and hire additional qualified sales, marketing, administrative, operating, and technical personnel, and to train and manage new personnel. Our ability to implement our business plan is dependent on our ability to retain, hire, and train a large number of qualified employees each year.
We could be required to expend substantial resources to upgrade our information systems or integrate them with the systems of companies we have acquired. The upgrade or integration of these systems may disrupt our business or lead to operating inefficiencies.
Difficulties associated with upgrades, installations of major software or hardware, and integration with new systems could have a material adverse effect on results of operations. We could be required to expend substantial resources to upgrade our information systems or integrate them with the systems of companies we have acquired.
We depend on the proper functioning and availability of our information technology platform, including communications and data processing systems, in operating our business. These systems include software programs that are integral to the efficient operation of our business.
These systems include software programs that are integral to the efficient operation of our business.
We use management information systems to track inventory information at individual facilities, provide pricing recommendations for sales quotes, communicate customer information, and aggregate daily sales, margin, and promotional information. Difficulties associated with upgrades, installations of major software or hardware, and integration with new systems could have a material adverse effect on results of operations.
We use management information systems to track inventory information at individual facilities, provide pricing recommendations for sales quotes, communicate customer information, enter and track orders, operate processing equipment, and aggregate daily sales, margin, and promotional information.
RISKS RELATED TO OUR CAPITAL STRUCTURE We have indebtedness under our Ryerson Credit Facility, which could adversely affect our financial position and prevent us from fulfilling our financial obligations. As of December 31, 2023, our total indebtedness under the Ryerson Credit Facility was $433 million and we had $560 million of unused capacity on the facility.
As of December 31, 2024, our total indebtedness under the Ryerson Credit Facility was $470 million and we had $376 million of unused capacity on the facility.
We monitor the risk that the principal markets in which we operate could continue to experience increased inflationary conditions. The onset, duration, and severity of an inflationary period cannot be estimated with precision. The volatility of the market could result in a material impairment of goodwill.
We monitor the risk that the principal markets in which we operate could experience increased inflationary conditions.
Removed
Any of the aforementioned items could adversely affect a supplier’s ability to manufacture or deliver products to us.
Added
We are subject to cybersecurity risks and other vulnerabilities that could arise with the sophistication and heightened use of artificial intelligence and may incur increasing costs in an effort to minimize those risks. We depend on the proper functioning and availability of our information technology platform, including communications and data processing systems, in operating our business.
Removed
RISKS RELATED TO MARKET AND ECONOMIC VOLATILITY Changes in inflation may adversely affect financial performance. Fluctuations in inflation could result in, and recent inflationary pressures have resulted in, lower revenues, higher costs, and decreased margins, profits, and earnings.
Added
These stakeholders include, state and foreign governmental authorities, investors and customers, and their focus includes safety, workplace culture, and environmental sustainability matters, such as carbon emissions.
Removed
Such liabilities may be imposed without regard to fault or the legality of a party’s conduct and may, in certain circumstances, be joint and several.
Added
An example of increasing customer interest relates to the European Carbon Boarder Adjustment Mechanism (“CBAM”), a regulation that applies to a number of our large, international customers for whom we must provide upstream emissions details.
Removed
These rules and regulations continue to evolve in scope and complexity, and many new requirements have been created in response to laws enacted by Congress, making compliance more difficult and uncertain. In addition, increasingly regulators, customers, investors, employees, and other stakeholders are focusing on ESG type matters and related disclosures.
Added
Regulations related to conflict-free minerals may force us to incur additional expenses and place us at a competitive disadvantage.
Removed
Overall increased emphasis of ESG in itself and ESG reporting has increased stakeholder focus, including by U.S. and foreign governmental authorities, investors, and customers on environmental sustainability matters, such as climate change, the reduction of greenhouse gases, and water consumption.
Added
There can be no guarantee that our stock price will remain at current levels or that future sales of our common stock will not be at prices lower than those sold to investors. We paid cash dividends on our common stock in each quarter of 2024, but any future dividend payments are at the discretion of our Board of Directors.
Removed
Further, the customers we serve may impose emissions reduction or other environmental standards and requirements. As a result, we may experience increased compliance burdens and costs and the sourcing of our products may be adversely affected.
Removed
In the past, following periods of volatility in the market, securities class-action litigation has often been instituted against companies.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeITEM 1C. CYBERSECURITY. We are committed to protecting Company information and the confidential information of our employees, customers, partners, and suppliers. To that end, we have in place various policies, procedures, and processes to identify, assess, manage, and prevent potential cybersecurity risk's, and to timely detect the occurrence, and mitigate the effects of, cyberattacks and data breaches.
Biggest changeITEM 1C. CYBERSECURITY. We are committed to protecting Company information and the confidential information of our employees, customers, partners, and suppliers. To that end, we have in place various policies, procedures, and processes to identify, assess, manage, and prevent potential cybersecurity risks, and to timely detect the occurrence, and mitigate the effects of cyberattacks and data breaches.
Cybersecurity is a formal component of our overall risk management program, and our management, including our Chief Information Officer, regularly update the Audit Committee of the Board of the status of our cybersecurity program.
Cybersecurity is a formal component of our overall risk management program, and our management, including our Chief Information Officer, regularly update the Audit Committee of the Board of Directors on the status of our cybersecurity program.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLouis, MO Owned Jackson, MS Owned Charlotte, NC Owned Greensboro, NC (2) Owned 24 Pikeville, NC Leased Winston-Salem, NC* Leased Youngsville, NC Leased Omaha, NE Owned Dover, NH Leased Hampstead, NH* Leased Las Vegas, NV Leased Lancaster, NY Leased Cincinnati, OH Owned Columbus, OH Leased Hamilton, OH* Leased Hilliard, OH Leased Stow, OH*** Leased Streetsboro, OH Leased Strongsville, OH Leased Oklahoma City, OK Leased Tulsa, OK Leased Ambridge, PA** Leased Hyde Park, PA*** Leased North Huntingdon, PA Owned Charleston, SC** Owned Greenville, SC Owned Wellford, SC Owned Chattanooga, TN Leased Knoxville, TN* Leased Memphis, TN Leased Arlington, TX*** Leased Dallas, TX Leased El Paso, TX Leased Houston, TX*** Owned Houston, TX*** Leased Houston, TX (2) Leased McAllen, TX Leased Salt Lake City, UT Leased Pounding Mill, VA Leased Richmond, VA Leased Centralia, WA Leased Spokane, WA Leased Vancouver, WA* Leased Green Bay, WI Owned Green Bay, WI Leased Hammond, WI Leased Milwaukee, WI (2) Owned Schofield, WI Owned Wausau, WI Owned * Office space only ** Processing centers ***Toll Processing centers 25 Operations in Canada Ryerson Canada, a wholly-owned indirect Canadian subsidiary of Ryerson Holding, has ten operational facilities in Canada.
Biggest changeRose, LA Owned Devens, MA Owned Grand Rapids, MI* Leased Lansing, MI Leased Minneapolis, MN Leased Plymouth, MN Owned Maryland Heights, MO Leased North Kansas City, MO Leased Jackson, MS Owned Charlotte, NC Owned 24 Greensboro, NC (2) Owned Pikeville, NC Leased Winston-Salem, NC* Leased Youngsville, NC Leased Omaha, NE Owned Dover, NH Leased Las Vegas, NV Leased Lancaster, NY Leased Cincinnati, OH Owned Columbus, OH Leased Hamilton, OH* Leased Hilliard, OH Leased Stow, OH*** Leased Streetsboro, OH Leased Strongsville, OH Leased Oklahoma City, OK Leased Tulsa, OK Leased Ambridge, PA** Leased North Huntingdon, PA Owned Charleston, SC** Owned Greenville, SC Owned Wellford, SC Owned Chattanooga, TN Owned Knoxville, TN* Leased Memphis, TN Leased Arlington, TX*** Leased Dallas, TX Leased El Paso, TX Leased Houston, TX*** Owned Houston, TX*** Leased Houston, TX (2) Leased McAllen, TX Leased Salt Lake City, UT Leased Pounding Mill, VA Leased Richmond, VA Leased Centralia, WA Leased Spokane, WA Leased Vancouver, WA* Leased Green Bay, WI Owned Green Bay, WI Leased Hammond, WI Leased Milwaukee, WI Leased Milwaukee, WI Owned Schofield, WI Owned Wausau, WI Owned * Office space only ** Processing centers ***Toll Processing centers 25 Operations in Canada Ryerson Canada, a wholly-owned indirect Canadian subsidiary of Ryerson Holding, has nine operational facilities and one facility held for sale in Canada.
Location Own/Lease Calgary, AB Owned Edmonton, AB Owned Richmond, BC Owned Winnipeg, MB Owned Winnipeg, MB Leased Saint John, NB Owned Brampton, ON Leased Burlington, ON (includes Canadian Headquarters) Leased Mississauga, ON Leased Vaudreuil, QC Leased Operations in China Ryerson China, an indirect wholly-owned subsidiary of Ryerson Holding, has four service and processing centers in China, in Guangzhou, Dongguan, Kunshan, and Tianjin, performing coil processing, sheet metal fabrication, and plate processing.
Location Own/Lease Calgary, AB Owned Edmonton, AB Owned Richmond, BC Owned Winnipeg, MB Owned Winnipeg, MB Leased Saint John, NB Owned/Vacated Brampton, ON Leased Burlington, ON (includes Canadian Headquarters) Leased Mississauga, ON Leased Vaudreuil, QC Leased Operations in China Ryerson China, an indirect wholly-owned subsidiary of Ryerson Holding, has four service and processing centers in China, in Guangzhou, Dongguan, Kunshan, and Tianjin, performing coil processing, sheet metal fabrication, and plate processing.
We have service centers in Monterrey, Tijuana, Hermosillo, and Queretaro, all of which are leased. The lease terms expire at various times through 2029. The facilities are in good condition and are adequate for Ryerson Mexico’s existing and anticipated operations. ITEM 3. LEGAL PROCEEDINGS.
We have service centers in Monterrey, Mexicali, Tijuana, Hermosillo, and Queretaro, all of which are leased. The lease terms expire at various times through 2029. The facilities are in good condition and are adequate for Ryerson Mexico’s existing and anticipated operations. ITEM 3. LEGAL PROCEEDINGS.
For information concerning legal proceedings as of December 31, 2023, please refer to Note 12: Commitments and Contingencies in the notes to the consolidated financial statements included in Part II, Item 8 of this Report on Form 10-K, which is incorporated into this item by reference. ITEM 4. MINE SAF ETY DISCLOSURES. Not applicable. 26 PART II
For information concerning legal proceedings as of December 31, 2024, please refer to Note 12: Commitments and Contingencies in the notes to the consolidated financial statements included in Part II, Item 8 of this Report on Form 10-K, which is incorporated into this item by reference. ITEM 4. MINE SAF ETY DISCLOSURES. Not applicable. 26 PART II
Ryerson China’s headquarters office building is located in Kunshan. We own all of our China facilities and have purchased the related land use rights. All of the facilities are in good condition and are adequate for Ryerson China’s existing and anticipated operations. Operations in Mexico Ryerson Mexico, an indirect wholly-owned subsidiary of Ryerson Holding, has four facilities in Mexico.
Ryerson China’s headquarters office building is located in Kunshan. We own all of our China facilities and have purchased the related land use rights. All of the facilities are in good condition and are adequate for Ryerson China’s existing and anticipated operations. Operations in Mexico Ryerson Mexico, an indirect wholly-owned subsidiary of Ryerson Holding, has five facilities in Mexico.
All of the metals service center facilities are in good condition and are adequate for Ryerson Canada’s existing and anticipated operations. Five facilities are leased. The lease terms expire at various times through 2027.
All of the metals service center facilities are in good condition and are adequate for Ryerson Canada’s existing and anticipated operations. Five facilities are leased. The lease terms expire at various times through 2032.
Approximately 67% of these facilities are leased. The lease terms expire at various times through 2043. JT Ryerson’s properties and facilities are adequate to serve its present and anticipated needs.
Approximately 65% of these facilities are leased. The lease terms expire at various times through 2043. JT Ryerson’s properties and facilities are adequate to serve its present and anticipated needs.
Location Own/Lease Birmingham, AL Owned Mobile, AL Owned Fort Smith, AR Owned Hickman, AR** Leased Little Rock, AR** Leased Phoenix, AZ Leased Cerritos, CA* Leased Fresno, CA (2) Leased Livermore, CA Leased Santa Clara, CA Leased Vernon, CA Owned Commerce City, CO Owned Wilmington, DE Leased Jacksonville, FL Owned Tampa Bay, FL Leased Buford, GA*** Leased Lavonia, GA Leased Norcross, GA Owned Des Moines, IA Owned Eldridge, IA** Leased Marshalltown, IA Owned Chicago, IL (Headquarters)* Leased Chicago, IL Leased Downers Grove, IL* Leased Elgin, IL Leased Lisle, IL* Leased Loves Park, IL Leased Montgomery, IL*** Leased University Park, IL Leased Burns Harbor, IN Owned Indianapolis, IN Owned Portage, IN** Owned Richmond, IN*** Leased Shelbyville, KY** Leased Shreveport, LA Owned St.
Location Own/Lease Birmingham, AL Owned Mobile, AL Owned Fort Smith, AR Owned Hickman, AR** Leased Little Rock, AR Leased Phoenix, AZ Leased Cerritos, CA* Leased Fresno, CA (2) Leased Livermore, CA Leased Vernon, CA Owned Commerce City, CO Owned Monroe, CT Owned Waterbury, CT Leased Wilmington, DE Leased Jacksonville, FL Owned Tampa Bay, FL Leased Buford, GA*** Leased Lavonia, GA Leased Norcross, GA Owned Des Moines, IA Owned Eldridge, IA** Leased Marshalltown, IA Owned Chicago, IL (Headquarters)* Leased Downers Grove, IL* Leased Elgin, IL Leased Lisle, IL* Leased Loves Park, IL Leased Montgomery, IL*** Leased University Park, IL Leased Burns Harbor, IN Owned Indianapolis, IN Owned Portage, IN** Owned Richmond, IN*** Leased Shelbyville, KY** Leased Shreveport, LA Owned St.
ITEM 2. PR OPERTIES. As of December 31, 2023, the Company’s facilities are set forth below: Operations in the United States JT Ryerson and its U.S. affiliates maintain 96 operational facilities, including 10 locations that are dedicated to administration services. All of our metals service center facilities are in good condition and are adequate for JT Ryerson’s existing operations.
ITEM 2. PR OPERTIES. As of December 31, 2024, the Company’s facilities are set forth below: Operations in the United States JT Ryerson and its U.S. affiliates maintain ninety-three operational facilities, including nine locations that are dedicated to administration services. All of our metals service center facilities are in good condition and are adequate for JT Ryerson’s existing operations.
Removed
Rose, LA Owned Devens, MA Owned Grand Rapids, MI* Leased Lansing, MI Leased Minneapolis, MN Leased Plymouth, MN Owned Maryland Heights, MO Leased North Kansas City, MO Leased St.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeDividend Policy We paid cash dividends on our common stock in all four quarters of 2023; $0.170 per share in the first quarter, $0.180 per share in the second quarter, $0.1825 per share in the third quarter, and $0.185 per share in the fourth quarter.
Biggest changeDividend Policy We paid cash dividends on our common stock of $0.1875 in each quarter of 2024.
The returns of each member of the Peer Group are weighted according to that member’s stock market capitalization. On December 1, 2023 Worthington Industries spun off their steel division into Worthington Steel, Inc.
The returns of each member of the Peer Group are weighted according to that member’s stock market capitalization. On December 1, 2023 Worthington Industries, Inc. spun off their steel division into Worthington Steel, Inc.
The chart below includes Worthington Industries data for December 31, 2018 through November 30, 2023 and Worthington Steel, Inc. data thereafter, with returns and market capitalization weighted for each respective period. The stock price performance included in this graph is not necessarily indicative of future stock price performance.
The chart below includes Worthington Industries, Inc. data for December 31, 2019 through November 30, 2023 and Worthington Steel, Inc. data thereafter, with returns and market capitalization weighted for each respective period. The stock price performance included in this graph is not necessarily indicative of future stock price performance.
Holders As of February 21, 2024, there were 7 stockholders of record of our common stock. Because many shares of our common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of beneficial stockholders represented by these record holders.
Holders As of February 14, 2025, there were 7 stockholders of record of our common stock. Because many shares of our common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of beneficial stockholders represented by these record holders.
The graph tracks the performance of a $100 investment in each of the indices (with reinvestment of dividends) from December 31, 2018 to December 31, 2023.
The graph tracks the performance of a $100 investment in each of the indices (with reinvestment of dividends) from December 31, 2019 to December 31, 2024.
Comparison of 5 Year Cumulative Total Return Assumes Initial Investment of $100 This graph is not deemed to be “filed” with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934 (“the Exchange Act”), and should not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act of 1933 or the Exchange Act. 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Ryerson Holding $ 100.00 $ 192.67 $ 222.15 $ 427.04 $ 504.40 $ 588.08 S&P 500 $ 100.00 $ 132.78 $ 156.34 $ 199.56 $ 164.85 $ 205.25 Peer Group $ 100.00 $ 152.67 $ 166.30 $ 217.74 $ 258.47 $ 359.06 28 Purchases of Equity Securities by the Issuer and Affiliated Purchasers On August 3, 2022, the Board of Directors authorized a new $75 million share repurchase program after the exhaustion of the previous share repurchase program.
Comparison of 5 Year Cumulative Total Return Assumes Initial Investment of $100 This graph is not deemed to be “filed” with the Securities and Exchange Commission (the "SEC") or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934 (“the Exchange Act”), and should not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act of 1933 or the Exchange Act. 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Ryerson Holding $ 100.00 $ 113.29 $ 217.77 $ 257.23 $ 299.90 $ 171.83 S&P 500 $ 100.00 $ 117.56 $ 150.55 $ 124.05 $ 154.89 $ 191.46 Peer Group $ 100.00 $ 107.92 $ 142.70 $ 161.67 $ 228.00 $ 219.95 28 Purchases of Equity Securities by the Issuer and Affiliated Purchasers On August 3, 2022, the Board of Directors authorized a new $75 million share repurchase program after the exhaustion of the previous share repurchase program.
On May 1, 2023, the Board of Directors authorized an increase to $100.0 million and extended the program to April 2025. Under the program, management is not obligated to repurchase shares, but has discretion in determining the conditions under which shares may be purchased from time to time.
Under the program, management is not obligated to repurchase shares, but has discretion in determining the conditions under which shares may be purchased from time to time.
During the year ended December 31, 2023, we repurchased 3,253,313 shares at an average cost of $35.00 per share, or $113.9 million in total. Following the increase in the share repurchase program to $100 million on May 1, 2023, we have repurchased $60.6 million in shares and $39.4 million remains outstanding as of December 31, 2023.
During the year ended December 31, 2024, we repurchased 2,526,467 shares at an average cost of $20.18 per share, or $51.0 million in total. Following the $50.0 million increase in the share repurchase program on July 30, 2024, we have repurchased $25.2 million in shares and $38.4 million remains outstanding as of December 31, 2024.
Removed
Our share repurchase activity during the three months ended December 31, 2023 was as follows: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program Maximum Dollar Value of Shares that May Yet be Purchased under the Program (In millions, except shares and per share data) October 1, 2023 - October 31, 2023 100,329 $ 27.96 100,329 $ 42.9 November 1, 2023 - November 30, 2023 81,736 28.89 81,736 40.5 December 1, 2023 - December 31, 2023 37,549 30.49 37,549 39.4 219,614 219,614 Recent Sale of Unregistered Securities and Use of Proceeds None.
Added
On May 1, 2023, the Board of Directors authorized an increase to $100.0 million and extended the program to April 2025. On July 30, 2024, the Board of Directors authorized an additional increase of $50.0 million to the existing share repurchase program, bringing the amount authorized to be repurchased to $63.6 million, and extended the program through April 2026.
Added
There were no share repurchases made during the fourth quarter of 2024. Recent Sale of Unregistered Securities and Use of Proceeds None. ITEM 6. R ESERVED. 29

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeOperating expenses include costs related to warehousing and distributing our products as well as selling, general, and administrative expenses. 34 Results of Operations The following table sets forth our Consolidated Statements of Operations data (certain percentages may not calculate due to rounding): Year Ended December 31, 2023 % of Net Sales Year Ended December 31, 2022 % of Net Sales Net sales $ 5,108.7 100.0 % $ 6,323.6 100.0 % Cost of materials sold 4,087.1 80.0 5,013.5 79.3 Gross profit 1,021.6 20.0 1,310.1 20.7 Warehousing, delivery, selling, general, and administrative expenses 793.5 15.5 735.2 11.6 Gain on sale of assets — — (3.8 ) (0.1 ) Operating profit 228.1 4.5 578.7 9.2 Other expenses (34.4 ) (0.7 ) (55.8 ) (0.9 ) Income before income taxes 193.7 3.8 522.9 8.3 Provision for income taxes 47.3 0.9 131.4 2.1 Net income 146.4 2.9 391.5 6.2 Less: Net income attributable to noncontrolling interest 0.7 — 0.5 — Net income attributable to Ryerson Holding Corporation $ 145.7 2.9 % $ 391.0 6.2 % Basic earnings per share $ 4.17 $ 10.41 Diluted earnings per share $ 4.10 $ 10.21 35 The following charts show the Company’s percentage of sales by major product lines for 2023 and 2022: Comparison of the year ended December 31, 2023 with the year ended December 31, 2022 Net Sales Year Ended December 31, Dollar Percentage 2023 2022 change change ($ in millions) Net sales $ 5,108.7 $ 6,323.6 $ (1,214.9 ) (19.2 )% Year Ended December 31, Tons Percentage 2023 2022 change change (in thousands) Tons sold 1,943 2,029 (86 ) (4.2 )% Year Ended December 31, Price Percentage 2023 2022 change change Average selling price per ton sold $ 2,629 $ 3,117 $ (488 ) (15.7 )% Revenue for the year ended December 31, 2023, decreased from the same period a year ago due to lower average selling prices caused by lower commodity prices and to lower volume caused by slower economic conditions in metal markets in 2023.
Biggest changeOperating expenses include costs related to warehousing and distributing our products as well as selling, general, and administrative expenses. 33 Results of Operations The following table sets forth our Consolidated Statements of Operations data (certain percentages may not calculate due to rounding): Year Ended December 31, 2024 % of Net Sales Year Ended December 31, 2023 % of Net Sales Net sales $ 4,598.7 100.0 % $ 5,108.7 100.0 % Cost of materials sold 3,764.5 81.9 4,087.1 80.0 Gross profit 834.2 18.1 1,021.6 20.0 Warehousing, delivery, selling, general, and administrative expenses 801.2 17.4 793.5 15.5 Gain on insurance settlement (1.6 ) — — — Restructuring and other charges 3.1 0.1 — — Operating profit 31.5 0.7 228.1 4.5 Other expenses (38.9 ) (0.8 ) (34.4 ) (0.7 ) Income (loss) before income taxes (7.4 ) (0.2 ) 193.7 3.8 Provision (benefit) for income taxes (0.1 ) — 47.3 0.9 Net income (loss) (7.3 ) (0.2 ) 146.4 2.9 Less: Net income attributable to noncontrolling interest 1.3 — 0.7 — Net income (loss) attributable to Ryerson Holding Corporation $ (8.6 ) (0.2 )% $ 145.7 2.9 % Basic earnings (loss) per share $ (0.26 ) $ 4.17 Diluted earnings (loss) per share $ (0.26 ) $ 4.10 34 The following charts show the Company’s percentage of sales by major product line for 2024 and 2023: Comparison of the year ended December 31, 2024 with the year ended December 31, 2023 Net Sales Year Ended December 31, Dollar Percentage 2024 2023 change change ($ in millions) Net sales $ 4,598.7 $ 5,108.7 $ (510.0 ) (10.0 )% Year Ended December 31, Tons Percentage 2024 2023 change change (in thousands) Tons sold 1,937 1,943 (6 ) (0.3 )% Year Ended December 31, Price Percentage 2024 2023 change change Average selling price per ton sold $ 2,374 $ 2,629 $ (255 ) (9.7 )% Revenue for the year ended December 31, 2024, decreased from the same period a year ago due to lower average selling prices caused by lower commodity prices in 2024 due to the effects of contracting industrial manufacturing demand.
Our critical accounting policies, including the assumptions and judgments underlying them, are disclosed in Item 8 within Note 1: Summary of Accounting and Financial Policies. These policies have been consistently applied and address such matters as revenue recognition, depreciation methods, inventory valuation, asset impairment recognition, and pension and postretirement expense.
Our critical accounting policies, including the assumptions and judgments underlying them, are disclosed in Item 8 within Note 1: Summary of Accounting and Financial Policies. These policies have been consistently applied and address such matters as revenue recognition, depreciation methods, inventory valuation, asset impairment recognition, and pension 41 and postretirement expense.
Management uses these metrics to assess year-over-year performance excluding non-recurring transactions. Adjusted net income and adjusted diluted earnings per share do not represent, and should not be used as a substitute for, net income or earnings per share determined in accordance with GAAP.
Management uses these metrics to assess year-over-year performance excluding non-recurring transactions. Adjusted net income (loss) and adjusted diluted earnings (loss) per share do not represent, and should not be used as a substitute for, net income (loss) or earnings (loss) per share determined in accordance with GAAP.
As of December 31, 2023, the Company had a valuation allowance of $4.0 million, a decrease of $1.0 million from the prior year mainly related to an adjustment to certain U.S. federal tax credits and deferred tax assets which were fully reserved.
As of December 31, 2023, the Company had a valuation allowance of $4 million, a decrease of $1 million from the prior year mainly related to an adjustment to certain U.S. federal tax credits and deferred tax assets which were fully reserved.
Ryerson’s financial strategy includes a focus on generating cash from operating activities and continuously improving a “through the cycle” operating model in order to maintain a strong balance sheet, re-invest in the growth of the business, and generate returns to shareholders.
Ryerson’s financial strategy includes a focus on generating cash from operating activities and continuously improving a “through the cycle” operating model to maintain a strong balance sheet, re-invest in the growth of the business, and generate returns to shareholders.
The fair value of the reporting unit is estimated using a combination of an income approach and a market approach as this combination is deemed to be the most indicative of our fair value in an orderly transaction between market participants.
The fair value of the reporting unit is estimated using a combination of an income approach and a market approach as this combination is deemed to be the most indicative of our fair 42 value in an orderly transaction between market participants.
In addition to our metals products, we offer numerous value-added processing and fabrication services, and nearly 80% of the metals products we sell are processed by us by bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, embossing, flattening, forming, grinding, laser cutting, machining, notching, painting, perforating, polishing, punching, rolling, sawing, scribing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials to a specified thickness, length, width, shape, and surface quality pursuant to specific customer orders.
In addition to our metals products, we offer numerous value-added processing and fabrication services, and nearly 80% of the metals products we sell are processed by us by bending, beveling, blanking, blasting, burning, cutting-to-length, drilling, flattening, forming, grinding, laser cutting, machining, notching, painting, polishing, punching, rolling, sawing, shearing, slitting, stamping, tapping, threading, welding, or other techniques to process materials to a specified thickness, length, width, shape, and surface quality pursuant to specific customer orders.
Discussions of 2021 items and year-over-year comparisons between 2022 and 2021 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Discussions of 2022 items and year-over-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
During 2023, LIFO income was $98 million related to decreases in pricing for all product lines, with the largest impact from carbon products, slightly offset by the liquidation of older LIFO layers for stainless and aluminum products that were at a net higher cost.
During 2023, LIFO income was $98 million related to decreases in pricing for all product lines, with the largest impact from carbon products, slightly offset by the liquidation of older LIFO layers for stainless products that were at a net higher cost.
Any shortfall in the cost of the acquisition compared to the fair value of the net assets acquired is recorded in the Consolidated Statements of Operations as a bargain purchase gain. The Company uses valuation specialists, where necessary, to perform appraisals and assist in the determination of the fair values of the assets acquired and liabilities assumed.
Any shortfall in the cost of the acquisition compared to the fair value of the net assets acquired is recorded in the Consolidated Statement of Operations as a bargain purchase gain. The Company uses valuation specialists, where necessary, to perform appraisals and assist in the determination of the fair values of the assets acquired and liabilities assumed.
Changes in average selling prices are primarily driven by commodity metals prices, which impact Ryerson’s selling prices over the subsequent three to six-month period. 30 Throughout 2023, indicators in the key steel industry end markets reported contraction in industrial activity.
Changes in average selling prices are primarily driven by commodity metals prices, which impact Ryerson’s selling prices over the subsequent three to six-month period. 30 Throughout 2024, indicators in the key steel industry end markets reported contraction in industrial activity.
Liquidity and Capital Resources The Company’s primary sources of liquidity are cash and cash equivalents, cash flows from operations, and borrowing availability under the Ryerson Credit Facility. Our principal source of operating cash is from the sale of metals and other materials.
Liquidity and Capital Resources The Company’s primary sources of liquidity are cash and cash equivalents, cash flows from operations, and borrowing availability under the Ryerson Credit Facility. Our principal source of operating cash is from the sale of metals.
Our principal uses of cash are for payments associated with the procurement and processing of metals and other materials inventories, costs incurred for the warehousing and delivery of inventories, the selling and administrative costs of the business, capital expenditures, and for interest payments on debt.
Our principal uses of cash are for payments associated with the procurement and processing of metals, costs incurred for the warehousing and delivery of inventories, the selling and administrative costs of the business, capital expenditures, and for interest payments on debt.
If these estimates or their related assumptions for commodity prices and demand change in the future, we may be required to record impairment charges for these assets. 43 Based on the impairment test performed on October 1, 2023, the Company concluded that the fair value of the reporting units tested for impairment exceeded the carrying value.
If these estimates or their related assumptions for commodity prices and demand change in the future, we may be required to record impairment charges for these assets. Based on the impairment test performed on October 1, 2024, the Company concluded that the fair value of the reporting units tested for impairment exceeded the carrying value.
Overview Business Ryerson Holding Corporation (“Ryerson Holding”), a Delaware corporation, is the parent company of Joseph T. Ryerson & Son, Inc. (“JT Ryerson”), a Delaware corporation. Affiliates of Platinum Equity, LLC (“Platinum”) own approximately 3,924,478 shares of our common stock, which is approximately 11.5% of our issued and outstanding common stock.
Overview Business Ryerson Holding Corporation (“Ryerson Holding”), a Delaware corporation, is the parent company of Joseph T. Ryerson & Son, Inc. (“JT Ryerson”), a Delaware corporation. Affiliates of Platinum Equity, LLC (“Platinum”) own approximately 3,924,478 shares of our common stock, which is approximately 12.3% of our issued and outstanding common stock.
This is evidenced by the Institute for Supply Management’s Purchasing Managers’ Index (“PMI”), which reported contracting activity during the year with readings below the growth threshold of 50%, indicating a slowdown in factory activity. Similarly, U.S. Industrial Production, which reports year-over-year industrial sector business output, reported low or slowing growth in output for most of the year.
This is evidenced by the Institute for Supply Management’s Purchasing Managers’ Index (“PMI”), which reported contracting activity in every month of 2024 with readings below the growth threshold of 50, indicating a slowdown in factory activity. Similarly, U.S. Industrial Production, which reports year-over-year industrial sector business output, reported low or slowing growth in output for most of the year.
As of December 31, 2023, the valuation allowance continues to be related to U.S. federal tax credit deferred tax assets and foreign tax assets.
As of December 31, 2024, the valuation allowance continues to be related to U.S. federal tax credit deferred tax assets and foreign tax assets.
Warehousing, delivery, selling, general, and administrative expenses for 2023 increased by $58.3 million compared to 2022 driven primarily by inclusion of operating expenses from companies acquired in 2022 and 2023 and increased reorganization costs, primarily due to increased system conversion activity as well as start up costs associated with our new state of the art University Park location.
Warehousing, delivery, selling, general, and administrative expenses for 2024 increased by $7.7 million compared to 2023 driven primarily by the inclusion of operating expenses from companies acquired in 2023 and 2024 and increased reorganization costs, primarily due to increased system conversion activity as well as start up costs associated with our new state of the art University Park location.
Our net debt (defined as total debt less cash and cash equivalents) was $382 million and $328 million at December 31, 2023 and December 31, 2022, respectively. Total liquidity and net debt are not U.S. generally accepted accounting principles (“GAAP”) financial measures. We believe that total liquidity provides additional information for measuring our ability to fund our operations.
Our net debt (defined as total debt less cash and cash equivalents) was $440 million and $382 million at December 31, 2024 and December 31, 2023, respectively. Total liquidity and net debt are not U.S. generally accepted accounting principles (“GAAP”) financial measures. We believe that total 37 liquidity provides additional information for measuring our ability to fund our operations.
This section of this Form 10-K generally discusses 2023 and 2022 items and year-over-year comparisons between 2023 and 2022.
This section of this Form 10-K generally discusses 2024 and 2023 items and year-over-year comparisons between 2024 and 2023.
Pension expense increases as the expected rate of return on plan assets decreases. Lowering the expected long-term rate of return on plan assets by 50 basis points would have increased 2023 pension expense by approximately $1 million. Future pension obligations for the U.S. plans were discounted using rates between of 5.05% and 5.24% at December 31, 2023.
Pension expense increases as the expected rate of return on plan assets decreases. Lowering the expected long-term rate of return on plan assets by 50 basis points would have increased 2024 pension expense by approximately $1 million. Future pension obligations for the U.S. plans were discounted using rates between of 5.67% and 5.98% at December 31, 2024.
In 2023, average selling prices were 15.7% lower than in 2022 resulting in lower cash generated from operations. Working capital fluctuates throughout the year based on business needs.
In 2024, average selling prices were 9.7% lower than in 2023 resulting in lower cash generated from operations. Working capital fluctuates throughout the year based on business needs.
We had a debt-to-capitalization ratio of 32% and 29% at December 31, 2023 and at December 31, 2022, respectively. We had total liquidity (defined as cash and cash equivalents, and availability under the Ryerson Credit Facility and foreign debt facilities) of $656 million at December 31, 2023 versus $909 million at December 31, 2022.
We had a debt-to-capitalization ratio of 36% and 32% at December 31, 2024 and at December 31, 2023, respectively. We had total liquidity (defined as cash and cash equivalents, and availability under the Ryerson Credit Facility and foreign debt facilities) of $451 million at December 31, 2024 versus $656 million at December 31, 2023.
The calculation of other postretirement benefit obligations requires the use of a number of assumptions, including the assumed discount rate between 4.63% and 5.06% at December 31, 2023 for measuring future payment obligations. A decrease in the weighted average discount rate of 50 basis points would increase the postretirement benefit liability by approximately $2 million.
The calculation of other postretirement benefit obligations requires the use of a number of assumptions, including the assumed discount rate between 4.40% and 5.69% at December 31, 2024 for measuring future payment obligations. A decrease in the weighted average discount rate of 50 basis points would increase the postretirement benefit liability by approximately $1 million.
The average cost of materials sold decreased across all of our product lines with the average cost of materials sold for our carbon product lines decreasing more than our other product lines during 2023.
The average cost of materials sold decreased across all of our product lines with the average cost of materials sold for our stainless product lines decreasing more than our other product lines during 2024.
In 2023, the Company paid $127.5 million to acquire BLP, TSA, Norlen, and Hudson, and paid $9.7 million to purchase certain assets from ExOne Operating, LLC. See Note 2: Acquisitions within Part II, Item 8 of this report, for further discussion of the acquisitions.
In 2023, the Company paid $127.5 million to acquire BLP Holdings, LLC, TSA Processing, Norlen Incorporated, and Hudson Tool Steel Corporation, and paid $9.7 million to purchase certain assets from ExOne Operating, LLC. See Note 2: Acquisitions within Part II, Item 8 of this report, for further discussion of the acquisitions. 39 Financing activities.
This method requires the Company to record assets and liabilities of the business acquired at their estimated fair market values as of the acquisition date. Any excess of the cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill.
Purchase Price Accounting: Business combinations are accounted for using the acquisition method of accounting. This method requires the Company to record assets and liabilities of the business acquired at their estimated fair market values as of the acquisition date. Any excess of the cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill.
Tons sold decreased in 2023 overall, with the largest decreases in our stainless flat, aluminum long, and carbon long product lines partially offset by an increase in our stainless, aluminum, and carbon plate shipments.
Tons sold decreased slightly in 2024 overall, with the largest decreases in our carbon long, aluminum long, and aluminum plate product lines largely offset by an increase in our carbon flat shipments.
We repurchased $113.9 million of common stock during the 2023 compared to $50.0 of common stock repurchased in 2022. In the normal course of business with customers, vendors, and others, we have entered into off-balance sheet arrangements, such as letters of credit, which totaled $10.9 million as of December 31, 2023.
We repurchased $51.0 million of common stock during 2024 compared to $113.9 of common stock repurchased in 2023. In the normal course of business with customers, vendors, and others, we have entered into off-balance sheet arrangements, such as letters of credit and surety bonds, which totaled $2 million and $12 million, respectively as of December 31, 2024.
We consider the policies discussed below as critical to an understanding of our financial statements, as application of these policies places the most significant demands on management’s judgment, with financial reporting results relying on estimation of matters that are uncertain.
We consider the policies discussed below as critical to an understanding of our financial statements, as application of these policies places the most significant demands on management’s judgment, with financial reporting results relying on estimation of matters that are uncertain. Inventory valuation : Our inventories are stated at the lower of cost or market.
In 2023, Ryerson experienced a decline in average selling prices of 15.7% and a decline in shipments of 4.2% when compared to 2022 as the period was characterized by normalizing global supply and declining demand during 2023, with higher inflation and high interest rates contributing to slower economic conditions for industrial manufacturing.
In 2024, Ryerson experienced a decline in average selling prices of 9.7% and a decline in shipments of 0.3% when compared to 2023 as the period was characterized by global oversupply and declining demand during 2024, with higher inflation and high interest rates contributing to slower economic conditions for industrial manufacturing.
Below is a reconciliation of cash and cash equivalents to total liquidity: December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Cash and cash equivalents $ 54 $ 39 $ 51 Availability under Ryerson Credit Facility and foreign debt facilities 602 870 690 Total liquidity $ 656 $ 909 $ 741 Below is a reconciliation of total debt to net debt: December 31, 2023 December 31, 2022 December 31, 2021 (In millions) Total debt $ 436 $ 367 $ 639 Less: cash and cash equivalents (54 ) (39 ) (51 ) Net debt $ 382 $ 328 $ 588 Of the total cash and cash equivalents, as of December 31, 2023, $34.2 million was held in subsidiaries outside the U.S. that is deemed to be permanently reinvested.
Below is a reconciliation of cash and cash equivalents to total liquidity: December 31, 2024 December 31, 2023 December 31, 2022 (In millions) Cash and cash equivalents $ 28 $ 54 $ 39 Availability under Ryerson Credit Facility and foreign debt facilities 423 602 870 Total liquidity $ 451 $ 656 $ 909 Below is a reconciliation of total debt to net debt: December 31, 2024 December 31, 2023 December 31, 2022 (In millions) Total debt $ 468 $ 436 $ 367 Less: cash and cash equivalents (28 ) (54 ) (39 ) Net debt $ 440 $ 382 $ 328 Of the total cash and cash equivalents, as of December 31, 2024, $13.4 million was held in subsidiaries outside the U.S. that is deemed to be permanently reinvested.
Gross Profit Year Ended December 31, 2023 2022 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Gross profit $ 1,021.6 20.0 % $ 1,310.1 20.7 % $ (288.5 ) (22.0 )% Gross profit dollars decreased in 2023 compared to 2022 as average selling price decreased faster than the decrease in the average cost of materials sold resulting in a decrease in gross margin.
Gross Profit Year Ended December 31, 2024 2023 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Gross profit $ 834.2 18.1 % $ 1,021.6 20.0 % $ (187.4 ) (18.3 )% Gross profit dollars decreased in 2024 compared to 2023 as average selling price decreased faster than the decrease in the average cost of materials sold resulting in a decrease in gross margin.
Future pension obligations for the Canadian plans were discounted using 4.64% at December 31, 2023. Lowering the discount rate by 50 basis points would increase the pension liability at December 31, 2023 by approximately $15 million.
Future pension obligations for the Canadian plans were discounted using rate between 4.55% and 4.89% at December 31, 2024. Lowering the discount rate by 50 basis points would increase the pension liability at December 31, 2024 by approximately $13 million.
The Company is unable to determine the amount or timing of any such contributions required by ERISA or whether any such contributions would have a material adverse effect on the Company’s financial position or cash flows. Changes in returns on plan assets may affect our plan funding, cash flows, and financial condition.
The Company is unable to determine the amount or timing of any such contributions required by ERISA or whether any such contributions would have a material adverse effect on the Company’s financial position or cash flows.
According to the Metal Service Center Institute, North American service center volumes increased by 1.5% in 2023 compared to 2022. On a North American basis, Ryerson's North American volumes declined 4.8% over the same period.
According to the Metal Service Center Institute, North American service center volumes decreased by 3.0% in 2024 compared to 2023. On a North American basis, Ryerson's North American volumes declined 1.0% over the same period.
In making this determination, we analyze, among other things, our recent history of earnings, the nature and timing of reversing book-tax temporary differences, tax planning strategies, and future income.
In making this determination, we analyze, among other things, our recent history of earnings, the nature and timing of reversing book-tax temporary differences, tax planning strategies, and future income. As of December 31, 2024, the Company had a valuation allowance of $4 million.
Other Expenses Year Ended December 31, 2023 2022 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Interest and other expense on debt $ (34.7 ) (0.7 )% $ (33.2 ) (0.5 )% $ (1.5 ) 4.5 % Other income and (expense), net $ 0.3 — $ (1.3 ) — $ 1.6 (123.1 )% Loss on retirement of debt $ — — $ (21.3 ) (0.4 )% $ 21.3 (100.0 )% Interest and other expense on debt increased in 2023 compared to 2022 primarily due to higher interest rates on credit facility borrowings under our $1.3 billion revolving credit facility (“the Ryerson Credit Facility”) and a higher level of borrowings outstanding under the Ryerson Credit Facility compared to the prior year.
Other Expenses Year Ended December 31, 2024 2023 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Interest and other expense on debt $ (43.0 ) (0.9 )% $ (34.7 ) (0.7 )% $ (8.3 ) 23.9 % Other income and (expense), net $ 4.1 0.1 % $ 0.3 — $ 3.8 1,266.7 % Interest and other expense on debt increased in 2024 compared to 2023 primarily due to a higher level of borrowings outstanding under our $1.3 billion revolving credit facility (“the Ryerson Credit Facility”).
The year over year decreases are a result of the decline in commodity prices and slower economic conditions, 31 To provide greater insight into the Company’s 2023 operating trends apart from the year’s one-time transactions, Ryerson provides adjusted net income and adjusted diluted earnings per share figures, which are not U.S. generally accepted accounting principles (“GAAP”) financial measures, to compliment the reported GAAP net income and diluted earnings per share figures.
To provide greater insight into the Company’s 2024 operating trends apart from the year’s one-time transactions, Ryerson provides adjusted net income (loss) and adjusted diluted earnings (loss) per share figures, which are not U.S. generally accepted accounting principles (“GAAP”) financial measures, to compliment the reported GAAP net income (loss) and diluted earnings (loss) per share figures.
Operating Expenses Year Ended December 31, 2023 2022 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Warehousing, delivery, selling, general, and administrative expenses $ 793.5 15.5 % $ 735.2 11.6 % $ 58.3 7.9 % Gain on sale of assets $ — — $ (3.8 ) (0.1 )% $ 3.8 (100.0 )% Warehousing, delivery, selling, general, and administrative expenses increased $58.3 million in 2023 compared to 2022 with $28.4 million of the increase driven by including the expenses of companies acquired during 2022 and 2023.
Operating Expenses Year Ended December 31, 2024 2023 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Warehousing, delivery, selling, general, and administrative expenses $ 801.2 17.4 % $ 793.5 15.5 % $ 7.7 1.0 % Gain on insurance settlement $ (1.6 ) — $ — — $ (1.6 ) (100.0 )% Restructuring and other charges $ 3.1 0.1 % $ — — $ 3.1 100.0 % Warehousing, delivery, selling, general, and administrative expenses increased $7.7 million in 2024 compared to 2023 with $27.8 million of the increase driven by including the expenses of companies acquired during 2023 and 2024 for the full year periods.
Deferred Tax Amounts At December 31, 2023, the Company had a net deferred tax liability of $136 million comprised primarily of a deferred tax asset of $17 million related to pension liabilities, a deferred tax asset related to postretirement benefits other than pensions of $9 million, deferred tax assets of $7 million related to state, local, and foreign tax loss carryforwards, $93 million related to operating lease liabilities, and $22 million of other deferred taxes relating to accrued compensation and other items, offset by a valuation allowance of $4 million and deferred tax liabilities of $86 million related to fixed assets, $99 million related to inventory, $88 million related to operating lease assets, and $7 million related to intangibles.
Deferred Tax Amounts At December 31, 2024, the Company had a net deferred tax liability of $129 million comprised primarily of a deferred tax asset of $13 million related to pension liabilities, a deferred tax asset related to postretirement benefits other than pensions of $8 million, deferred tax assets of $11 million related to state, local, and foreign tax loss carryforwards, $93 million related to operating lease liabilities, $19 million of other deferred taxes relating to accrued compensation and other items, $11 million of interest limitation carryforward, and $7 million of federal net operating loss carryforward, offset by a valuation allowance of $4 million and deferred tax liabilities of $91 million related to fixed assets, $101 million related to inventory, $87 million related to operating lease assets, and $8 million related to intangibles.
Pension Funding The Company made contributions of $8.8 million in 2023, $6.8 million in 2022, and $23.7 million in 2021 to improve the Company’s pension plans funded status. At December 31, 2023, as reflected in Part II. Item 8, Financial Statements and Supplementary Data, Note 10, pension liabilities exceeded plan assets by $63.9 million.
For further information, see Note 9: Debt in Part II, Item 8 – Financial Statements and Supplementary Data. Pension Funding The Company made contributions of $10.9 million in 2024, $8.8 million in 2023, and $6.8 million in 2022 to improve the Company’s pension plans funded status. At December 31, 2024, as reflected in Part II.
Our net sales include revenue from product sales, net of returns, allowances, customer discounts, and incentives. Cost of materials sold . Cost of materials sold includes metal purchase and in-bound freight costs, third-party processing costs, and direct and indirect internal processing costs.
Sales prices are also primarily driven by market factors such as overall demand and availability of product. Our net sales include revenue from product sales, net of returns, allowances, customer discounts, and incentives. Cost of materials sold . Cost of materials sold includes metal purchase and in-bound freight costs, third-party processing costs, and direct and indirect internal processing costs.
(Dollars and shares in millions, except per share data) 2023 2022 Net income attributable to Ryerson Holding Corporation $ 145.7 $ 391.0 Gain on bargain purchase — (0.6 ) Gain on sale of assets — (3.8 ) Loss on retirement of debt — 21.3 Benefit plan curtailment gain (0.8 ) — Provision (benefit) for income taxes 0.2 (4.3 ) Adjusted net income attributable to Ryerson Holding Corporation $ 145.1 $ 403.6 Diluted earnings per share $ 4.10 $ 10.21 Adjusted diluted earnings per share $ 4.08 $ 10.54 Shares outstanding - diluted 35.6 38.3 Ryerson generated cash from operating activities of $365.1 million in 2023, a decrease compared to $501.2 million generated in 2022.
(Dollars and shares in millions, except per share data) 2024 2023 Net income (loss) attributable to Ryerson Holding Corporation $ (8.6 ) $ 145.7 Gain on insurance settlement (1.6 ) — Restructuring and other charges 3.1 — Pension settlement loss 2.1 — Benefit plan curtailment gain (0.3 ) (0.8 ) Provision (benefit) for income taxes (0.8 ) 0.2 Adjusted net income (loss) attributable to Ryerson Holding Corporation $ (6.1 ) $ 145.1 Diluted earnings (loss) per share $ (0.26 ) $ 4.10 Adjusted diluted earnings (loss) per share $ (0.18 ) $ 4.08 Shares outstanding - diluted 33.2 35.6 Ryerson generated cash from operating activities of $204.9 million in 2024, a decrease compared to $365.1 million generated in 2023.
Inventory valuation : Our inventories are stated at the lower of cost or market. The valuation of our inventories at the lower of cost or market could be subject to certain estimates; however, the measurement is primarily based on historical purchasing and sales information rather than forecasted metals pricing.
The valuation of our inventories at the lower of cost or market could be subject to certain estimates; however, the measurement is primarily based on historical purchasing and sales information rather than forecasted metals pricing. Inventory costs reflect metal and in-bound freight purchase costs, third-party processing costs, and internal direct and allocated indirect processing costs.
Specific plans for reinvestment include funding for future international acquisitions and funding of existing international operations. 39 The following table summarizes the Company’s cash flows: Year Ended December 31, 2023 2022 (In millions) Net income $ 146.4 $ 391.5 Depreciation and amortization 62.5 59.0 Loss on retirement of debt — 21.3 Change in operating assets and liabilities: Receivables 67.9 126.7 Inventories 28.8 39.9 Accounts payable 24.8 (72.1 ) Accrued taxes payable/receivable 23.3 (52.9 ) Tenant improvement allowance 15.9 — Other operating asset and liability balances (22.5 ) (6.0 ) All other operating cash flows 18.0 (6.2 ) Net cash provided by operating activities 365.1 501.2 Acquisitions (137.8 ) (57.0 ) Capital expenditures (121.9 ) (105.1 ) Proceeds from sale of property, plant, and equipment 0.5 8.0 Other investing activities (2.9 ) (5.9 ) Net cash used in investing activities (262.1 ) (160.0 ) Repayment of debt (1.7 ) (321.3 ) Net proceeds from short-term borrowings 69.8 26.1 Net increase (decrease) in book overdrafts (7.1 ) 29.6 Dividends paid to shareholders (24.8 ) (19.9 ) Share repurchases (113.9 ) (50.0 ) All other financing cash flows (10.6 ) (14.6 ) Net cash used in financing activities (88.3 ) (350.1 ) Effect of exchange rates on cash and cash equivalents 0.2 (3.0 ) Net increase (decrease) in cash and cash equivalents $ 14.9 $ (11.9 ) Operating activities.
Specific plans for reinvestment include funding for future international acquisitions and funding of existing international operations. 38 The following table summarizes the Company’s cash flows: Year Ended December 31, 2024 2023 (In millions) Net income (loss) $ (7.3 ) $ 146.4 Depreciation and amortization 77.6 62.5 Deferred income taxes (9.8 ) 16.8 Non-cash (gain) loss from derivatives 7.8 (11.3 ) Change in operating assets and liabilities: Receivables 40.0 67.9 Inventories 119.9 28.8 Accounts payable (5.6 ) 24.8 Tenant improvement allowance — 15.9 Other operating asset and liability balances (33.9 ) 0.8 All other operating cash flows 16.2 12.5 Net cash provided by operating activities 204.9 365.1 Acquisitions (44.1 ) (137.8 ) Capital expenditures (99.6 ) (121.9 ) Other investing activities 1.0 (2.4 ) Net cash used in investing activities (142.7 ) (262.1 ) Net proceeds from short-term borrowings 31.7 69.8 Net decrease in book overdrafts (25.5 ) (7.1 ) Dividends paid to shareholders (24.8 ) (24.8 ) Share repurchases (51.0 ) (113.9 ) All other financing cash flows (17.2 ) (12.3 ) Net cash used in financing activities (86.8 ) (88.3 ) Effect of exchange rates on cash and cash equivalents (1.5 ) 0.2 Net increase (decrease) in cash and cash equivalents $ (26.1 ) $ 14.9 Operating activities.
Operating Profit Year Ended December 31, 2023 2022 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Operating profit $ 228.1 4.5 % $ 578.7 9.2 % $ (350.6 ) (60.6 )% Our operating profit decreased in 2023 compared to 2022 primarily due to the decrease in average selling prices and gross profit and the increase in operating expenses as discussed above.
On a per ton basis, total operating expenses increased to $414 per ton in 2024 from $408 per ton in 2023. 36 Operating Profit Year Ended December 31, 2024 2023 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Operating profit $ 31.5 0.7 % $ 228.1 4.5 % $ (196.6 ) (86.2 )% Our operating profit decreased in 2024 compared to 2023 primarily due to the decrease in average selling prices and gross profit and the increase in operating expenses as discussed above.
Total debt outstanding as of December 31, 2023 consisted of the following amounts: $433.0 million borrowings under the Ryerson Credit Facility, $6.0 million of foreign debt, and $2.2 million of other debt, less $4.7 million of unamortized debt issuance costs.
Total debt outstanding as of December 31, 2024 consisted of the following amounts: $470.0 million borrowings under the Ryerson Credit Facility, $0.7 million of foreign debt, less $3.3 million of unamortized debt issuance costs. Availability under the Ryerson Credit Facility was $376 million and $560 million at December 31, 2024 and December 31, 2023, respectively.
Although the Company believes that the positions taken on filed tax returns are reasonable, it has established tax and interest reserves in recognition that various taxing authorities may challenge the positions taken.
The Company’s income tax provisions are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. Although the Company believes that the positions taken on filed tax returns are reasonable, it has established tax and interest reserves in recognition that various taxing authorities may challenge the positions taken.
Tons sold per ship day were 7,741 in 2023 compared to 8,084 in 2022. 36 Cost of Materials Sold Year Ended December 31, 2023 2022 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Cost of materials sold $ 4,087.1 80.0 % $ 5,013.5 79.3 % $ (926.4 ) (18.5 )% Year Ended December 31, Dollar Percentage 2023 2022 change change Average cost of materials per ton sold $ 2,103 $ 2,471 $ (368 ) (14.9 )% The decrease in cost of materials sold in 2023 compared to the year ago period is primarily due to a decrease in average cost of materials sold per ton and to lower tons sold.
Tons sold per ship day were 7,656 in 2024 compared to 7,741 in 2023. 35 Cost of Materials Sold Year Ended December 31, 2024 2023 $ % of Net Sales $ % of Net Sales Dollar change Percentage change ($ in millions) Cost of materials sold $ 3,764.5 81.9 % $ 4,087.1 80.0 % $ (322.6 ) (7.9 )% Year Ended December 31, Dollar Percentage 2024 2023 change change Average cost of materials per ton sold $ 1,943 $ 2,103 $ (160 ) (7.6 )% The decrease in cost of materials sold in 2024 compared to the year ago period is primarily due to a decrease in average cost of materials sold per ton caused by lower commodity prices.
Our culture is based on our trademarked “say yes, figure it out” mantra as we strive to grow volume and sustainably expand margins by increasing our fabrication business, transactional sales and improving our speed through our use of both tools and analytics.
Ryerson’s 2024 Strategy Achievements Ryerson’s market strategy focuses on providing excellent customer experiences consistently with speed at scale. Our culture is based on our trademarked “say yes, figure it out” mantra. We strive to grow our volume and sustainably expand margins by increasing our fabrication business, transactional sales, and improving our speed through tools and analytics.
Commodity prices were at cyclical highs in 2021 and 2022 before beginning to decline in the second half of 2022. Compared to the year ago period, average selling price decreased for all of our product lines in 2023 with the largest decreases in our carbon flat, stainless flat, and carbon plate products.
Compared to the year ago period, average selling price decreased for all of our product lines in 2024 with the largest decreases in our stainless flat, stainless long, carbon plate, and stainless plate products.
Material Cash Requirements The Company expects to make approximately $441 million in principal payments to satisfy its debt obligations, consisting of $6 million in foreign debt coming due in 2024, $2 million of other debt coming due in 2024, and $433 million for the Ryerson Credit Facility coming due in 2027. Please refer to Part II.
Material Cash Requirements The Company expects to make approximately $471 million in principal payments to satisfy its debt obligations, consisting of $1 million in foreign debt coming due in 2025, and $470 million for the Ryerson Credit Facility coming due in 2027. Please refer to Part II. Item 8, Financial Statements and Supplementary Data, Note 9: Debt for further information.
Ryerson does not currently foresee a need to repatriate earnings from its non-U.S. subsidiaries. Although Ryerson has historically satisfied needs for more capital in the U.S. through debt or equity issuances and a significant portion of the earnings held in foreign jurisdictions is deemed to have been repatriated under the 2017 U.S.
Ryerson does not currently foresee a need to repatriate earnings from its non-U.S. subsidiaries. Although Ryerson has historically satisfied needs for more capital in the U.S. through debt or equity issuances, Ryerson could elect to repatriate additional earnings, which could result in foreign withholding taxes and potential U.S. state income taxes.
The Company anticipates that it will have a minimum required pension contribution of approximately $11.0 million in 2024 under the Employee Retirement Income Security Act of 1974 (“ERISA”), Pension Protection Act in the U.S., and the Ontario Pension Benefits Act in Canada.
Item 8, Financial Statements and Supplementary Data, Note 10, pension liabilities exceeded plan assets by $52.9 million. The Company anticipates that it will have a minimum required pension contribution of approximately $15.2 million in 2025 under the Employee Retirement Income Security Act of 1974 (“ERISA”), Pension Protection Act in the U.S., and the Ontario Pension Benefits Act in Canada.
The total amount of future lease payments is estimated to be $485 million with $48 million for the next 12 months. Please refer to Part II, Item 8 – Financial Statements and Supplementary Data, Note 6: Leases for further information. Purchase obligations with suppliers are entered into when we receive firm sales commitments with certain of our customers.
Please refer to Part II, Item 8 – Financial Statements and Supplementary Data, Note 6: Leases for further information. Purchase obligations with suppliers are entered into when we receive firm sales commitments with certain of our customers. As of December 31, 2024, we had outstanding purchase obligations of approximately $15 million expiring in 2025.
Tax Cuts and Jobs Act, Ryerson could elect to repatriate additional earnings, which could result in foreign withholding taxes and potential U.S. state income taxes. We have not recorded a deferred tax liability for the effect of a possible repatriation of these earnings as management intends to permanently reinvest these earnings outside of the U.S.
We have not recorded a deferred tax liability for the effect of a possible repatriation of these earnings as management intends to permanently reinvest these earnings outside of the U.S.
The changes in earnings per share are due to the results of operations discussed above as 38 well as having fewer shares outstanding in 2023 after the repurchase in 2023 of 3,253,313 shares of common stock, including 2,882,720 shares from Platinum, in addition to the repurchase of 1,700,766 shares of common stock during 2022.
Earnings Per Share The changes in earnings (loss) per share are due to the results of operations discussed above as well as having fewer shares outstanding in 2024 after the repurchase of 2,526,467 shares of common stock during 2024.
During 2022, LIFO income was $58 million related to a decrease in pricing for carbon product lines, partially offset by increases in pricing in stainless and aluminum products as well as the impact of a reduction in carbon tons in inventory, which led to the liquidation of older LIFO layers that were at a higher cost.
During 2024, LIFO income was $53 million related to decreases in pricing for all product lines, with the largest impact from the carbon and stainless products, slightly offset by the liquidation of older LIFO layers for stainless products that were at a net higher cost.
Illustrated in the below table, the 2023 net income attributable to Ryerson Holding Corporation of $145.7 million includes a $0.8 million curtailment gain related to various retirement benefit plans.
Illustrated in the below table, the 2024 net loss attributable to Ryerson Holding Corporation of $8.6 million includes a restructuring charge of $3.1 million, as well as a pension settlement loss of $2.1 million, a $1.6 million gain on an insurance settlement, and a $0.3 million curtailment gain related to various retirement benefit plans, and the related income tax benefit.
The Company's main source of liquidity to fund working capital requirements is borrowings on our credit facility. In 2023, acquisitions and capital expenditures, as well as share repurchases and dividends paid, were in excess of cash from operations, which increased borrowings on the Ryerson Credit Facility.
The Company's main source of liquidity to fund working capital requirements is borrowings on our credit facility. In both 2024 and 2023, we increased credit facility borrowings to fund our acquisitions and capital expenditures. Book overdrafts fluctuate based on the timing of payments. Cash dividends of $24.8 million were paid to shareholders in both 2024 and 2023.
When calculating pension expense for 2023, we assumed the pension plans’ assets would generate a long-term rate of return of 6.05% for the JT Ryerson plan and 3.80% for the Central Steel and Wire Company plan, and between 4.25% and 6.00% for the Canadian plans.
The discount rates used for plans outside the U.S. are based on the yield of long term high quality corporate bonds, the duration of the liability, and appropriate judgment. 43 When calculating pension expense for 2024, we assumed the pension plans’ assets would generate a long-term rate of return of 5.95% for the JT Ryerson plan and 3.85% for the Central Steel and Wire Company plan, and between 4.00% and 5.25% for the Canadian plans.
Our sales volume and pricing are driven by market demand, which is largely determined by overall industrial production and conditions in specific industries in which our customers operate. Sales prices are also primarily driven by market factors such as overall demand and availability of product.
Sales, cost of materials sold, gross profit, and operating expense control are the principal factors that impact our profitability: Net Sales. Our sales volume and pricing are driven by market demand, which is largely determined by overall industrial production and conditions in specific industries in which our customers operate.
The timing of shipment is substantially the same as the timing of delivery to customers given the proximity of our distribution sites to our customers. Revenues associated with products which we believe have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over-time basis.
Revenues associated with products which we believe have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over-time basis. Over-time revenues are recorded in proportion with the progress made toward completing the performance obligation.
If we are unable to generate sufficient future taxable income in certain tax jurisdictions, we may be required to record additional valuation allowances against our deferred tax assets related to those jurisdictions. The Company’s income tax provisions are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities.
The forecasts of future taxable income require assumptions regarding volume, selling prices, margins, expense levels, and industry cyclicality. If we are unable to generate sufficient future taxable income in certain tax jurisdictions, we may be required to record additional valuation allowances against our deferred tax assets related to those jurisdictions.
We analyze our legal matters based on available information to assess potential liability. We consult with outside counsel involved in our legal matters when analyzing potential outcomes.
We analyze our legal matters based on available information to assess potential liability. We consult with outside counsel involved in our legal matters when analyzing potential outcomes. We cannot determine at this time whether any potential liability related to this litigation would materially affect our financial position, results of operations, or cash flows.
Differences between actual plan asset returns and the expected long-term rate of return on plan assets impact the measurement of the following year’s pension expense and pension funding requirements. However, we believe that cash flow from operations and the Ryerson Credit Facility described above will provide sufficient funds to make the minimum required contributions.
Differences between actual plan asset returns and the expected long-term rate of return on plan assets impact the measurement of the following year’s pension expense and pension funding requirements.
Interest payments related to the variable rate debt were estimated using the weighted average interest rate for the respective debt instrument. 41 The Company leases various assets including real estate, trucks, trailers, cars, mobile equipment, processing equipment, and IT equipment. We have noncancelable operating leases expiring at various times through 2043, and finance leases expiring at various times through 2030.
The Company leases various assets including real estate, trucks, trailers, cars, mobile equipment, processing equipment, and IT equipment. We have noncancelable operating leases expiring at various times through 2043, and finance leases expiring at various times through 2031. The total amount of future lease payments is estimated to be $477 million with $49 million for the next 12 months.
We generated net income attributable to Ryerson Holding Corporation of $145.7 million, or $4.10 per diluted share, in 2023. This compares to net income attributable to Ryerson Holding Corporation of $391.0 million, or earnings of $10.21 per diluted share, for 2022.
This compares to net income attributable to Ryerson Holding Corporation of $145.7 million, or earnings of $4.10 per diluted share, for 2023. The year over year decreases are a result of the decline in commodity prices and the effects of contracting industrial manufacturing demand.
Inventory costs reflect metal and in-bound freight purchase costs, third-party processing costs, and internal direct and allocated indirect processing costs. Cost is primarily determined by the LIFO method. We regularly review inventory on hand and record provisions for obsolete and slow-moving inventory based on historical and current sales trends.
Cost is primarily determined by the LIFO method. We regularly review inventory on hand and record provisions for obsolete and slow-moving inventory based on historical and current sales trends. Changes in product demand and our customer base may affect the value of inventory on hand which may require higher provisions for obsolete inventory.
The curtailment is due to a reduction in future years of service resulting from workforce reductions at CSW as the CSW headquarters is closing and operations are moving to a new facility in University Park, IL. The other income and (expense), net in 2022 includes foreign currency translation losses of $1.3 million.
Offsetting this loss is a $1.8 million settlement gain and a $0.3 million curtailment gain related to lump-sum buyouts and a reduction in future years of service for the CSW pension and other post-employment benefit plans as a result of workforce reductions at CSW as the CSW headquarters is closing and operations are moving to a new facility in University Park, IL.
We had cash and cash equivalents of $54.3 million at December 31,2023, compared to $39.2 million at December 31, 2022.
We had cash and cash equivalents of $27.7 million at December 31, 2024, compared to $54.3 million at December 31, 2023. Our total debt outstanding at December 31, 2024 increased to $467.4 million compared to $436.5 million of total debt outstanding at December 31, 2023.
Total Debt Total debt at December 31, 2023 increased $69.5 million to $436.5 million from $367.0 million at December 31, 2022, mainly due to funding new acquisitions in 2023.
Total Debt Total debt at December 31, 2024 increased $30.9 million to $467.4 million from $436.5 million at December 31, 2023, mainly due to funding the acquisition of Production Metals in 2024.
Capital expenditures increased year-over-year to $121.9 million in 2023 compared to $105.1 million in 2022, as the Company continued its investment in a new facility in University Park, Illinois, a project which began in 2022 and expanded and modernized its Shelbyville, Kentucky location in 2023.
Capital expenditures decreased year-over-year as the Company is nearing completion of its investment in a new facility in University Park, Illinois, a project which began in 2022. In 2024, the Company paid $44.1 million to acquire Production Metals.
Material purchases were higher at the end of the fourth quarter of 2023 compared to the end of the fourth quarter of 2022 resulting in an increase in accounts payable in the fourth quarter of 2023. In 2022, average selling prices were 15.1% higher than in 2021 resulting in significantly higher operating profits and higher cash generated from operations.
Material purchases were higher at the end of the fourth quarter of 2023 compared to the fourth quarter of 2022 resulting in an increase in accounts payable in the fourth quarter of 2023. Investing activities. The Company's main investing activities are capital expenditures and acquisitions.
The Company is subject to income taxes in the U.S. and several foreign jurisdictions. The determination of the consolidated income tax expense requires judgment and estimation by management. It is possible that actual results could differ from the estimates that management has used to determine its consolidated income tax expense.
Income Taxes : Our income tax expense, deferred tax assets and liabilities, and reserve for uncertain tax positions reflect our best estimate of taxes to be paid. The Company is subject to income taxes in the U.S. and several foreign jurisdictions. The determination of the consolidated income tax expense requires judgment and estimation by management.
Gross margin contracted by 70 bps from 2022 as decreasing market prices, and therefore selling prices, outpaced the decrease in inventory costs.
Compared to 2023, average selling prices decreased by 9.7% and tons shipped decreased by 0.3%, resulting in a year-over-year revenue decrease of 10.0%. Gross margin contracted by 190 bps from 2023 as decreasing market prices, and therefore selling prices, outpaced the decrease in inventory costs.
We record operating loss and tax credit carryforwards and the estimated effect of temporary differences between the tax basis of assets and liabilities and the reported amounts in the Consolidated Balance Sheets. We follow detailed guidelines in each tax jurisdiction when reviewing tax assets recorded on the balance sheet and provide for valuation allowances as required.
We follow detailed guidelines in each tax jurisdiction when reviewing tax assets recorded on the balance sheet and provide for valuation allowances as required. Deferred tax assets are reviewed for recoverability based on historical taxable income, the expected reversals of existing temporary differences, tax planning strategies, and on forecasts of future taxable income.
We cannot determine at this time whether any potential liability related to this litigation would materially affect our financial position, results of operations, or cash flows. 44 Recent Accounting Pronouncements Recent accounting pronouncements are discussed within Note 1: Summary of Accounting and Financial Policies in Part II, Item 8 Financial Statements and Supplementary Data.
Recent Accounting Pronouncements Recent accounting pronouncements are discussed within Note 1: Summary of Accounting and Financial Policies in Part II, Item 8 Financial Statements and Supplementary Data.
After adjusting for this non-core business transaction and the related income taxes, the adjusted net income attributable to Ryerson Holding Corporation for 2023 is $145.1 million, a decrease of $258.5 million compared to the prior year’s adjusted net income attributable to Ryerson Holding Corporation of $403.6 million which included $21.3 million of expenses related to the redemption of $300.0 million of the 8.50% senior secured notes due 2028 (the “2028 Notes”), a $3.8 million gain on the sale of assets, and a $0.6 million bargain purchase gain related to the acquisition of Ford Tool Steels, Inc., and related income taxes.
After adjusting for these non-core business transactions and the related income taxes, the adjusted net loss attributable to Ryerson Holding Corporation for 2024 is $6.1 million, a decrease of $151.2 million compared to the prior year’s adjusted net income attributable to Ryerson Holding Corporation of $145.1 million which included a $0.8 million curtailment gain related to various retirement benefit plans and related income taxes.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2023, we had 64,819 tons of hot roll coil swap contracts with a net liability value of $1.1 million, 20,319 tons of aluminum swap contracts with a net asset value of $0.9 million, and 1,375 tons of nickel swap contracts with a net asset value of $8.1 million.
Biggest changeAs of December 31, 2024, we had 31,658 tons of hot roll coil swap contracts with a net asset value of $0.9 million, 15,711 tons of aluminum swap contracts with a net liability value of $0.3 million, 298 tons of nickel swap contracts with a net liability value of $0.1 million, 1,319 tons of copper swap contracts with a net liability of $0.7 million, 283,000 gallons of natural gas swap contracts with a net asset value of $0.1 million, and 1,176,000 gallons of diesel fuel swap contracts with a net value of zero.
A hypothetical strengthening or weakening of 10% in the foreign exchange rates underlying the foreign currency contracts from the market rate as of December 31, 2023 would increase or decrease the fair value of the foreign currency contracts by $0.1 million and $0.2 million, respectively.
A hypothetical strengthening or weakening of 10% in the foreign exchange rates underlying the foreign currency contracts from the market rate as of December 31, 2024 would increase or decrease the fair value of the foreign currency contracts by $0.1 and $0.2 million, respectively.
Interest rate risk Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates. We are exposed to market risk related to our fixed-rate and variable-rate long-term debt. As of December 31, 2023 and December 31, 2022, we have no publicly traded debt.
Interest rate risk Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates. We are exposed to market risk related to our variable-rate long-term debt. As of December 31, 2024 and December 31, 2023, we have no publicly traded debt.
We had foreign currency contracts with a U.S. dollar notional amount of $1.6 million outstanding at December 31, 2023 and a fair value of zero. We do not currently account for these contracts as hedges but rather mark these contracts to market with a corresponding offset to current earnings.
We had foreign currency contracts with a U.S. dollar notional amount of $1.6 million outstanding at December 44 31, 2024 and a net asset fair value of $0.1 million. We do not currently account for these contracts as hedges but rather mark these contracts to market with a corresponding offset to current earnings.
We do not currently account for these swaps as hedges, but rather mark these contracts to market with a corresponding offset to current earnings. For the twelve months ended December 31, 2023, the Company recognized a gain of $10.7 million associated with its commodity derivatives.
We do not currently account for these swaps as hedges, but rather mark these contracts to market with a corresponding offset to current earnings. For the twelve months ended December 31, 2024, the Company recognized a gain of $7.0 million associated with its metal and energy commodity derivatives.
The carrying value of our debt was $436.5 million and $367.0 million at December 31, 2023 and December 31, 2022, respectively. The carrying value approximates our fair value due to the short-term nature of the underlying borrowings on the Ryerson Credit Facility. We may use interest rate swaps to manage our exposure to interest rate changes.
The carrying value of our debt was $467.4 million and $436.5 million at December 31, 2024 and December 31, 2023, respectively. The carrying value approximates our fair value due to the short-term nature of the underlying borrowings on the Ryerson Credit Facility. From time to time, we may use interest rate swaps to manage our exposure to interest rate changes.
As of December 31, 2023, we have no outstanding interest rate swaps. Approximately 1% of our debt is at fixed interest rates as of December 31, 2023. A hypothetical 1% increase in interest rates on variable debt would have increased interest expense for the twelve months of 2023 by approximately $4.7 million.
As of December 31, 2024, we have no outstanding interest rate swaps. As of December 31, 2024 , all of our debt is at variable interest rates. A hypothetical 1% increase in interest rates on variable debt would have increased interest expense for the twelve months of 2024 by approximately $5.8 million.
A hypothetical strengthening or weakening of 10% in the commodity prices underlying the commodity derivative contracts from the market rate as of December 31, 2023 would increase or decrease the fair value of the commodity derivative contracts by $2.0 million. 45
A hypothetical strengthening or weakening of 10% in the commodity and energy prices underlying the derivative contracts from the market rate as of December 31, 2024 would increase or decrease the fair value of the derivative contracts by $6.9 million. 45
For the year ended December 31, 2023, the Company recognized zero gain or loss associated with its foreign currency contracts.
For the year ended December 31, 2024, the Company recognized a gain of $0.1 million associated with its foreign currency contracts.
Derivative financial instruments have been used to manage a limited portion of our exposure to fluctuations in the cost of certain commodities. No derivatives are held for trading purposes.
Fuel and gas prices can fluctuate based on input costs, economic conditions, international instability, and supply disruptions. Derivative financial instruments have been used to manage a limited portion of our exposure to fluctuations in the cost of certain metal and energy commodities. No derivatives are held for trading purposes.

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