Ryerson Holding reported third-quarter revenue of $2,177.8 million on October 28, topping the analysts’ average estimate of $1,976.0 million by 10.2%. Operating margin reached 2.4% of sales, up 2.5 percentage points from an operating margin of −0.1% in the third quarter of 2025, even as the business kept using cash.

Revenue beat forecasts, but the merger explains most of the gap

The $2,177.8 million figure cleared the analysts’ average estimate of $1,976.0 million by 10.2%.

Net sales rose 87.5% year on year, including Olympic Steel, while growth from the previous quarter was up 8.6%.

Growth is the fastest in two years, and margins are recovering

Revenue rose 8.6% from the second quarter’s $2,006.2 million, with average selling prices up 7.2% sequentially and tons shipped up 1.2%.

The longer run tells a more mixed story. Revenue’s five-year compound annual growth rate was 5.7%. Operating margin had averaged just 1.0% across the preceding quarters, against the 2.4% posted this quarter, so the current level sits well above its own recent norm, even though gross margin barely moved: 17.2% this quarter against 17.2% a year earlier.

Fourth-quarter guidance: slower shipments, steadier prices

Management’s outlook for the fourth quarter points to a seasonal pullback. Net income is guided to $16.0 million to $20.0 million, or 0.30 to 0.38 per diluted share, and adjusted EBITDA excluding LIFO is guided to $100.0 million to $104.0 million, of which Olympic Steel is expected to contribute a slice of that total.

The third quarter itself ran well ahead of what management had told investors to expect. The company’s guidance for the third quarter had called for adjusted EBITDA excluding LIFO of $88 million to $92 million; the actual figure came in at $115.0 million, with Olympic Steel’s contribution also exceeding its own guided range.

What drove the quarter, by product

Aluminium sales rose to $453 million from $287 million, and stainless steel sales rose to $453 million from $271 million, though management noted that stainless and aluminium prices faced downward pressure late in the quarter as nickel supply restrictions eased and aluminium supply expectations began to normalise.

Cash flow and leverage: the other side of the growth

Operating cash flow fell to −$18.2 million in the quarter, against $24.7 million generated a year earlier, as net income growth was offset by higher working capital tied to the larger revenue base. Free cash flow was down at −$39.5 million, against $11.9 million a year earlier. On a trailing-twelve-month basis, free cash flow margin was down at −2.7%, placing it at the 3.70 percentile of the company’s own history, among the weakest readings the business has recorded.

Leverage nonetheless improved on an EBITDA basis: net debt stood at 3.2 times trailing adjusted EBITDA excluding LIFO, down from 4.0 times in the second quarter, as earnings growth outpaced the rise in debt.

Synergies are ahead of schedule, risks are largely unchanged

Management said it realised merger synergy benefits in the quarter at an annualised pace that already exceeds the first-year target set when the deal closed, with the longer-term target still in view.

What this quarter’s margin recovery means for Ryerson’s model value

This quarter’s operating margin reached 2.4%, up 2.5 percentage points from a year earlier, while trailing-twelve-month revenue growth stands at 53.2%, in the 94th percentile of the company’s own history.

Three things to track before the next report

Management expects to realise further synergy benefits in the fourth quarter, adding to cumulative realisation for the year as it works toward the merger’s longer-term target. The board declared a quarterly dividend, with payment scheduled for December to shareholders meeting the record-date requirement earlier that month.