Ryerson Holding Corporation (RYI): Business Model Canvas [Dec-2025 Updated]

You're looking past the headlines to truly understand the engine room of Ryerson Holding Corporation (RYI) right now, especially with the Olympic Steel merger looming. It's a massive distribution play, but the real value is in the value-added processing and managing commodity swings-you can see that in their Q3 2025 revenue of $1.16 billion and the $13.2 million LIFO expense they booked managing inventory costs. With a footprint of over 110 service centers and a debt load around $500 million, this business model is all about scale, localized service, and digital efficiency. Take a look below; this canvas breaks down precisely how they turn metal inventory into reliable, contractual revenue streams.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Key Partnerships

You're looking at the relationships Ryerson Holding Corporation builds to keep its massive metals distribution engine running smoothly as of late 2025. These partnerships are critical for sourcing, compliance, and getting metal where it needs to go.

Olympic Steel, Inc. (pending merger partner)

The most significant near-term partnership is the definitive all-stock merger agreement with Olympic Steel, Inc., announced on October 28, 2025. This deal is set to create the second-largest North American metals distribution network, with an expected combined enterprise value mentioned as reaching $6.5 billion.

Here are the key terms of this strategic combination:

• Olympic Steel shareholders receive 1.7105 Ryerson shares per Olympic share.
• Post-close, Olympic Steel shareholders are expected to own about 37% of the combined company.
• Current Ryerson stockholders are expected to own about 63.0% on a fully diluted basis.
• The implied value for Olympic Steel shareholders, based on Ryerson's 30-day VWAP on October 24, 2025, was approximately $39.26 per share.
• The transaction is targeted to close in the first quarter of 2026.

The combined entity will boast about 160 facilities across the United States, Canada, and Mexico, up from Ryerson's current approximate 110 locations and 4,300 employees as of Q3 2025.

Global steel and aluminum manufacturers/suppliers

Ryerson Holding Corporation relies on a broad network of global manufacturers and suppliers to feed its inventory. This network supports the material needs that resulted in Q3 2025 net sales of $1.16 billion.

The scale of Ryerson's sourcing network is reflected in its operational footprint:

This vast network is key to maintaining inventory availability, which is a major component of their value proposition.

Assent Compliance Inc. for supplier risk management

To manage the complex and ever-changing compliance landscape, Ryerson partners with Assent Compliance Inc. for its supply chain sustainability management platform. This partnership automates supplier outreach and validates responses against regulations, which is crucial given Ryerson's global operations and customer demands regarding conflict minerals, PFAS, and California's Prop 65.

The efficiency gains from this partnership are quantifiable:

• Ryerson estimates avoiding the need to hire 10 FTEs for data collection.
• Ryerson estimates avoiding the need to hire 10 FTEs to respond to customer queries.
• Total estimated annual savings in salaries and benefits is 20 FTE equivalents.
• The team has responded to approximately 4,900 customer requests with Assent's help over the last two years.

This allows Ryerson's internal team to focus on product specifications and closing deals faster.

Bank of America for Virtual Payables Program

The relationship with Bank of America centers on optimizing working capital through payment solutions like Virtual Payables. This program digitizes B2B payments using single-use virtual cards, helping Ryerson manage its cash conversion cycle, which stood at 68 days at the end of Q3 2025.

The general benefits of the Virtual Payables program include:

• Potential for up to 55 days of extended working capital over traditional Net 30 terms.
• Elimination of check payments.
• Delivering payments to suppliers faster and more reliably.

This helps manage the cash flow implications of the $102 million build in accounts receivable seen in Q1 2025.

Logistics and freight carriers for extensive distribution network

The physical movement of metal relies on a dense network of logistics and freight carriers. This network supports Ryerson's goal of providing localized supply and end-to-end support across its North American footprint.

The company's Q3 2025 performance showed that tons shipped were down 3.2% quarter-over-quarter, indicating the sensitivity of volume to logistics effectiveness and demand conditions. Furthermore, operating expenses increased by 2.3% year-over-year in Q2 2025, partly driven by increased delivery expenses, highlighting the direct cost associated with this partnership category.

Finance: draft 13-week cash view by Friday.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Key Activities

You're looking at the core engine of Ryerson Holding Corporation, the things they absolutely must do well to make money distributing and processing metal. Here's the quick math on what those key activities looked like coming out of the third quarter of 2025.

Value-added processing (cutting, machining, fabrication)

This activity translates raw metal into ready-to-use components for customers. The financial impact of this processing is visible when you compare gross margin metrics.

• Gross margin for Q3 2025 was reported at 17.2%.
• Gross margin, excluding the impact of LIFO (Last-In, First-Out) inventory accounting, was 18.3% for Q3 2025.
• In the first quarter of 2025, expense per ton sold showed a decrease of $32 year-over-year, suggesting operational efficiency gains in processing or distribution.
• Ryerson Holding Corporation has approximately 4,300 employees across its operations.

Global sourcing and inventory management of industrial metals

Getting the right metal at the right time is crucial, especially given the volatility in commodity costs.

• In Q3 2025, Ryerson Holding Corporation shipped 485 thousand tons.
• The average selling price per ton in Q3 2025 was $2,395.
• For the third quarter of 2025, the LIFO expense recorded was $13.2 million.
• As of March 31, 2025, if current cost had been used instead of LIFO, inventories would have been $102 million higher than reported.
• The Q3 2025 revenue mix was approximately 25% stainless, 25% aluminum, and 50% carbon.

Optimizing the North American service center network

The physical footprint is a key resource that requires constant tuning for efficiency.

The company noted continued progress operationalizing capex investments and optimizing assets across the North America service center network in early 2025.

Managing working capital and commodity price risk (LIFO)

Effectively managing the cash tied up in inventory and receivables, while hedging against price swings, is a constant focus.

• Cash conversion cycle at the end of Q3 2025 was 68 days.
• Total debt at the end of Q3 2025 was $500 million, with net debt at $470 million.
• Global liquidity stood at $521 million at the end of Q3 2025.
• For Q4 2025, LIFO expense is projected to be between $10 million to $14 million.
• In Q3 2025, operating cash use was $8.3 million, driven by the net loss generated.

Executing the integration of acquired companies

Growth through acquisition requires integrating new operations into the existing model.

• Ryerson Holding Corporation entered a definitive merger agreement to acquire Olympic Steel, Inc. on October 28, 2025.
• The company achieved $60 million in annualized operating expense reductions in 2024, partially from prior acquisitions.
• The acquisition of Production Metals, LLC was noted in 2024.
• The announced Olympic Steel merger is structured as an all-stock transaction.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Key Resources

You're looking at the core assets Ryerson Holding Corporation uses to run its business as of late 2025. These aren't just line items on a balance sheet; they're the physical and financial muscle behind their distribution and processing model. Honestly, in this industry, scale and immediate access to material are everything, so these resources are critical.

The physical footprint is substantial, giving Ryerson Holding Corporation a real advantage in serving a broad customer base across North America and China. This network is designed to get material to the customer quickly, which is a huge part of their value proposition. Here's a quick look at the scale of their physical and financial anchors as of the third quarter of 2025.

That $521 million in global liquidity as of September 30, 2025, shows they have a healthy cushion to manage working capital swings, especially given the volatility in commodity markets. It was up sequentially from $485 million at the end of the second quarter of 2025.

The product offering itself is a resource, representing the breadth of materials they can source and process for their customers. They maintain a deep stock to meet immediate needs across various manufacturing sectors. This inventory depth is what allows them to serve that large customer base effectively.

• Diverse inventory of metal products: approximately 75,000+ products
• Product categories include: stainless steel, aluminum, carbon steel, and alloy steels
• Limited line of nickel and red metals

When you talk about state-of-the-art processing equipment, you are talking about the capability to add value beyond simple distribution. Ryerson Holding Corporation has been actively investing in this area to improve throughput and service complexity. For instance, they were focused on the start-up, commissioning, and operationalizing of major capital expenditure projects across several key service centers, including locations in Shelbyville, KY, Norcross, GA, Dallas, TX, and Los Angeles, CA. This investment in physical processing capability helps drive efficiency, as seen by the expense per ton sold decreasing by $32 year-over-year in the first quarter of 2025.

Finally, the digital front is a key resource now, too. Ryerson Holding Corporation uses its proprietary e-commerce platform, ryerson.com, to interface with its approximately 40,000 customers. While I don't have specific 2025 platform usage stats right now, having a direct digital channel is defintely a modern necessity for managing orders and customer relationships at this scale.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Value Propositions

You're looking at how Ryerson Holding Corporation delivers value to its customers as of late 2025, right after they announced the merger agreement with Olympic Steel, Inc. on October 28, 2025. This combination is set to solidify their position as the second largest metals service center in North America, targeting over $6.5 billion in combined revenue.

Customized Metal Solutions (tailored processing and fabrication)

Ryerson Holding Corporation positions itself as a value-added processor, meaning the value isn't just in the metal, but in what they do to it before delivery. This involves tailoring the product to the customer's exact needs, which is key for manufacturers who need materials ready for their line. The company emphasizes its operational productivity and the ramp up of capital improvements, such as at the Shelbyville, KY non-ferrous processing center, to enhance these capabilities.

Supply chain simplification and reduced lead times (nearshoring)

The value proposition here centers on making the customer's procurement process easier and faster. While specific lead time reduction percentages aren't published for late 2025, the focus on an intelligent network of service centers suggests a commitment to proximity and speed. The company's operational focus in Q3 2025 included executing on a self-help playbook to manage the business amidst enduring challenges. The acquisition of Olympic Steel is framed as creating a powerful platform, suggesting future supply chain efficiencies and potentially better regional coverage to support nearshoring efforts.

Broad product portfolio: Carbon, Stainless Steel, Aluminum, Alloy, Nickel

Ryerson Holding Corporation offers a wide array of industrial metals, which is a core part of its value proposition for customers seeking a single source. Based on Q3 2025 revenue composition, the distribution mix was heavily weighted toward specific categories:

This mix shows a significant focus on Carbon, though management noted in the Q3 2025 call that Ryerson was underweighted in carbon compared to the industry average of roughly 67% carbon to 33% non-ferrous.

Reliable, localized service via a national/regional service center footprint

Reliability is underpinned by the physical network. Ryerson Holding Corporation operates an intelligent network of branded service centers. As of late 2025, the company has:

• Approximately 4,300 employees.
• Over 110 locations.
• Operations spanning the United States, Canada, Mexico, and China.

This footprint supports localized service delivery. The company's Q3 2025 gross margin was 17.2%, or 18.3% excluding LIFO, demonstrating the margin achieved through this service-based distribution model.

Immediate pricing and lead-times through the digital platform

A key element of modern value delivery is digital access. Ryerson Holding Corporation emphasizes providing immediate pricing and lead-times through its digital platform. While a direct metric on digital adoption or lead-time impact isn't explicitly stated for Q3 2025, the focus on transactional business growth supports this digital push. For instance, transactional sales increased 12% year-over-year in Q1 2025, and the company gained market share for the fifth consecutive quarter through Q2 2025, partially by growing this transactional mix.

The company ended Q3 2025 with $521 million in global liquidity, ensuring they can support the inventory required to meet these immediate demands. Finance: draft 13-week cash view by Friday.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Customer Relationships

You're looking at how Ryerson Holding Corporation manages its diverse customer base as of late 2025, which clearly splits between high-touch, long-term relationships and high-volume, self-service transactions. This dual approach is key to navigating the current market, which saw Q3 2025 revenue hit $1.16 billion, with tons shipped at 485,000 tons.

Dedicated sales and account management for contractual OEM business

The relationships with large Original Equipment Manufacturers (OEMs) are managed through dedicated sales and account teams. This segment appears to be under pressure, as management noted cautious customer behavior in the larger OEM contractual customers book of business during the third quarter of 2025. This relationship type is tied to the portion of revenue recognized over time, which, as of the end of Q2 2025, represented 14% of total revenue, associated with products having no alternative use.

Long-term contracts with large Original Equipment Manufacturers (OEMs)

Ryerson Holding Corporation secures its base demand through these agreements. While specific contract lengths aren't public, the structure implies multi-year commitments that provide stability even when spot demand softens. The company is actively managing through a difficult environment, as evidenced by the Q3 2025 performance where average selling prices were $2,395 per ton, up 2.6% sequentially, despite tons shipped decreasing by 3.2%. This suggests pricing power or contractual pass-throughs in the committed base.

Self-service, transactional model via the ryerson.com e-commerce platform

The transactional segment is a major focus for growth and flexibility. Ryerson Holding Corporation has been increasing its transactional business mix for the fifth consecutive quarter as of Q2 2025. This channel is supported by the ryerson.com platform, which facilitates direct, self-service purchasing. In Q1 2025, transactional sales specifically saw a 12% year-over-year increase. This model aligns with the bulk of the business, where revenue on products with an alternative use accounted for 86% of revenue as of June 30, 2025.

Here's a quick look at how the two primary customer relationship types break down based on the latest available revenue recognition data:

High-touch technical support for complex fabrication projects

For projects requiring specialized processing, the relationship involves high-touch technical support, which is essential for value-added services. This support underpins the ability to command higher pricing, as seen by the Q3 2025 average selling price of $2,395 per ton. This service level helps differentiate Ryerson Holding Corporation from pure commodity distributors.

Key operational metrics reflecting customer engagement and market dynamics:

• Transactional sales increased 12% year-over-year in Q1 2025.
• Q3 2025 tons shipped were 485,000 tons.
• Q4 2025 shipment forecast projects a sequential decrease of 5% to 7%.
• Global liquidity stood at $521 million as of September 30, 2025.
• The company ended Q3 2025 with total debt of $500 million.

Finance: draft 13-week cash view by Friday.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Channels

Ryerson Holding Corporation uses an intelligent network of branded service centers to reach its customers. This network includes over 110 physical service centers and warehouses across the United States, Canada, Mexico, and China.

The company supports this physical footprint with a direct sales approach. Ryerson Holding Corporation has approximately 4,300 employees, many of whom support direct sales and service functions. The focus on direct customer interaction is supported by growth in transactional business, which saw transactional sales increase by 12% year-over-year in the first quarter of 2025.

The e-commerce platform, ryerson.com, supports online ordering as part of its overall channel strategy. While specific revenue figures for the platform aren't detailed, the overall channel effectiveness is reflected in the total tons shipped across the network. The company is focused on operational productivity, with expense per ton sold decreasing by $32 year-over-year in the first quarter of 2025.

Logistics capacity, utilizing both company-owned and third-party fleets, moves significant volume through these channels. For example, in the first quarter of 2025, Ryerson Holding Corporation shipped 500,000 tons. Shipments were 485,000 tons in the third quarter of 2025. This movement of material is central to delivering the value-added processing and distribution services. The company is continuing the start-up and commissioning of major capital expenditure projects at service centers in locations like Shelbyville, KY, Norcross, GA, Dallas, TX, and Los Angeles, CA, to optimize these assets.

Here's a look at the volume moved through the distribution channels for the first three quarters of 2025:

The network of over 110 locations provides the physical reach for these channel activities.

You should track the ongoing capital improvements as they directly impact the efficiency of these physical channels. Finance: draft 13-week cash view by Friday.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Customer Segments

You're looking at how Ryerson Holding Corporation segments its diverse customer base, which spans about 40,000 customers across 107 facilities in North America and four in China as of early 2025. The company serves everyone from small local shops to massive international Original Equipment Manufacturers (OEMs).

The breakdown of Ryerson Holding Corporation's customer base by end market, based on the 2024 revenue figures, gives you a clear picture of where the bulk of the sales volume originates. For context, Ryerson Holding Corporation's annual revenue in 2024 was $4.60B.

Original Equipment Manufacturers (OEMs) with contractual needs

This group represents Ryerson Holding Corporation's larger, often more predictable, program business. While not broken out as a single segment in the end-market data, these customers are typically embedded within the major categories like Industrial Machinery & Equipment and Commercial Ground Transportation. You saw evidence of this segment's nature in the first quarter of 2025, where revenue performance was 'partially offset by weaker-than-expected demand among larger program accounts.' This suggests that contractual volume can be lumpy or subject to customer capital expenditure cycles. Ryerson Holding Corporation is actively working on modernizing its service center network, which CEO Eddie Lehner noted is aimed at improving earnings quality over time, likely to better serve these long-term partners.

Metal fabricators and machinery manufacturers

This is a core group, with Metal Fabrication & Machine Shops accounting for 23% of 2024 revenue, or about $1.058B. The Industrial Machinery & Equipment segment adds another 16%, or roughly $0.736B of 2024 revenue. These customers rely on Ryerson Holding Corporation for a variety of metals, including stainless steel, aluminum, and carbon steel.

Construction and heavy equipment producers

This specific group likely falls under the broader Industrial Machinery & Equipment category, which represented 16% of 2024 revenue. The demand from this segment is tied to broader economic activity and infrastructure spending. Ryerson Holding Corporation's ability to process nearly 80% of the materials it sells helps it meet the specific fabrication needs of this customer type.

Small-to-midsize businesses (SMBs) using transactional spot-buys

This segment is characterized by its reliance on transactional sales, which are typically smaller, non-contractual orders. Ryerson Holding Corporation showed strength here, as transactional sales increased by 12% year-over-year in the first quarter of 2025. This growth in transactional volume is a key indicator of market share gains in this highly fragmented part of the market, where competition is often based on price, service, and timely delivery. The company serves approximately 40,000 customers, a large portion of whom are these smaller, local fabricators.

• Ryerson Holding Corporation serves approximately 40,000 customers.
• Transactional sales grew 12% year-over-year in Q1 2025.
• The company operates across North America and China, with international locations accounting for 10.0% of consolidated 2024 net sales, or $457.6 million.
• In Q3 2025, Ryerson Holding Corporation generated revenue of $1.1615 billion.

Finance: review the Q3 2025 revenue mix against the 2024 percentages to see if the transactional growth translated into a higher percentage for the SMB-related segments by year-end.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Ryerson Holding Corporation's operations as of late 2025. The cost structure here is dominated by the materials themselves, which makes managing commodity price swings the single biggest factor in profitability.

Cost of Goods Sold (COGS) is the primary cost driver, heavily influenced by metal commodity prices, especially for stainless steel and aluminum, where price inflation was noted in Q3 2025. While the exact COGS figure isn't provided in isolation, the impact is visible through the gross margin performance. For instance, Ryerson Holding Corporation's gross margin in Q3 2025 was reported at 17.2%.

The accounting method used to manage inventory cost volatility introduces specific non-operating expenses that you need to track. The LIFO expense (Last-In, First-Out) was a direct reflection of this commodity pressure, totaling $13.2 million in the third quarter of 2025. This was consistent with the expense recorded in the second quarter of 2025.

Operating costs are managed tightly, though they still represent a substantial outlay. The Operating expenses, which include warehousing, delivery, selling, general, and administrative (SG&A) costs, totaled $200.5 million for the third quarter of 2025. This figure actually represented a sequential decrease of 1.5% compared to the second quarter of 2025, driven by lower variable expenses.

Here's a quick look at the key cost components and related balance sheet items from the third quarter of 2025:

On the investment side, Ryerson Holding Corporation is managing its long-term spending carefully. Capital expenditures (CapEx) are targeted at $50 million for the full-year 2025. This level follows a record three-year investment cycle and focuses on operationalizing final components of those modernization projects while returning to a more normalized investment pace.

Financing costs are tied directly to the balance sheet leverage. The total debt stood at $500 million at the close of the third quarter of 2025, with net debt at $470 million. The cost of servicing this debt, reflected in the Interest and other expense on debt for Q3 2025, was $10.3 million.

You should keep an eye on these operational expenses, as they are a key area management can control:

• Warehousing and delivery costs are variable with shipment volumes.
• SG&A management is a focus, showing a sequential decrease in Q3 2025.
• The company is managing its asset base to reduce future maintenance CapEx.

Finance: draft 13-week cash view by Friday.

Ryerson Holding Corporation (RYI) - Canvas Business Model: Revenue Streams

The primary engine for Ryerson Holding Corporation revenue comes from the sales of processed and unprocessed industrial metals, which is the core of their distribution business. You saw this reflected clearly in the third quarter of 2025, where the company generated net sales of $1,161.5 million, which was in-line with their guidance for that period. This revenue was achieved even while facing protracted weak demand and tariff pricing conditions in the market.

To give you a clearer picture of the Q3 2025 performance driving that top line, here are the key operational metrics:

The composition of that revenue stream shows a clear dynamic between different customer types. Transactional sales, which represent the spot market business, have been a definite area of strength for Ryerson Holding Corporation. This segment has been growing, with the transactional business mix increasing for the fifth consecutive quarter as of Q2 2025. For instance, in the first quarter of 2025, transactional sales increased by 12% YoY. This self-help driven transactional field business was noted as pulling the plow, even as other areas struggled.

Conversely, the contractual sales stream to large OEM customers has been under pressure. Areas of particular weakness in Q3 2025 included OEM contract shipments. Customer activity was described as turning increasingly cautious, especially within that larger contractual book of business during the second quarter of 2025.

Ryerson Holding Corporation also generates revenue from value-added service fees. These services include things like cutting, forming, and assembly, which add margin to the base metal sales. While specific revenue percentages for these services aren't broken out in the headline figures, they are integral to the value proposition. The company continues to progress on operationalizing new investments made over the past three years, which supports the efficiency and delivery of these services.

The commitment to shareholders through dividends is also supported by these revenue streams. Ryerson Holding Corporation declared a fourth-quarter 2025 dividend of $0.1875 per share, which translated to a cash return of $6.0 million in the third quarter of 2025.

You can see the revenue sources broken down by activity type here:

• Sales of processed and unprocessed industrial metals form the base revenue.
• Transactional sales (spot market) are growing, increasing for five straight quarters through Q2 2025.
• Contractual sales to large OEM customers faced weakness in Q3 2025.
• Value-added service fees support the overall margin structure.

Finance: draft 13-week cash view by Friday.