Company: ZEUS
Filing Date: 2025-10-28
Form Type: 425
Source: 0001193125-25-253626
Chunk: 7

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-28
Form: 425
Chunk 7
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| Net cash provided by (used in) operating activities                                       |     |   $(8.3) |     |    $23.8 |     |   $134.6 |     | $(32.1) |     | $(142.9) |     |  $(25.7) |     |   $112.7 |     | $(138.4) |

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Management Commentary

Eddie Lehner, Ryerson’s President, Chief Executive Officer & Director, said, “During the third quarter, we executed on our self-help playbook, delivering on perennial service center fundamentals of speed, availability, consistency, and on-time-delivery as we effectively managed the business amidst a procession of challenges that have endured for 36 months running. As the Purchasing Manager's Index (PMI) continues to live at recessed levels for 33 out of the past 36 months and MSCI (Metals Service Center Industry) demand has declined year over year, it is a buyer’s market evidenced by discounting and smaller orders sizes. Areas of particular weakness in the quarter were OEM contract shipments and carbon steel margin compression. Areas of strength were transactional sales growth and further operationalization of new investments made over the past three years. We generated revenue and shipments within our guidance range while reducing debt, taking out non-value-added expenses, and managing net working capital efficiently. I would like to thank all of my colleagues for their safe, productive and determined efforts throughout the quarter and year-to-date as we position Ryerson for better times ahead.”

Third Quarter Results

Ryerson generated net sales of $1.16 billion in the third quarter of 2025, a decrease of 0.7% compared to the prior quarter but within our guidance range. Average selling prices increased by 2.6% while tons shipped decreased by 3.2% quarter-over-quarter. Third quarter revenue performance reflects tariff supported pricing for our carbon and aluminum products partially offset by weak demand conditions.

Market conditions placed pressure on gross margin during the third quarter, resulting in a 70 basis point contraction to 17.2%, compared to 17.9% for the second quarter of 2025. LIFO expense recorded for the third quarter was consistent with that of the second, $13.2 million, reflective of continued commodity price inflation in our stainless steel and aluminum product categories during the period. Excluding the impact of LIFO, gross margin contracted by 70 basis points to