Ryerson Holding Corp (NYSE:RYI) saw its stock price surge 5.22% in intraday trading, as investors responded positively to the company's strong first-quarter 2025 earnings report. The metal service center operator demonstrated robust sales growth and market share gains, despite facing some headwinds in certain segments.

The company reported a 12.7% increase in net sales for Q1 2025 compared to the previous quarter, reaching $1.14 billion. Ryerson outperformed the industry average with a 14% increase in North American shipments, surpassing the sector by 3 percentage points. The firm also made significant strides in working capital management and gained market share in the spot transactional market. CEO Eddie Lehner highlighted the company's progress towards its $60 million expense reduction target, achieving a $32 expense per ton reduction year-over-year.

Despite the positive sales performance, Ryerson faced some challenges. The company reported a net loss of $5.6 million or $0.18 per diluted share in Q1 2025, slightly higher than the $4.3 million loss in the prior quarter. Gross margin contracted by 100 basis points to 18% due to rising commodity prices and lagging contract price adjustments. The stainless steel market remained a headwind, with depressed conditions affecting the company's performance.

Looking ahead, Ryerson management expressed optimism about ongoing capital investments aimed at modernizing its service center network, which are expected to improve earnings quality. The company is also seeing positive trends in its e-commerce platform, Ryerson.com 3.0, with increased transactional customer visits and sales. As these initiatives continue to develop and market conditions potentially improve, investors appear confident in Ryerson's ability to navigate challenges and capitalize on growth opportunities in the metal service center industry.