By Katherine Hamilton
Ryerson shares rose after the company said it has synergies opportunities with its new merger and expects demand to improve.
The stock rose 14% to $27.30 on Friday. Shares are up 12% over the past 12 months.
Chief Executive Eddie Lehner told analysts synergies related to the merger with Olympic Steel will help Ryerson deleverage its debt. The company expects the merger will have $120 million in annual run-rate synergies and deleverage, Lehner said.
The industrial metals processor closed its merger deal with Olympic Steel earlier this month.
"We just took a major quantum leap forward when it comes to growth through the merger. So we want to de-lever. We want to get the synergies," Lehner said.
In the first quarter, Ryerson is seeing more price increases filter into a favorable demand environment. Because of this, management expects gross margin recovery in 2026.
It expects gross margins will expand in the first quarter and expects to realize improved operating leverage as demand comes back.
The merger with Olympic Steel is expected to bring revenue to $1.52 billion to $1.58 billion in the first quarter.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
February 20, 2026 15:43 ET (20:43 GMT)
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