Curtis Jensen's questions to Ryerson Holding Corp (RYI) leadership • Q4 2024
Question
Curtis Jensen questioned why net debt reduction was not more explicitly stated as a capital allocation priority given the company is outside its leverage target, and asked if lease liabilities are part of the leverage calculation in its bank agreements.
Answer
President and CEO Edward Lehner affirmed that net debt reduction is a priority and that the company expects to lower its leverage throughout 2025 as CapEx investments become operational. CFO Jim Claussen clarified that lease liabilities are not factored into the leverage ratio calculation for their bank agreements, which are primarily based on availability and borrowing base.