Schnitzer Steel Industries Inc. SCHN reported a third-quarter FY23 revenue decline of 19.9% year-over-year to $809.61 million, missing the consensus of $823.95 million. Adjusted EPS was $0.67, beating the consensus of $0.64. Adjusted EBITDA was $56 million (-52.9% Y/Y), and the margin contracted by 486 bps to 6.9%. Q3 adjusted EBITDA per ferrous ton of $48, compared to $105 in 3Q22. Average net selling prices for ferrous and nonferrous products increased sequentially by 13% and 2%, reflecting stronger demand for recycled metals. Sales volumes for finished steel products increased by 30%, benefiting from seasonally stronger demand for finished steel. Rolling mill utilization reached 97% in the quarter. Q3 operating cash outflow was $(21) million, as cash flows associated with higher profitability were more than offset by increased working capital. Metal margins benefited from shipments contracted before market prices began to soften in the second half of the quarter.