Tree Island Steel Announces Third Quarter 2025 Results

Executive Summary

• Tree Island Steel reported a material decline in revenue and earnings for both the three‑month and nine‑month periods ended September 30, 2025, driven primarily by U.S. tariffs on wire products.
• Net loss widened to $(2.1) M for Q3 2025 (vs. $(1.8) M YoY) and to $(2.1) M for the nine‑month period (vs. a profit of $0.6 M in the same period last year).
• Adjusted EBITDA fell sharply to $201 K for Q3 2025 (down from $6 K YoY) and to $4.5 M for the nine‑month period (down from $6.0 M YoY).

Key Details

• Revenue:
• Q3 2025: $36.8 M, down $14.8 M (−28%) vs. $51.6 M in Q3 2024.

• Nine months ended Sep‑30 2025: $129.4 M, down $32.8 M (−20%) vs. $162.2 M in the prior year.

• Gross Profit:

• Q3 2025: $1.8 M (down $0.2 M YoY).

• Nine months ended Sep‑30 2025: $9.6 M (down $1.9 M YoY).

• Adjusted EBITDA:

• Q3 2025: $201 K (vs. $6 K in Q3 2024).

• Nine months ended Sep‑30 2025: $4.464 M (vs. $6.029 M in the same period 2024).

• Operating Income (Loss):

• Q3 2025: $(1.103) M (vs. $(1.289) M YoY).

• Nine months ended Sep‑30 2025: $258 K (vs. a loss of $(1.468) M in 2024).

• Net Loss:

• Q3 2025: $(2.141) M (vs. $(1.846) M YoY).

• Nine months ended Sep‑30 2025: $(2.082) M (vs. a profit of $0.547 M in 2024).

• Dividends per Share:

• Q3 2025: $0.015; nine‑month total $0.045 (down from $0.090 for the same period 2024).

• Key Drivers:

• U.S. tariffs on Canada‑to‑U.S. wire sales reduced U.S. volumes.
• Strategic withdrawal from unprofitable product lines mitigated some impact but did not offset revenue loss.

• Higher average selling prices in certain categories partially offset volume declines.

• Management Comment:

• “We continue to navigate the challenges posed by U.S. tariffs on commodity galvanized wire,” – Nancy Davies, Chief Operating Officer.

Notable Quotes

• “We continue to navigate the challenges posed by U.S. tariffs on commodity galvanized wire.” – Nancy Davies, COO, Tree Island Steel.