RUSSEL METALS ANNOUNCES 2025 SECOND QUARTER RESULTS

Executive Summary

• Russel Metals Inc. reported strong financial results for the second quarter of 2025, with revenues reaching $1.2 billion (up 3% from Q1 2025) and EBITDA increasing 26% to $108 million.
• The company returned $47 million to shareholders during the quarter, comprising $22 million in share buybacks and $24 million in dividends, while maintaining a strong liquidity position of $566 million.
• Management highlighted favorable market conditions driven by higher metal prices and margins, though they anticipate some margin moderation and seasonal shipment reductions in the third quarter.

Key Details

• Financial Performance (Q2 2025):
  • Revenues: $1.2 billion (up 3% from Q1 2025; highest level since mid-2022).
  • EBITDA: $108 million (up 26% from Q1 2025; up from $86 million in Q2 2024).
  • EBITDA Margin: 9.0% (up from 7.3% in Q1 2025).
  • Net Income: $60.4 million.
  • Earnings Per Share (EPS): $1.07 (up 43% from Q1 2025; up from $0.84 in Q2 2024).
  • Annualized Return on Capital: 20% (up from 15% in Q1 2025).
• Six-Month Performance (Ended June 30, 2025):
  • Revenues: $2.38 billion.
  • EBITDA: $194 million.
  • Net Income: $103.4 million.
  • EPS: $1.82.
• Capital Allocation & Shareholder Returns:
  • Share Buybacks: Purchased and cancelled 0.5 million common shares at an average price of $42.11 for total consideration of $22 million.
  • Dividends: Paid $24 million ($0.43 per share). Declared next quarterly dividend of $0.43 per share, payable September 15, 2025, to shareholders of record on August 28, 2025.
  • Total Capital Returned in Q2: $47 million.
• Operational Updates:
  • Metal Service Centers generated near-record shipments despite severe weather and tariff-related uncertainty.
  • Energy Field Stores segment saw higher revenues, margins, and operating profit compared to Q1 2025.
  • Completed extension of bank debt facility, removing the springing lien provision and extending maturity to 2029.
  • Completed system integrations for former Samuel branches onto the ERP platform.
  • Advanced initiatives in Western Canada to rationalize footprint and streamline operations.
• Market Conditions & Outlook:
  • Steel plate and sheet prices were up 33% and 28%, respectively, compared to December 31, 2024.
  • Aluminum mid-west price was up 28% compared to December 31, 2024.
  • Canadian dollar strengthened from US$0.6956 to US$0.7330, impacting U.S. operations (reduction in operating income of ~$2 million and shareholders' equity of ~$55 million).
  • Q3 Outlook: Expect margin moderation due to lag effects of higher selling prices and lower cost inventories; expect seasonal reduction in shipment levels.
• Capital Expenditures:
  • Q2 2025: $16 million invested in capital expenditures.
  • Six Months Ended June 30, 2025: $45 million invested in capital expenditures.

Notable Quotes

• "Our second quarter 2025 results reflected a continuing improvement of revenues, margins and EBITDA, both on a consolidated basis and across most of our business segments. Overall market conditions were generally favourable as we benefited from higher metal prices and margins as well as relatively steady demand."
• "The metal service centers generated near record shipments in the second quarter, notwithstanding some severe weather impacts and the market uncertainty related to the ongoing tariff dynamic."