Tree Island Steel Announces Full Year 2025 Results

Executive Summary

• Tree Island Steel reported a significant decline in revenue for both Q4 2025 (‑28%) and the full year 2025 (‑22%) versus 2024, driven by reduced U.S. sales volumes from expanded tariffs and strategic product line withdrawals.
• Gross profit fell to $9.5 M (down $2.3 M YoY) and adjusted EBITDA decreased to $3.0 M, reflecting lower sales and a 27% workforce reduction aimed at cost management.
• The company paid quarterly dividends of $0.015 per share in 2025 but announced a suspension of dividend payments for 2026 due to ongoing economic uncertainty.

Key Details

• Revenue (Q4 2025): $32.4 M vs. $44.8 M in Q4 2024 – a decline of $12.4 M (‑28%).
• Full‑Year Revenue 2025: $161.8 M vs. $207.0 M in 2024 – down $45.2 M (‑22%).
• Gross Profit 2025: $9.5 M vs. $11.8 M in 2024 – decrease of $2.3 M.
• Adjusted EBITDA 2025: $3.0 M vs. $4.3 M in 2024 – decline of $1.3 M.
• Workforce Reduction: Implemented a 27% reduction in staff as part of cost‑management initiatives.
• Dividends: Paid quarterly dividends of $0.015 per share during 2025; dividend payments suspended for 2026.
• Operating Loss (Q4 2025): $(2,957) K vs. $(3,157) K in Q4 2024.
• Net Loss (Full Year 2025): $(5,328) K vs. $(4,098) K in 2024; loss per share increased to $(0.21) from $(0.16).
• Key Drivers: Lower U.S. sales volumes due to expanded tariffs on wire products and withdrawal from unprofitable product lines; offset partially by growth in Canadian sales and higher average selling prices.

Notable Quotes

“We continue to focus on strengthening our position in the Canadian market as we navigate the challenges posed by U.S. tariffs,” – Nancy Davies, Chief Operating Officer.