#Canada #Toronto #Russel Metals #Kloeckner #Canadian Steel

Russel Metals Reports Strong Financial Results for 2025

Russel Metals Inc. (TSX: RUS) has released its financial results for the fourth quarter and full year ended December 31, 2025. The company achieved substantial revenue growth, reporting total revenues of CAD 4.6 billion for 2025, which marks an impressive 9% increase from 2024. The fourth quarter of 2025 alone contributed revenues of CAD 1.1 billion, reflecting a 5% uptick from the same quarter in the previous year.

Key financial highlights include:

• - EBITDA of CAD 337 million for the year and CAD 69 million for Q4, representing a 13% and 12% increase year-over-year, respectively.
• - A notable acquisition of seven service centers from Kloeckner Metals Corporation, completed on December 31, 2025, for approximately USD 95 million.
• - Share repurchases amounting to CAD 86 million and dividends totaling CAD 96 million paid throughout the year.

Detailed Analysis of Financial Performance

Throughout 2025, Russel Metals maintained a robust capital structure, ending the year with a net debt to invested capital ratio of approximately 10% and a liquidity level of CAD 515 million. The company’s strategic focus on internal investment initiatives and acquisitions has begun to pay dividends, with more than 1.5 million tons shipped throughout the year, a staggering 15% increase over the previous record set in 2024.

The company's average gross margin percentage for Q4 stood at 21.2%, a notable rise of 80 basis points compared to Q4 2024. For 2025, the average gross margin reached 21.8%, indicating a solid performance driven by favorable market conditions and continued investments in value-added processing.

Looking at the quarterly results, the company experienced a typical seasonal decline in its Q4 revenue, down from CAD 1.2 billion in Q3. Nonetheless, improvements were noted in overall EBITDA, signaling a positive operational trend despite the usual seasonal fluctuations.

Focus on Acquisitions and Future Growth

The completion of the Kloeckner acquisition promises to bolster Russel Metals’ presence in the U.S. market, expanding to over 50% of total revenues from U.S. operations. This strategic move is projected to increase revenues by approximately USD 500 million annually and enhance the company's competitive edge in vital regions including Florida, Georgia, and Texas.

Investment in capital expenditures was CAD 74 million in 2025, with plans to continue at this pace for the next two years as Russel Metals pursues further opportunities for internal growth. The company aims to modernize facilities and enhance operational efficiencies to increase its margins and market share.

Commitment to Shareholder Value

Russel Metals remains dedicated to returning capital to its shareholders through a balanced approach of dividends and share repurchases. The company announced a modest increase in the quarterly dividend to CAD 0.43 per share in the first quarter of 2025. With total dividend payments of CAD 96 million this past year, the firm demonstrated an ongoing commitment to providing value to shareholders despite a slight decrease compared to 2024.

Market Outlook and Future Expectations

As 2025 comes to a close, Russel Metals is optimistic about market conditions moving into 2026, hoping for price stabilization in steel and aluminum, which has been affected by various tariffs. Early indications show an improved market tone and increased steel prices, presenting further growth opportunities for the upcoming fiscal period.

Investors are encouraged to join the company's upcoming conference call on February 12, 2026, where management will delve deeper into the results and provide additional insights on future projections.

In conclusion, Russel Metals’ strong financial performance in 2025, underscored by successful strategic acquisitions and disciplined operational management, positions the company favorably as it moves forward into 2026 and beyond. With a strong focus on growth and shareholder returns, Russel Metals continues to solidify its position as a leading player in the North American metals market.