#Canada #Toronto #Russel Metals #EBITDA #Kloeckner Metals

Russel Metals' Impressive Third Quarter Results for 2025

On November 5, 2025, Russel Metals Inc. released its financial results for the quarter ending September 30, 2025. The company has reported substantial revenues totaling $1.2 billion, coupled with an EBITDA of $75 million. Earnings per share reached $0.63, illustrating a solid performance despite market fluctuations. These findings indicate a 10% increase in revenue compared to the same nine-month period last year.

The past quarter featured significant developments not only in financial metrics but also in strategic business movements. Russel Metals has emphasized an ongoing improvement in key performance indicators. For the first nine months of 2025, revenues were $3.5 billion, which is a notable rise from $3.2 billion in the previous year. Gross margins showed enhancement, growing to 22.0% against 21.0% in the comparative period of 2024.

The company's operational efficiency, particularly within its metal service centers, has resulted in a significant increase in shipments, which jumped by 21% compared to the same period last year, influenced strongly by recent acquisitions.

In September 2025, Russel Metals announced several business improvement measures aimed at optimizing its operations in Western Canada. Among these were transactions involving the rationalization of excess locations and significant property sales, including the closure of operations in British Columbia. By selling properties in Delta and Saskatoon, the company anticipates more than $40 million in cash proceeds.

A major highlight is Russel Metals' agreement to acquire seven metal service center locations from Kloeckner Metals Corporation for approximately $118.6 million. This move aligns with Russel's pursuit to strengthen its presence in key U.S. markets, particularly enhancing ties in Florida, Georgia, Texas, and the Carolinas. Upon closing, this acquisition is expected to bolster revenues by $500 million, pushing U.S.-based business contributions to over 50% of total revenue.

In Q3 of 2025, while the company reported an EBITDA of $75 million, which marked an increase from $67 million in Q3 2024, there was a slight decline from the $108 million reported in Q2 2025. Additionally, although earnings per share trended upward compared to Q3 2024, they did not match the previous quarter's figures, signaling some volatility in operational performance.

The most recent results were somewhat tempered by a $4 million restructuring charge related to the Delta service center closure and $2 million in non-recurring expenses linked to tariffs imposed by Canadian authorities on imported steel. Russel has initiated an appeal for the tariff refunds due to recent adjustments by the government. Conversely, a recovery of $2 million related to stock-based compensation did positively influence results when compared to previous quarters.

The third quarter's revenue figures remained consistent with those from Q2, indicating the stability of Russel Metals amidst fluctuating market conditions. Despite external pressures, the company's operational strategies and sales from recent acquisitions appear to stabilize growth trajectories, fostering confidence in future performance.

Russel Metals not only plans to optimize its capital structure but will also continue to return capital to shareholders through dividends and share buybacks. In Q3 2025 alone, $24 million was allocated for dividends, with 0.3 million shares repurchased at an average price of $41.43, reflecting the company's commitment to enhancing shareholder value.

Looking forward, the outlook for Russel Metals remains cautiously optimistic. Market dynamics surrounding steel prices suggest potential volatility due to governmental tariff implications, thereby influencing margins and operating conditions. Nevertheless, the company's investments in modernization and expansion initiatives promise robust growth, setting a solid foundation for the ongoing recovery in the U.S. industrial sector. Additionally, continued strong activity in the energy sector is expected to contribute positively to results in the latter part of 2025 and into 2026.

To discuss these developments, Russel Metals will host an Investor Conference Call on November 6, 2025. This will provide further insights into the quarterly performance and strategic future outlook. Stakeholders and interested investors are encouraged to participate for an in-depth analysis of the company's trajectory and upcoming ventures.