Financial Performance - Radius Recycling reported a net loss of $(33) million in Q2 2025, compared to $(34) million in Q2 2024, with an adjusted loss per share of $(0.99) versus $(1.04) year-over-year[3]. - Adjusted EBITDA was approximately break-even in Q2 2025, a decline from $3 million in Q2 2024[3]. - Net income for Q2 2025 was a loss of $33 million, compared to a loss of $34 million in Q2 2024[30]. - Adjusted diluted earnings per share for Q2 2025 were $(0.99), compared to $(1.33) in Q2 2024[28]. - Net income per share for Q2 2025 was $(1.15), compared to $(1.30) in Q1 2025 and $(1.19) in Q2 2024[16]. Sales and Volumes - Ferrous sales volumes increased by 12% year-over-year, totaling 1,094 thousand long tons, while average net ferrous sales prices decreased by 14% to $330 per long ton[5][11]. - Finished steel sales volumes rose by 15% year-over-year, reaching 131 thousand short tons, despite a 9% decline in average net selling prices to $756 per short ton[5][12]. - Total ferrous volumes for Q2 2025 were 1,094 thousand LT, down from 1,106 thousand LT in Q1 2025[18]. - Total nonferrous volumes for Q2 2025 were 174,323 thousand pounds, compared to 177,255 thousand pounds in Q1 2025[18]. - Average ferrous selling price for domestic sales in Q2 2025 was $353 per LT, a decrease from $331 per LT in Q1 2025[18]. - Finished steel average sales price in Q2 2025 was $756 per ST, down from $775 per ST in Q1 2025[18]. Cash Flow and Debt - The company generated positive operating cash flow of $20 million and free cash flow of $13 million in Q2 2025, with total debt at $430 million[4]. - Free cash flow for Q2 2025 was $12.9 million, with cash flow from operating activities at $19.95 million[33]. - Total debt as of February 2025 was $429.9 million, a decrease from $445.4 million in November 2024[32]. Operational Efficiency - Radius Recycling's SG&A expenses decreased by 12% year-over-year to $55 million, driven by productivity initiatives[5]. - The mill utilization rate improved to 88% in Q2 2025, compared to 81% in the prior year's second quarter[12]. - Rolling mill utilization for Q2 2025 was 88%, compared to 81% in Q1 2025[18]. - Adjusted selling, general and administrative expenses for Q2 2025 were $53 million, down from $62 million in Q2 2024[31]. Future Outlook and Strategic Initiatives - Radius Recycling entered into a merger agreement with Toyota Tsusho America, Inc., expected to close in the second half of calendar 2025[8]. - The company is pursuing a merger with TAI, a subsidiary of Toyota Tsusho Corporation, which may impact future operations and growth strategies[37]. - The company is investing in processing and manufacturing technology improvements to enhance operational efficiency[37]. - The company anticipates potential impacts from supply chain disruptions and inflation on its financial performance[40]. - The company is focused on compliance with environmental regulations and managing associated costs[40]. Tax and Equity - The effective tax rate for Q2 2025 was a benefit of 11% on a pre-tax loss, reflecting a favorable true-up from changes in estimates[5]. - Total current assets as of February 28, 2025, were $546,161 thousand, down from $609,127 thousand as of August 31, 2024[25]. - Total liabilities as of February 28, 2025, were $913,179 thousand, compared to $908,029 thousand as of August 31, 2024[26]. - Total equity as of February 28, 2025, was $545,004 thousand, down from $625,740 thousand as of August 31, 2024[26].
Radius Recycling(RDUS) - 2025 Q2 - Quarterly Results