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Radius Recycling Reports First Quarter Fiscal 2025 Financial Results
RDUSRadius Recycling(RDUS) Newsfilter·2025-01-07 21:30

Core Insights - Radius Recycling, Inc. reported a net loss of 37millionandalosspershareof37 million and a loss per share of (1.30) for the first quarter of fiscal 2025, significantly worse than the prior year's loss of (18)millionand(18) million and (0.64) per share, primarily due to a negative impact from income tax [2][5][11] - Adjusted EBITDA was break-even, down from 1millioninthesamequarterlastyear,indicatingchallengesinoperationalperformancedespitesomeimprovementsinrecycledmetalscontribution[2][3][5]FinancialPerformanceRevenuesforthefirstquarteroffiscal2025were1 million in the same quarter last year, indicating challenges in operational performance despite some improvements in recycled metals contribution [2][3][5] Financial Performance - Revenues for the first quarter of fiscal 2025 were 657 million, a decrease from 673millionintheprioryearand673 million in the prior year and 771 million in the previous quarter [6][15] - The gross margin was 33million,downfrom33 million, down from 39 million year-over-year and 52millionsequentially[6][15]Selling,general,andadministrativeexpensesdecreasedby1052 million sequentially [6][15] - Selling, general, and administrative expenses decreased by 10% year-over-year to 57 million [3][6] Market Conditions - The company experienced a 12% increase in average net selling prices for nonferrous metals, which helped offset a 5% decline in average net ferrous prices due to weaker global market conditions [3][4] - Finished steel contributions declined due to a 7% drop in average net selling prices and lower mill utilization, which was reported at 81%, down from 95% in the prior year [3][4][9] Operational Highlights - The company’s ferrous sales volumes were 1,106 thousand LT, down from 1,152 thousand LT in the prior year [6][16] - Nonferrous sales volumes were 177 million pounds, a decrease from 182 million pounds year-over-year [6][16] - The company declared a cash dividend of $0.1875 per common share, marking the 123rd consecutive quarterly dividend [12][16] Strategic Outlook - The CEO indicated expectations for improved demand in the second half of the fiscal year due to inventory rebuilding and seasonality [5] - Long-term demand for recycled metals is anticipated to remain positive, driven by infrastructure investments and the transition to low-carbon technologies [5]