Radius Recycling Reports Second Quarter Fiscal 2025 Financial Results

Core Insights - Radius Recycling, Inc. reported a net loss of $33 million for the second quarter of fiscal 2025, slightly improved from a loss of $34 million in the same quarter of the previous year [3][11] - The company generated positive operating cash flow of $20 million and free cash flow of $13 million during the quarter [4][11] - The company declared a quarterly dividend of $0.1875 per share, marking its 124th consecutive quarterly dividend [7][11] Financial Performance - The adjusted loss per share from continuing operations was $(0.99) in Q2 2025, compared to $(1.04) in Q2 2024 [3][11] - Revenues for Q2 2025 were $643 million, up from $621 million in Q2 2024 [11][13] - The gross margin decreased to $27 million in Q2 2025 from $40 million in Q2 2024 [11][13] Sales and Pricing - Ferrous sales volumes increased by 12% year-over-year, while average net selling prices for ferrous products were 14% lower [6][11] - Nonferrous average net selling prices rose by 10%, although nonferrous sales volumes were down by 1% year-over-year [6][11] - Finished steel sales volumes increased by 15% year-over-year, despite a 9% decline in average net selling prices [6][11] Operational Metrics - The mill utilization rate improved to 88% in Q2 2025 from 81% in Q2 2024 [6][11] - The company implemented productivity initiatives that led to a 12% reduction in consolidated Selling, General, and Administrative (SG&A) costs compared to the prior year [6][11] - Capital expenditures for the quarter were $11 million [4][11] Debt and Cash Flow - Total debt at the end of Q2 2025 was $430 million, with net debt (debt minus cash) at $424 million [4][11] - The effective tax rate for the quarter was a benefit of 11% on a pre-tax loss, influenced by a favorable true-up from changes in performance estimates [5][11] Merger Update - Radius Recycling entered into a Merger Agreement with Toyota Tsusho America, Inc., anticipating the merger to close in the second half of calendar 2025 [8][11] - The company will not hold a second quarter earnings conference call due to the pending merger [9][11]