Tree Island Steel Announces Third Quarter 2025 Results

Core Insights - Tree Island Steel reported a decline in revenues for the three months and nine months ended September 30, 2025, primarily due to U.S. tariffs impacting sales of wire products to the U.S. market, although there was some mitigation from increased sales within Canada [2][3][4] Financial Performance - For the three months ended September 30, 2025, revenues decreased by $14.8 million to $36.8 million from $51.6 million in 2024, with gross profit down by $0.3 million due to lower production volumes [2][5] - For the nine months ended September 30, 2025, revenues fell by $32.8 million to $129.4 million from $162.2 million in 2024, attributed to reduced U.S. sales volumes and a strategic withdrawal from unprofitable products [3][5] - Adjusted EBITDA improved to $0.2 million for the three months ended September 30, 2025, compared to $6 thousand in the same period last year, while for the nine months, it decreased by $1.5 million [2][7] Operational Challenges - The company continues to face challenges due to U.S. tariffs on commodity galvanized wire, impacting overall sales and profitability [4][6] - Gross margins remained consistent with the prior year, but gross profits were lower by $1.9 million due to lower production levels [3][5] Key Financial Metrics - For the three months ended September 30, 2025, the net loss was $2.141 million, compared to a net loss of $1.846 million in 2024, with a net loss per share of $0.08 [5][7] - Total assets as of September 30, 2025, were $165.196 million, down from $168.817 million in December 2024 [5][7]