RUSSEL METALS ANNOUNCES 2025 ANNUAL & FOURTH QUARTER RESULTS

Core Insights - Russel Metals Inc. reported revenues of $4.6 billion for 2025, a 9% increase from 2024, with Q4 revenues at $1.1 billion, up 5% year-over-year [1][2] - The company achieved an EBITDA of $337 million for 2025, reflecting a 13% increase from the previous year, with Q4 EBITDA at $69 million, a 12% improvement over Q4 2024 [1][2] - The acquisition of seven service centers from Kloeckner Metals Corporation was completed on December 31, 2025, expected to increase annual revenues by approximately $500 million and enhance U.S. operations contribution to over 50% [1][2] Financial Performance - For the year ended December 31, 2025, net income was $168.8 million, with earnings per share at $3.01, compared to $161 million and $2.73 per share in 2024 [1][3] - In Q4 2025, net income was $30.4 million, with earnings per share at $0.55, compared to $26.9 million and $0.47 per share in Q4 2024 [1][3] - The average gross margin percentage for 2025 was 21.8%, a 90 basis point increase from 2024, with Q4 gross margin at 21.2%, an 80 basis point increase year-over-year [1][2] Capital Structure and Investments - The company maintained a strong capital structure with a net debt to invested capital ratio of 10% and liquidity of $515 million at year-end 2025 [2][3] - Total invested capital increased from $1.6 billion at the end of 2024 to nearly $1.8 billion at the end of 2025, with a return on invested capital of 15% for 2025 [2][3] - In 2025, Russel Metals invested $74 million in capital expenditures, with plans to invest approximately $100 million annually over the next two years [1][2] Market Conditions and Outlook - Steel prices were influenced by tariffs implemented in early 2025, with the average price for hot rolled coil at $849 per ton, up from $772 per ton in 2024 [1][2] - The company anticipates improved margins in Q1 2026 due to a positive market tone and seasonal recovery in shipments [2][3] - Ongoing investments in value-added equipment and facility modernization are expected to enhance average margins and market share [2][3]