Core Viewpoint - Russel Metals Inc. has announced an agreement to acquire seven service center locations from Kloeckner Metals Corporation for approximately US$118.6 million, which is part of the company's long-term growth strategy in the US [1][2]. Group 1: Acquisition Details - The acquisition includes working capital, real estate, buildings, equipment, and operating personnel for the seven locations [1]. - The purchase price consists of approximately US$67.1 million for working capital and US$51.5 million for property, plant, and equipment [1][7]. - The service centers are located in Dubuque (Iowa), Charlotte (North Carolina), Suwanee (Georgia), Houston (Texas), Austin (Texas), Jacksonville (Florida), and Pompano Beach (Florida) [1]. Group 2: Financial Performance - Between January 1, 2023, and June 30, 2025, the seven service centers generated average annual revenues of approximately US$500 million and average annual adjusted EBITDA of approximately US$20 million [1]. - Following the acquisition, Russel's revenue base in the US will exceed 50%, up from 30% in 2019 and 39% in 2024 [1]. Group 3: Strategic Implications - The acquisition is expected to enhance inventory management, procurement, and facilitate reinvestments in facility modernizations and value-added equipment over a 2-3 year period [2]. - The transaction will be financed through cash on hand or existing credit facilities, which totaled $566 million as of June 30, 2025 [2].

Core Viewpoint - Russel Metals Inc. is implementing initiatives to streamline operations in Western Canada, aiming to reduce excess capacity, lower invested capital, and enhance operational efficiencies [1][2]. Group 1: Operational Initiatives - The company plans to rationalize excess capacity and redundant locations, which will lead to a reduction in invested capital by approximately $100 million, achieving the upper end of its original goal [2]. - Specific initiatives include the permanent closure of the Delta location in British Columbia and the Saskatoon location in Saskatchewan, with expected cash proceeds from real estate sales exceeding $40 million [6]. Group 2: Financial Impact - Following the acquisition of seven service centers for $225 million, the company has already reduced invested capital by $58 million due to decreased working capital, with further reductions of $40-50 million anticipated from the new initiatives [2]. - A provision for restructuring of approximately $4 million will be recorded in Q3'25 related to the closure of the Delta location [6]. Group 3: Company Overview - Russel Metals is one of North America's largest metals distribution companies, operating in three segments: metals service centers, energy field stores, and steel distributors [3]. - The company offers a wide range of metal products, including carbon steel, stainless steel, aluminum, and other non-ferrous specialty metals, catering to various industries [3].

Company Overview - Ryerson's TTM revenue is $4.4 billion, with an adjusted EBITDA of $109 million and an adjusted EBITDA margin of 2.5%[6] - The company's market capitalization is $0.7 billion, and net debt is $479 million[6] - Ryerson aims for a mid-cycle EBITDA of $350-400 million through self-help actions[31] Market Position and Strategy - Ryerson is a leading metal solutions provider with a digital network across North America[9, 10] - The company focuses on improving customer experiences through innovation, integration, and supply-chain optimization[9] - Ryerson is working to increase transactional revenue to over 60% of its business and value-added revenue to 20%[32, 74] - The company is targeting an expense-to-sales ratio of 13-15%[32, 74] Financial Priorities - Ryerson aims to maintain a leverage ratio through the cycle of 0.5x to 2.0x[44, 47] - The company has $38 million remaining in its share repurchase authorization, expiring in April 2026[46] Capital Expenditures - Ryerson's LTM free cash flow generation is $137 million[68] - The company is investing in modernization and value-add initiatives, with capital expenditures of $50 million in 2025E[69]

Core Viewpoint - Russel Metals Inc. has received approval for a normal course issuer bid (NCIB) to repurchase up to 5,542,173 common shares, representing 10% of the public float, from August 18, 2025, to August 17, 2026 [1][2]. Group 1: NCIB Details - The NCIB allows Russel Metals to purchase up to 5,542,173 common shares, which is 10% of the public float, with a total of 55,988,355 common shares outstanding as of August 11, 2025 [2]. - Daily purchases under the NCIB will be limited to 37,951 common shares, which is 25% of the average daily trading volume of 151,807 shares for the six months ending July 31, 2025 [3]. - The NCIB will be funded using existing cash resources or credit facilities, and any repurchased shares will be cancelled [3]. Group 2: Previous NCIB - The new NCIB follows the previous one, which authorized the purchase of 5,808,254 common shares, of which 2,389,419 shares were repurchased at a weighted average price of $40.25 per share as of July 31, 2025 [4]. Group 3: Strategic Intent - The company believes the NCIB will serve as a flexible tool in its capital allocation program, aimed at generating value for shareholders [5]. - Future repurchase decisions will depend on market conditions, share price, and other investment opportunities [5]. Group 4: Company Overview - Russel Metals is one of the largest metals distribution companies in North America, focusing on value-added processing across three segments: metals service centers, energy field stores, and steel distributors [6]. - The company offers a wide range of metal products, including carbon hot rolled and cold finished steel, stainless steel, aluminum, and other non-ferrous specialty metals [6].

Financial Performance - Revenues for the three months ended June 30, 2025, were $1.2 billion, representing a 3% increase from Q1 2025 and the highest level since mid-2022 [1][4] - EBITDA reached $108 million, up 26% from Q1 2025, with an EBITDA margin of 9.0%, an increase from 7.3% in Q1 2025 [1][5] - Earnings per share (EPS) were $1.07, a 43% increase from Q1 2025 [1][6] - Annualized return on capital improved to 20%, up from 15% in Q1 2025 [1][7] Market Conditions - Market prices for steel and aluminum products increased due to tariffs, with steel plate prices up 33% and aluminum prices up 28% compared to December 31, 2024 [9] - The metal service centers achieved near-record shipments despite severe weather impacts and market uncertainties related to tariffs [3][9] Capital Management - The company returned $47 million to shareholders through share buybacks and dividends, with $24 million in dividends paid [1][12] - Share buybacks totaled $22 million, with 0.5 million common shares repurchased at an average price of $42.11 [1][14] - Total available liquidity was $566 million as of June 30, 2025 [15] Investment and Growth Initiatives - Capital expenditures for the three months ended June 30, 2025, were $16 million, with a total of $45 million for the six months [10] - The company is actively evaluating additional acquisition opportunities to expand its metals service center platform in the U.S. [11] Operational Improvements - The company completed system integrations for former Samuel branches onto its ERP platform, expected to lead to operational improvements [13] - Ongoing investments in value-added equipment and facility modernizations are anticipated to enhance market share [17]