Group 1 - At least a third of surveyed companies have paused or delayed stainless steel orders due to U.S. import tariffs of up to 50% [1] - More than half of the surveyed companies are reassessing their sourcing strategy in response to the tariffs [1]

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].

Core Viewpoint - Ryerson's Q2 2025 financial results showed a decline in earnings and revenue, reflecting ongoing challenges in profit margins and industrial demand, despite some operational achievements in market share [1][5][12] Financial Performance - Diluted EPS (GAAP) was $0.06, missing estimates of $0.19, while revenue was $1.17 billion, slightly below the expected $1.18 billion [1][2] - Year-over-year revenue decreased by 4.6% from $1.23 billion in Q2 2024, and net income attributable to Ryerson fell 80.8% to $1.9 million from $9.9 million [2][9] - Adjusted EBITDA (excluding LIFO) increased by 5.6% year-over-year to $45 million, indicating some operational resilience [2][5] Business Overview and Strategy - Ryerson operates a broad metals service center network, distributing carbon steel, stainless steel, and aluminum products across various sectors, which helps mitigate dependence on any single market [3] - The company's strategy focuses on expanding value-added services and increasing market reach through organic growth and targeted acquisitions [4] Operational Highlights - Tons shipped were 501,000, a slight decrease of 1.4% year-over-year, but better than the 2.1% decline in the broader North American service center industry, indicating modest market share gains [5] - Average selling price per ton (GAAP) was $2,334, down 3.2% year-over-year, but showed improvement from the first quarter [6] Sales Mix and Cost Management - The company has shifted its sales mix towards more transactional business, with growth in transactional sales for five consecutive quarters, helping to offset declines in contractual OEM business [7] - Cost management efforts resulted in a 0.7% increase in warehousing, delivery, and administrative expenses from Q1 to Q2 2025, with expenses declining as a percentage of revenue [8] Future Guidance - For Q3 2025, management projects GAAP revenue between $1.14 billion and $1.18 billion, with shipments expected to fall 2% to 4% quarter-over-quarter [11] - Average selling price per ton is anticipated to rise by 1% to 3%, while adjusted EBITDA excluding LIFO is expected to be in the $40 million to $45 million range [11] - Management expressed cautiousness regarding manufacturing and industrial metal demand, particularly from large OEM customers [12]

Financial Performance - Net sales for Q2 2025 reached $3.66 billion, marking a 5.0% increase from Q1 2025 and a 0.5% increase year-over-year [2][5] - Non-GAAP gross profit margin was reported at 29.9%, slightly up from 29.7% in Q1 2025 [7] - Pretax income increased by 16% from Q1 2025 to $304.3 million, while net income attributable to Reliance was $233.7 million, up 17% year-over-year [2][34] - Earnings per share (EPS) for Q2 2025 was $4.42, an 18% increase from Q1 2025 [2][34] Sales and Market Dynamics - The company sold a record 1,615.0 thousand tons in Q2 2025, a 4.0% increase year-over-year, despite a 0.9% decline from Q1 2025 [5][9] - Average selling price per ton sold increased by 6.1% compared to Q1 2025, exceeding the company's guidance [6][7] - Demand for non-residential construction, the largest end market, improved, and is expected to remain healthy in Q3 2025 [10] Cash Flow and Capital Allocation - Cash flow from operations was $229.0 million in Q2 2025, reflecting a significant increase of 255% from Q1 2025 [16] - The company repurchased $79.9 million of common stock in Q2 2025, with a total of $143.0 million returned to shareholders through dividends and share repurchases [18][17] Business Outlook - Reliance anticipates a seasonal decline in tons sold of 1.0% to 3.0% in Q3 2025 compared to Q2 2025, but an increase of 3.0% to 5.0% compared to Q3 2024 [19] - The company expects average selling prices in Q3 2025 to remain stable, with potential fluctuations in carbon steel and aluminum prices [19]