Russel Metals Announces 2025 First Quarter Results
Russel Metals (RUSMF) ha riportato solidi risultati finanziari nel primo trimestre del 2025, con ricavi pari a 1,2 miliardi di dollari, in crescita rispetto sia al quarto trimestre 2024 (1,0 miliardi di dollari) che al primo trimestre 2024 (1,1 miliardi di dollari). L'azienda ha raggiunto un EBITDA di 86 milioni di dollari e un utile per azione di 0,75 dollari. Tra i punti salienti si segnalano spedizioni trimestrali record (in aumento del 14% rispetto al quarto trimestre 2024 e del 29% rispetto al primo trimestre 2024), un'emissione riuscita di note senior unsecured da 300 milioni di dollari al tasso del 4,423% e significativi ritorni di capitale agli azionisti attraverso 25 milioni di dollari in riacquisti di azioni e 24 milioni di dollari in dividendi.
L'azienda ha annunciato un aumento del dividendo trimestrale del 2,4% a 0,43 dollari per azione, segnando un incremento cumulativo del 13,2% dal 2023. I margini lordi sono migliorati al 21,5% nel primo trimestre 2025, rispetto al 20,4% del quarto trimestre 2024, grazie all'aumento dei prezzi dell'acciaio seguito all'implementazione di tariffe del 25% su acciaio e alluminio nel marzo 2025.
Russel Metals (RUSMF) reportó sólidos resultados financieros en el primer trimestre de 2025, con ingresos de 1.200 millones de dólares, aumentando respecto al cuarto trimestre de 2024 (1.000 millones) y al primer trimestre de 2024 (1.100 millones). La compañía logró un EBITDA de 86 millones de dólares y ganancias por acción de 0,75 dólares. Entre los aspectos destacados se encuentran envíos trimestrales récord (un 14% más que en el cuarto trimestre de 2024 y un 29% más que en el primer trimestre de 2024), una exitosa emisión de bonos senior no garantizados por 300 millones de dólares con un interés del 4,423%, y fuertes retornos de capital para los accionistas a través de 25 millones de dólares en recompra de acciones y 24 millones en dividendos.
La empresa anunció un aumento del dividendo trimestral del 2,4% hasta 0,43 dólares por acción, lo que representa un incremento acumulado del 13,2% desde 2023. Los márgenes brutos mejoraron al 21,5% en el primer trimestre de 2025, frente al 20,4% del cuarto trimestre de 2024, impulsados por los mayores precios del acero tras la implementación de aranceles del 25% sobre el acero y el aluminio en marzo de 2025.
러셀 메탈스(RUSMF)는 2025년 1분기에 강력한 재무 실적을 보고했으며, 매출은 12억 달러로 2024년 4분기(10억 달러)와 2024년 1분기(11억 달러) 대비 모두 증가했습니다. 회사는 8600만 달러의 EBITDA와 주당순이익 0.75달러를 달성했습니다. 주요 하이라이트로는 분기별 선적량이 기록적으로 증가(2024년 4분기 대비 14%, 2024년 1분기 대비 29%), 4.423% 금리로 3억 달러 규모의 선순위 무담보 채권 발행 성공, 그리고 2500만 달러 규모의 자사주 매입과 2400만 달러의 배당금을 통한 강력한 주주 자본 환원이 포함됩니다.
회사는 분기 배당금을 2.4% 인상하여 주당 0.43달러로 발표했으며, 이는 2023년 이후 누적 13.2% 증가한 수치입니다. 2025년 1분기 총 마진은 21.5%로 2024년 4분기 20.4%에서 개선되었으며, 2025년 3월 철강 및 알루미늄에 25% 관세가 시행된 이후 철강 가격 상승이 그 배경입니다.
Russel Metals (RUSMF) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec un chiffre d'affaires de 1,2 milliard de dollars, en hausse par rapport au quatrième trimestre 2024 (1,0 milliard) et au premier trimestre 2024 (1,1 milliard). La société a réalisé un EBITDA de 86 millions de dollars et un bénéfice par action de 0,75 dollar. Parmi les faits marquants, on note des expéditions trimestrielles record (en hausse de 14 % par rapport au T4 2024 et de 29 % par rapport au T1 2024), une émission réussie de 300 millions de dollars de billets non garantis à 4,423 %, ainsi que de solides retours de capitaux aux actionnaires via 25 millions de dollars de rachats d'actions et 24 millions de dollars de dividendes.
La société a annoncé une augmentation de 2,4 % du dividende trimestriel à 0,43 dollar par action, soit une hausse cumulée de 13,2 % depuis 2023. Les marges brutes se sont améliorées à 21,5 % au T1 2025, contre 20,4 % au T4 2024, grâce à la hausse des prix de l'acier suite à la mise en place de tarifs de 25 % sur l'acier et l'aluminium en mars 2025.
Russel Metals (RUSMF) meldete starke Finanzergebnisse für das erste Quartal 2025 mit Erlösen von 1,2 Milliarden US-Dollar, was sowohl gegenüber dem vierten Quartal 2024 (1,0 Milliarden) als auch dem ersten Quartal 2024 (1,1 Milliarden) gestiegen ist. Das Unternehmen erzielte ein EBITDA von 86 Millionen US-Dollar und einen Gewinn je Aktie von 0,75 US-Dollar. Zu den bemerkenswerten Highlights zählen rekordverdächtige Quartalslieferungen (plus 14 % gegenüber Q4 2024 und 29 % gegenüber Q1 2024), eine erfolgreiche Emission von 300 Millionen US-Dollar Senior Unsecured Notes mit 4,423 % Verzinsung sowie starke Kapitalrückflüsse an die Aktionäre durch 25 Millionen US-Dollar Aktienrückkäufe und 24 Millionen US-Dollar Dividenden.
Das Unternehmen kündigte eine 2,4 %ige Erhöhung der Quartalsdividende auf 0,43 US-Dollar je Aktie an, was eine kumulative Steigerung von 13,2 % seit 2023 bedeutet. Die Bruttomargen verbesserten sich im ersten Quartal 2025 auf 21,5 % gegenüber 20,4 % im vierten Quartal 2024, bedingt durch höhere Stahlpreise nach der Einführung von 25 % Zöllen auf Stahl und Aluminium im März 2025.
- Record quarterly shipments with highest tonnage sales in company history
- Revenue growth to $1.2 billion, up from both Q4 2024 and Q1 2024
- EBITDA increased to $86 million from $61 million in Q4 2024
- Gross margin improved to 21.5% from 20.4% in Q4 2024
- Successful $300 million debt issuance at lowest cost ever achieved
- Strong liquidity position with pro forma liquidity of $605 million
- Increased quarterly dividend by 2.4%, marking third consecutive annual increase
- Net earnings per share decreased to $0.75 from $0.82 in Q1 2024
- Energy field stores segment showed declining operating profits year-over-year
- Future shipment levels may be impacted by international trade policies and North American industrial activity
Revenues of
Record Quarterly Shipments – Up
Balanced Approach to Returning Capital to Shareholders –
Quarterly Dividend Increase of
Issued
Strong Capital Structure with Pro Forma Liquidity of
Three Months Ended | |||
Mar 31 2025 | Dec 31 2024 | Mar 31 2024 | |
Revenues | $ 1,174 | $ 1,039 | $ 1,061 |
EBITDA 1 | 86 | 61 | 84 |
Net Income | 43 | 27 | 50 |
Earnings per share | 0.75 | 0.47 | 0.82 |
All amounts are reported in millions of Canadian dollars except per share figures, which are in Canadian dollars. |
Non-GAAP Measures and Ratios
We use a number of measures that are not prescribed by IFRS Accounting Standards ("IFRS" or "GAAP") and as such may not be comparable to similar measures presented by other companies. We believe these measures are commonly employed to measure performance in our industry and are used by analysts, investors, lenders and other interested parties to evaluate financial performance and our ability to incur and service debt to support our business activities. These non-GAAP measures include EBITDA and Liquidity and are defined below. Refer to Non-GAAP Measures and Ratios on page 2 of our Management Discussion and Analysis.
EBIT - represents net earnings before interest and income taxes.
EBITDA - represents net earnings before interest, income taxes, depreciation and amortization.
Liquidity - represents cash on hand less bank indebtedness plus excess availability under our bank credit facility.
Cash (for) from working capital - represents the change in non-cash working capital.
The following table shows the reconciliation of net earnings in accordance with GAAP to:
Three Months Ended | |||
($ millions, except per share data) | Mar 31 2025 | Dec 31 2024 | Mar 31 2024 |
Net earnings | $ 43.0 | $ 26.9 | $ 49.7 |
Provision for income taxes | 14.5 | 8.8 | 16.7 |
Interest (income) expense, net | 4.7 | 4.0 | (0.1) |
EBIT 1 | 62.2 | 39.7 | 66.3 |
Depreciation and amortization | 23.5 | 21.6 | 17.7 |
EBITDA 1 | $ 85.7 | $ 61.3 | $ 84.0 |
Basic earnings per share | $ 0.75 | $ 0.47 | $ 0.82 |
_______________________________ |
1 Defined in Non-GAAP Measures and Ratios |
Our first quarter 2025 results reflected a seasonal improvement in demand, particularly for our metals service centers and steel distributors segments, and strong sequential increases in gross margin, EBITDA and net earnings. In addition, we delivered on a number of important milestones:
- Our metals service centers segment generated the highest tonnage sales in our history. This record reflected the favourable market conditions, a full quarter contribution from last year's acquisitions and organic market share gains.
- We invested a record amount in capital expenditures during the quarter, as we continued with our internal investments in value-added equipment and facility modernizations. This involved the completion of a series of prior projects along with the initiation of new projects.
- We continued to expand our
U.S. platform on both relative and absolute terms, as44% of our first quarter 2025 revenues were generated in theU.S. , as compared to39% in 2024 and30% in 2019. - We advanced the multi-year migration of our debt structure, as we completed an inaugural
$300 million
Revenues of
Our average gross margin grew sequentially to
In the first quarter of 2025, we generated
During our 2025 first quarter, we generated
Market Conditions
Market conditions in the first quarter of 2025 were impacted by the imposition of
Capital Investment Growth Initiatives
In the first quarter of 2025, we invested
We remain focused on realizing the benefits from our most recent acquisitions, including a number of initiatives to integrate the acquired Samuel branches and realize synergies related to metals procurement for the
Returning Capital to Shareholders
We have a flexible approach to returning capital to shareholders through: (i) our ongoing dividend; and (ii) share buybacks.
In the 2025 first quarter, we paid dividends of
We have declared a
In the first quarter of 2025, we purchased and cancelled 0.6 million common shares at an average price per share of
Liquidity and Capital Structure
On March 28, 2025, we completed an inaugural offering of investment grade term debt, with
On April 29, 2025, we amended and extended our credit facility to remove the springing lien feature, cancel the
Outlook
During the first quarter of 2025, steel pricing increased substantially as a result of the tariffs imposed by the
Our recent shipment levels have benefited from some element of customer buying in anticipation of the imposed tariffs, a strong seasonal recovery and market share gains. Our near-term activity could be impacted by international trade policies and North American industrial activity. Over the medium-term, we expect to benefit from further rebuilding of the
Our energy field stores are expected to continue to benefit from solid energy activity in 2025. Our energy field store segment is also expected to continue to gain market share while maintaining a solid margin profile.
Supplemental Information
The following table provides segment information including revenues, gross margins and earnings before interest and income taxes. The corporate expenses included are not allocated to specific operating segments. Gross margins as a percentage of revenues for the operating segments are also shown below. The table shows the segments as they are reported to management and are consistent with the segment reporting in our condensed consolidated financial statements.
Three Months Ended | |||
(in millions, except percentages) | Mar 31 2025 | Dec 31 2024 | Mar 31 2024 |
Segment Revenues | |||
Metals service centers | $ 840.0 | $ 723.0 | $ 723.6 |
Energy field stores | 244.2 | 220.3 | 247.1 |
Steel distributors | 88.9 | 89.2 | 90.1 |
Other | 0.5 | 6.7 | 0.3 |
Total | $ 1,173.6 | $ 1,039.2 | $ 1,061.1 |
Segment Gross Margins 1 | |||
Metals service centers | $ 175.6 | $ 131.5 | $ 154.8 |
Energy field stores | 58.1 | 59.8 | 63.4 |
Steel distributors | 18.2 | 13.8 | 19.4 |
Other | 0.5 | 6.7 | 0.3 |
Total operations | $ 252.4 | $ 211.8 | $ 237.9 |
Segment Operating Profits and EBIT 1 | |||
Metals service centers | $ 43.7 | $ 20.9 | $ 43.8 |
Energy field stores | 17.1 | 20.2 | 22.7 |
Steel distributors | 9.9 | 4.4 | 10.5 |
Corporate expenses | (6.3) | (9.8) | (8.9) |
Other | (2.2) | 4.0 | (1.8) |
Earnings before interest and income taxes | $ 62.2 | $ 39.7 | $ 66.3 |
Segment Gross Margin as a % of Revenues 1 | |||
Metals service centers | 20.9 % | 18.2 % | 21.4 % |
Energy field stores | 23.8 % | 27.1 % | 25.7 % |
Steel distributors | 20.5 % | 15.5 % | 21.6 % |
Total operations | 21.5 % | 20.4 % | 22.4 % |
Segment Operating Profit and EBIT as a % of Revenues 1 | |||
Metals service centers | 5.2 % | 2.9 % | 6.1 % |
Energy field stores | 7.0 % | 9.2 % | 9.2 % |
Steel distributors | 11.1 % | 4.9 % | 11.7 % |
Total operations | 5.3 % | 3.8 % | 6.2 % |
Additional Information on Metals Service Centers | |||
Tons shipped (thousands of imperial tons) | 409 | 359 | 318 |
Gross margin per ton ($) | $ 176 | $ 132 | $ 155 |
______________________________ |
1 Defined in Non-GAAP Measures and Ratios |
Investor Conference Call
The Company will be holding an Investor Conference Call on Wednesday, May 7, 2025, at 9:00 a.m. ET to review its 2025 first quarter results. To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4c8rsoZ. The dial-in telephone numbers for the call are 416-945-7677 (
A replay of the call will be available at 289-819-1450 (
Additional supplemental financial information is available in our investor conference call package located on our website at www.russelmetals.com.
About Russel Metals Inc.
Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three segments: metals service centers, energy field stores and steel distributors. Its network of metals service centers carries an extensive line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum and other non-ferrous specialty metals. Its energy field stores carry a specialized product line focused on the needs of energy industry customers. Its steel distributors operations act as master distributors selling steel in large volumes to other steel service centers and large equipment manufacturers mainly on an "as is" basis.
Cautionary Statement on Forward-Looking Information
Certain statements contained in this MD&A constitute forward-looking statements or information within the meaning of applicable securities laws, including statements as to our future capital expenditures, our outlook, the availability of future financing and our ability to pay dividends. Forward-looking statements relate to future events or our future performance. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us, inherently involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the factors described below.
We are subject to a number of risks and uncertainties which could have a material adverse effect on our future profitability and financial position, including the risks and uncertainties listed below, which are important factors in our business and the metals distribution industry. Such risks and uncertainties include, but are not limited to: volatility in metal prices; cyclicality of the metals industry; volatility in oil and natural gas prices; capital budgets in the energy industry; climate change; product claims; significant competition; sources of metals supply; manufacturers selling directly; material substitution; credit risk; currency exchange risk; restrictive debt covenants; asset impairments; the unexpected loss of key individuals; decentralized operating structure; future acquisitions; the failure of our key computer-based systems, labour interruptions; laws and governmental regulations; litigious environment; environmental liabilities; carbon emissions; health and safety laws and regulations, geopolitical and common share risk.
While we believe that the expectations reflected in our forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct, and our forward-looking statements included in this MD&A should not be unduly relied upon. These statements speak only as of the date of this MD&A and, except as required by law, we do not assume any obligation to update our forward-looking statements. Our actual results could differ materially from those anticipated in our forward-looking statements including as a result of the risk factors described above and under the heading "Risk" later in this MD&A, and under the heading "Risk Management and Risks Affecting Our Business" in our most recent Annual Information Form and as otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca.
If you would like to unsubscribe from receiving Press Releases, you may do so by emailing info@russelmetals.com; or by calling our Investor Relations Line: 905-816-5178.
Three Months Ended | ||
(in millions of Canadian dollars, except per share data) | 2025 | 2024 |
Revenues | $ 1,173.6 | $ 1,061.1 |
Cost of materials | 921.2 | 823.2 |
Employee expenses | 113.0 | 99.8 |
Other operating expenses | 77.2 | 71.8 |
Earnings before interest and provision for income taxes | 62.2 | 66.3 |
Interest expense (income), net | 4.7 | (0.1) |
Earnings before provision for income taxes | 57.5 | 66.4 |
Provision for income taxes | 14.5 | 16.7 |
Net earnings for the period | $ 43.0 | $ 49.7 |
Basic earnings per common share | $ 0.75 | $ 0.82 |
Diluted earnings per common share | $ 0.75 | $ 0.82 |
Three Months Ended | ||
(in millions of Canadian dollars) | 2025 | 2024 |
Net earnings for the period | $ 43.0 | $ 49.7 |
Other comprehensive (loss) income | ||
Items that may be reclassified to earnings | ||
Unrealized foreign exchange (losses) gains on translation of foreign operations | (0.9) | 22.2 |
Items that may not be reclassified to earnings | ||
Actuarial (losses) gains on pension and similar obligations, net of taxes | (2.0) | 3.6 |
Other comprehensive (loss) income | (2.9) | 25.8 |
Total comprehensive income | $ 40.1 | $ 75.5 |
(in millions of Canadian dollars) | March 31 | December 31 |
ASSETS | ||
Current | ||
Cash and cash equivalents | $ 230.2 | $ 45.6 |
Accounts receivable | 590.3 | 490.4 |
Inventories | 994.0 | 919.8 |
Prepaids and other | 37.7 | 29.0 |
Income taxes receivable | 1.8 | 14.5 |
1,854.0 | 1,499.3 | |
Property, Plant and Equipment | 506.6 | 492.4 |
Right-of-Use Assets | 155.3 | 157.0 |
Deferred Income Tax Assets | 1.0 | 0.8 |
Pension and Benefits | 42.1 | 45.5 |
Financial and Other Assets | 5.8 | 5.9 |
Goodwill and Intangible Assets | 143.1 | 145.8 |
Total Assets | $ 2,707.9 | $ 2,346.7 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current | ||
Bank indebtedness | $ - | $ 13.4 |
Accounts payable and accrued liabilities | 522.6 | 442.1 |
Short-term lease obligations | 23.5 | 22.4 |
Income taxes payable | 4.5 | 0.7 |
550.6 | 478.6 | |
Long-Term Debt | 298.0 | - |
Pensions and Benefits | 1.5 | 1.5 |
Deferred Income Tax Liabilities | 24.6 | 25.8 |
Long-term Lease Obligations | 159.5 | 161.0 |
Provisions and Other Non-Current Liabilities | 24.6 | 21.4 |
Total Liabilities | 1,058.8 | 688.3 |
Shareholders' Equity | ||
Common shares | 522.7 | 528.1 |
Retained earnings | 915.8 | 918.7 |
Contributed surplus | 9.9 | 10.0 |
Accumulated other comprehensive income | 200.7 | 201.6 |
Total Shareholders' Equity | 1,649.1 | 1,658.4 |
Total Liabilities and Shareholders' Equity | $ 2,707.9 | $ 2,346.7 |
Three Months Ended | ||
(in millions of Canadian dollars) | 2025 | 2024 |
Operating Activities | ||
Net earnings for the period | $ 43.0 | $ 49.7 |
Depreciation and amortization | 23.5 | 17.7 |
Provision for income taxes | 14.5 | 16.7 |
Interest expense (income), net | 4.7 | (0.1) |
Gain on sale of property, plant and equipment | (0.2) | (0.2) |
Difference between pension expense and amount funded | 0.7 | 0.7 |
Interest (paid) received net, including interest on lease obligations | (4.3) | 0.4 |
Cash from operating activities before non-cash working capital | 81.9 | 84.9 |
Changes in Non-Cash Working Capital Items | ||
Accounts receivable | (99.9) | (50.4) |
Inventories | (74.5) | 4.6 |
Accounts payable and accrued liabilities | 83.3 | (19.7) |
Other | (8.7) | (0.3) |
Change in non-cash working capital | (99.8) | (65.8) |
Income tax paid, net | 1.3 | (16.9) |
Cash (used in) from operating activities | (16.6) | 2.2 |
Financing Activities | ||
Issue of common shares | 0.3 | 0.8 |
Repurchase of common shares | (25.8) | (14.9) |
Dividends on common shares | (23.9) | (24.1) |
Decrease in bank indebtedness | (13.4) | - |
Issuance of long-term debt | 300.0 | - |
Deferred financing costs | (2.0) | - |
Lease obligations | (5.9) | (4.7) |
Cash from (used in) financing activities | 229.3 | (42.9) |
Investing Activities | ||
Purchase of property, plant and equipment | (28.9) | (23.8) |
Proceeds on sale of property, plant and equipment | 0.5 | 0.2 |
Cash used in investing activities | (28.4) | (23.6) |
Effect of exchange rates on cash and cash equivalents | 0.3 | 9.6 |
Increase (decrease) in cash and cash equivalents | 184.6 | (54.7) |
Cash and cash equivalents, beginning of the period | 45.6 | 629.2 |
Cash and cash equivalents, end of the period | $ 230.2 | $ 574.5 |
(in millions of Canadian dollars) | Common | Retained | Contributed | Accumulated | Total |
Balance, January 1, 2025 | $ 528.1 | $ 918.7 | $ 10.0 | $ 201.6 | |
Payment of dividends | - | (23.9) | - | - | (23.9) |
Net earnings for the period | - | 43.0 | - | - | 43.0 |
Other comprehensive loss for the period | - | - | - | (2.9) | (2.9) |
Share options exercised | 0.4 | - | (0.1) | - | 0.3 |
Shares repurchased | (5.8) | (20.0) | - | - | (25.8) |
Transfer of net actuarial losses on defined benefit plans | - | (2.0) | - | 2.0 | - |
Balance, March 31, 2025 | $ 522.7 | $ 915.8 | $ 9.9 | $ 200.7 |
(in millions of Canadian dollars) | Common | Retained | Contributed | Accumulated | Total |
Balance, January 1, 2024 | $ 556.3 | $ 954.6 | $ 10.3 | $ 118.7 | |
Payment of dividends | - | (24.1) | - | - | (24.1) |
Net earnings for the period | - | 49.7 | - | - | 49.7 |
Other comprehensive income for the period | - | - | - | 25.8 | 25.8 |
Share options exercised | 0.8 | - | (0.1) | - | 0.7 |
Shares repurchased | (3.1) | (11.8) | - | - | (14.9) |
Transfer of net actuarial gains on defined benefit plans | - | 3.6 | - | (3.6) | - |
Balance, March 31, 2024 | $ 554.0 | $ 972.0 | $ 10.2 | $ 140.9 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/russel-metals-announces-2025-first-quarter-results-302447634.html
SOURCE Russel Metals Inc.
FAQ
What were Russel Metals (RUSMF) key financial results for Q1 2025?
How much did Russel Metals increase its dividend in Q1 2025?
What was RUSMF's share buyback activity in Q1 2025?
How did the new steel tariffs affect Russel Metals in Q1 2025?
What is Russel Metals' current liquidity position?
