Russel Metals Inc. · TSX:RUS
Russel Metals — Investor Presentation (May 2026)
44 slides from Russel Metals's investor presentation, May 2026
Slide 1: Company Update - May 2026
COMPANY UPDATE - MAY 2026
Slide 2: Cautionary Statement on Forward-Looking Information
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain statements contained in this presentation 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 fu
Slide 3: Non-GAAP Measures
NON-GAAP MEASURES In this Information Package we use certain financial measures that do not comply with International Financial Reporting Standards (IFRS or GAAP) or have standardized meanings, and thus, may not be comparable to similar measures presented by other issuers, for example EBIT and EBITD
Slide 4: Table of Contents
TABLE OF CONTENTS I. Overview II. Market Trends III. Capital Allocation Priorities IV. Financial Overview V. Recent Acquisitions 4
Slide 5: I. Overview
Il. OVERVIEW
Slide 6: Q1'26 in Review
Q1’26 IN REVIEW CONTINUING IMPROVEMENT IN TREND RESULTS Record revenues and shipments Same store gross margins up 111 bps vs. Q4’25 Solid contributions from Kloeckner acquisition Completed sale of Delta (BC) property DISCRETIONARY CAPEX GREW U.S., SPECIALTY & VALUE- INVESTMENTS GENERATED STRONG ROIC
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS Compelling Market Position with Strong Supplier Relationships and Market Insight • One of the largest metals distribution and processing companies in North America • Well-established relationships with North American steel producers and one of the largest independent steel import
Slide 8: Russel Metals At-a-Glance
RUSSEL METALS AT-A-GLANCE Overview Key Segments • Distribution of various industrial products across North America • Coast-to-coast in Canada • Three segments: Metals Service Centers, Energy Field Stores and • Strong US presence in mid-west Metals Service Steel Distributors and south Centers • Found
Slide 9: Market Position
MARKET POSITION • Russel is one of the largest service center companies in North America • Leading market position in Canada • Strong market position in the US South and US Mid-West 2024 Revenues (US$ billion) $16 $14 $12 $10 $8 $6 $4 $2 $0 (1) Russel results are pro forma for the acquisitions of th
Slide 10: Diversified Business
DIVERSIFIED BUSINESS 141 Branches/$4.6 B of Revenue/$2.5 B Assets Suppliers Product Mix Total of 6-10, 14% Flat Rolled, 11% Canada, 53% Plate, 21% Flanges, Valves, Fittings, 15% Others, 55% Stainless. Aluminum & Other Non- Ferrous, 11% Other, 4% U.S., 47% Bars, 4% Total of 1-5, 31% Structurals , 35%
Slide 11: Incentive Compensation Tied to Return on Capital
INCENTIVE COMPENSATION TIED TO RETURN ON CAPITAL Variable Compensation vs. Operating Profit • A large number of our employees participate in a profit-sharing program, $700 $130 with bonus pools tied to their local $120 returns on net assets. $600 $110 • This approach is a significant element of $100
Slide 12: Business Transformation
BUSINESS TRANSFORMATION Illustration of Historical Results Illustration of Expected Impact from New Approach Financial Metric Financial Metric Time Time Actions Impacts • Divested underperforming business units and repatriated underperforming • Raise the cycle floor and ceiling capital • Reduce vola
Slide 13: Capital Reallocation Evolution
CAPITAL REALLOCATION EVOLUTION • In the period of 2020-2025, we generated ~$2.2 billion of cash and substantially changed our business and capital structure profile, with capital deployment including: • ~$1 billion of capital reinvestment via acquisitions and internal capex • ~$900 mm of capital ret
Slide 14: EBITDA Trends
EBITDA TRENDS • In comparing the trailing LTM EBITDA over past several years versus the period prior to the portfolio changes, the portfolio changes resulted in a higher and less volatile EBITDA profile over the cycle. • Our last twelve months EBITDA continues to show a sequential improvement in tre
Slide 15: ESG Focus
ESG FOCUS Summary From Sustainability Report Updated April, 2026 Environmental • Divested OCTG/Line Pipe business • Low carbon emissions from operations Social • Structured H&S Program “Mission Zero” • Dash cam roll out • Trailer fall prevention • Material handling/hand injury prevention • Corporate
Slide 16: II. Market Trends
II. MARKET TRENDS
Slide 17: Revenue Volatility vs. Indexes
REVENUE VOLATILITY VS. INDEXES • Russel Metals’ revenue is less volatile than underlying steel prices due to the change in our business portfolio. Relative Volatility Absolute Volatility Revenue Volatility - Russel vs Benchmarks Coefficient of Variation (%) Russel Metals Total Revenue - (C$) million
Slide 18: Business Conditions: Metal Pricing Trends
BUSINESS CONDITIONS: METAL PRICING TRENDS Carbon Pricing $2,500 #1 Heavy Melt (Chicago) HR Sheet HR Plate $2,000 $1,500 US $ / ton $1,000 $500 $0 Specialty Metals Pricing $300 Stainless Steel Sheet Aluminium Midwest $250 $200 US$ / cwt $150 $100 $50 $- Source: Fastmarkets as of May 2026 18
Slide 19: Business Conditions: Supply Chain Dynamics
BUSINESS CONDITIONS: SUPPLY CHAIN DYNAMICS Steel Mills/Imports: • Capacity utilization is near 80%, which indicates tight supply and longer than normal lead times. • Imports remain down in both Canada and the US. • Several mills have planned maintenance scheduled in Q2 Service Centers: • Supply chai
Slide 20: III. Capital Allocation Priorities
III. CAPITAL ALLOCATION PRIORITIES
Slide 21: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Increase capital deployment with a target of >15% Flexible approach to returning capital to return over a cycle shareholders Avg. Annual NCIB Activity Since 1/1/24 = Share Buy $99 mm Backs Facility • Q1’26: 150k acquired for $7 mm ($47.42/share) Modernizations • Since N
Slide 22: Dividend and Share Buy Back Summary
DIVIDEND AND SHARE BUY BACK SUMMARY Historical (and Projected Q2'26) Quarterly Dividends Return of Capital to Shareholders (millions) $0.44 $0.43 $80 $0.42 $69 $71 $0.40 $49 $48 $45 $56 $47 $0.38 $40 $44 $41 $46 $39 $38 $38 $35 $20 $25 $22 $24 $31 $16 $17 $15 $14 $14 $24 $12 $24 $7 $0.35 $24 $24 $24
Slide 23: Capex Program
CAPEX PROGRAM • The opportunities for value-added projects and facility modernizations are ongoing. Capex By Quarter - $ mm $35 $30 $29 $28 $25 $24$24 $21$21 $20 $18 $16 $15 $15$15 $15 $15 $14 $14 $14 $12 $11 $11 $11 $10 $10 $10 $10 $10 $9 $9 $9 $9 $9 $8 $8 $8 $8 $8 $7 $7 $6 $6 $6 $6 $5 $5 $5 $5 $5
Slide 24: Acquisitions
ACQUISITIONS • We have completed several acquisitions over the past few years and continue to focus on tuck-in opportunities for our existing business units or standalone/complementary businesses. Acquisition History (C$ mm) $268 $167 $157 $139 $128 $113 $106 $70 $36 $39 $37 $22 $17 $27 $28 $27 $26
Slide 25: IV. Financial Overview
IV. FINANCIAL OVERVIEW
Slide 26: Trend Results: Annual and Quarterly
TREND RESULTS: ANNUAL AND QUARTERLY Revenue (millions) EBITDA (millions) EBITDA Margin 5000 $4,642 500 12% $4,505 $4,261 $426 9% 4000 400 9% 9% $337 $299 8% 7% 7% 7% 3000 300 6% 6% 2000 200 $1,418 4% $1,174 $1,207 $1,167 $1,094 $124 $108 $86 $75 1000 100 $69 0 0 0% 2023 2024 2025 Q1 2025 Q2 2025 Q3
Slide 27: Summary: Financial Results
SUMMARY: FINANCIAL RESULTS $ mm, unless otherwise stated Q1 2025 Q4 2025 Q1 2026 Q1 2026 Observations: Income Statement: • Revenues were up 30% vs. Q4 and up 21% vs. Q1’25. Record level Revenues $1,174 $1,094 $1,418 for quarterly revenues • Consolidated gross margin and EBITDA margin were up slightl
Slide 28: Summary: Comparison of Results
SUMMARY: COMPARISON OF RESULTS • The following summarizes the equivalent comparison of our quarterly results. EBITDA Net Earnings EPS Q1 2026 As Stated $124 $72 $1.30 Gain on Property Sale ($36) ($31) ($0.56) Excluding Gain on Sale $88 $41 $0.74 Mark-to-Market on Share Based Comp $5 $4 $0.06 $93 $45
Slide 29: Variance Analysis: EBITDA Q4 2025 vs. Q1 2026
VARIANCE ANALYSIS: EBITDA Q4 2025 VS. Q1 2026 $140 $36 $124 $120 MSC Segment Variance + $24 mm $100 $14 $5 $8 ($1) $15 ($8) $80 ($13) C$ million $69 $60 Acquired on Dec. 31/25 • Corporate expenses up by $3 $40 Seasonal mm Price and margin recovery • Mark-to-market on stock- improvement based comp $5
Slide 30: Segment Breakdown: Operating Results
SEGMENT BREAKDOWN: OPERATING RESULTS Revenue (C$ millions) Gross Margins % Earnings from Operations (C$ millions) $1,200 30% $80 $70 $1,000 25% $60 $800 $50 $600 20% $40 $30 $400 15% $20 $200 $10 $0 10% $0 MSC Energy Field Stores Distributors MSC Energy Field Stores Distributors MSC Energy Field Sto
Slide 31: Service Center Results
SERVICE CENTER RESULTS • Q1 2026 tons were a record Tons Shipped (000’s) • Shipments were up 32% vs. Q4 2025 - Kloeckner acquisition 500 contribution plus strong seasonal pick-up 450 • Same store tons up 9% vs. Q4’25 400 • Price realizations and margins picked up in Q1’26 over Q4’25 • Gross margin d
Slide 32: Inventory Turns
INVENTORY TURNS • Total inventory turns in Q1 were up vs. Q4 due to strong business activity. Inventory Turns 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March Jun
Slide 33: Inventory Trends
INVENTORY TRENDS • Total inventory was comparable vs. Dec. 31/25 – tonnage was 5% lower and average cost was 6% higher for service centers. Inventory Trends $1,200 $1,084 $1,071 $1,052$1,031 $1,050 $1,025 $1,008 $986 $994 $1,012 $973 $1,000 $964 $957 $941 $948 $133 $107 $150 $137 $924 $920 $124 $907
Slide 34: Summary: Working Capital Management
SUMMARY: WORKING CAPITAL MANAGEMENT • Q1 experienced a use of working capital due to higher steel prices and normal cash outflows. $200,000 Quarterly EBITDA ($000’s) $150,000 $100,000 $50,000 $- Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 2018 Q2 2019 Q
Slide 35: Liquidity and Capital Structure Summary
LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – investment grade by S&P at BBB- and DBRS at BBB(low). • All debt is unsecured with no financial covenants on long term debt. 12/31/25 3/31/26 (C$ mm) (C$ mm) (Cash) $(115) $(128) Bank Lines ($450 mm) - Maturity April 2
Slide 36: Relative Return on Capital
RELATIVE RETURN ON CAPITAL • Russel’s returns remain industry leading. Return on Invested Capital - Trailing 3 Months to March 31, 2026 (Annualized) Return on Invested Capital - Twelve Months Ended 12/31/25 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Russel Competitor #1 Competitor #2 Russel Competitor
Slide 37: V. Recent Acquisitions
V. RECENT ACQUISITIONS
Slide 38: Samuel Acquisition: Fit in W. Canada
SAMUEL ACQUISITION: FIT IN W. CANADA • The combined footprint in Western Canada created opportunities to reconfigure the equipment/locations, enhance operating efficiencies and reduce the combined capital. Russel Location Samuel Location # of Locations BC Alberta Sask. Manitoba Total Russel 5 9 4 3
Slide 39: Samuel Acquisition: Extension into US Northeast
SAMUEL ACQUISITION: EXTENSION INTO US NORTHEAST • Samuel’s US NE operations extended Russel’s geography and increased economies of scale in plate processing. Russel - Buffalo, NY Wisconsin Pittsburgh, PA Russel Location Samuel Location 39
Slide 40: Samuel Acquisition: Invested Capital Update
SAMUEL ACQUISITION: INVESTED CAPITAL UPDATE • At the time of the Samuel acquisition announcement, the purchase price approximated the book value. Since that time, we reduced the invested capital by ~$100 mm and substantially reduced the implied purchase price multiple. Invested Capital – C$ Millions
Slide 41: Tampa Bay Steel Acquisition: Summary
TAMPA BAY STEEL ACQUISITION: SUMMARY • Final purchase price of US$75 mm. • Average sales and adjusted EBITDA of US$115 mm and US$13 mm, respectively, over the past five years • Invested US$20 mm in capex over past three years – significant value-added processing with capacity to grow. • Product mix
Slide 42: Kloeckner Asset Acquisition: Summary
KLOECKNER ASSET ACQUISITION: SUMMARY • The Kloeckner Assets acquired: • Seven locations in the US (2 in Florida; 2 in Texas; 1 in Georgia; 1 in North Carolina; and 1 in Iowa) • Assets include the net working capital, buildings, real estate and equipment for those locations • Final Purchase Price: •
Slide 43: Kloeckner Asset Acquisition: Expansion of US Footprint
KLOECKNER ASSET ACQUISITION: EXPANSION OF US FOOTPRINT • Our geographic coverage will be enhanced across key industrial hubs in the US. • The combined footprint should create opportunities to reinvest in the Kloeckner branches and improve operating performance. Mid-West Region Dubuque, IA Northeast
Slide 44: Contact Details
6600 Financial Drive, Mississauga, Ontario L5N 7J6 Email: info@russelmetals.com Visit us at: www.russelmetals.com Investor Relations Line: 905.816.5178