Russel Metals Inc. · TSX:RUS
Russel Metals — Q3 2025 Earnings Presentation
21 slides from Russel Metals's earnings presentation, Nov 6, 2025
Slide 1: Information Package for Investor Conference Call
"= Russel Metals =" 11111111 r.~ ,11 iiiiiiii 11 1 •: A - - =----= INFORMATION PACKAGE FOR INVESTOR CONFERENCE CALL NOVEMBER 6, 2025
Slide 2: Index
INDEX 1. Cautionary Statement on Forward-Looking Information 3 2. Notes (Non-GAAP Measures) 4 3. Q3 2025 in Review 5-18 4. Financial Highlights 19 5. Other Financial Information 20-21 Russel Metals 2
Slide 3: 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 4: Notes (Non-GAAP Measures)
NOTES (NON-GAAP MEASURES) In this Information Package we use certain financial measures that do not comply with IFRS Accounting 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 EBITDA and Othe
Slide 5: Q3 2025 in Review
Q3 2025 IN REVIEW CONTINUING IMPROVEMENT IN TREND RESULTS Revenues up 10% in first nine months of 2025 vs. first nine months of 2024 Gross margins up 100 bps in first nine months of 2025 vs. first nine months of 2024 Year-over-year increase in EBITDA DISCRETIONARY CAPEX GREW U.S., SPECIALTY & INVEST
Slide 6: Market Conditions
MARKET CONDITIONS Carbon Pricing $2,500 Carbon Steel: Inventory (Canada) Source: Metals Service Center Institute (MSO) - # 1 Heavy Melt {Chicago) HR Sheet - HR Plate - INDUSTRY INVENTORY Months on Hand $2,000 1,400,000 6.0 1,200,000 g $1,500 5.0 .... ....... '\/). 1,000,000 800,000 J 4.0 ~ $1,000 3.
Slide 7: Trend Results: Annual and Quarterly
TREND RESULTS: ANNUAL AND QUARTERLY Revenue (millions) EBITDA (millions) EBITDA Margin $6,000 $700 16% $5,000 $600 $500 $4,000 12% $400 9% $3,000 $300 8% 6% 6% 6% I I $2,000 II $200 Ii 4% $1,000 $100 $0 $0 0% 2019 2020 2021 2022 2023 2024 Q3 Q4 Ql Q2 Q3 2019 2020 2021 2022 2023 2024 Q3 Q4 Ql Q2 Q3 2
Slide 8: Summary: Financial Results
SUMMARY: FINANCIAL RESULTS $ mm, unless otherwise stated Q3 2024 Q2 2025 Q3 2025 Q3 2025 Observations: Income Statement: • Revenues were down 3% vs. Q2 but up 7% vs. Q3’24. Revenues $1,089 $1,207 $1,167 • Consolidated gross margin and EBITDA margin down vs. Q2. Steel Gross Margin ($ mm/%) $215 / 20%
Slide 9: EBITDA Variance Analysis: Q2 2025 vs. Q3 2025
EBITDA VARIANCE ANALYSIS: Q2 2025 VS. Q3 2025 $120 Service Center Segment $(36) mm $108 $100 $80 $6 $75 ($7) ($2) C: ($1) 'l .Q E $60 <.I). u $40 Seasonal Market Predominantly W. Canada Reorganization • Mark-to-market on stock-based comp $2 recovery in Q3 vs. $5 mm expense in Q2 • Thunder Bay Termin
Slide 10: EBITDA Through the Cycle
EBITDA THROUGH THE CYCLE • Our quarterly results are impacted by short term swings from seasonality, steel price changes (including the lag effects of steel price changes on price realizations vs. CGS) and general economic conditions. An analysis of trailing 12-month periods below provides a view of
Slide 11: Segment Breakdown: Operating Results
SEGMENT BREAKDOWN: OPERATING RESULTS Revenue {C$ millions} Gross Margins % Earnings from Operations {C$ millions} $1,000 30% $80 $800 --------------~~ - 25% $70 $60 $600 $400 $200 20% 15% $50 $40 $30 $20 $10 ::::::::s- )27'\ ---~-------......_----~------ $0 10% $0 - MSC - Energy Field Stores - Distr
Slide 12: Service Center Results
SERVICE CENTER RESULTS • Q3 2025 tons were solid, with some small impacts (down Tons Shipped {000's) 3% vs. Q2) due to normal seasonal dynamics. Same store 450 shipments were up 1% vs. Q3 2024 430 410 • Price realizations per ton were flat while CGS per ton was 390 370 up $49 --decrease in gross mar
Slide 13: Inventory Turns
INVENTORY TURNS • Total inventory turns in Q3 were up vs. Q2. Inventory Turns 5.0 4.7 4.5 3.8 4.0 3.9 3.7 4.0 3.9 3.9 .8 3.9 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 .0 I March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. 31/20 30/20 3
Slide 14: Working Capital Management: Inventory
WORKING CAPITAL MANAGEMENT: INVENTORY • Total inventory was down vs. Q2 reflecting lower tonnage and lower prices/ton. Inventory Trends $1,200 $1,025 $1,050 $1,000 $957 $800 $773 $720 C: .Q $600 E <.fl. $400 $200 $0 Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Se
Slide 15: Liquidity and Capital Structure Summary
LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – recently upgraded to investment grade (BBB-) by S&P. • All debt is unsecured with no financial covenants on long term debt. • Grew book value per share. 9/30/24 6/30/25 9/30/25 9/30/25 (C$ mm) (C$ mm) (C$ mm) Pro Forma
Slide 16: 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 Past 2 Years = Share Buy $106 mm Backs Facility • Q3: 330k acquired for $14 mm • Since NCIB established in Modernizatio
Slide 17: Capex Program: Summary
CAPEX PROGRAM: SUMMARY • The opportunities for value-added projects and facility modernizations are ongoing. 17
Slide 18: Dividend and Share Buy Back Summary
DIVIDEND AND SHARE BUY BACK SUMMARY Historical (and Projected Q4'25) Quarterly Dividends Return of Capital to Shareholders (millions) $0.43 $80 $0.42 $69 $71 $0.40 $49 $45 $47 $0.38 $40 $41 $39 $38 $35 $38 $24 $24 •o·,• I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~~~~~~~~ww
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS Nine Months Ended Years Ended December 31 September 30 2025 2024 2024 2023 2022 2021 OPERATING RESULTS (millions) Revenues $3,547.8 $3,222.0 $4,261.2 $4,505.1 $5,070.6 $4,208.5 EBITDA (1) 268.5 237.2 298.5 425.6 578.9 664.0 Adjusted EBITDA (1) 268.5 237.2 298.5 425.6 578.9 666.6
Slide 20: Consolidated Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ($ millions) 2025 2025 2025 2024 2024 2024 2024 2023 2023 2023 2023 2022 2022 2022 2022 METALS SERVICE CENTERS Tons Shipped ('000's) 385.6 399.6 409.0 359.0 340.0 328.4 322.4 306.7 310.1 332.0 339.8 293.1 317.8 334.9 33
Slide 21: Consolidated Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ($ millions) 2025 2025 2025 2024 2024 2024 2024 2023 2023 2023 2023 2022 2022 2022 2022 Quarter ended: Revenue 1,166.9 1,207.3 1,173.6 1,039.2 1,089.4 1,071.5 1,061.1 1,019.3 1,109.5 1,189.5 1,186.7 1,099.8 1,269.9 1,36