Russel Metals Inc. · TSX:RUS
Russel Metals — Investor Presentation (November 2025)
44 slides from Russel Metals's investor presentation, November 2025
Slide 1: Company Update - November 2025
COMPANY UPDATE - NOVEMBER 2025
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: 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 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: Metal Service Centers, Energy Field Stores and • Strong US presence in mid-west Metals Service Steel Distributors and south Centers • Founde
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 Locations – 140 Branches Suppliers Product Mix Total of 6-10, 12% Plate, 19% Canada, 71% Flanges, Valves, Fittings, Others, 57% 16% Flat Rolled, 11% Bars, 5% Stainless. Aluminum & Other Non- Ferrous, 9% U.S., 29% Total of 1-5, 31% Structurals , 36% Other, 4% Transactional Busine
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: Capital Reallocation Evolution
CAPITAL REALLOCATION EVOLUTION • In the five-year period of 2020-2024, we generated >$2 billion of cash and substantially changed our business and capital structure profile. Cash Generation 1/1/20 to 12/31/24 ($ mm) Capital Deployment 1/1/20 to 12/31/24 ($ mm) Asset Sales; $403 Reduce NCIB; $244 Deb
Slide 13: 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 $400 mm of • Raise the cycle floor and ceiling underperforming capital •
Slide 14: Impact of Portfolio Changes
IMPACT OF PORTFOLIO CHANGES • The portfolio changes over the past few years significantly reduced our EBITDA variance between the peak and trough on both an absolute basis and relative to our peers. Quarterly EBITDA Peak-to-Trough Variance, 2017-2019 Quarterly EBITDA Peak-to-Trough Variance, 2022-20
Slide 15: Working Capital Management/Counter Cyclicality of FCF
WORKING CAPITAL MANAGEMENT/COUNTER CYCLICALITY OF FCF • Working capital management is a long-term strategy due to the volatile nature of the markets in which we operate. $200,000 Quarterly EBITDA ($000’s) $150,000 $100,000 $50,000 $- Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2
Slide 16: ESG Focus
ESG FOCUS Summary From Sustainability Report Updated April, 2025 Environmental • Divested OCTG/Line Pipe business • Low carbon emissions from operations • Over the past five years, our revenues grew by 63% vs. a 2% increase in GHG emissions. Social • Structured H&S Program “Mission Zero” • Dash cam
Slide 17: II. Market Trends
II. MARKET TRENDS
Slide 18: Revenue Volatility vs. Indexes
REVENUE VOLATILITY VS. INDEXES • Russel Metals’ revenue is less volatile than underlying steel prices. Relative Volatility Absolute Volatility Revenue Volatility - Russel vs Benchmarks Coefficient of Variation (%) Russel Metals Total Revenue - (C$) millions 22% 300% Hot Rolled Coil (HRC) - (US$)/Ton
Slide 19: 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 October 2025 19
Slide 20: Business Conditions: Supply Chain Dynamics
BUSINESS CONDITIONS: SUPPLY CHAIN DYNAMICS Steel Mills/Imports: • Capacity utilization has moved up over the past few months. • Several mills are taking maintenance shutdowns in Q4. • Imports on a YTD basis are down in both Canada and the US. Service Centers: • Supply chain inventories in both Canad
Slide 21: III. Capital Allocation Priorities
III. CAPITAL ALLOCATION PRIORITIES
Slide 22: 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 23: 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 $56 $47 $0.38 $40 $44 $41 $46 $39 $38 $38 $35 $20 $25 $22 $16 $17 $15 $14 $14 $24 $12 $24 $0.35 $24 $24 $24 $24 $25 $24 $24 $24
Slide 24: Capex Program
CAPEX PROGRAM • The opportunities for value-added projects and facility modernizations are ongoing. Russel Historical Capex By Quarter - $ mm New 30k Lasers $35 $30 $29 $28 $25 $24 $24 $21 $21 $20 $16 $15 $15$15 $15 $15 $14 $14 $12 $11 $11 $11 $10 $10 $10 $10 $10 $9 $9 $9 $9 $9 $8 $8 $8 $8 $8 $7 $7
Slide 25: Acquisitions
ACQUISITIONS • We have completed several acquisitions over the past few years and continue to focus on tuck-in opportunities for our existing business units or standalone/complementary businesses. Acquisition History (C$ mm) $268 $167 $162 $157 $139 $113 $106 $70 $36 $39 $37 $22 $17 $27 $28 $27 $26
Slide 26: IV. Financial Overview
IV. FINANCIAL OVERVIEW
Slide 27: 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% 7% 6% 6% 6% $2,000 $200 $1,089 $1,039 $1,174 $1,207 $1,167 4% $108 $1,000 $86 $75 $100 $67 $61 $0 $0 0% 2019 2020 2021 2022 2023 2024 Q3 Q4 Q1 Q2
Slide 28: 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 29: EBITDA Variance Analysis: Q2 2025 vs. Q3 2025
EBITDA VARIANCE ANALYSIS: Q2 2025 VS. Q3 2025 $120 Service Center Segment $(36) mm $108 $100 ($6) $80 ($22) $6 $75 ($7) ($2) ($1) C$ million $60 $40 Seasonal Market Predominantly W. Canada Reorganization • Mark-to-market on stock-based comp $2 recovery in Q3 vs. $5 mm expense in Q2 • Thunder Bay Ter
Slide 30: EBITDA Through the Cycle
EBITDA THROUGH THE CYCLE • Our quarterly results are impacted by short term swings from seasonality, steel price changes (including the lag effects of steel price changes on price realizations vs. CGS) and general economic conditions. An analysis of trailing 12-month periods below provides a view of
Slide 31: Segment Breakdown: Operating Results
SEGMENT BREAKDOWN: OPERATING RESULTS Revenue (C$ millions) Gross Margins % Earnings from Operations (C$ millions) $1,000 30% $80 $70 $800 25% $60 $600 $50 20% $40 $400 $30 15% $20 $200 $10 $0 10% $0 MSC Energy Field Stores Distributors MSC Energy Field Stores Distributors MSC Energy Field Stores Dis
Slide 32: 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 33: Inventory Turns
INVENTORY TURNS • Total inventory turns in Q3 were up vs. Q2. Inventory Turns 5.0 4.7 4.5 3.8 3.8 4.0 4.0 4.0 3.9 3.7 4.0 3.9 3.9 3.8 3.9 3.8 3.7 3.5 3.4 3.8 3.7 3.6 3.5 3.0 3.0 2.9 2.5 2.2 2.5 2.0 1.5 1.0 0.5 0.0 March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec
Slide 34: 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 $1,052 $1,050 $1,031 $1,025 $1,008 $986 $994 $1,012 $1,000 $964 $957 $973 $150 $941 $948 $137 $907 $924 $920 $124 $884 $894 $190 $211 $883 $122 $133 $123 $86
Slide 35: Liquidity and Capital Structure Summary
LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – recently upgraded to investment grade (BBB-) by S&P. • All debt is unsecured with no financial covenants on long term debt. • Grew book value per share. 9/30/24 6/30/25 9/30/25 9/30/25 Pro (C$ mm) (C$ mm) (C$ mm) Forma
Slide 36: Industry Leading Return on Capital
INDUSTRY LEADING RETURN ON CAPITAL 25% Return on Invested Capital – Trailing 9 Months to September 30 2025 Return on Invested Capital (Average Annual) - Last Two Years Ended 12/31/24 (Annualized) 25% 20% 20% 15% 15% 10% 10% 5% 5% – – Russel Competitor #1 Competitor #2 Competitor #3 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 ~$100 mm(1) and substantially reduced the implied purchase price multiple. Invested Capital – C$ Milli
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 to be 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 – all properties wil
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 Information
6600 Financial Drive, Mississauga, Ontario L5N 7J6 Email: info@russelmetals.com Visit us at: www.russelmetals.com Investor Relations Line: 905.816.5178
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