Russel Metals Inc. · TSX:RUS
Russel Metals — Q2 2026 Earnings Presentation
22 slides from Russel Metals's earnings presentation, Aug 7, 2026
Slide 1: Information Package for Investor Conference Call
INFORMATION PACKAGE FOR INVESTOR CONFERENCE CALL AUGUST 7, 2026
Slide 2: Index
INDEX 1. Cautionary Statement on Forward-Looking Information 3 2. Notes (Non-GAAP Measures) 4 3. Q2 2026 in Review 5-19 4. Financial Highlights 20 5. Other Financial Information 21-22 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, EBITDA, adjusted E
Slide 5: Q2'26 in Review
Q2’26 IN REVIEW STRONG RESULTS Record revenues and shipments Gross margins up 130 bps vs. Q1’26 Increased contributions from Kloeckner acquisition (EBITDA of C$16 mm in Q2 and C$24 mm year-to-date) Continue to opportunistically refine portfolio - sale of Color Steels division DISCRETIONARY CAPEX GEN
Slide 6: Market Conditions
MARKET CONDITIONS Carbon Pricing $2,500 #1 Heavy Melt (Chicago) HR Sheet HR Plate $2,000 US $ / ton $1,500 $1,000 $500 $0 Specialty Metals Pricing $350 $300 Stainless Steel Sheet Aluminium Midwest $250 US$ / cwt $200 $150 $100 $50 $- Source: Fastmarkets as of July 2026 6
Slide 7: EBITDA Trends
EBITDA TRENDS • Our last twelve months EBITDA continues to show a sequential improvement in trend results. Trailing LTM EBITDA ($000’s) $500,000 2017-2019 2023-2026 $450,000 Peak-to-Trough Variance = $127 mm $400,000 Peak-to-Trough Variance = $167 mm Jan. 1/23 to June 30/26 Annual Average = $378 mm
Slide 8: Longer Term EBITDA and Working Capital Trends
LONGER TERM EBITDA AND WORKING CAPITAL TRENDS • Q2 experienced a use of working capital in line with expectations due to higher steel prices and business activity. $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
Slide 9: Annual and Quarterly Results
ANNUAL AND QUARTERLY RESULTS Revenue (millions) EBITDA (millions) Adjusted EBITDA (millions) 5000 $4,642 500 500 $4,505 $440 $4,261 $426 4000 400 400 $337 $341 $299 $298 3000 300 300 2000 $1,655 200 200 $1,418 $154 $138 $1,207 $1,167 $1,094 $124 $113 $108 $93 1000 100 $75 $69 100 $73 $72 0 0 0 2023
Slide 10: Comparison of Adjusted and Unadjusted Results
COMPARISON OF ADJUSTED AND UNADJUSTED RESULTS • The following summarizes our quarterly results on both an unadjusted and “adjusted” basis. EBITDA (mm) Net Earnings (mm) EPS Q2 2026 As Stated $138.4 $78.5 $1.43 • Adjusted EBITDA +65% vs. Q1`26 and +36% vs. Q2’25 Mark-to-Market on Stock Based Comp $15
Slide 11: Summary: Financial Results
SUMMARY: FINANCIAL RESULTS $ mm, unless otherwise stated Q2 2025 Q1 2026 Q2 2026 Q2 2026 Observations: Income Statement: • Revenues were an all-time record: up 17% vs. Q1 and up 37% vs. Q2’25. Revenues $1,207 $1,418 $1,655 • Consolidated gross margin and EBITDA margin were up for Q2 vs. Q1 Gross Mar
Slide 12: Variance Analysis: Adjusted EBITDA Q1 2026 vs. Q2 2026
VARIANCE ANALYSIS: ADJUSTED EBITDA Q1 2026 VS. Q2 2026 $160 $7 $154 MSC Segment Variance + $38 mm $10 $37 $140 $5 ($12) $120 $13 $100 $93 C$ million $80 • Corporate expenses Ongoing positive flat $60 Price and margin industry trends • Thunder Bay improvements Terminals seasonal continued through Q2
Slide 13: Segment Breakdown: Operating Results
SEGMENT BREAKDOWN: OPERATING RESULTS Revenue (C$ millions) Gross Margins % Earnings from Operations (C$ millions) Energy and Steel Distributors Revenue $1,600 $350 30% $100 $1,400 $300 $90 $1,200 25% $80 $250 MSC Revenue $70 $1,000 $200 $60 $800 20% $50 $150 $600 $40 $400 $100 15% $30 $50 $20 $200 $
Slide 14: Service Center Results
SERVICE CENTER RESULTS • Q2 2026 tons were another record Tons Shipped (000’s) • Shipments were up 6% vs. Q1 2026 600 • Price realizations and margins picked up in Q2’26 over Q1’26 550 • Gross margin dollars +$71/ton vs. Q1 500 • Gross margin % +132 bps vs. Q1 450 400 350 300 250 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 15: Inventory Turns
INVENTORY TURNS • Total inventory turns improved in Q2 vs. Q1. 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 June Sept. Dec. March June 31/18 3
Slide 16: Inventory Trends
INVENTORY TRENDS • Total inventory was up vs. March 31/26 – tonnage was flat and average cost was 9% higher for service centers. Inventory Trends $1,175 $1,200 $1,084 $1,071 $1,052 $1,050 $145 $1,031 $1,025 $1,008 $986 $994 $1,012 $964 $973 $133 $107 $1,000 $150 $957 $941 $948 $137 $907 $924 $920 $1
Slide 17: Liquidity and Capital Structure Summary
LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – investment grade by S&P at BBB- and DBRS at BBB(low). • All debt is unsecured with no financial covenants on long term debt. • Recently extended bank lines from 2029 to 2030. 3/31/26 6/30/26 (C$ mm) (C$ mm) (Cash) $(12
Slide 18: 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 Share Buy Backs • Since NCIB established in Facility Aug/22: 8.7 mm acquired for Modernizations $333 mm (avg. $38.13/share) = 14% of shares O/S •
Slide 19: Dividend and Share Buy Back Summary
DIVIDEND AND SHARE BUY BACK SUMMARY Historical (and Projected Q3'26) Quarterly Dividends $0.44 Return of Capital to Shareholders (millions) $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 $24 $7 $0.35 $24 $24
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS Six Months Ended Years Ended December 31 June 30 2026 2025 2025 2024 2023 2022 OPERATING RESULTS (millions) Revenues $3,073.3 $2,380.9 $4,641.5 $4,261.2 $4,505.1 $5,070.6 EBITDA 262.1 193.5 337.1 298.5 425.6 578.9 Adjusted EBITDA (1) 246.6 196.1 340.5 298.1 440.2 576.6 Adjusted
Slide 21: Consolidated Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ($ millions) 2026 2026 2025 2025 2025 2025 2024 2024 2024 2024 2023 2023 2023 2023 2022 2022 2022 2022 METALS SERVICE CENTERS Tons Shipped ('000's) 510.3 482.6 364.7 385.6 399.6 409.0 359.0 340.0 328.4 322.4 30
Slide 22: Consolidated Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ($ millions) 2026 2026 2025 2025 2025 2025 2024 2024 2024 2024 2023 2023 2023 2023 2022 2022 2022 2022 Quarter ended: Revenue 1,655.0 1,418.3 1,093.7 1,166.9 1,207.3 1,173.6 1,039.2 1,089.4 1,071.5 1,061.1 1,01