Russel Metals Inc. · TSX:RUS
Russel Metals — Q1 2026 Earnings Presentation
22 slides from Russel Metals's earnings presentation, May 6, 2026
Slide 1: Information Package for Investor Conference Call May 6, 2026
INFORMATION PACKAGE FOR INVESTOR CONFERENCE CALL MAY 6, 2026
Slide 2: Index
INDEX 1. Cautionary Statement on Forward-Looking Information 3 2. Notes (Non-GAAP Measures) 4 3. Q1 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 and EBITDA and Othe
Slide 5: 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 6: Market Conditions
MARKET CONDITIONS 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 $- 6 Source: Fastmarkets as of April 2026
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 Pre-Covid Post-Covid $450,000 Peak-to-Trough Variance = $127 mm $400,000 Peak-to-Trough Variance = $167 mm Jan. 1/23 to March 31/26 Annual Average = $365 m
Slide 8: Summary: Working Capital Management
SUMMARY: WORKING CAPITAL MANAGEMENT • Q1 experienced a use of working capital due to higher steel prices and normal cash outflows in Q1. $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
Slide 9: 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 10: 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 11: 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 $5
Slide 12: Segment Breakdown: Operating Results
SEGMENT BREAKDOWN: OPERATING RESULTS Revenue (C$ 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 13: 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 14: 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 15: 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 $907
Slide 16: Liquidity and Capital Structure Summary
LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – investment grade by S&P at BBB- and DBRS at BBB(low). • All debt is unsecured with no financial covenants on long term debt. 12/31/25 3/31/26 (C$ mm) (C$ mm) (Cash) $(115) $(128) Bank Lines ($450 mm) - Maturity April 2
Slide 17: 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: 150k acquired for $7 mm ($47.42/share) Modernizations • Since NCIB
Slide 18: Capex Program: Summary
• $0 $5 $10 $15 $20 $25 $30 $35 $8 2015 Q1 2015 Q2 $10 $11 2015 Q3 $9 2015 Q4 $3 2016 Q1 $4 2016 Q2 2016 Q3 $5 $5 2016 Q4 $6 2017 Q1 $9 2017 Q2 $8 2017 Q3 $14 2017 Q4 2018 Q1 $11 2018 Q2 $9 $12 2018 Q3 $10 2018 Q4 $5 2019 Q1 $9 2019 Q2 $10 2019 Q3 CAPEX PROGRAM: SUMMARY $11 2019 Q4 $7 2020 Q1 $5 202
Slide 19: 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 20: Financial Highlights
FINANCIAL HIGHLIGHTS Three Months Ended Years Ended December 31 March 31 2026 2025 2025 2024 2023 2022 OPERATING RESULTS (millions) Revenues $1,418.3 $1,173.6 $4,641.5 $4,261.2 $4,505.1 $5,070.6 EBITDA 123.7 85.7 337.1 298.5 425.6 578.9 EBITDA as a % of revenue 8.7% 7.3% 7.3% 7.0% 9.4% 11.4% EBIT 97
Slide 21: Consolidated Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ($ millions) 2026 2025 2025 2025 2025 2024 2024 2024 2024 2023 2023 2023 2023 2022 2022 2022 2022 METALS SERVICE CENTERS Tons Shipped ('000's) 482.6 364.7 385.6 399.6 409.0 359.0 340.0 328.4 322.4 306.7 310.1 332.
Slide 22: Consolidated Statements of Earnings
CONSOLIDATED STATEMENTS OF EARNINGS Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ($ millions) 2026 2025 2025 2025 2025 2024 2024 2024 2024 2023 2023 2023 2023 2022 2022 2022 2022 Quarter ended: Revenue 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 1,019.3 1,109.5 1,18