Russel Metals Inc. · TSX:RUS
Russel Metals — Investor Presentation (March 2026)
43 slides from Russel Metals's investor presentation, Mar 19, 2026
Slide 1: Company Update - March 2026
COMPANY UPDATE - MARCH 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: 2025 in Review
2025 IN REVIEW CONTINUING IMPROVEMENT IN TREND RESULTS Revenues up 9% in 2025 vs. 2024 Gross margins up 90 bps in 2025 vs. 2024 EBITDA margin and $ up in 2025 vs. 2024 - EBITDA $ up 13% GREW U.S., SPECIALTY & DISCRETIONARY CAPEX VALUE-ADD % of TOTAL INVESTMENTS REVENUES CAPITAL DEPLOYED GENERATED ST
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 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 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 better
Slide 15: Working Capital Management/Counter Cyclical FCF
WORKING CAPITAL MANAGEMENT/COUNTER CYCLICAL 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 $- Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015
Slide 16: ESG Focus
ESG FOCUS Summary From Sustainability Report Updated April, 2025 Environmental • Divested OCTG/Line Pipe business • Low carbon emissions from operations Social • Structured H&S Program “Mission Zero” • Dash cam roll out • Trailer fall prevention • Material handling/hand injury prevention • Corporate
Slide 17: II. Market Trends
II. MARKET TRENDS
Slide 18: Revenue Volatility vs. Indexes
REVENUE VOLATILITY VS. INDEXES • Russel Metals’ revenue is less volatile than underlying steel prices due to the change in our business portfolio. Relative Volatility Absolute Volatility Revenue Volatility - Russel vs Benchmarks Coefficient of Variation (%) Russel Metals Total Revenue - (C$) million
Slide 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 March 2026 19
Slide 20: Business Conditions: Supply Chain Dynamics
BUSINESS CONDITIONS: SUPPLY CHAIN DYNAMICS Steel Mills/Imports: • Capacity utilization has remained around 75%. • Imports for 2025 were down in both Canada and the US. Service Centers: • Supply chain inventories in both Canada and the US increased in typical year end patterns, but remain below the h
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 $108 mm Backs Facility • Q4: 596k acquired for $24 mm ($40.58/share) Modernizations • Since NC
Slide 23: Dividend and Share Buy Back Summary
DIVIDEND AND SHARE BUY BACK SUMMARY Historical (and Projected Q1'26) Quarterly Dividends 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 $16 $17 $15 $14 $14 $24 $12 $24 $0.35 $24 $24 $24 $24 $25 $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 $14 $12 $11 $11 $11 $10 $10 $10 $10 $10 $9 $9 $9 $9 $9 $8 $8 $8 $8 $8 $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 $157 $139 $130 $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 $1,174 $1,207 $1,167 $1,094 $200 $1,039 $108 4% $1,000 $86 $75 $100 $61 $69 $0 $0 0% 2019 2020 2021 2022 2023 2024 2025 Q4 Q1 Q
Slide 28: Summary: Financial Results
SUMMARY: FINANCIAL RESULTS $ mm, unless otherwise stated Q4 2024 Q3 2025 Q4 2025 Q4 2025 Observations: Income Statement: • Revenues were down 6% vs. Q3 but up 5% vs. Q4’24. Most metrics improved in Q4’25 vs. Q4’24 Revenues $1,039 $1,167 $1,094 • Consolidated gross margin and EBITDA margin were flat
Slide 29: Variance Analysis: EBITDA Q3 2025 vs. Q4 2025
VARIANCE ANALYSIS: EBITDA Q3 2025 VS. Q4 2025 $90 $80 $75 $7 $1 $70 $1 ($4) $69 ($8) ($5) $60 $50 C$ million $40 $30 • Corporate expenses down by $2 mm • Mark-to-market on $20 Seasonal decline Market steady Q3 had one-time Seasonal stock-based comp $3 in tons shipped from mid Q3 costs for wind down
Slide 30: Segment Breakdown: Operating Results
SEGMENT BREAKDOWN: OPERATING RESULTS Revenue (C$ millions) Gross Margins % Earnings from Operations (C$ millions) $1,000 30% $80 $70 $800 25% $60 20% $600 $50 15% $40 $400 $30 10% $20 $200 5% $10 $0 0% $0 MSC Energy Field Stores Distributors MSC Energy Field Stores Distributors MSC Energy Field Stor
Slide 31: Service Center Results
SERVICE CENTER RESULTS • Q4 2025 tons were solid, despite the seasonal dynamics. Tons Shipped (000’s) Shipments were up 1% vs. Q4 2024 450 • Price realizations/CGS/gross margins were consistent in Q4 430 410 vs. Q3, with some pick-up towards the end of Q4. 390 370 350 330 310 290 270 Revenue and CGS
Slide 32: Inventory Turns
INVENTORY TURNS • Total inventory turns in Q4 were down vs. Q3 due to the typical seasonal dynamic. 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. Mar
Slide 33: Working Capital Management: Inventory
WORKING CAPITAL MANAGEMENT: INVENTORY • Total inventory was up vs. Q3 reflecting the impact of the Kloeckner acquisition, which included $96 million of inventory. Inventory Trends $1,200 $1,084 $1,052$1,031 $1,050 $1,025 $1,008 $986 $994 $1,012 $973 $1,000 $964 $957 $941 $948 $133 $150 $137 $924 $92
Slide 34: Liquidity and Capital Structure Summary
LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – recently upgraded to investment grade (BBB-) by S&P. • All debt is unsecured with no financial covenants on long term debt. 9/30/25 12/31/25 Pre- 12/31/25 Actual (C$ mm) Kloeckner (C$ mm) Transaction (C$ mm) (Cash) $(2
Slide 35: Relative Return on Capital
RELATIVE RETURN ON CAPITAL • Russel’s returns remain industry leading. Return on Invested Capital - Twelve Months Ended 12/31/25 Return on Invested Capital (Average Annual) - Two Years Ended 12/31/25 15% 15% 10% 10% 5% 5% 0% 0% Russel Competitor #1 Competitor #2 Russel Competitor #1 Competitor #2 Re
Slide 36: V. Recent Acquisitions
V. RECENT ACQUISITIONS
Slide 37: 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 38: 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 38
Slide 39: 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 40: 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 41: 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 • Purchase Price: • US$51.
Slide 42: 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 43: 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