Russel Metals Inc. · TSX:RUS
Russel Metals — Investor Presentation (August 2026)
44 slides from Russel Metals's investor presentation, August 2026
Slide 1: Company Update - August 2026
COMPANY UPDATE - AUGUST 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: 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$24 mm year-to-date) Continue to opportunistically refine portfolio - sale of Color Steels division DISCRETIONARY CAPEX GEN
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS Compelling Market Position with Strong Supplier Relationships and Market Insight • One of the largest metals distribution and processing companies in North America • Well-established relationships with North American steel producers and one of the largest independent steel import
Slide 8: Russel Metals At-a-Glance
RUSSEL METALS AT-A-GLANCE Overview Key Segments • Distribution of various industrial products across North America • Coast-to-coast in Canada • Three segments: Metals Service Centers, Energy Field Stores and • Strong US presence in mid-west, Metals Service Steel Distributors south and northeast Cent
Slide 9: Market Position
MARKET POSITION • Russel is one of the largest service center companies in North America • Leading market position in Canada • Strong market position in the US South and US Mid-West 2024 Revenues (US$ 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 Over 140 Branches/>$6 B of annualized Suppliers (1) Product Mix (YTD 2026) Revenue/$2.9 B Assets Total of 6-10, 14% Flat Rolled, 10% Canada, 46% Plate, 20% Others, 55% Flanges, Valves, Fittings, 13% Stainless. Aluminum & Other Non- Ferrous, 9% Other, 3% U.S., 54% Bars, 4% Total
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 return $120 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 • ~$900 mm of capital ret
Slide 14: Financial Impacts of Business Transformation
FINANCIAL IMPACTS OF BUSINESS TRANSFORMATION • The capital reallocation evolution has resulted in an LTM EBITDA profile with a higher cycle floor/ceiling/average and lower peak-to-trough volatility in the 2023-2026 period versus the 2017-2019 period. • Our last twelve months EBITDA continues to show
Slide 15: ESG Focus
ESG FOCUS Summary From Sustainability Report Updated April, 2026 Environmental • Divested OCTG/Line Pipe business • Low carbon emissions from operations Social • Structured H&S Program “Mission Zero” • Dash cam roll out • Trailer fall prevention • Material handling/hand injury prevention • Corporate
Slide 16: II. Market Trends
II. MARKET TRENDS
Slide 17: Revenue Volatility vs. Indexes
REVENUE VOLATILITY VS. INDEXES • Russel Metals’ revenue is less volatile than underlying steel prices. Relative Volatility Absolute Volatility Revenue Volatility - Russel vs Benchmarks Coefficient of Variation (%) Russel Metals Total Revenue - (C$) millions 23% 300% Hot Rolled Coil (HRC) - (US$)/Ton
Slide 18: Business Conditions: Metal Pricing Trends
BUSINESS CONDITIONS: METAL PRICING TRENDS 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 August 2026 18
Slide 19: Business Conditions: Supply Chain Dynamics
BUSINESS CONDITIONS: SUPPLY CHAIN DYNAMICS Steel Mills/Imports: • Capacity utilization remains near 80%, which indicates tight supply and longer than normal lead times. • Imports remain down in both Canada and the US. Service Centers: • Supply chain inventories in both Canada and the US remain lean.
Slide 20: III. Capital Allocation Priorities
III. CAPITAL ALLOCATION PRIORITIES
Slide 21: Capital Redeployment During 2024-2026: >$1 Billion
CAPITAL REDEPLOYMENT DURING 2024-2026: >$1 BILLION Increase capital deployment with a target of >15% Flexible approach to returning capital to return over a cycle shareholders Acquisitions and Capex 24/25/26 = $659 mm Share Buy Divestitures of Non- Backs Core Assets 24/25/26 Facility • 8.7 mm acquir
Slide 22: 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 Dividend outflow flat due to $0.42 $69 $71 reduction in share count 16% increase in $0.40 dividend/share since 2023 $49 $48 $45 $56 $47 $0.38 $40 $44
Slide 23: Capex Program
CAPEX PROGRAM • The opportunities for value-added projects and facility modernizations are ongoing. Capex By Quarter - $ mm $35 $30 $29 $28 $25 $24$24 $21$21 $20 $18 $18 $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 $7 $6 $6 $6 $6 $5 $5 $5 $5
Slide 24: Growth via Acquisitions: Today vs. 2024
GROWTH VIA ACQUISITIONS: TODAY VS. 2024 • We have 82 service center locations, of which 51 are in Canada and 31 are in the US. • A significant part of the current footprint was acquired through the 2024 and 2025 acquisitions (Samuel 7 locations, Tampa Bay 1 location, Kloeckner 7 locations) as noted
Slide 25: IV. Financial Overview
IV. FINANCIAL OVERVIEW
Slide 26: 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 27: 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 28: 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 29: 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 $60 Price and margin industry trends • Thunder Bay improvements Terminals seasonal continued through Q2
Slide 30: Segment Breakdown: Operating Results
SEGMENT BREAKDOWN: OPERATING RESULTS Revenue (C$ 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 31: 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 32: 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 33: 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 34: 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 $- Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015
Slide 35: Liquidity and Capital Structure Summary
LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – investment grade by S&P at BBB- and DBRS at BBB(low). • All debt is unsecured with no financial covenants on long term debt. • Recently extended bank lines from 2029 to 2030. 3/31/26 6/30/26 (C$ mm) (C$ mm) (Cash) $(12
Slide 36: Relative Return on Capital
RELATIVE RETURN ON CAPITAL • Russel’s returns remain industry leading. Return on Invested Capital - Trailing 6 Months to June 30, 2026 (Annualized) Return on Invested Capital - Twelve Months Ended 12/31/25 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Russel Competitor #1 Competitor #2 Russel Competit
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 ~$100 mm and substantially reduced the implied purchase price multiple. Invested Capital – C$ Millions
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 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 • Final Purchase Price: •
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: 6600 Financial Drive, Mississauga, Ontario
6600 Financial Drive, Mississauga, Ontario L5N 7J6 Email: info@russelmetals.com Visit us at: www.russelmetals.com Investor Relations Line: 905.816.5178