Russel Metals Inc. (RUS) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen, and welcome to the 2025 third quarter results for Russell Metals. Today's call will be hosted by Mr. Martin Juravsky, Executive Vice President and Chief Financial Officer, and Mr. John Reed, President and Chief Executive Officer of Russell Metals, Inc. Today's presentation will be followed by a question and answer period. At that time, if you have a question, please press star 1 on your telephone keypad. I will now turn the meeting over to Mr. Martin Juravsky. Please go ahead, Mr. Juravsky. Thank you. Great. Thank you, operator. Good morning, everyone. I'll be providing an overview of the Q3 2025 results, and if you want to follow along, I'll be using the slides that are on our website. just go to the Investor Relations section, and it's located in the Conference Call submenu. If you go to page three, you can read our cautionary statement on forward-looking information. So let me start with a little perspective on the quarter that's outlined on page five. If we look at the first nine months of this year or trailing 12-month periods, we have delivered an improvement in trendline results. I'll talk more about this on another slide, but in summary, for the first nine months of 2025, as compared to the first nine months of 2024, we generated 10% increase in revenues, 100 basis point pickup in gross margins, and a 13% pickup in EBITDA. This is a reflection of the impacts of our recent capital deployment initiatives, including two acquisitions last year, as well as our ongoing capital investment initiatives. On the middle row of that diagram, Q3 CapEx was $15 million. This number is a bit below our expected multi-year run rate, as some projects have been recently completed, and we are still scoping out some potential new opportunities. I...