Russel Metals Reports Q3 Results Amid Market Volatility

Russel Metals ( (RUSMF) ) has released its Q3 earnings. Here is a breakdown of the information Russel Metals presented to its investors.

Russel Metals Inc. is one of North America’s largest metals distribution companies, specializing in metals service centers, energy field stores, and steel distribution. The company focuses on value-added processing and serves a wide range of industries with an extensive metal product line.

In the third quarter of 2024, Russel Metals reported revenues of $1.1 billion, with an EBITDA of $67 million and earnings per share of $0.59. The company successfully closed the acquisition of Samuel, Son & Co., expanded its capital expenditures, and repurchased 2% of its outstanding shares, all while maintaining a strong liquidity position of $762 million.

Key financial highlights include a slight decline in revenues compared to the previous year, attributed to volatile steel prices and a weakened metals service centers segment. However, the energy field stores segment showed stable performance. The acquisition of Samuel is expected to bring growth, despite initial non-recurring costs. The company also made significant capital investments in facility expansions across North America.

Russel Metals increased its credit facility to $600 million, enhancing its financial flexibility by eliminating high-yield debt structures. This strategic move is poised to support future growth initiatives and lower financing costs. The company also continues to return capital to shareholders through dividends and share buybacks.

Looking ahead, Russel Metals anticipates a volatile steel market but is optimistic about the long-term potential for growth in North American steel consumption. The company expects to leverage its recent acquisitions and facility modernizations to gain market share and improve operational efficiencies, with steady demand anticipated in the energy sector.