Russel Metals ( (RUSMF) ) has released its Q1 earnings. Here is a breakdown of the information Russel Metals presented to its investors.
Russel Metals Inc. is a leading metals distribution company in North America, operating through three main segments: metals service centers, energy field stores, and steel distributors. The company offers a wide range of metal products and specializes in serving the energy industry with its extensive distribution network.
In the first quarter of 2025, Russel Metals reported revenues of $1.2 billion and an EBITDA of $86 million, marking a significant improvement from previous quarters. The company achieved record quarterly shipments, reflecting a 14% increase from Q4 2024 and a 29% increase from Q1 2024. Additionally, Russel Metals announced a balanced approach to returning capital to shareholders, with $25 million in share buybacks and $24 million in dividends.
Key financial highlights for the quarter include a 2.4% increase in the quarterly dividend, a cumulative 13.2% increase since 2023, and the issuance of $300 million in senior unsecured notes. The company also reported a strong capital structure with pro forma liquidity of $605 million. The metals service centers segment achieved the highest tonnage sales in its history, driven by favorable market conditions and strategic acquisitions.
Russel Metals continues to focus on internal growth initiatives, investing $29 million in capital expenditures for facility modernizations and value-added equipment. The company is also expanding its U.S. platform, with 44% of Q1 2025 revenues generated in the U.S., up from 39% in 2024. The imposition of tariffs on steel and aluminum has led to a significant increase in metal prices, impacting market conditions.
Looking ahead, Russel Metals anticipates benefiting from the rebuilding of the U.S. industrial manufacturing base and ongoing investments in its service centers. The company remains committed to gaining market share through strategic acquisitions and enhancing its operations, while closely monitoring international trade policies and North American industrial activity.