Service Centers

Russel posts solid quarter, eyes growth initiatives

February 9, 2024

Russel Metals has invested a lot in recent years, and it’s not done yet.

The Toronto-based metals distribution company said in its fourth-quarter earnings report that it plans to continue growing its market share through ongoing investment initiatives.

After spending CAD$73 million (US$54.2 million) in capital expenditures last year, Russel plans to invest more than C$100 million this year. In Q4 alone, it invested C$28 million, including adding value-added equipment and making modernization improvements at facilities in both Canada and the US.

Russel has five facility modernization projects currently underway, CFO Marty Juravsky said on a conference call with analysts on Friday. They will be completed throughout 2024 and early 2025, he said.

“Our project pipeline is currently over (C)$200 million. That’s a multi-year number, as we continue to identify more and more opportunities,” he added.

Russel also has more than 40 equipment projects underway or in the planning stages at various facilities in Canada and the US.

Among the company’s moves this past year were acquiring Alliance Supply Ltd., selling its stake in TriMark for C$60 million, and agreeing to purchase seven service centers from Samuel, Son & Co. for C$225 million. The Samuel transaction is expected to close in Q2’24.

Russel anticipates steel consumption in North America will grow in the coming years due to onshoring activities and infrastructure initiatives.

It also expects “steel prices to remain relatively stable over the near term as a result of the solid market activity.”

Shipments in the current quarter should be higher sequentially due to normal seasonality and current demand levels, Russel said.

Russel Metals

Fourth quarter ended Dec.31	2023	2022	% Change
Revenues	$1,019	$1,100	-7%
Net income (loss)	$47	$58	-19%
Per diluted share	$0.78	$0.93	-16%
Full year ended Dec.31
Revenues	$4,505	$5,071	-11%
Net income (loss)	$267	$372	-28%
Per diluted share	$4.33	$5.91	-27%

(in millions of Canadian dollars except per share)

Russel’s Q4 net income was down 19% year on year to C$47 million on sales that slipped 7% to just over C$1 billion.

2023 was the third-best year for the company, with net income of C$267 million down 28% from the previous year and revenues of $4.5 billion down 11% in the same comparison.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.