Russel Metals hits recent revenue high as Q2 shipments surge

Russel Metals posted its strongest quarterly revenue in three years, fueled by higher steel prices, steady demand, and near-record shipments across its service center network.

The Mississauga, Ontario-based metals distributor, with operations across Canada and the US, reported net income of Canadian $60.4 million (~US$43.9 million)for the second quarter ended June 30. That was up 40% from CAD$43.0 million in Q1 and 21% from CAD$49.9 million a year earlier.

Revenues rose to CAD$1.21 billion, a 3% sequential rise and a 13% jump year over year. Russel said higher steel prices, as well as the inclusion of a full quarter from both its Tampa Bay and Samuel acquisitions, drove sales higher.

Russel said its metal service centers saw near-record shipment volumes despite severe weather and ongoing tariff-related market uncertainty. The company also highlighted improved margins and selling price realizations, particularly in its energy field store segment.

The imposition of tariffs in the early part of 2025 had a positive impact on market prices for Russel’s steel and aluminum products. Steel plate and sheet prices increased by 33% and 28%, respectively, compared to year-end levels, while aluminum prices rose by 28%, according to the company.

“Sheet and plate prices exhibit a strong upswing in the early part of the year because of the tariff dynamic,” EVP and CFO Martin Juavsky mentioned on a conference call with analysts to discuss Russel’s quarterly earnings report. “Prices have since stabilized, and the outlook will be driven in part by the evolving tariff dynamic.”

Regarding current demand, President and CEO John Reid said nonresidential construction is doing fairly well, noting a “strong backlog in data centers and infrastructure that’s really carrying that for several quarters to come.”

Demand in the oil and gas sector is steady, Reid said, noting that it will benefit significantly from data center construction. “They’re going to just have a massive need for power generation coming out of them or solar, but we won’t have enough power to support all of that potentially in North America,” he commented.

While “ag is struggling,” Reid said, “We’ve seen heavy equipment kind of coming out of their lull and starting to develop a pretty nice backlog.”

Looking ahead, the company expects stable demand in Q3 but seasonal shipment declines due to holiday schedules in both Canada and the US.

It remains bullish on medium-term growth, citing further rebuilding of the US industrial manufacturing base and infrastructure-related investments.

Russel said it continues to invest in facility upgrades and value-added processing and is actively evaluating US acquisition opportunities to expand its service center platform.