Canada
November 10, 2025
Russel Metals reports mixed Q3 results
Written by Kristen DiLandro
Russel Metals Inc.
| Third quarter ended Sep.30 | 2025 | 2024 | % Change |
|---|---|---|---|
| Net sales | $1,166.9 | $1,089.4 | 7.1% |
| Net earnings (loss) | $35.0 | $34.5 | 1.4% |
| Per diluted share | $0.63 | $0.59 | 6.8% |
| Nine months ended Sep.30 | |||
| Net sales | $3,547.8 | $3,222.0 | 10.1% |
| Net earnings (loss) | $138.4 | $134.1 | 3.2% |
| Per diluted share | $2.45 | $2.26 | 8.4% |
Russel Metals posted mixed financial results in its third-quarter earnings report. The Mississauga, Ontario-based metals processing and distribution company generated Canadian $35 million (US$25 million) in net income for Q3’25, representing a 1.4% increase from the same quarter in 2024.
While Q3’25 EBITDA of CA$75 million increased 11.9% from Q3’24, it declined 30.6% from CA$108 million in Q2’25.
The company attributed its acquisitions from Samuel, Son & Co. and Tampa Bay Steel to the increased revenue, reaching CA$1.17 billion in Q3’25, compared to CA$1.09 billion in Q3’24.
Tariffs had a positive impact on prices in early 2025, Russel said, noting that prices stabilized in the middle of Q3’25. It cited seasonality as a reason for the reduction in Q3’25 shipments.
The “lumpy” business effect
During its Nov. 6 earnings call, Russel Metals Executive VP, CFO, and Secretary Martin Juravsky explained the misleading appearance of the company’s performance is in part due to what he called “lumpy business.”
In response to an analyst’s inquiry, “What’s interesting,” the CFO explained, “Revenues are down, but margins are up. And part of that was because there’s one part of our business that tends to do a little bit more of some lumpier stuff, and sometimes that lumpier business comes at lower margins. So top line could be oftentimes misleading.”
“And so when you look quarter-over-quarter, the bottom line was within spitting distance of each other, notwithstanding the change in the top line because, yes, top line was down, but the margins were healthier in Q3 than they were in Q2 because some of that lumpier – and again, not hugely lumpy, but at the margin -a little bit lumpier business that was there in Q2 didn’t come with as great margins,” Juravsky said.
Operational changes
The company is awaiting the closure of the deal to acquire seven US service center locations from Klöckner for ~$118.6 million. It said its focus is on getting the deal done. It expects the acquisition to grow annual revenue by ~US$500 million, expanding the revenue contribution from its US-based businesses to over 50%.
On Sep. 17, Russel also announced its plans to rationalize excess capacity/redundant locations, reduce invested capital, and gain operational efficiencies at its Western Canadian service center operations.
It will sell both its British Columbia (Delta) and Saskatchewan (Saskatoon) properties for CA~$40million, the company noted.
Outlook
Russel said the changing tariff landscape could disrupt price stability. It expects reduced shipments in the last quarter of 2025 compared to the previous quarter as holidays in both the US and Canada result in fewer operational days. It also noted Q4’25 margins should be consistent with those achieved mid-Q3’25.
In the medium to long term, the company anticipates strong performance due to investments in infrastructure, such as data centers and Canadian nation-building projects, as well as potential growth in the US manufacturing sector. Russel expects its ongoing investments in value-added equipment, facility modernizations, and acquisitions to increase its market share, especially once the deal with Klöckner is closed.
