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Highlights

  • Revenue rose 12.7% year-over-year to CAD 1,207.3 million.
  • Net earnings increased 21.0% year-over-year to CAD 60.4 million.
  • The board approved a normal course issuer bid to repurchase up to 5.54 million shares.

Russel Metals Inc. (TSX: RUS) is a Canada-based metal distributor with operations across North America. It operates through three segments: metals service centers, which provide processing and distribution to diverse end-users; energy products, supplying tubular goods, pipe, valves, and fittings to the energy sector in Canada and the United States; and steel distributors, which sell large volumes of steel to service centers and equipment manufacturers.

In the second quarter of 2025 (Q2 2025), the company reported revenues of CAD 1,207.3 million, compared to 1,071.5 million in the same period last year, reflecting a 12.7 percent increase. The growth was attributed to higher steel prices following US tariffs and stable volumes across service centers.

EBITDA for the quarter stood at 107.8 million, compared to 85.7 million in the prior year, marking a 25.8 percent increase. The improvement was mainly due to better margins on lower-cost inventories and contributions from value-added processing.

Net earnings were 60.4 million, up from 49.9 million a year earlier, representing an increase of 21.0 percent. The rise was supported by higher operating income, partly offset by seasonal expenses. Operating cash flow, however, declined to 47.9 million from 68.9 million, a decrease of 30.5 percent, due to higher working capital tied to inventory build and timing of collections.

Business Update

On August 14, 2025, Russel Metals announced approval from the Toronto Stock Exchange for a new normal course issuer bid, effective from August 18, 2025, to August 17, 2026. The program allows for the repurchase of up to 5.54 million shares, representing 10 percent of the public float, funded through existing cash resources or credit facilities, with the shares to be cancelled upon purchase.

On August 7, 2025, RUS reported capital investments of CAD 16 million during the second quarter of 2025 and CAD 45 million year-to-date. These investments were directed toward modernization initiatives and value-added processing projects. With most upgrades completed, Russel Metals stated it is evaluating further projects and potential acquisitions of U.S. service centers as part of its expansion plans.

Company Outlook

For the third quarter of 2025, Russel Metals expects margin moderation as the benefit from higher selling price realizations and lower-cost inventories diminishes. Shipment volumes are projected to decline seasonally due to holiday schedules in Canada and the United States.

Over the medium term, Russel Metals anticipates support from U.S. industrial rebuilding and infrastructure spending. Ongoing investments in value-added equipment, modernization, and acquisitions are expected to contribute to market share gains. The energy field stores are projected to maintain healthy margins and continue capturing share amid steady energy activity in 2025.

Top 10 Shareholders
The top ten shareholders collectively account for approximately 17.31 percent of Russel Metals’ total shareholding. The Vanguard Group, Inc. and BlackRock Institutional Trust Company are the largest institutional holders, with stakes of about 3.38 percent and 2.61 percent, respectively.

Stock Information 
As of Aug 25, 2025, RUS closed at CAD 41.670. Stock recorded an increase of approximately 2.68 percent over the past week, while showing a decline of about 6.23 percent over the past month. It is currently trading above the 52-week average range, with a high of CAD 46.87 and a low of CAD 34.62.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels Is 25 August 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.