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INFORMATION PACKAGE FOR INVESTOR CONFERENCE CALL NOVEMBER 6, 2025 =" 11111111 "= r. ,11 11 1•: Russel Metals ~ iiiiiiii A - -=----=
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INDEX 1. Cautionary Statement on Forward-Looking I nformation 3 2. Note s (Non-GAAP Measures) 4 3. Q3 2025 in R eview 5-18 4. Fina ncial Highlights 19 5. Oth er Financial Information 20-21 Russel Metals 2
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CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Certain statements contained in this presentation constitute forward-looking statements or information within the meaning of applicable securities laws, including statements as to our future capital expenditures, our outlook, the availability of future financing and our ability to pay dividends. Forward-looking statements relate to future events or our future performance. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us, inherently involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the factors described below. While we believe that the expectations reflected in our forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct, and our forward-looking statements included in this presentation should not be unduly relied upon. These statements speak only as of the date of this presentation and, except as required by law, we do not assume any obligation to update our forward-looking statements. Our actual results could differ materially from those anticipated in our forward-looking statements including as a result of the risk factors described above and under the heading "Risk" in our MD&A and under the heading "Risk Management and Risks Affecting Our Business" in our most recent Annual Information Form and as otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca. Risk Factors - We are sub ject to a number of risks and uncertainties which could have a material adverse effect on our future profitability and financial position, including the risks and uncertainties listed below, which are important factors in our business and the metals distribution indu stry. Such risks and uncertainties include, but are not limited to: volatility in metal prices; cyclicality of the metals industry; future acquisitions; product claims; significant competition; sources of supply and supply chain disruptions; manufacturers selling directly; material substitution; failure of our key computer -based systems; cybersecurity; credit and liquidity risk; currency exchange risk; restrictive debt covenants; the unexpected loss of key individuals; decentralized operat ing structure; labour interruptions; laws and governmental regulations; litigious environment; environmental liabilities; climate change; carbon emissions; health and safety laws and regulations; and common share risk. Russel Metals 3
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NOTES (NON-GAAP MEASURES) In this Information Package we use certain financial measures that do not comply with IFRS Accounting Standards (IFRS or GAAP) o r have standardized meanings, and thus, may not be comparable to similar measures presented by other issuers, for example EBIT and EBITDA and Oth er Information in the Financial Summary are Non-GAAP measures or ratios. Reference should be made to our MD&A for further discussion of Non -GAAP measures and ratios. Management believes that these Non-GAAP measures may be useful in assessing our operating performance and as an indicator of our ability to service or incur indebtedness, make capital expenditures and finance working capital requirements. EBIT and EBITDA should not be considered in isolation or as an alternative to cash from operating activities or other combined income or cash flow data prepared in accordance with IFRS. EBIT and EBIT DA and a number of the ratios provided under Other Information are used by debt and equity analysts to compare our performance against other public companies. DEFINITIONS: Cash from Working Capital - represents cash generated from changes in non-cash working capital. EBIT or Operating Profits - represents net earnings before interest and income taxes. EBITDA - represents net earnings before interest, income taxes, depreciation and amortization. Gross Margin - represents revenues less cost of sales. Gross Margin Percentage - represents gross margin divided by revenues. Inventory Turns - represent annualized cost of sales divided by ending inventory. Liquidity - represents cash on hand less bank indebtedness plus excess availability under our bank credit facility. Selling Price per Ton - represents revenues divided by tons shipped. Tons Shipped - represents revenue volumes in our standardized metal service center unit of measure, which is imperial tons. Return on Invested Capital - represents EBIT divided by average invested capital (net debt plus shareholders' equity). Russel Metals 4
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Q3 2025 IN REVIEW CONTINUING IMPROVEMENT IN TREND RESULTS Revenues up 10% in first nine months of 2025 vs. first nine months of 2024 Gross margins up 100 bps in first nine months of 2025 vs. first nine months of 2024 Year-over-year increase in EBITDA DISCRETIONARY CAPEX INVESTMENTS Q3 capex of $15 mm New investment opportunities being explored related to the W. Canada/former Samuel branches and the Kloeckner operations CAPITAL DEPLOYED >$1.7 bl. at 9/30/25 vs. $1.6 bl. at 12/31/24 and $1.3 billion at 12/31/23 Kloeckner acquisition would move invested capital to ~$1.9 Bl. GENERATED STRONG ROIC 16% annualized for YTD to Sept. 30/25 GREW U.S., SPECIALTY & VALUE-ADD % of TOTAL REVENUES U.S. = 44% in YTD 2025 vs. 30% in 2019 – will be >50% upon Kloeckner acquisition closing Non-Ferrous = 11% in YTD 2025 vs. 9% in 2024 RETURNED CAPITAL TO SHAREHOLDERS Share buybacks: $14 mm in Q3/$63 mm YTD to Sept. 30/25 Dividends: $24 mm in Q3/$72 mm YTD to Sept. 30/25 RETAINED BALANCE SHEET FLEXIBILITY FOR FUTURE OPPORTUNITIES Liquidity of $600 mm or $435 mm pro forma for the Kloeckner acquisition Russel Metals 5
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MARKET CONDITIONS Carbon Pricing Specialty Metals Pricing Source: Fastmarkets as of October 2025 $2,500 $2,000 g $1,500 .... ....... '\/). ~ $1,000 $500 $0 $300 $250 .... $200 3 u ....... $150 '\/). Vl ::::> $100 $50 $- -#1 Heavy Melt {Chicago) HR Sheet - HR Plate - stainless Steel Sheet - Aluminium Midwest --- -- - - 7 ~ Carbon Steel: Inventory (Canada) Source: Metals Service Center Institute (MSO) - INDUSTRY INVENTORY Months on Hand 6.0 5.0 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 J 4.0 Carbon Steel: Inventory (us) Source: Metals Service Center Institute (MSO} - INDUSTRY SHIPMENTS Months on Hand 4,000,000 3,500,000 ~11''11~1,,>,.,, 3,000,000 ,f"-., 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 3.0 2.0 1.0 0.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 6
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TREND RESULTS: ANNUAL AND QUARTERLY The quarterly figures are the results for each respective quarter annualized Revenue (millions) EBITDA (millions) EBITDA Margin $6,000 $700 16% $5,000 $600 $4,000 $500 12% $400 9% $3,000 $300 8% I I 6% 6% 6% $2,000 $200 II Ii 4% $1,000 $100 $0 $0 0% 2019 2020 2021 2022 2023 2024 Q3 Q4 Ql Q2 Q3 2019 2020 2021 2022 2023 2024 Q3 Q4 Ql Q2 Q3 2019 2020 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 2024 2024 2025 2025 2025 2024 2024 2025 2025 2025 2024 2024 2025 2025 2025 E.P.S. ROIC Net Debt {Cash) mms and ND/IC $7.00 60% $600 40% $6.00 50% 30% $400 $5.00 40% 20% $4.00 $200 10% 30% • $0 0% $3.00 Ii 20% I -10% 20% ($200) $2.00 13% 12% -20% $1.07 $1.00 I~ 10% II ($400) -30% ~ ~ ~", ~'\, ~~~~"'<-,~ $0.00 0% i> i> '\,<:> i> '\,<:> ,.,,<:>\ ':?~ ,.,,~ ,.,,<:>\ ,.,,<:>\ 2019 2020 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 o:,\ .:;, ,.,,\ ro\ o:,\ 2024 2024 2025 2025 2025 2024 2024 2025 2025 2025 Russel Metals 7
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SUMMARY: FINANCIAL RESULTS $ mm, unless otherwise stated Q3 2024 Q2 2025 Q3 2025 Income Statement: Revenues $1,089 $1,207 $1,167 Gross Margin ($ mm/%) $215 / 20% $281 / 23% $246 / 21% EBITDA ($ mm/%) $67 / 6% $108 / 9% $75 / 6% EBIT ($ mm/%) $48 / 4% $85 / 7% $52 / 4% Interest Expense $2 $6 $5 Net Income $35 $60 $35 EPS $0.59 $1.07 $0.63 Cash Flow: Change in non-cash working capital $107 $(43) $5 Acquisitions $(223) $-- $-- Share buy backs $(47) $(23) $(14) Dividends $(25) $(24) $(24) Capex $(21) $(16) $(15) Balance Sheet: Net Debt (Cash) $(73) $104 $87 Shareholders’ Equity $1,604 $1,607 $1,625 Available Liquidity $762 $566 $600 Q3 2025 Observations: • Revenues were down 3% vs. Q2 but up 7% vs. Q3’24. • Consolidated gross margin and EBITDA margin down vs. Q2. Steel p rices drifted and seasonal volume impacts. • Q3 results impacted by: • $4 mm one-time charge for the Delta closure. Large gains to be recognized when property sales close in 2026 • $2 mm for a tariff applied by Canada for in-transit offshore product where the customer price was already set. Legal appeal is in process. • Mark-to-market recovery for stock-based comp of $2 mm vs. $5 m m expense in Q2. • Cash generation from WC, primarily due to a $46 mm reduction in inventories • Q3 NCIB = 330k shares for $14 mm (pre-tax); Since Aug/22 = 8.0 mm shares for $302 mm ($37.77/share) • Paid a quarterly dividend of $0.43/share in Q3 and declared a d ividend of $0.43/share payable in December • Annual capex expected to average $90-100 mm over several years, with a substantial portion related to discretionary projects • Weakening of the C$ - Fx rate of $1.3643 at 6/30/25 vs. $1.3921 at 9/30/25. • Book value of $29.20/share (+$1.27/share from 9/30/24) 8
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EBITDA VARIANCE ANALYSIS: Q2 2025 VS. Q3 2025 Metals Service Centers • Mark-to-market on stock-based comp $2 recovery in Q3 vs. $5 mm expense in Q2 • Thunder Bay Terminals down from a very strong Q2 Service Center Segment $(36) mm Seasonal Predominantly W. Canada Reorganization Market $120 $108 $100 $80 $6 $75 ($7) ($2) ($1) 'l C: .Q E $60 <.I). u $40 $20 $0 Q2 2025 Volumes Gross Margin Op Costs Energy Field Stores Distributors other Q3 2025 Russel Metals 9
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EBITDA THROUGH THE CYCLE • Our quarterly results are impacted by short term swings from seasonality, steel price changes (including the lag effects of steel pr ice chang es on price realizations vs. CGS) and general economic conditions. An analysis of trailing 12-month periods below p rovides a view of medium-term trends. Such trends have improved over the past few quarters. • A comparison of the pre vs. post covid periods illustrate the lowering of our volatility and raising of the cycle floor/ceiling. $500,000 $450,000 $400,000 $350,000 Jan. 1/17 to Dec. 31/19 $300,000 Annual Average= $270 mm $250,000 $200,000 $150,000 $100,000 $50,000 $- Pre-Covid Trailing LTM EBITDA {$000's) Post-Covid Peak- to-Trough Variance= $127 mm Peak-to-Trough Variance= $167 mm Jan. 1/23 t o Sept.30/25 Annual Ave rage = $36 1 Dec. 31/17 March 31/18 June 30/18 Sept 30/18 Dec. 31/18 March 31/19 June 30/19 Sept 30/19 Dec. 31/19 Dec. 31/23 March 31/24 June 30/24 Sept. 30/24 Dec. 31/24 March 31/25 June 30/25 Sept. 30/25 Russel Metals 10
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SEGMENT BREAKDOWN: OPERATING RESULTS MSC: • Q3 was impacted by flat price realizations while CGS went up due to the lag effect of the Q1/Q2 steel price increases (ie. increas ed margins in Q2 and compressed margins in Q3) Energy Field Stores: • Revenues down but margins up vs. Q2. • EBIT down slightly vs. Q2 Distributo rs: • Revenues up but margins were down (impacted by $2 mm tariff charge on in-transit in ventory). • Comparable EBIT in Q3 with Q2 $1,000 $800 $600 $400 $200 $0 Revenue {C$ millions} --------------~~ - MSC - Energy Field Stores - Distributors Russel Metals 30% - 25% 20% 15% 10% Gross Margins % - MSC - Energy Field Stores - Distributors $80 $70 $60 $50 $40 $30 $20 $10 $0 Earnings from Operations {C$ millions} ::::::::s- )27'\ ---~-------......_----~------ - MSC - Energy Field Stores - Distributors 11
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SERVICE CENTER RESULTS • Q3 2025 tons were solid, with some small impacts (down 3% vs. Q2) due to normal seasonal dynamics. Same store shipments were up 1% vs. Q3 2024 • Price realizations per ton were flat while CGS per ton was up $49 --decre ase in gross margin per ton to $430 and EBITDA per ton to $117. $3,000 $2,800 $2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 Revenue and CGS/Ton ~01mm~01mm~01mm~01mm~01mm~01mm wewwwwwwwwwnwnwnwnwnwnwnwnwnwnwnwnwMWMWMWMw~w~w~ - Revenue/Ton - cGS/Ton Russel Metals 450 430 410 390 370 350 330 310 290 270 250 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Tons Shipped {000's) 04 01 m 03 04 01 m m 04 01 02 m 04 01 02 03 04 01 m 03 04 01 02 03 wewwwwwwwwwnwnwnwnwnwnwnwnwnwnwnwnwMWMWMWMw~w~w~ - shipments Gross Margin and EBITDA/Ton 04 01 02 03 04 01 m 03 04 01 m 03 04 01 m 03 04 01 m 03 04 01 02 03 wewwwwwwwwwnwnwnwnwnwnwnwnwnwnwnwnwMWMWMWMw~w~w~ - Gross Margin/Ton - EBITDA/Ton 12
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INVENTORY TURNS • Total inventory turns in Q3 were up vs. Q2. 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Russel Metals Inventory Turns 4.7 3.8 3.9 3.9 4.0 .8 3.9 3.9 3.7 I March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. 31/20 30/20 30/20 31/20 31/21 30/21 30/21 31/21 31/22 30/22 30/22 31/22 31/23 30/23 30/23 31/23 31/24 30/24 30/24 31/24 31/25 30/25 30/25 - Energy - Metal Service Centers - steel Distributors - Total 13
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WORKING CAPITAL MANAGEMENT: INVENTORY • Total inventory was down vs. Q2 reflecting lower tonnage and lower prices/ton. $1,200 $1,000 $800 C: .Q E $600 <.fl. $400 $200 $0 Inventory Trends $1,025 $1,050 $957 $773 $720 Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. Dec. March June Sept. 31/18 31/19 30/19 30/19 31/19 31/20 30/20 30/20 31/20 31/21 30/21 30/21 31/21 31/22 30/22 30/22 31/22 31/23 30/23 30/23 31/23 31/24 30/24 30/24 31/24 31/25 30/25 30/25 ■ Energy ■ Metal Service Centers ■ Steel Distributors Russel Metals 14
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LIQUIDITY AND CAPITAL STRUCTURE SUMMARY • Significant balance sheet flexibility – r ecently upgraded to investment grade (BBB-) by S&P . • All debt is unsecured with no financial covenants on long term debt. • Grew book value per share. 9/30/24 (C$ mm) 6/30/25 (C$ mm) 9/30/25 (C$ mm) 9/30/25 Pro Forma Kloeckner (C$ mm) Cash $222 $194 $212 $47 Bank Lines ($450 mm) - Maturity April 2029 -- -- -- -- 4.423% Notes - Due 2030 -- $298 $298 $298 5.75% Notes - Due 2025 $149 -- -- -- Total Debt $149 $298 $298 $298 Net Debt/(Cash) $(73) $104 $87 $252 Shareholders’ Equity $1,604 $1,607 $1,625 $1,625 Book Value/Share $27.93 $28.69 $29.20 $29.20 Net Debt/ Invested Capital <0% 6% 5% 13% Liquidity $762 $566 $600 $435 15
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Dividends • Increased quarterly dividend to: • $0.40/share in June ‘23 • $0.42/share in June ’24 • $0.43/share in June’25 Share Buy Backs • Q3: 330k acquired for $14 mm • Since NCIB established in Aug/22: 8 mm acquired for $302 mm (avg. $37.77/share) 13% of shares O/S Value-Added Equipment • Many equipment projects underway or in the planning stage in Canada and the US Facility Modernizations • Five projects were mostly completed in 2024 • Other potential projects under evaluation for 2025/26 Acquisitions • Samuel acquisition closed August 12, 2024 • Tampa Bay acquisition closed December 4, 2024 • Klockner acquisition to close in late ‘25/early ‘26 CAPITAL ALLOCATION PRIORITIES Increase capital deployment with a target of >15% return over a cycle Flexible approach to returning capital to shareholders Current Multi-Year Capex Pipeline of Potential Projects ~$175 mm Avg. Annual NCIB Activity Past 2 Years = $106 mm Pro Forma Run Rate = $96 mm/yr 1 Russel Metals 16
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CAPEX PROGRAM: SUMMARY • The opportunities for value-a dded projects and facility modernizations are ongoing. 17
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DIVIDEND AND SHARE BUY BACK SUMMARY Average Cost / Share Note: Figures exclude the federal tax on share buy backs that came into effect on Jan. 1/24. Historical (and Projected Q4'25) Quarterly Dividends $0.43 $0.42 $0.40 $0.38 •o·,• I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~~~~~~~~wwww~~~~rorororornrnrnrnooaa~~~~NNNN~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~NNNNNNNNNNNNNNNNNNNNNNNN ~NM~~NM~~NM~~NM~~NM~~NM~~NM~~NM~~NM~~NM~~NM~~NM~ aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa ■ Dividend Per Share Shares Repurchased (000's) & Avg Cost I Share $27 .94 $27 .94 $35.60 $38.71 $43.27 $44.12 $38.08 $37.93 $43.46 $40.44 $42.11 $41.43 • • • • • • • • • • • • 1,459 1,241 1,216 583 I 417 I 529 I 390 339 I I 330 I 623 I i 330 I Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 ■ Shares Repurchased $40 $24 I 02-22 Q3-22 63.1 62.5 $35 Return of Capital to Shareholders (millions) $80 $69 $71 $45 $41 $39 $38 $24 I $49 $47 $38 04-22 Q1-23 02-23 Q3-23 04-23 Q1-24 02-24 Q3-24 Q4-24 Q1-25 02-25 Q3-25 ■ Dividends ($m) ■ Share Buybacks ($m) Basic Shares Outstanding (millions) 62.1 62.4 61.3 60.8 60.4 60.1 58.7 57.5 57.1 56.5 56.0 55.7 6/30/22 9/30/22 12/31/22 3/31 /23 6/30/23 9/30/23 12/31/23 3/31 /24 6/30/24 9/30/24 12/31 /24 3/31 /25 6/30/25 9/30/25 18
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2025 2024 2024 2023 2022 2021 OPERATING RESULTS (millions) Revenues $3,547.8 $3,222.0 $4,261.2 $4,505.1 $5,070.6 $4,208.5 EBITDA (1) 268.5 237.2 298.5 425.6 578.9 664.0 Adjusted EBITDA (1) 268.5 237.2 298.5 425.6 578.9 666.6 Adjusted EBITDA as a % of revenue (1) 7.6% 7.4% 7.0% 9.4% 11.4% 15.8% EBIT (1) 198.4 182.1 221.8 357.6 512.8 606.1 Adjusted EBIT (1) 198.4 182.1 221.8 357.6 512.8 608.7 Adjusted EBIT as a % of revenue (1) 5.6% 5.7% 5.2% 7.9% 10.1% 14.5% Net earnings 138.4 134.1 161.0 266.7 371.9 432.2 Basic earnings per common share ($) $2.45 $2.26 $2.73 $4.33 $5.91 $6.90 BALANCE SHEET INFORMATION (millions) Accounts receivable $580.0 $564.7 $475.9 $456.3 $495.2 $553.6 Inventories 972.5 924.2 919.8 840.3 956.5 986.0 Prepaid expenses and other assets 28.8 24.2 29.0 26.2 35.8 30.3 Accounts payable and accruals (423.4) (453.7) (398.0) (411.4) (446.3) (521.4) Net working capital 1,157.9 1,059.4 1,026.7 911.4 1,041.2 1,048.5 Fixed assets 493.3 405.0 488.4 337.3 312.2 302.4 Right-of-use assets 142.0 149.5 155.2 100.0 101.7 86.7 Goodwill and intangibles 135.1 124.8 145.8 120.2 126.5 132.2 Lease obligations (171.5) (176.3) (183.4) (125.3) (126.9) (109.5) Net assets employed in metals operations 1,756.8 1,562.4 1,632.7 1,343.6 1,454.7 1,460.3 Other operating assets 5.2 2.8 2.5 1.0 0.8 0.3 Net income tax assets (liabilities) (27.9) (7.4) (11.2) (11.7) (5.7) (68.7) Pension and benefit assets (liabilities) 37.3 44.0 44.0 41.6 40.5 26.1 Other corporate assets (liabilities) (59.7) (70.5) (41.8) (66.6) 2.0 (8.0) Total net assets employed $1,711.7 $1,531.3 $1,626.2 $1,307.9 $1,492.3 $1,410.0 CAPITALIZATION (millions) Bank indebtedness, net of (cash) (211.6) (222.3) $(32.2) $(629.2) $(363.0) $(133.1) Long-term debt (incl. current portion) 298.2 149.1 0.0 297.2 296.0 294.8 Total interest bearing debt, net of (cash) 86.6 (73.2) (32.2) (332.0) (67.0) 161.7 Shareholders' equity 1,625.1 1,604.5 1,658.4 1,639.9 1,559.3 1,248.3 Invested Capital (1) $1,711.7 $1,531.3 $1,626.2 $1,307.9 $1,492.3 $1,410.0 OTHER INFORMATION (Notes) Book value per share ($) (1) $29.20 $27.93 $29.03 $27.16 $25.10 $19.78 Free cash flow (millions)(1) $197.7 $164.8 $206.4 $320.6 $482.8 $609.7 Capital expenditures (millions) $60.1 $69.0 $90.2 $72.7 $41.5 $28.8 Depreciation and amortization (millions) $70.1 $55.1 $76.7 $68.0 $66.1 $57.9 Net debt to invested capital (1) 5% (5%) (2%) (25%) (4%) 11% Return on invested capital (1) 16% 17% 15% 25% 33% 51% COMMON SHARE INFORMATION Ending outstanding common shares 55,658,155 57,451,222 57,133,088 60,388,426 62,112,220 63,100,220 Average outstanding common shares 56,394,168 59,399,755 58,880,546 61,527,975 62,891,611 62,667,618 Dividends per share $1.28 $1.24 $1.66 $1.58 $1.52 $1.52 Share price - High $45.55 $47.39 $47.39 $45.44 $36.15 $37.57 Share price - Low $34.62 $35.20 $35.20 $28.63 $23.80 $22.33 Share price - Ending $41.68 $41.04 $42.10 $45.03 $28.78 $33.63 FINANCIAL HIGHLIGHTS (1) This chart includes certain financial measures that are not prescribed by International Financial Reporting Standards (GAAP) or have standardized meanings, and thus, may not be comparable to similar measures presented by other companies. Refer to page 2 of our MD&A for commentary and certain definitions of Non-GAAP Measures and Ratios and a reconciliation of certain Non-GAAP measures to GAAP measures. Adjusted EBIT and Adjusted EBITDA are adjusted to remove the impact of long-lived asset impairment. Management believes that measures like Adjusted EBIT and Adjusted EBITDA may be useful in assessing our operating performance and as an indicator of our ability to service or incur indebtedness, make capital expenditures and finance working capital requirements. Adjusted EBIT and Adjusted EBITDA should not be considered in isolation or as an alternative to cash from operating activities or other combined income or cash flow data. Adjusted EBIT, Adjusted EBITDA and a number of the ratios provided under Other Information are used by debt and equity analysts to compare our performance against other public companies. See financial statements for GAAP measures. Years Ended December 31Nine Months Ended September 30 I I I I 19
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METALS SERVICE CENTERS Tons Shipped ('000's) 385.6 399.6 409.0 359.0 340.0 328.4 322.4 306.7 310.1 332.0 339.8 293.1 317.8 334.9 336.0 Revenue 823.2 855.8 840.0 723.0 706.9 713.0 723.6 682.5 725.0 820.1 806.9 750.6 865.5 978.1 928.8 Cost of goods sold 656.9 660.8 664.4 591.5 580.9 574.1 568.8 547.0 588.1 642.0 642.6 614.7 691.6 742.2 726.1 Operating expenses 138.8 131.9 131.9 110.6 104.5 105.5 111.0 97.7 101.0 106.9 106.7 97.0 106.9 115.5 107.5 EBIT 27.5 63.1 43.7 20.9 21.5 33.4 43.8 37.8 35.9 71.2 57.6 38.9 67.0 120.4 95.2 Depreciation & amortization 17.5 17.7 17.5 15.9 13.9 12.1 12.1 13.0 11.0 11.5 11.3 13.0 11.1 11.2 11.1 EBITDA 45.0 80.8 61.2 36.8 35.4 45.5 55.9 50.8 46.9 82.7 68.9 51.9 78.1 131.6 106.3 Cost of goods sold 79.8% 77.2% 79.1% 81.8% 82.2% 80.5% 78.6% 80.1% 81.1% 78.3% 79.6% 81.9% 79.9% 75.9% 78.2% Operating expenses 16.9% 15.4% 15.7% 15.3% 14. 8% 14.8% 15.3% 14.3% 13.9% 13.0% 13.2% 12.9% 12.4% 11.8% 11.6% Depreciation & amortization 2.1% 2.1% 2.1% 2.2% 2.0% 1.7% 1.7% 1.9% 1.5% 1.4% 1.4% 1.7% 1.3% 1.1% 1.2% EBIT 3.3% 7.4% 5.2% 2.9% 3.0% 4.7% 6.1% 5.5% 5.0% 8.7% 7.1% 5.2% 7.7% 12.3% 10.2% EBITDA 5.5% 9.4% 7.3% 5.1% 5.0% 6.4% 7.7% 7.4% 6.5% 10.1% 8.5% 6.9% 9.0% 13.5% 11.4% ENERGY PRODUCTS Revenue 226.7 250.8 244.2 220.3 265.7 250.8 247.1 220.4 265.7 249.0 252.1 211.6 250.7 230.7 210.0 Cost of goods sold 168.5 189.6 186.1 160.5 199.6 188.7 183.7 164.0 202.3 182.7 184.0 152.9 182.9 167.4 158.5 Operating expenses 39.1 40.1 41.0 39.6 41.4 40.2 40.7 36.8 35.3 38.3 38.7 34.7 38.1 34.2 29.7 EBIT 19.1 21.1 17.1 20.2 24.7 21.9 22.7 19.6 28.1 28.0 29.4 24.0 29.7 29.1 21.8 Depreciation & amortization 5.0 5.0 5.1 5.0 5.0 4.9 5.0 4.9 4.7 4 .6 4.5 4.5 4.4 4.3 4.2 EBITDA 24.1 26.1 22.2 25.2 29.7 26.8 27.7 24.5 32.8 32.6 33.9 28.5 34.1 33.4 26.0 Cost of goods sold 74.3% 75.6% 76.2% 72.9% 75.1% 75.2% 74.3% 74.4% 76.1% 73.4% 73.0% 72.3% 73.0% 72.6% 75.5% Operating expenses 17.2% 16.0% 16.8% 18.0% 15.6% 16.0% 16.5% 16.7% 13.3% 15.4% 15.4% 16.4% 15.2% 14.8% 14.1% Depreciation & amortization 2.2% 2.0% 2.1% 2.3% 1.9% 2.0% 2.0% 2.2% 1.8% 1.8% 1.8% 2.1% 1.8% 1.9% 2.0% EBIT 8.4% 8.4% 7.0% 9.2% 9.3% 8.7% 9.2% 8.9% 10.6% 11.2% 11.7% 11.3% 11.8% 12.6% 10.4% EBITDA 10.6% 10.4% 9.1% 11.4% 11.2% 10.7% 11.2% 11.1% 12.3% 13.1% 13.4% 13.5% 13.6% 14.5% 12.4% STEEL DISTRIBUTORS Revenue 112.2 93.4 88.9 89.2 109.7 100.4 90.1 110.8 112.5 115.5 127.4 134.8 147.6 149.5 199.3 Cost of goods sold 95.2 75.5 70.7 75.4 94.0 83.3 70.7 91.4 94.6 89.4 99.9 114.1 121.7 108.3 163. 7 Operating expenses 8.9 8.7 8.3 9.4 6.7 8.4 8.9 6.5 8.4 8.7 9.6 9.5 12.6 12.8 11.5 EBIT 8.1 9.2 9.9 4.4 9.0 8.7 10.5 12.9 9.5 17.4 17.9 11.2 13.3 28.4 24.1 Depreciation & amortization 0.4 0.3 0.4 0.3 0.3 0.4 0.3 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 EBITDA 8.5 9.5 10.3 4.7 9.3 9.1 10.8 13.3 9.9 17.7 18.2 11.5 13.6 28.7 24.4 Cost of goods sold 84.8% 80.8% 79.5% 84.5% 85.7% 83.0% 78.5% 82.5% 84.1% 77.4% 78.4% 84.6% 82.5% 72.4% 82.1% Operating expenses 7.9% 9.3% 9.3% 10.5% 6.1% 8.4% 9.9% 5.9% 7.5% 7.5% 7.5% 7.0% 8.5% 8.6% 5.8% Depreciation & amortization 0.4% 0.3% 0.4% 0.3% 0.3% 0.4% 0.3% 0.4% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% EBIT 7.2% 9.9% 11.1% 4.9% 8.2% 8.7% 11.7% 11.6% 8.4% 15.1% 14.1% 8.3% 9.0% 19.0% 12.1% EBITDA 7.6% 10.2% 11.6% 5.3% 8.5% 9.1% 12.0% 12.0% 8.8% 15.3% 14.3% 8.5% 9.2% 19.2% 12.2% TBTL Revenue 4.8 7.3 0.5 6.7 7.1 7.3 0.3 5.6 6.3 4.9 0.3 2.8 6.1 4.0 0.5 Cost of goods sold - - - - - - - 0.1 - 0.1 (0.1) - Operating expenses 2.8 2.8 2.6 2.7 2.8 2.8 2.1 2.5 2.5 1.8 1.9 1.8 2.2 1.6 1.6 EBIT 2.0 4.5 (2.1) 4.0 4.3 4.5 (1.8) 3.0 3.8 3.1 (1.6) 1.0 3.8 2.5 (1.1) Depreciation & amortization 0.3 0.2 0.2 0.2 0.3 0.1 0.2 0.2 0.1 0.1 0.1 - 0.1 0.1 0.1 EBITDA 2.3 4.7 (1.9) 4.2 4.6 4.6 (1.6) 3.2 3.9 3.2 (1.5) 1.0 3.9 2.6 (1.0) Cost of goods sold 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.8% 0.0% 0.0% 0.0% 0.0% 1.6% -2.5% 0.0% Operating expenses 58.3% 38.4% 520.0% 40.3% 39.4% 38.4% 700.0% 44.6% 39.7% 36.7% 633.3% 64.3% 36.1% 40.0% 320.0% Depreciation & amortization 6.3% 2.7% 40.0% 3.0% 4.2% 1.4% 66.7% 3.6% 1.6% 2.0% 33.3% 0.0% 1.6% 2.5% 20.0% EBIT 41.7% 61.6% -420.0% 59.7% 60.6% 61.6% -600.0% 53.6% 60.3% 63.3% -533.3% 35.7% 62.3% 62.5% -220.0% EBITDA 47.9% 64.4% -380.0% 62.7% 64.8% 63.0% -533.3% 57.1% 61.9% 65.3% -500.0% 35.7% 63.9% 65.0% -200.0% CORPORATE & OTHER Expenses 4.9 13.3 6.2 9.6 11.6 0.2 8.8 9.6 9.6 11.3 12.0 5.9 5.0 7.2 8.6 Depreciation & amortization 0.2 - 0.2 0.2 0.3 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.3 0.2 0.1 EBIT (5.1) (13.3) (6.4) (9.8) (11.9) (0.3) (8.9) (9.7) 2.0 (5.0) (3.3) 4.3 9.6 (7.7) (2.7) EBITDA (4.9) (13.3) (6.2) (9.6) (11.6) (0.2) (8.8) (9.6) 2.1 (4.8) (3.1) 4.5 9.9 (7.5) (2.6) Expenses 0.4% 1.1% 0.5% 0.9% 1.1% 0.0% 0.8% 0.9% 0.9% 0.9% 1.0% 0.5% 0.4% 0.5% 0.6% Depreciation & amortization 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% EBIT 51.6$ 84.6$ 62.2$ 39.7$ 47.6$ 68.2$ 66.3$ 63.6$ 79.3$ 114.7$ 100.0$ 79.4$ 123.4$ 172.7$ 137.3$ EBITDA 75.0$ 107.8$ 85.6$ 61.3$ 67.4$ 85.8$ 84.0$ 82.2$ 95.6$ 131.4$ 116.4$ 97.4$ 139.6$ 188.8$ 153.1$ EBIT 4.4% 7.0% 5.3% 3.8% 4.4% 6.4% 6.2% 6.2% 7.1% 9.6% 8.4% 7.2% 9.7% 12.7% 10.3% EBITDA 6.4% 8.9% 7.3% 5.9% 6.2% 8.0% 7.9% 8.1% 8.6% 11.0% 9.8% 8.9% 11.0% 13.9% 11.4% Q3 2025 Q2 2025 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q1 2023 Q3 2022 Q3 2023 Q2 2023 Q2 2024 Q1 2025 ($ millions) Q4 2022 CONSOLIDATED STATEMENTS OF EARNINGS Q2 2022 Q1 2022 20
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Quarter ended: Revenue 1,166.9 1,207.3 1,173.6 1,039.2 1,089.4 1,071.5 1,061.1 1,019.3 1,109.5 1,189.5 1,186.7 1,099.8 1,269.9 1,362.3 1,338.6 Cost of goods sold 920.6 925.9 921.2 827.4 874.5 846.1 823.2 802.5 885.0 914.1 926.5 881.7 996.3 1,017.8 1,048.3 Operating expenses 189.6 183.5 183.8 162.3 155.4 156.9 162.7 143.5 147.2 155.7 156.9 143.0 159.8 164.1 150.3 Corp. Expenses and other 5.1 13.3 6.4 9.8 11.9 0.3 8.9 9.7 (2.0) 5.0 3.3 (4.3) (9.6) 7.7 2.7 EBIT 51.6 84.6 62.2 39.7 47.6 68.2 66.3 63.6 79.3 114.7 100.0 79.4 123.4 172.7 137.3 EBITDA 75.0 107.8 85.6 61.3 67.4 85.8 84.0 82.2 95.6 131.4 116.4 97.4 139.6 188.8 153.1 Twelve months ended: Revenue 4,587.0 4,509.5 4,373.7 4,261.2 4,241.3 4,261.4 4,379.4 4,505.0 4,585.5 4,745.9 4,918.7 5,070.6 5,117.6 4,955.8 4,661.7 Cost of goods sold 3,595.1 3,549.0 3,469.2 3,371.2 3,346.3 3,356.8 3,424.8 3,528.1 3,607.3 3,718.6 3,822.3 3,944.1 3,910.0 3,691.7 3,414.1 Operating expenses 753.8 726.4 686.8 668.2 649.3 627.2 630.7 619.3 604.8 609.8 620.9 613.7 627.1 626.0 618.7 EBIT 238.1 234.1 217.7 221.8 245.7 277.4 323.9 357.6 373.4 417.5 475.5 512.8 580.5 638.1 628.9 Depreciation & amortization 91.6 88.0 82.4 76.7 73.7 70.2 69.3 68.0 67.4 67.3 66.7 66.1 62.7 61.1 59.3 EBITDA 329.7 322.1 300.1 298.5 319.4 347.6 393.2 425.6 440.8 484.8 542.2 578.9 643.2 699.2 688.2 Q1 2025 Q3 2025 Q2 2025 Q4 2024 Q2 2023 Q2 2024 Q1 2024 Q3 2024 Q3 2022 Q4 2023 Q3 2023 ($ millions) Q2 2022 Q1 2022 Q1 2023 CONSOLIDATED STATEMENTS OF EARNINGS Q4 2022 21