Russel Metals (RUS) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a positive inflection point with record revenues of over CAD 1.4 billion, up 30% from Q4 and 21% year-over-year, driven by strategic initiatives, favorable market conditions, and the Kloeckner acquisition.

• EBITDA reached CAD 124 million, a 44% increase year-over-year and 80% higher than Q4 2025, with EPS of CAD 1.30, up from both Q4 and Q1 2025.

• U.S. operations now represent a majority of revenues and operating profit, reflecting targeted growth and strategic expansion.

• Completed sale of Delta, B.C. property for CAD 39 million, resulting in a significant gain above book value.

• Dividend increased to CAD 0.44 per share, marking the fourth consecutive annual increase since 2023.

Financial highlights

• Quarterly revenues exceeded CAD 1.4 billion, a new record, with gross margin at 21.3% and Q1 EBITDA of CAD 124 million (8.7% margin), or CAD 93 million (6.2% margin) excluding non-recurring items.

• EPS reached CAD 1.30, higher than both Q4 2025 and Q1 2025, even when adjusted for one-time items.

• Annualized return on invested capital was 22%, well above the 15% target and up from 11% in Q4 2025.

• Net debt stood at CAD 130 million to CAD 170 million, with strong liquidity of about CAD 0.5 billion.

• Cash from operating activities before working capital was CAD 78 million; Q1 CapEx was CAD 18 million.

Outlook and guidance

• Market conditions remain strong, with extended lead times and tight supply supporting optimism for Q2.

• Volumes expected to be flat to slightly up in Q2, with continued margin improvement anticipated, especially in the U.S.

• Kloeckner integration expected to drive gradual margin normalization through 2027.

• Energy field stores segment expected to benefit from strong project activity and high energy prices in both Canada and the U.S.

• Medium-term growth expected from U.S. industrial base rebuilding, Canadian infrastructure, and value-added investments.