Russel Metals (RUS) Status update summary

Q1 2026 performance highlights

• Achieved record revenues and shipments, with a 30% revenue increase vs. Q4 and 21% vs. Q1'25.

• Same store gross margins rose by 111 bps over Q4'25; EBITDA margin improved to 9%.

• Kloeckner acquisition contributed $8 million in EBITDA; integration ongoing.

• Completed sale of Delta (BC) property, generating a $36 million pre-tax gain.

• Returned $7 million via share buybacks and paid $24 million in dividends; dividend increased to $0.44/share for June 2026.

Capital allocation and financial position

• Capital deployed reached $1.8 billion at 3/31/26, up from $1.3 billion at 12/31/23.

• Net debt/invested capital at 9% with $500 million in liquidity.

• Annualized Q1'26 ROIC at 22%, up from 15% in 2024 and 2025.

• Ongoing capex program with $18 million invested in Q1'26; annual capex expected to average $100 million in 2026/27.

• Flexible capital return approach: $193 million in dividends and $208 million in buybacks over two years.

Business transformation and acquisitions

• Portfolio repositioning and modernization initiatives have reduced volatility and improved returns.

• Seven acquisitions since 2019, including Samuel, Tampa Bay, and Kloeckner assets.

• Kloeckner acquisition expanded US footprint, increasing US revenue base to over 50%.

• Samuel acquisition reduced invested capital by ~$100 million post-closing.