Radius Recycling (RDUS) investor relations material

Executive summary

• Net loss for Q3 2025 was $16 million, a significant improvement from $199 million loss in Q3 2024, which included a $216 million goodwill impairment charge.

• Adjusted EBITDA for Q3 2025 was $22 million, up from $9 million in the prior year quarter and break-even in the previous quarter, driven by record nonferrous sales volumes and higher finished steel sales.

• The merger with Toyota Tsusho America, Inc. was approved by shareholders and is expected to close in the second half of 2025, with each share to be converted into $30.00 in cash, pending regulatory approvals.

• Board declared a quarterly dividend of $0.1875 per share, marking the 125th consecutive quarterly dividend.

• Third quarter fiscal 2025 showed significant sequential and year-over-year improvements, with higher ferrous, nonferrous, and finished steel sales volumes driving better results.

Financial highlights

• Revenues for Q3 2025 increased 8% year-over-year to $727 million; nine-month revenues rose 3% to $2.03 billion.

• Gross margin for Q3 2025 was $6.8%, unchanged from the prior year quarter, but improved to $50 million from $27 million in the prior quarter.

• Net cash provided by operating activities for the first nine months of 2025 was $21 million, compared to net cash used of $57 million in the prior year period.

• Debt as of May 31, 2025 was $454 million, up from $415 million at August 31, 2024, mainly to fund working capital and capital expenditures.

• Rolling mill utilization reached 107% in Q3 2025, up from 88% in Q3 2024 and the prior quarter.

Outlook and guidance

• The merger with TAI is anticipated to close in the second half of 2025, subject to remaining regulatory and customary closing conditions.

• Capital expenditures for fiscal 2025 are planned at $60 million, including up to $20 million for environmental projects.

• No earnings conference call or webcast due to the pending merger.

• Management expects to remain in compliance with financial covenants but notes potential risks if market conditions deteriorate.