Russel Metals (RUS) Investor presentation summary

Strategic overview and market position

• Holds a leading market position in North America with strong supplier relationships and diversified customer base across three segments: Metals Service Centers, Energy Field Stores, and Steel Distributors.

• Operates over 140 branches, generating more than $6 billion in annualized revenue, with 54% of revenue and 61% of operating profit from the US in Q2 2026.

• Maintains a flexible business model with variable cost structure and prudent inventory management, resulting in higher inventory turns than industry average.

• Repositioned portfolio through divestitures and reinvestment in value-added processing and facility modernization.

• Rated investment grade by S&P and DBRS, with strong liquidity and net debt/invested capital at 8%.

Financial performance and capital allocation

• Achieved record revenues and shipments in Q2 2026, with gross margins up 130 bps versus Q1 2026 and annualized ROIC of 24%.

• Capital deployed increased to $1.9 billion as of June 30, 2026, up from $1.3 billion at end of 2023.

• Returned $333 million to shareholders via buybacks (8.7 million shares, 14% of shares outstanding) and $24 million in Q2 2026 dividends.

• Annual capex expected to average $100 million, focused on value-added projects and facility modernizations.

• Maintains significant balance sheet flexibility with $554 million in liquidity and no financial covenants on long-term debt.

Business transformation and growth strategy

• Business transformation since 2020 led to higher average EBITDA, reduced volatility, and improved working capital management.

• Over $1 billion deployed in acquisitions and internal capex from 2020-2025, with $900 million returned to shareholders.

• Completed seven acquisitions since 2019, including Samuel, Tampa Bay, and Kloeckner assets, expanding US footprint and operational scale.

• Recent acquisitions contributed significantly to EBITDA and revenue growth, with Kloeckner assets adding C$16 million EBITDA in Q2 2026.

• Incentive compensation is closely tied to return on capital, reinforcing a pay-for-performance culture.