Russel Metals (RUS) Investor Update summary

Q2 2025 performance highlights

• Achieved near record shipments and 3% revenue growth versus Q1, with EBITDA up 26% and EPS up 43%.

• Generated strong ROIC of 20% in Q2, up from 15% in Q1, and maintained liquidity of $566 million.

• Returned $23 million to shareholders via buybacks and $24 million in dividends during Q2.

• Ongoing discretionary capex projects, with annual capex expected at $90-100 million for several years.

• Continued integration and improvement initiatives following recent acquisitions.

Business model and market position

• Holds a leading market position in Canada and strong presence in the US Midwest and South.

• Operates a diversified business with 140 branches and over 45,000 customers, with low customer concentration.

• Flexible, counter-cyclical business model with variable compensation tied to local returns on net assets.

• Portfolio repositioning and modernization have reduced cash flow volatility and improved returns.

Capital allocation and shareholder returns

• Increased capital deployment with a target of over 15% return across cycles.

• Multi-year pipeline of projects exceeding $200 million, with five facility modernizations completed in 2024.

• Raised quarterly dividend to $0.43/share in June 2025; 7.7 million shares repurchased since August 2022.

• Over $2 billion in cash generated from 2020-2024, with significant investments in capex, acquisitions, and debt reduction.