Russel Metals (RUS) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenues of $1.42 billion in Q1 2026, up 30% sequentially and 21% year-over-year, driven by strategic initiatives, favorable market conditions, and the Kloeckner acquisition.

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

• Strong contributions from the Kloeckner acquisition and a $36 million pre-tax gain on the sale of Delta (BC) property.

• Returned $31 million to shareholders through dividends and share buybacks in Q1 2026.

• Declared a quarterly dividend increase to $0.44 per share, marking the fourth consecutive annual increase.

Financial highlights

• Q1 2026 EBITDA was $124 million (8.7% margin), or $93 million (6.2% margin) excluding non-recurring items.

• Net income for Q1 2026 was $71.8 million, with EPS of $1.30, up from $0.75 in Q1 2025 and $0.55 in Q4 2025.

• Gross margin improved to 21.3% in Q1 2026.

• Annualized return on invested capital was 22%, well above the 15% target.

• Net debt stood at $170 million, with strong liquidity of $500 million at quarter-end.

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.

• Annual capex expected to average $100 million in 2026/27, focused on discretionary and modernization projects.

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