Russel Metals (RUS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenues of $1.7 billion, up 17% sequentially and 37% year-over-year, with shipments and gross margins also reaching new highs.

• Kloeckner acquisition contributed $16 million in Q2 EBITDA and $213 million in revenue, with further integration benefits expected.

• U.S. operations accounted for 54% of revenues and 61% of operating profits, reflecting robust market conditions.

• Portfolio optimization continued with the sale of the Color Steels division and redundant real estate.

Financial highlights

• Q2 2026 revenues reached $1.7 billion, up 37% year-over-year and 17% sequentially.

• Adjusted EBITDA was $154 million, up 65% from Q1 and 36% from Q2 2025.

• Adjusted EPS was $1.63, about double Q1 and up 43% year-over-year; reported EPS was $1.43.

• Net earnings for Q2 2026 were $78.5 million; adjusted net earnings were $89.8 million.

• Liquidity stood at $554 million at quarter-end, with net debt at $144 million.

Outlook and guidance

• Margins and activity levels at the end of Q2 continued into early Q3, with July margins similar to June and above Q2 averages.

• Management expects Q3 2026 margins and shipments to remain strong, with further upside if pricing holds.

• Medium-term benefits anticipated from U.S. manufacturing, Canadian infrastructure, and value-added investments.

• Annual capital expenditures expected to average $100 million, focused on discretionary projects.