Russel Metals (RUS) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $1,819.2M, adjusted EBITDA of $230.1M and adjusted EPS of $2.67; gross margin rose 330 bps QoQ amid strong markets and higher Kloeckner contributions.

• Annualized ROIC was 35% in Q3 and 27% for nine months; U.S. operations generated 57% of Q3 revenue.

Financial highlights

• Q3 revenue was $1,819.2M, up 10% QoQ and 56% YoY; gross margin was $471.2M, or 25.9% of revenue, versus 22.6% in Q2 and 21.1% in Q3 2025.

• Q3 unadjusted EBITDA was $199.9M, adjusted EBITDA $230.1M, net earnings $125.5M, reported EPS $2.29 and adjusted EPS $2.67.

• Nine-month revenue was $4,892.4M versus $3,547.8M; adjusted EBITDA was $476.7M versus $269.0M, and adjusted EPS was $5.11 versus $2.46.

• Nine-month free cash flow was $333.7M; cash from operations before non-cash working capital was $395.3M, offset by a $297.8M working-capital outflow.

Outlook and guidance

• Q4 daily service-center shipments were expected to remain comparable with Q1–Q3 levels, but fewer holiday-adjusted operating days imply seasonal tonnage declines; Q4 EBITDA was expected to exceed Q4 2025.

• Near-term metal prices were expected to remain supported by demand, limited supply, extended lead times and higher energy and transportation costs; steel-price plateaus could eventually pressure margins.

• Medium-term opportunities include U.S. manufacturing, Canadian nation-building, data centers, energy projects, modernization, processing investments and acquisitions.

• Energy field stores were expected to benefit from solid 2026 energy activity, gain market share and maintain a solid margin profile.