TORONTO, Ontario — February 11, 2026 — Leads & Copy — Russel Metals Inc. (TSX: RUS) has released its financial results for the fourth quarter and year ended December 31, 2025. The company reported revenues of $4.6 billion for 2025 and $1.1 billion for the fourth quarter of 2025. EBITDA (earnings before interest, taxes, depreciation, and amortization) was $337 million in 2025 and $69 million in the fourth quarter of 2025.
Russel Metals closed the Kloeckner Acquisition on December 31, 2025. In 2025, the company repurchased $86 million of shares and paid $96 million in dividends. The company reported a strong capital structure with net debt to invested capital of 10% and liquidity of $515 million.
Revenues for the fourth quarter of 2025 were $1.1 billion, a 5% increase compared to the fourth quarter of 2024. Total revenues for 2025 increased by 9% compared to 2024, primarily due to acquisitions completed in the second half of 2024.
The average gross margin percentage for the fourth quarter of 2025 was 21.2%, an 80 basis point increase over the fourth quarter of 2024. The average gross margin percentage for 2025 was 21.8%, a 90 basis point increase over 2024. These improvements were attributed to improved market conditions and value-added investment initiatives.
EBITDA for the fourth quarter of 2025 was $69 million, a 12% improvement over the fourth quarter of 2024. For 2025, EBITDA was $337 million, a 13% increase over 2024.
The metal service centers segment saw solid shipments in the fourth quarter of 2025, typically a slower period. Tons shipped in the fourth quarter of 2025 decreased by 5% compared to the third quarter of 2025 but increased by 1% compared to the fourth quarter of 2024. In 2025, tons shipped reached an annual record of almost 1.6 million tons, 15% higher than in 2024.
On December 31, 2025, Russel Metals closed the acquisition of seven service centers from Kloeckner Metals Corporation for approximately US$95 million, subject to adjustments. The company expects its average annual revenues to grow by approximately US$500 million and expand the contribution from its U.S.-based businesses to over 50% as a result.
Russel Metals generated $200 million of cash from operating activities in 2025. In the fourth quarter of 2025, $105 million of cash from operating activities was generated, including $53 million from non-cash working capital.
The company invested $74 million in capital expenditures in 2025, including $14 million in the fourth quarter, for value-added equipment and facility modernization initiatives. The company expects to invest approximately $100 million per year over the next two years.
In 2025, revenues, EBITDA, and earnings per share were $4.6 billion, $337 million, and $3.01 per share, respectively, compared to $4.3 billion, $299 million, and $2.73 per share in 2024. Revenues, EBITDA, and earnings per share in the fourth quarter of 2025 were $1.1 billion, $69 million, and $0.55 per share, respectively, compared to $1.0 billion, $61 million, and $0.47 per share in the fourth quarter of 2024.
In 2025, the company grew its invested capital from $1.6 billion to almost $1.8 billion. The return on invested capital was 15% for 2025 and averaged 18% over the past three years.
Russel Metals also announced business improvement initiatives related to its Western Canadian operations, including the rationalization of locations in British Columbia and a related property sale.
U.S. operations represented 44% of consolidated 2025 revenues and will be over 50% after the Kloeckner acquisition.
Approximately 11% of 2025 revenues were stainless and aluminum products, compared to 9% in 2024 and 8% in 2023.
The company announced a 2.4% increase in its quarterly dividend from $0.42 per share to $0.43 per share in the first quarter of 2025 and declared a dividend of $0.43 per share, payable on March 16, 2026, to shareholders of record on February 27, 2026. In 2025, $96 million of dividends were paid and $86 million of shares were repurchased.
The company ended the year with a net debt to invested capital ratio of approximately 10% and liquidity of $515 million.
Looking ahead, the company expects to benefit from further rebuilding of the U.S. industrial manufacturing base, Canadian nation building projects, and infrastructure-related investments. The energy field stores are expected to continue to benefit from solid energy activity in 2026.
Russel Metals Inc. is holding an Investor Conference Call on Thursday, February 12, 2026, at 9:00 a.m. ET to review its 2025 fourth quarter results.
Additional supplemental financial information is available on the company’s website.
Russel Metals is one of the largest metals distribution companies in North America with a focus on value-added processing. It operates in three segments: metals service centers, energy field stores, and steel distributors.
Source: Russel Metals Inc.
