Radius Recycling Reports Second Quarter Fiscal 2025 Financial Results
Radius Recycling (NASDAQ: RDUS) reported Q2 fiscal 2025 results with a net loss of $(33) million, or $(1.15) per share, slightly improving from $(34) million in the prior year. Key performance metrics include:
- Ferrous sales volumes up 12% YoY despite 14% lower selling prices
- Nonferrous prices increased 10% with volumes down 1%
- Finished steel sales volumes rose 15% with 9% lower prices
- Mill utilization rate improved to 88% from 81%
- SG&A costs reduced by 12%
- Generated $20M operating cash flow and $13M free cash flow
- Total debt of $430M at quarter end
The company declared its 124th consecutive quarterly dividend of $0.1875 per share. Notably, Radius announced a pending merger with Toyota Tsusho America, expected to close in H2 2025, which would make RDUS a wholly owned subsidiary of TAI.
Radius Recycling (NASDAQ: RDUS) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, registrando una perdita netta di $(33) milioni, ovvero $(1.15) per azione, con un leggero miglioramento rispetto ai $(34) milioni dell'anno precedente. Le principali metriche di performance includono:
- I volumi di vendita di ferroso sono aumentati del 12% rispetto all'anno precedente, nonostante i prezzi di vendita siano diminuiti del 14%
- I prezzi non ferrosi sono aumentati del 10% con volumi in calo dell'1%
- I volumi di vendita di acciaio finito sono aumentati del 15% con prezzi inferiori del 9%
- Il tasso di utilizzo degli impianti è migliorato all'88% rispetto all'81%
- I costi SG&A sono stati ridotti del 12%
- È stato generato un flusso di cassa operativo di $20M e un flusso di cassa libero di $13M
- Il debito totale ammontava a $430M alla fine del trimestre
L'azienda ha dichiarato il suo 124° dividendo trimestrale consecutivo di $0.1875 per azione. È importante notare che Radius ha annunciato una fusione in sospeso con Toyota Tsusho America, che dovrebbe concludersi nel secondo semestre del 2025, rendendo RDUS una controllata interamente posseduta da TAI.
Radius Recycling (NASDAQ: RDUS) reportó los resultados del segundo trimestre del año fiscal 2025, con una pérdida neta de $(33) millones, o $(1.15) por acción, mejorando ligeramente desde los $(34) millones del año anterior. Las métricas clave de rendimiento incluyen:
- Los volúmenes de ventas de ferrosos aumentaron un 12% interanual a pesar de que los precios de venta bajaron un 14%
- Los precios de no ferrosos aumentaron un 10% mientras que los volúmenes disminuyeron un 1%
- Los volúmenes de ventas de acero terminado aumentaron un 15% con precios un 9% más bajos
- La tasa de utilización de la planta mejoró al 88% desde el 81%
- Los costos de SG&A se redujeron en un 12%
- Se generó un flujo de caja operativo de $20M y un flujo de caja libre de $13M
- La deuda total fue de $430M al final del trimestre
La compañía declaró su 124° dividendo trimestral consecutivo de $0.1875 por acción. Cabe destacar que Radius anunció una fusión pendiente con Toyota Tsusho America, que se espera cierre en la segunda mitad de 2025, lo que convertiría a RDUS en una subsidiaria de propiedad total de TAI.
Radius Recycling (NASDAQ: RDUS)는 2025 회계연도 2분기 실적을 발표하며 $(33) 백만의 순손실, 즉 주당 $(1.15)를 기록하였으며, 이는 전년 $(34) 백만에서 약간 개선된 수치입니다. 주요 성과 지표는 다음과 같습니다:
- 철강 판매량이 전년 대비 12% 증가하였으나 판매가격은 14% 감소하였습니다.
- 비철금속 가격은 10% 상승하였으나 판매량은 1% 감소하였습니다.
- 완제품 강철 판매량은 15% 증가하였으나 가격은 9% 하락하였습니다.
- 공장 가동률은 81%에서 88%로 개선되었습니다.
- SG&A 비용은 12% 감소하였습니다.
- 운영 현금 흐름은 $20M, 자유 현금 흐름은 $13M을 생성하였습니다.
- 분기 말 총 부채는 $430M이었습니다.
회사는 주당 $0.1875의 124번째 연속 분기 배당금을 선언했습니다. 특히, Radius는 2025년 하반기에 마감될 것으로 예상되는 Toyota Tsusho America와의 합병을 발표했으며, 이는 RDUS가 TAI의 완전 자회사로 전환되는 것을 의미합니다.
Radius Recycling (NASDAQ: RDUS) a publié les résultats du deuxième trimestre de l'exercice 2025, avec une perte nette de $(33) millions, soit $(1.15) par action, s'améliorant légèrement par rapport à $(34) millions l'année précédente. Les principaux indicateurs de performance comprennent :
- Les volumes de ventes de ferreux ont augmenté de 12 % d'une année sur l'autre, malgré une baisse de 14 % des prix de vente
- Les prix des non-ferreux ont augmenté de 10 %, tandis que les volumes ont diminué de 1 %
- Les volumes de ventes d'acier fini ont augmenté de 15 % avec des prix inférieurs de 9 %
- Le taux d'utilisation des usines s'est amélioré à 88 % contre 81 %
- Les coûts SG&A ont été réduits de 12 %
- Un flux de trésorerie opérationnel de 20 millions de dollars et un flux de trésorerie libre de 13 millions de dollars ont été générés
- La dette totale s'élevait à 430 millions de dollars à la fin du trimestre
L'entreprise a déclaré son 124ème dividende trimestriel consécutif de 0,1875 $ par action. Il est à noter que Radius a annoncé une fusion en attente avec Toyota Tsusho America, qui devrait se conclure au second semestre 2025, rendant RDUS une filiale entièrement détenue de TAI.
Radius Recycling (NASDAQ: RDUS) hat die Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 veröffentlicht und einen Nettoverlust von $(33) Millionen, oder $(1.15) pro Aktie, verzeichnet, was eine leichte Verbesserung gegenüber $(34) Millionen im Vorjahr darstellt. Wichtige Leistungskennzahlen umfassen:
- Der Verkauf von Eisenmetallen stieg im Jahresvergleich um 12%, trotz eines Rückgangs der Verkaufspreise um 14%
- Die Preise für Nichteisenmetalle stiegen um 10%, während die Verkaufszahlen um 1% zurückgingen
- Die Verkaufszahlen von Fertigstahl stiegen um 15%, während die Preise um 9% sanken
- Die Auslastungsrate der Mühlen verbesserte sich von 81% auf 88%
- Die SG&A-Kosten wurden um 12% gesenkt
- Ein operativer Cashflow von $20M und ein freier Cashflow von $13M wurden generiert
- Die Gesamtschuld belief sich zum Quartalsende auf $430M
Das Unternehmen erklärte seine 124. aufeinanderfolgende vierteljährliche Dividende von $0.1875 pro Aktie. Bemerkenswert ist, dass Radius eine bevorstehende Fusion mit Toyota Tsusho America angekündigt hat, die im zweiten Halbjahr 2025 abgeschlossen werden soll, wodurch RDUS zu einer hundertprozentigen Tochtergesellschaft von TAI wird.
- 12% increase in ferrous sales volumes
- 15% growth in finished steel sales volumes
- 10% higher nonferrous selling prices
- 12% reduction in SG&A costs
- Generated $20M operating cash flow and $13M free cash flow
- Mill utilization rate improved to 88% from 81%
- Net loss of $33 million in Q2 2025
- 14% decline in ferrous selling prices
- 9% decrease in finished steel prices
- High debt level of $430M
- Compressed metal spreads due to market conditions
- Break-even Adjusted EBITDA compared to $3M in prior year
Insights
Radius Recycling's Q2 FY2025 results present a complex financial picture. The company reported a net loss of $(33) million and loss per share of $(1.15), representing only marginal improvement from the $(34) million loss and $(1.19) EPS in the prior year period. Adjusted EBITDA deteriorated to approximately break-even from $3 million in the comparable quarter.
Despite these headline losses, there are positive financial developments worth noting. The company generated positive operating cash flow of $20 million and free cash flow of $13 million, helped by working capital improvements primarily from inventory reductions. Their productivity initiatives delivered tangible results, reducing SG&A costs by
The balance sheet carries substantial leverage with
The pending merger with Toyota Tsusho America represents a significant strategic development that could fundamentally alter the company's trajectory. Expected to close in the second half of 2025, this transaction would transform Radius into a wholly-owned subsidiary of TAI, potentially providing financial stability and strategic advantages that could address some of the current challenges.
Radius Recycling's operational performance reflects the complex dynamics in today's global steel and recycling markets. The company increased ferrous sales volumes by
The article explicitly highlights the role of elevated Chinese steel exports in depressing global prices, creating margin compression in the recycling space. This external factor continues to challenge North American recyclers and steel producers. The divergence between domestic and export markets late in the quarter created a timing mismatch for Radius, with previously contracted exports facing compressed margins while domestic shipments began seeing improved conditions.
On the operational front, the improved mill utilization rate of
The nonferrous segment showed resilience with pricing up
The pending acquisition by Toyota Tsusho America could potentially strengthen Radius's position in the recycling value chain, providing integration opportunities with Toyota's extensive manufacturing operations and potentially more stable demand channels.
Ferrous and Finished Steel Sales Volumes Up Year-Over-Year
Positive Operating and Free Cash Flow
Radius Board Declares Quarterly Dividend
PORTLAND, Ore., April 04, 2025 (GLOBE NEWSWIRE) -- Radius Recycling, Inc. (NASDAQ: RDUS) (“Radius” or the “Company”) today reported results for the second quarter of fiscal 2025 ended February 28, 2025.
The Company reported a loss per share from continuing operations of
On a year-over-year basis, operating performance in the second quarter of fiscal 2025 was slightly lower primarily due to lower global ferrous and finished steel prices, including as a result of the dampening effect from elevated levels of Chinese steel exports, partially offset by higher ferrous and finished steel sales volumes, stronger nonferrous demand, and benefits from productivity initiatives:
- Ferrous average net selling prices were
14% lower year-over-year. This, together with tight scrap flows exacerbated by particularly challenging winter weather conditions, led to a compression in metal spreads compared to the prior year quarter. Domestic and export market conditions diverged in the latter part of the quarter, as domestic ferrous scrap prices increased sharply and mills began restocking. This surge supported margin expansion on domestic shipments, but also contributed to a temporary spread compression on export sales that had already been contracted for the quarter. The impact of average inventory accounting in the second quarter of fiscal 2025 was approximately neutral, compared to a benefit of approximately$2 per ferrous ton in the second quarter of fiscal 2024. - Ferrous sales volumes were
12% higher compared to the prior year quarter, primarily benefiting from a reduction in inventories due to timing of shipments. - Stronger nonferrous demand led to
10% higher average net selling prices. Nonferrous sales volumes were1% lower year-over-year primarily due to timing of shipments. - The contribution from finished steel was lower year-over-year primarily due to a decline in average net selling prices of
9% , although finished steel prices began to rise in the latter part of the quarter. This was partially offset by15% higher finished steel sales volumes year-over-year as demand in the Company’s Western markets remained healthy. The mill utilization rate was88% in the second quarter of fiscal 2025, compared to81% in the prior year’s second quarter. - The second quarter of fiscal 2025 reflected the full contribution from the Company’s productivity initiatives implemented over the past year, which were the main drivers of the
12% reduction in consolidated Selling, General, and Administrative (SG&A) costs compared to the prior year quarter. Results for the second quarter of fiscal 2025 also included a$3 million gain from the Company’s asset monetization program, while the prior year second quarter had included a$2 million gain from insurance recoveries.
In the second quarter of fiscal 2025, the Company generated positive operating cash flow of
The effective tax rate for the second quarter of fiscal 2025 was a benefit of
During the second quarter of fiscal 2025, the Company returned capital to shareholders through its 124th consecutive quarterly dividend.
Declaration of Quarterly Dividend
The Board of Directors declared a cash dividend of
Merger Update
On March 13, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Toyota Tsusho America, Inc. (“TAI”) pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, the Company would become a wholly owned subsidiary of TAI (the “Merger”). The Board of Directors of the Company has approved the Merger Agreement and the transactions contemplated thereby, including the Merger. Subject to the satisfaction of the closing conditions, the Company anticipates the Merger to close in the second half of calendar 2025.
Earnings Conference Call
As a result of the pending Merger with TAI, the Company will not be holding a second quarter earnings conference call or webcast.
About Radius Recycling, Inc.
Radius is a leading North American recycler of ferrous and nonferrous metals with 53 operating facilities across 25 states, Puerto Rico, and Western Canada. The Company sells its products to U.S. and export customers from its locations on both the East and West Coasts of the U.S., the Southeast, Hawaii, and Puerto Rico. Radius’ integrated operating platform also includes 50 stores operating across the U.S. and Western Canada under its Pick-N-Pull brand which sell serviceable used auto parts from salvaged vehicles and receive over 4 million annual retail visits. The Company’s electric arc furnace and rolling mill located in McMinnville, Oregon is vertically integrated with its Pacific Northwest metals recycling operations and produces rebar, wire rod, and other specialty products that are sold to customers primarily in the Western U.S. and Western Canada. Radius began operations in 1906 in Portland, Oregon, where it remains headquartered.
| Summary Results | |||||||||||||||||||||
| ($ in millions, except per share and per ferrous ton amounts) | |||||||||||||||||||||
| Quarter | Six Months ended | ||||||||||||||||||||
| 2Q25 | 1Q25 | 2Q24 | 2025 | 2024 | |||||||||||||||||
| Revenues | $ | 643 | $ | 657 | $ | 621 | $ | 1,299 | $ | 1,294 | |||||||||||
| Gross margin (total revenues less cost of goods sold) | $ | 27 | $ | 33 | $ | 40 | $ | 61 | $ | 80 | |||||||||||
| Selling, general and administrative expense | $ | 55 | $ | 57 | $ | 62 | $ | 112 | $ | 125 | |||||||||||
| Net income (loss) | $ | (33 | ) | $ | (37 | ) | $ | (34 | ) | $ | (70 | ) | $ | (52 | ) | ||||||
| Net income (loss) per ferrous ton(5) | $ | (30 | ) | $ | (33 | ) | $ | (35 | ) | $ | (32 | ) | $ | (24 | ) | ||||||
| Diluted income (loss) per share from continuing operations attributable to Radius shareholders | |||||||||||||||||||||
| Reported | $ | (1.15 | ) | $ | (1.30 | ) | $ | (1.19 | ) | $ | (2.45 | ) | $ | (1.83 | ) | ||||||
| Adjusted(1) | $ | (0.99 | ) | $ | (1.33 | ) | $ | (1.04 | ) | $ | (2.32 | ) | $ | (1.68 | ) | ||||||
| Adjusted EBITDA(1) | $ | — | $ | — | $ | 3 | $ | — | $ | 4 | |||||||||||
| Adjusted EBITDA per ferrous ton(1) (5) | $ | — | $ | — | $ | 3 | $ | — | $ | 2 | |||||||||||
| Cash flows from (used in) operating activities | $ | 20 | $ | (2 | ) | $ | (55 | ) | $ | 18 | $ | (56 | ) | ||||||||
| Ferrous sales volumes (LT, in thousands)(2) | 1,094 | 1,106 | 980 | 2,200 | 2,132 | ||||||||||||||||
| Avg. net ferrous sales prices ($/LT)(3) | $ | 330 | $ | 338 | $ | 384 | $ | 334 | $ | 368 | |||||||||||
| Nonferrous sales volumes (pounds, in millions)(2) (4) | 174 | 177 | 176 | 352 | 358 | ||||||||||||||||
| Avg. nonferrous sales prices ($/pound)(3) (4) | $ | 1.03 | $ | 1.02 | $ | 0.94 | $ | 1.02 | $ | 0.93 | |||||||||||
| Finished steel average net sales price ($/ST)(3) | $ | 756 | $ | 775 | $ | 832 | $ | 765 | $ | 832 | |||||||||||
| Finished steel sales volumes (ST, in thousands) | 131 | 125 | 114 | 256 | 243 | ||||||||||||||||
| Rolling mill utilization (%) | 88 | % | 81 | % | 81 | % | 84 | % | 88 | % | |||||||||||
LT = Long Ton, which is equivalent to 2,240 pounds
ST = Short Ton, which is equivalent to 2,000 pounds
(1) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(2) Ferrous and nonferrous volumes sold externally and delivered to our steel mill for finished steel production.
(3) Price information is shown after netting the cost of freight incurred to deliver the product to the customer.
(4) Nonferrous sales volumes and average nonferrous prices excludes platinum group metals (“PGMs”) in catalytic converters.
(5) May not foot due to rounding.
| RADIUS RECYCLING, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per share amounts) (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months ended | |||||||||||||||||||
| February 28, 2025 | November 30, 2024 | February 29, 2024 | February 28, 2025 | February 29, 2024 | ||||||||||||||||
| Revenues | $ | 642,508 | $ | 656,537 | $ | 621,059 | $ | 1,299,045 | $ | 1,293,956 | ||||||||||
| Cost of goods sold | 615,011 | 623,132 | 580,996 | 1,238,143 | 1,214,416 | |||||||||||||||
| Selling, general and administrative expense | 54,943 | 56,684 | 62,160 | 111,627 | 125,262 | |||||||||||||||
| (Income) from joint ventures | (188 | ) | (448 | ) | (30 | ) | (636 | ) | (703 | ) | ||||||||||
| Asset impairment charges | — | 184 | 1,476 | 184 | 1,476 | |||||||||||||||
| Restructuring charges and other exit-related activities | 1,422 | 1,897 | 3,175 | 3,319 | 3,210 | |||||||||||||||
| Operating income (loss) | (28,680 | ) | (24,912 | ) | (26,718 | ) | (53,592 | ) | (49,705 | ) | ||||||||||
| Interest expense | (8,771 | ) | (8,862 | ) | (5,803 | ) | (17,633 | ) | (10,613 | ) | ||||||||||
| Other income (expense), net | 209 | 636 | (263 | ) | 845 | (432 | ) | |||||||||||||
| Income (loss) from continuing operations before income taxes | (37,242 | ) | (33,138 | ) | (32,784 | ) | (70,380 | ) | (60,750 | ) | ||||||||||
| Income tax (expense) benefit | 4,277 | (3,791 | ) | (1,195 | ) | 486 | 8,975 | |||||||||||||
| Income (loss) from continuing operations | (32,965 | ) | (36,929 | ) | (33,979 | ) | (69,894 | ) | (51,775 | ) | ||||||||||
| Income (loss) from discontinued operations, net of tax | — | — | (31 | ) | — | (33 | ) | |||||||||||||
| Net income (loss) | (32,965 | ) | (36,929 | ) | (34,010 | ) | (69,894 | ) | (51,808 | ) | ||||||||||
| Net (income) loss attributable to noncontrolling interests | (12 | ) | (244 | ) | 31 | (256 | ) | (135 | ) | |||||||||||
| Net income (loss) attributable to Radius shareholders | $ | (32,977 | ) | $ | (37,173 | ) | $ | (33,979 | ) | $ | (70,150 | ) | $ | (51,943 | ) | |||||
| Net income (loss) per share attributable to Radius shareholders: | ||||||||||||||||||||
| Basic: | ||||||||||||||||||||
| Income (loss) per share from continuing operations | $ | (1.15 | ) | $ | (1.30 | ) | $ | (1.19 | ) | $ | (2.45 | ) | $ | (1.83 | ) | |||||
| Net income (loss) per share | $ | (1.15 | ) | $ | (1.30 | ) | $ | (1.19 | ) | $ | (2.45 | ) | $ | (1.83 | ) | |||||
| Diluted: | ||||||||||||||||||||
| Income (loss) per share from continuing operations | $ | (1.15 | ) | $ | (1.30 | ) | $ | (1.19 | ) | $ | (2.45 | ) | $ | (1.83 | ) | |||||
| Net income (loss) per share | $ | (1.15 | ) | $ | (1.30 | ) | $ | (1.19 | ) | $ | (2.45 | ) | $ | (1.83 | ) | |||||
| Weighted average number of common shares: | ||||||||||||||||||||
| Basic | 28,684 | 28,573 | 28,454 | 28,628 | 28,337 | |||||||||||||||
| Diluted | 28,684 | 28,573 | 28,454 | 28,628 | 28,337 | |||||||||||||||
| Dividends declared per common share | $ | 0.1875 | $ | 0.1875 | $ | 0.1875 | $ | 0.3750 | $ | 0.3750 | ||||||||||
| RADIUS RECYCLING, INC. SELECTED OPERATING STATISTICS (Unaudited) | |||||||||||
| YTD | |||||||||||
| 1Q25 | 2Q25 | 2025 | |||||||||
| Total ferrous volumes (LT, in thousands)(1) | 1,106 | 1,094 | 2,200 | ||||||||
| Total nonferrous volumes (pounds, in thousands)(1)(2) | 177,255 | 174,323 | 351,578 | ||||||||
| Ferrous selling prices ($/LT)(3) | |||||||||||
| Domestic | $ | 331 | $ | 353 | $ | 343 | |||||
| Foreign | $ | 340 | $ | 321 | $ | 330 | |||||
| Average | $ | 338 | $ | 330 | $ | 334 | |||||
| Ferrous sales volume (LT, in thousands) | |||||||||||
| Domestic | 477 | 468 | 945 | ||||||||
| Foreign | 629 | 626 | 1,255 | ||||||||
| Total | 1,106 | 1,094 | 2,200 | ||||||||
| Nonferrous average price ($/pound)(2)(3) | $ | 1.02 | $ | 1.03 | $ | 1.02 | |||||
| Cars purchased (in thousands)(4) | 56 | 60 | 116 | ||||||||
| Auto stores at period end | 50 | 50 | 50 | ||||||||
| Finished steel average sales price ($/ST)(3) | $ | 775 | $ | 756 | $ | 765 | |||||
| Sales volume (ST, in thousands) | |||||||||||
| Rebar | 85 | 85 | 170 | ||||||||
| Coiled products | 39 | 45 | 84 | ||||||||
| Merchant bar and other | 1 | 1 | 2 | ||||||||
| Finished steel products sold | 125 | 131 | 256 | ||||||||
| Rolling mill utilization(5) | 81 | % | 88 | % | 84 | % | |||||
LT = Long Ton, which is equivalent to 2,240 pounds
ST = Short Ton, which is equivalent to 2,000 pounds
(1) Ferrous and nonferrous volumes sold externally and delivered to our steel mill for finished steel production.
(2) Excludes PGMs in catalytic converters.
(3) Price information is shown after netting the cost of freight incurred to deliver the product to the customer.
(4) Cars purchased by auto parts stores only.
(5) Rolling mill utilization is based on effective annual production capacity under current conditions of 580 thousand tons of finished steel products.
| RADIUS RECYCLING, INC. SELECTED OPERATING STATISTICS (Unaudited) | ||||||||||||||||||||
| YTD | ||||||||||||||||||||
| 1Q24 | 2Q24 | 3Q24 | 4Q24 | 2024(6) | ||||||||||||||||
| Total ferrous volumes (LT, in thousands)(1) | 1,152 | 980 | 1,112 | 1,249 | 4,493 | |||||||||||||||
| Total nonferrous volumes (pounds, in thousands)(1)(2) | 181,728 | 176,477 | 183,230 | 206,743 | 748,178 | |||||||||||||||
| Ferrous selling prices ($/LT)(3) | ||||||||||||||||||||
| Domestic | $ | 342 | $ | 391 | $ | 341 | $ | 323 | $ | 349 | ||||||||||
| Foreign | $ | 359 | $ | 381 | $ | 354 | $ | 356 | $ | 361 | ||||||||||
| Average | $ | 354 | $ | 384 | $ | 350 | $ | 348 | $ | 358 | ||||||||||
| Ferrous sales volume (LT, in thousands) | ||||||||||||||||||||
| Domestic | 535 | 483 | 528 | 504 | 2,051 | |||||||||||||||
| Foreign | 617 | 497 | 584 | 744 | 2,442 | |||||||||||||||
| Total(6) | 1,152 | 980 | 1,112 | 1,249 | 4,493 | |||||||||||||||
| Nonferrous average price ($/pound)(2)(3) | $ | 0.91 | $ | 0.94 | $ | 1.04 | $ | 1.08 | $ | 1.00 | ||||||||||
| Cars purchased (in thousands)(4) | 64 | 67 | 64 | 63 | 258 | |||||||||||||||
| Auto stores at period end | 50 | 50 | 50 | 50 | 50 | |||||||||||||||
| Finished steel average sales price ($/ST)(3) | $ | 831 | $ | 832 | $ | 817 | $ | 795 | $ | 818 | ||||||||||
| Sales volume (ST, in thousands) | ||||||||||||||||||||
| Rebar | 94 | 83 | 83 | 96 | 357 | |||||||||||||||
| Coiled products | 34 | 30 | 42 | 43 | 148 | |||||||||||||||
| Merchant bar and other | 1 | 1 | 1 | 1 | 4 | |||||||||||||||
| Finished steel products sold | 129 | 114 | 126 | 140 | 509 | |||||||||||||||
| Rolling mill utilization(5) | 95 | % | 81 | % | 88 | % | 97 | % | 90 | % | ||||||||||
LT = Long Ton, which is equivalent to 2,240 pounds
ST = Short Ton, which is equivalent to 2,000 pounds
(1) Ferrous and nonferrous volumes sold externally and delivered to our steel mill for finished steel production.
(2) Excludes PGMs in catalytic converters.
(3) Price information is shown after netting the cost of freight incurred to deliver the product to the customer.
(4) Cars purchased by auto parts stores only.
(5) Rolling mill utilization is based on effective annual production capacity under current conditions of 580 thousand tons of finished steel products.
(6) May not foot due to rounding.
| RADIUS RECYCLING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) (Unaudited) | ||||||||
| February 28, 2025 | August 31, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,437 | $ | 5,552 | ||||
| Accounts receivable, net | 216,365 | 258,157 | ||||||
| Inventories | 281,757 | 293,932 | ||||||
| Other current assets | 42,602 | 51,486 | ||||||
| Total current assets | 546,161 | 609,127 | ||||||
| Property, plant and equipment, net | 654,523 | 672,192 | ||||||
| Operating lease right-of-use assets | 130,686 | 123,546 | ||||||
| Goodwill | 13,105 | 13,105 | ||||||
| Other assets | 113,708 | 115,799 | ||||||
| Total assets | $ | 1,458,183 | $ | 1,533,769 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Short-term borrowings | $ | 5,480 | $ | 5,688 | ||||
| Accounts payable | 193,063 | 202,498 | ||||||
| Environmental liabilities | 12,706 | 13,232 | ||||||
| Operating lease liabilities | 21,159 | 19,262 | ||||||
| Other current liabilities | 69,661 | 75,890 | ||||||
| Total current liabilities | 302,069 | 316,570 | ||||||
| Long-term debt, net of current maturities | 424,424 | 409,082 | ||||||
| Environmental liabilities, net of current portion | 52,172 | 52,417 | ||||||
| Operating lease liabilities, net of current maturities | 110,799 | 104,246 | ||||||
| Other long-term liabilities | 23,715 | 25,714 | ||||||
| Total liabilities | 913,179 | 908,029 | ||||||
| Total Radius Recycling, Inc. shareholders' equity | 542,716 | 623,112 | ||||||
| Noncontrolling interests | 2,288 | 2,628 | ||||||
| Total equity | 545,004 | 625,740 | ||||||
| Total liabilities and equity | $ | 1,458,183 | $ | 1,533,769 | ||||
Non-GAAP Financial Measures
This press release contains performance based on adjusted diluted earnings per share from continuing operations attributable to Radius shareholders, adjusted EBITDA, adjusted EBITDA per ferrous ton, and adjusted selling, general, and administrative expense, which are non-GAAP financial measures as defined under SEC rules. As required by SEC rules, the Company has provided a reconciliation of these measures for each period discussed to the most directly comparable U.S. GAAP measure. Management believes that providing these non-GAAP financial measures adds a meaningful presentation of our results from business operations excluding restructuring charges and other exit-related activities, charges for legacy environmental matters (net of recoveries), amortization of capitalized cloud computing implementation costs, asset impairment charges, business development costs not related to ongoing operations including pre-acquisition and merger expenses, and the income tax benefit allocated to these adjustments, items which are not related to underlying business operational performance, and improves the period-to-period comparability of our results from business operations. We believe that presenting debt, net of cash is useful to investors as a measure of our leverage, as cash and cash equivalents can be used, among other things, to repay indebtedness. We define free cash flow as cash flow from operating activities, net of capital expenditures and proceeds from sales of property, plant, and equipment. We believe free cash flow is useful to investors as a measure of liquidity. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the most directly comparable U.S. GAAP measures.
| Reconciliation of adjusted diluted earnings (loss) per share from continuing operations attributable to Radius shareholders | |||||||||||||||||||||
| ($ per share) | Three Months Ended | Six Months ended | |||||||||||||||||||
| 2Q25 | 1Q25 | 2Q24 | 2025 | 2024 | |||||||||||||||||
| As reported | $ | (1.15 | ) | $ | (1.30 | ) | $ | (1.19 | ) | $ | (2.45 | ) | $ | (1.83 | ) | ||||||
| Restructuring charges and other exit-related activities, per share | 0.05 | 0.07 | 0.11 | 0.12 | 0.11 | ||||||||||||||||
| Charges (recoveries) for legacy environmental matters, net, per share(1) | (0.01 | ) | (0.07 | ) | 0.01 | (0.08 | ) | 0.02 | |||||||||||||
| Asset impairment charges, per share | — | — | 0.06 | — | 0.07 | ||||||||||||||||
| Business development costs, per share | 0.09 | — | — | 0.09 | 0.01 | ||||||||||||||||
| Income tax benefit allocated to adjustments, per share(3) | 0.03 | (0.03 | ) | (0.03 | ) | — | (0.06 | ) | |||||||||||||
| Adjusted(4) | $ | (0.99 | ) | $ | (1.33 | ) | $ | (1.04 | ) | $ | (2.32 | ) | $ | (1.68 | ) | ||||||
| Reconciliation of adjusted EBITDA and adjusted EBITDA per ferrous ton | |||||||||||||||||||||
| ($ in millions) | Three Months Ended | Six Months ended | |||||||||||||||||||
| 2Q25 | 1Q25 | 2Q24 | 2025 | 2024 | |||||||||||||||||
| Net income (loss) | $ | (33 | ) | $ | (37 | ) | $ | (34 | ) | $ | (70 | ) | $ | (52 | ) | ||||||
| Plus interest expense | 9 | 9 | 6 | 18 | 11 | ||||||||||||||||
| Plus income tax expense (benefit) | (4 | ) | 4 | 1 | — | (9 | ) | ||||||||||||||
| Plus depreciation and amortization | 24 | 24 | 24 | 48 | 48 | ||||||||||||||||
| Plus business development costs | 3 | — | — | 3 | — | ||||||||||||||||
| Plus restructuring charges and other exit-related activities | 1 | 2 | 3 | 3 | 3 | ||||||||||||||||
| Plus charges (recoveries) for legacy environmental matters, net(1) | — | (2 | ) | — | (2 | ) | — | ||||||||||||||
| Plus amortization of cloud computing software costs(2) | — | — | — | 1 | — | ||||||||||||||||
| Plus asset impairment charges | — | — | 1 | — | 2 | ||||||||||||||||
| Adjusted EBITDA(4) | $ | — | $ | — | $ | 3 | $ | — | $ | 4 | |||||||||||
| Ferrous sales volume (LT, in thousands) | 1,094 | 1,106 | 980 | 2,200 | 2,132 | ||||||||||||||||
| Adjusted EBITDA per ferrous ton sold ($/LT) | $ | — | $ | — | $ | 3 | $ | — | $ | 2 | |||||||||||
| Reconciliation of Adjusted selling, general and administrative expense: | |||||||||||||||||||||
| ($ in millions) | Three Months Ended | Six Months ended | |||||||||||||||||||
| 2Q25 | 1Q25 | 2Q24 | 2025 | 2024 | |||||||||||||||||
| As reported | $ | 55 | $ | 57 | $ | 62 | $ | 112 | $ | 125 | |||||||||||
| (Charges) recoveries for legacy environmental matters, net(1) | — | 2 | — | 2 | — | ||||||||||||||||
| Business development costs | (3 | ) | — | — | (3 | ) | — | ||||||||||||||
| Adjusted(4) | $ | 53 | $ | 59 | $ | 62 | $ | 111 | $ | 125 | |||||||||||
| Reconciliation of debt, net of cash | ||||||||||||
| ($ in thousands) | ||||||||||||
| February 28, 2025 | November 30, 2024 | February 29, 2024 | ||||||||||
| Short-term borrowings | $ | 5,480 | $ | 5,573 | $ | 5,459 | ||||||
| Long-term debt, net of current maturities | 424,424 | 439,872 | 368,119 | |||||||||
| Total debt | 429,904 | 445,445 | 373,578 | |||||||||
| Less: cash and cash equivalents | 5,437 | 15,223 | 13,562 | |||||||||
| Total debt, net of cash | $ | 424,467 | $ | 430,222 | $ | 360,016 | ||||||
| Reconciliation of Free Cash Flow (FCF) | Three Months Ended | ||
| ($ in thousands) | 2Q25 | ||
| Cash flow from operating activities | $ | 19,954 | |
| Capital expenditures | (11,334 | ) | |
| Proceeds from sales of property, plant, and equipment | 4,273 | ||
| Free cash flow | $ | 12,893 | |
LT = Long Ton, which is equivalent to 2,240 pounds
(1) Legal and environmental charges, net of recoveries, for legacy environmental matters including those related to the Portland Harbor Superfund site and to other legacy environmental loss contingencies.
(2) Amortization of cloud computing software costs consists of expense recognized in cost of goods sold and selling, general, and administrative expense resulting from amortization of capitalized implementation costs for cloud computing IT systems. This expense is not included in depreciation and amortization.
(3) Income tax allocated to the aggregate adjustments reconciling reported and adjusted diluted (loss) earnings per share from continuing operations attributable to Radius shareholders is determined based on a tax provision calculated with and without the adjustments.
(4) May not foot due to rounding.
Forward-Looking Statements
Statements and information included in this press release by Radius Recycling, Inc. that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Except as noted herein or as the context may otherwise require, all references in this press release to “we,” “our,” “us,” “the Company,” “Radius Recycling,” and “Radius” refer to Radius Recycling, Inc. and its consolidated subsidiaries.
Forward-looking statements in this press release include statements regarding future events or our expectations, intentions, beliefs, and strategies regarding the future, which may include statements regarding our proposed Merger with TAI, a U.S. subsidiary of Toyota Tsusho Corporation; the impact of equipment upgrades, equipment failures, and facility damage on production, including timing of repairs and resumption of operations; the realization of insurance recoveries; the Company’s outlook, growth initiatives, or expected results or objectives, including pricing, margins, volumes, and profitability; completion of acquisitions and integration of acquired businesses; the progression and impact of investments in processing and manufacturing technology improvements and information technology systems; the impact of sanctions and tariffs, quotas, and other trade actions and import restrictions; the impacts of supply chain disruptions, inflation, and rising interest rates; liquidity positions; our ability to generate cash from continuing operations; trends, cyclicality, and changes in the markets we sell into; strategic direction or goals; targets; changes to manufacturing and production processes; the realization of deferred tax assets; planned capital expenditures; the cost of and the status of any agreements or actions related to our compliance with environmental and other laws; expected tax rates, deductions, and credits; the impact of pandemics, epidemics, or other public health emergencies; the impact of labor shortages or increased labor costs; obligations under our retirement plans; benefits, savings, or additional costs from business realignment, cost containment, and productivity improvement programs; the potential impact of adopting new accounting pronouncements; and the adequacy of accruals.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as “outlook,” “target,” “aim,” “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “will,” “should,” “could,” “opinions,” “forecasts,” “projects,” “plans,” “future,” “forward,” “potential,” “probable,” and similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking.
We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases, presentations, and on public conference calls. All forward-looking statements we make are based on information available to us at the time the statements are made, and we assume no obligation to update any forward-looking statements, except as may be required by law. Our business is subject to the effects of changes in domestic and global economic conditions and a number of other risks and uncertainties that could cause actual results to differ materially from those included in, or implied by, such forward-looking statements. Some of these risks and uncertainties are discussed in “Item 1A. Risk Factors” of Part I of our most recent Annual Report on Form 10-K. and Part II of our most recent Quarterly Report on Form 10-Q. Examples of these risks include: the completion of the Merger is subject to various risks and uncertainties related to, among other things, its terms, timing, structure, benefits, costs and completion; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; the disruption of management’s attention from the Company’s ongoing business operations due to the Merger; the effect of the announcement of the Merger on the Company’s relationships with its customers, third-party suppliers, industrial vendors and other third parties, as well as its operating results and business generally; the potential difficulties in employee retention as a result of the Merger; the Merger Agreement may be terminated in circumstances that may require the Company to pay TAI a termination fee; the fact that, if the Merger is completed, shareholders will forgo the opportunity to realize the potential long-term value of the successful execution of the Company’s current strategy as an independent company; required approvals to complete the Merger by our shareholders and the receipt of certain regulatory approvals, to the extent required, and the timing and conditions for such approvals; the stock price of the Company may decline significantly if the merger is not completed; the possibility that TAI could, at a later date, engage in unspecified transactions, including restructuring efforts, special dividends or the sale of some or all of the Company’s assets to one or more purchasers, that could conceivably produce a higher aggregate value than that available to shareholders in the Merger; the inability to consummate the Merger within the anticipated time period, or at all, due to any reason, including the failure to satisfy the closing conditions to the Merger; potential environmental cleanup costs related to the Portland Harbor Superfund site or other locations; the impact of equipment upgrades, equipment failures, and facility damage on production; failure to realize or delays in realizing expected benefits from capital and other projects, including investments in processing and manufacturing technology improvements and information technology systems; the cyclicality and impact of general economic conditions; the impact of inflation and interest rate and foreign currency fluctuations; changing conditions in global markets including the impact of sanctions and tariffs, quotas, and other trade actions and import restrictions; increases in the relative value of the U.S. dollar; economic and geopolitical instability including as a result of military conflict; volatile supply and demand conditions affecting prices and volumes in the markets for raw materials and other inputs we purchase; significant decreases in recycled metal prices; imbalances in supply and demand conditions in the global steel industry; difficulties associated with acquisitions and integration of acquired businesses; supply chain disruptions; reliance on third-party shipping companies, including with respect to freight rates and the availability of transportation; restrictions on our business and financial covenants under the agreement governing our bank credit facilities; potential limitations on our ability to access capital resources and existing credit facilities; the impact of impairment of goodwill and assets other than goodwill; the impact of pandemics, epidemics, or other public health emergencies; inability to achieve or sustain the benefits from productivity, cost savings, and restructuring initiatives; inability to renew facility leases; customer fulfillment of their contractual obligations; the impact of consolidation in the steel industry; product liability claims; the impact of legal proceedings and legal compliance; the impact of climate change; the impact of not realizing deferred tax assets; the impact of tax increases and changes in tax rules; the impact of one or more cybersecurity incidents; the impact of increasing attention to environmental, social, and governance matters; translation risks associated with fluctuation in foreign exchange rates; the impact of hedging transactions; inability to obtain or renew business licenses and permits; environmental compliance costs and potential environmental liabilities; increased environmental regulations and enforcement; compliance with climate change and greenhouse gas emission laws and regulations; the impact of labor shortages or increased labor costs; reliance on employees subject to collective bargaining agreements; and the impact of the underfunded status of multiemployer plans in which we participate.
Company Contact:
| Investor Relations: |
| Michael Bennett |
| (503) 323-2811 |
| mcbennett@rdus.com |
| Public Affairs & Communications: |
| Eric Potashner |
| www.radiusrecycling.com |
| ir@rdus.com |
| Company Info: |
| www.radiusrecycling.com |
| ir@rdus.com |
FAQ
What were Radius Recycling's (RDUS) Q2 2025 financial results?
How did RDUS's ferrous and nonferrous metals perform in Q2 2025?
What is the status of Radius Recycling's merger with Toyota Tsusho America?
What dividend did RDUS declare for Q2 2025?
