Russel Metals (RUS) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked a record quarter with consolidated revenues of CAD 1.7 billion (USD 1.7 billion), up 37% year-over-year and 17% sequentially, driven by strong market conditions, successful acquisitions, and robust demand across most segments.

• Adjusted EBITDA reached CAD 154 million, a 65% increase from Q1 and 36% higher than Q2 2025, with gross margin improving by 130 basis points to 22.6%.

• U.S. operations accounted for 54% of revenues and 61% of operating profits, reflecting stronger market conditions compared to Canada.

• The Kloeckner acquisition contributed significantly to revenue and EBITDA growth, with further margin improvement expected as integration progresses.

• Portfolio changes since 2024, including CAD 700 million in acquisitions and CapEx, have reconfigured the business for higher earnings and returns.

Financial highlights

• Q2 2026 revenues reached a quarterly record of CAD 1.7 billion, with adjusted EBITDA of CAD 154 million and adjusted EPS of CAD 1.63; reported EPS was CAD 1.43.

• Net earnings for Q2 2026 were CAD 78.5 million, with adjusted net earnings at CAD 89.8 million.

• Return on invested capital was 24% annualized for the quarter and 23% year-to-date.

• Net debt stood at CAD 144 million, with over CAD 500 million in liquidity at quarter-end.

• Dividend per share increased to CAD 0.44, the fourth increase in four years, totaling a 16% cumulative rise since early 2023.

Outlook and guidance

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

• Demand remains robust with no significant summer slowdown; extended mill lead times and tight inventories support continued strength into Q3 and Q4.

• Management expects Q3 margins to be similar to the first half, with potential for further upside if pricing remains strong.

• Service center shipments anticipated to remain steady in Q3 2026.

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