Canada's Russel Metals Q2 revenue beats estimates

Russel Metals

06/08/2026 22:13

Overview
Canada metals distributor's Q2 revenue rose 37% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose yr/yr to C$1.63
Company benefited from Kloeckner branches acquisition and improved gross margins

Outlook
Company expects Q3 service center margins to be comparable to first half 2026 average
Russel Metals expects Q3 service center shipments to remain near first half 2026 levels
Company sees energy field stores segment benefiting from solid energy activity in 2026

Result Drivers
RECORD SHIPMENTS - Co said metal service centers set all-time record for tons shipped in Q2, up 6% from Q1 and 28% from Q2 last yr
KLOECKNER ACQUISITION - Newly acquired Kloeckner branches contributed C$213 mln in revenue and C$16 mln in EBITDA in Q2, boosting overall results
HIGHER METAL PRICES - Co said strong market conditions and higher U.S. plate and hot rolled coil prices supported improved gross margins

Company press release: ID:nPn9q5TWRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$1.66 bln
C$1.47 bln (7 Analysts)
Q2 EPS
 
C$1.43
 
Q2 EBIT
 
C$112 mln
 
Q2 EBITDA
 
C$138.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Russel Metals Inc is C$68.00, about 3.9% below its August 5 closing price of C$70.77
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Aug 5 - Kloeckner sets profit goal, sees slight shipment decline in 2026
Aug 6 - Friedman Industries Q1 sales jump 78% on record volumes
Aug 4 - Steelmaker Ternium's Q2 profit rises, outlook brightens as margins surge

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)