Canada's Russel Metals Q1 revenue up 21%, beats estimates

Russel Metals

05/05/2026 22:13

Overview

Canada metals distributor's Q1 revenue rose 21% yr/yr, beating analyst expectations

Adjusted EPS for Q1 rose to C$1.30 from C$0.75 a year earlier

Company raised quarterly dividend and completed C$39 mln sale of redundant real estate

Outlook

Russel Metals expects Q2 service center average margins to improve slightly versus Q1 average

Company expects Q2 service center shipments to remain near Q1 levels

Russel Metals anticipates solid energy activity and steady margins for energy field stores in 2026

Result Drivers

KLOECKNER ACQUISITION - Acquisition of Kloeckner branches in the U.S. drove increases in revenue, EBITDA and shipments

FAVOURABLE MARKET CONDITIONS - Higher steel prices and solid demand across most regions supported record revenue and margin improvement

REAL ESTATE SALE - Gain on sale of redundant Delta (BC) property contributed C$36 mln pre-tax to earnings

Company press release: ID:nCNWtTZcta

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$1.40 bln
C$1.38 bln (7 Analysts)
Q1 EPS
C$1.30
Q1 Net Income
C$71.80 mln
Q1 EBIT
C$97.70 mln
Q1 EBITDA
C$123.70 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$54.00, about 1.8% above its May 4 closing price of C$53.04

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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.)