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Russel Metals (RMZ) Q3 2026 Earnings Report

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DE:RMZ Q3 2026 EPS Results

Actual EPS
EUR 1.45
Consensus EPS
EUR 0.94
Beat/Miss
Beat by +EUR 0.51
One Year Ago EPS
EUR 0.40

DE:RMZ Q3 2026 Revenue Results

Actual Revenue
EUR 1.15B
Expected Revenue
EUR 1.04B
Beat/Miss
Beat by +EUR 103.65M
YoY Revenue Growth
+55.89%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/04/2026
Time
After Close
Conference Call
Wednesday, November 4, 2026
DE:RMZ Upcoming Earnings

Russel Metals's next earnings date is estimated for February 10, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

DE:RMZ Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 04, 2026|% Change Since:-16.84%|
Earnings Call Sentiment|Positive

The call was strongly positive, supported by record revenue, EBITDA and EPS, broad-based demand, substantial gross margin expansion, strong Kloeckner integration returns, improving Canadian performance, high returns on invested capital, and a flexible balance sheet. Management also reported continued market share gains, shareholder distributions, and ongoing investment in modernization and growth. The main cautions were seasonal Q4 volume reductions, limited December visibility, working capital usage, higher stock-based compensation and corporate expenses, potential future margin compression, and unresolved tariff and trade-policy questions.

Company Guidance

Management expects average quarterly CapEx, which was $26 million in Q3, to remain similar into 2027; Q4 2026 will be better than Q4 2025, although there will be seasonal declines in volume and lower overall tonnage in Q4 versus Q3, with a 5% to 7% impact on operating days and additional uncertainty around December order timing. Early Q4 pricing levels and margins were holding in at a pretty strong level, and management expects “more of the same type performance in Q4,” notwithstanding the standard holiday season. Market conditions suggest continued optimism through the latter part of 2026 and into 2027, the company has 3 projects on the go that are each around $10 million, seeks average returns over the cycle greater than 15%, and is currently focused on potential tuck-in opportunities that could fit with its U.S. service center operations over the near term.

  • Record Quarterly Financial ResultsRussel Metals reported record consolidated revenue of over CAD 1.8 billion, record EBITDA, and record adjusted and unadjusted EPS in Q3 2026. Revenue increased 10% from Q2 and 56% from Q3 2025. Unadjusted EBITDA was CAD 200 million, adjusted EBITDA was CAD 230 million, unadjusted EPS was CAD 2.29, and adjusted EPS was CAD 2.67.
  • Broad-Based Market StrengthManagement described market conditions as strong and broad-based across business segments, geographic regions, and end markets. Demand was reported across infrastructure, government spending in Canada and the U.S., manufacturing, data centers, energy infrastructure, agriculture, and border wall projects. Steel mill operating rates were near 80%, lead times were extended, and supply chain inventories were limited.
  • Strong Service Center Volume and Market Share GainsMetal Service Center tonnage increased 29% overall and 7% on a same-store basis versus Q3 2025. Q3 shipments were near a record despite seasonal factors. Management attributed the performance to strong demand, market share gains, value-added initiatives, expanded non-ferrous offerings, and the Samuel and Kloeckner acquisitions.
  • Significant Gross Margin ExpansionOverall gross margin improved by 330 basis points versus Q2, with sizable gains in the Metal Service Center and steel distributor segments. Service center price realizations per ton increased 13% versus Q2, while gross margin per ton increased by CAD 171 to CAD 700, described as one of the best results the company has experienced.
  • Kloeckner Integration Delivering Strong ReturnsThe former Kloeckner branches generated CAD 33 million of EBITDA in Q3 and CAD 57 million year-to-date, compared with a CAD 128 million purchase price. Management stated that the acquisition has provided an annualized return on capital of 42%. On October 1, the company completed the migration from Kloeckner's transitional services agreement to Russel's back-office systems.
  • Improvement in Canadian Service Center PerformanceManagement reported a noticeable improvement in the relative performance of Canadian service centers as economic conditions improved. Canada experienced broad-based acceleration beginning in late May or early June across data centers, energy and infrastructure, nation-building projects, manufacturing, and agriculture. Management said the performance gap between Canada and the U.S. narrowed.
  • Successful Portfolio Refinement Through Color Steels SaleRussel Metals sold its Color Steels subsidiary for CAD 42 million, compared with a book value of approximately CAD 35 million, generating a CAD 7 million pretax gain. The business had generated approximately CAD 70 million of revenue in 2025. Management described the sale as part of its selective portfolio refinement and return-on-capital focus.
  • Improved Earnings Profile Through Portfolio ChangesFrom 2024 through 2026, the company deployed almost CAD 700 million for acquisitions and capital expenditures and sold approximately CAD 90 million of non-core assets. Management stated that these changes have raised the company's average EBITDA, reduced peak-to-trough volatility, and improved the 2023-2026 EBITDA profile compared with 2017-2019.
  • Strong Trailing EBITDA and Return on Invested CapitalTrailing 12-month unadjusted EBITDA was CAD 530 million as of September 30. Annualized return on invested capital was 35% in Q3 and 27% year-to-date in 2026, above the company's cycle target and described as industry-leading among publicly traded comparables.
  • Continued U.S. Business ExpansionThe U.S. platform represented 57% of quarterly revenue, which was higher than in Q1 and Q2 2026 and significantly higher than in 2025. Management also said the company continues to gain share through its value-added platform and is expanding its non-ferrous business.
  • Strong Balance Sheet and LiquidityThe company reported CAD 214 million of net debt, representing less than 0.5 times net debt to EBITDA, and CAD 418 million of liquidity. Russel Metals remains investment-grade rated by S&P and DBRS, has no financial covenants in its term debt, and has bank and term debt maturities in 2030.
  • Capital Deployment and Modernization PipelineQ3 capital expenditures were CAD 26 million, an increase from Q1 and Q2 as approved discretionary projects began. Management expects average quarterly CapEx to remain similar into 2027. Three facility modernization projects of approximately CAD 10 million each are underway, along with additional value-added equipment projects.
  • Flexible Acquisition StrategyManagement said the company continues to evaluate acquisitions that complement its existing business and is currently focused on potential tuck-in opportunities for its U.S. service center operations. The company stated that its strong capital structure allows it to move quickly when suitable opportunities arise.
  • Shareholder Returns and Share Count ReductionThe company returned CAD 24 million through dividends in Q3 and declared another quarterly dividend of CAD 0.44 per share for December. Since August 2022, the NCIB has repurchased 8.7 million shares, reducing the share count by 14% at an average price of CAD 38.13 per share for a total of CAD 333 million. The dividend has increased four times in four years, representing a 16% cumulative increase since early 2023.
  • Stable Inventory Turns and Growing Book ValueInventory turns remained steady at approximately 4.2 in Q3 while inventories were described as tight relative to strong business activity. Book value increased by CAD 1.85 per share from June 30 and was approximately 14% higher than the same time last year.
  • Positive Energy and Distributor Segment PerformanceEnergy field stores revenue increased again, and Q3 operating profit reached its highest quarterly level in the past three years. Steel distributor revenue, gross margin, and EBIT all increased sharply versus Q2 due to favorable market conditions.
  • Favorable Near-Term Pricing and Margin TrendsIn early Q4, pricing levels and margins were holding at strong levels, with management reporting additional steel mill price increases as recently as the morning of the call. Hot-rolled coil and plate prices in the U.S. were higher in Q3 than in Q2 and were slightly above Q3 averages at the time of the call.

DE:RMZ Earnings History

DE:RMZ earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 10, 20272026 (Q4)1.15-0.35――
Nov 04, 20262026 (Q3)0.941.450.4263.49% (+1.05)
Aug 06, 20262026 (Q2)0.690.900.6833.64% (+0.23)
May 05, 20262026 (Q1)0.480.820.4773.33% (+0.35)
Feb 11, 20262025 (Q4)0.340.350.317.02% (+0.05)
Nov 05, 20252025 (Q3)0.430.400.376.78% (+0.03)
Aug 07, 20252025 (Q2)0.650.680.5327.38% (+0.15)
May 06, 20252025 (Q1)0.370.470.52-8.54% (-0.04)
Feb 12, 20252024 (Q4)0.310.300.49-39.74% (-0.20)
Nov 06, 20242024 (Q3)0.390.370.62-40.40% (-0.25)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed