Radius Recycling Reports Third Quarter Fiscal 2025 Financial Results
Significant Improvements Sequentially and Year-Over-Year
Higher Ferrous, Nonferrous and Finished Steel Sales Volumes
Radius Board Declares Quarterly Dividend
PORTLAND, Ore., July 01, 2025 (GLOBE NEWSWIRE) -- Radius Recycling, Inc. (NASDAQ:RDUS) ("Radius" or the "Company") today reported results for the third quarter of fiscal 2025 ended May 31, 2025.
The Company reported a loss per share from continuing operations of $(0.59) and a net loss of $(16) million in the third quarter of fiscal 2025, a significant improvement compared to ($1.15) and ($33) million, respectively, in the second quarter of fiscal 2025.
Adjusted EBITDA was $22 million in the third quarter, a significant improvement from approximately break-even in the prior quarter. Adjusted loss per share from continuing operations was $(0.39) in the third quarter, compared to ($0.99) in the second quarter.
The biggest drivers of the sequential performance improvement were significantly higher sales volumes for all the Company's products, stronger nonferrous and finished steel market conditions and prices, and higher auto parts retail sales.
Nonferrous demand was strong in the third quarter, especially in the domestic market, driving average net selling prices up 7% sequentially. Nonferrous sales volumes increased 23%, supported by seasonally higher supply flows and higher yields from the Company's metal recovery technology investments.
Ferrous sales volumes were 4% higher sequentially, primarily driven by seasonality on supply flows. In a particularly volatile market environment, ferrous average net selling prices were 3% higher sequentially. Domestically, ferrous demand and prices rose in March on mill restocking activity, before decreasing significantly in the remainder of the quarter on macroeconomic uncertainty. Export ferrous market conditions were weaker, as demand was impacted by increased levels of Chinese semi-finished and finished steel exports, compounded by the uncertain macroeconomic environment. The impact of average inventory accounting was approximately neutral in the third quarter of fiscal 2025, similar to the previous quarter.
Finished steel sales volumes increased 15% sequentially, driven primarily by seasonally stronger construction activity amid continued healthy demand in the Company's Western markets. Rolling mill utilization reached 107%, significantly higher than 88% in the prior quarter, which contributed to improved operating leverage and a sequential expansion in margins. Finished steel average net selling prices increased 4% sequentially.
In the third quarter of fiscal 2025, the Company generated positive operating cash flow of $3 million. Total debt was $454 million at the end of the quarter, and debt, net of cash, was $438 million. Capital expenditures were $10 million in the quarter.
The effective tax rate for the third quarter of fiscal 2025 was a benefit of 2% on a pre-tax loss, primarily a reflection of the Company's valuation allowance position.
During the third quarter of fiscal 2025, the Company returned capital to shareholders through its 125th consecutive quarterly dividend.
Declaration of Quarterly DividendThe Board of Directors declared a cash dividend of $0.1875 per common share, payable August 4, 2025 to shareholders of record on July 21, 2025. The Company has paid a dividend every quarter since going public in November 1993.
Pending MergerAs previously announced, on March 13, 2025, the Company, Toyota Tsusho America, Inc. ("TAI"), and TAI Merger Corporation, a wholly-owned subsidiary of TAI ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company (the "Merger"), with the Company continuing as the surviving corporation in the Merger as a wholly-owned subsidiary of TAI.
As previously announced, on June 5, 2025, the Company held a special meeting of shareholders, at which the Company's shareholders approved the proposal to approve the Merger Agreement. The closing of the Merger remains subject to the satisfaction or waiver of customary closing conditions set forth in the Merger Agreement, including the receipt of certain regulatory approvals. Assuming timely satisfaction of necessary closing conditions, the parties to the Merger Agreement expect the Merger to close during the second half of calendar year 2025.
Subsequent EventAs previously reported, on June 20, 2025, the Company and its lenders executed an amendment to the Company's existing credit agreement, which among other things, reduces the aggregate amount of revolving commitments available from $800 million to $625 million, and provides for certain other modifications.
Earnings Conference CallAs a result of the pending Merger with TAI, the Company will not be holding a third quarter earnings conference call or webcast.
About Radius Recycling, Inc.Radius is a leading North American recycler of ferrous and nonferrous metals with 53 operating facilities across 25 states, Puerto Rico, and Western Canada. The Company sells its products to U.S. and export customers from its locations on both the East and West Coasts of the U.S., the Southeast, Hawaii, and Puerto Rico. Radius' integrated operating platform also includes 50 stores operating across the U.S. and Western Canada under its Pick-N-Pull brand which sell serviceable used auto parts from salvaged vehicles and receive over 4 million annual retail visits. The Company's electric arc furnace and rolling mill located in McMinnville, Oregon is vertically integrated with its Pacific Northwest metals recycling operations and produces rebar, wire rod, and other specialty products that are sold to customers primarily in the Western U.S. and Western Canada. Radius began operations in 1906 in Portland, Oregon, where it remains headquartered.
Summary Results
($ in millions, except per share and per ferrous ton amounts)
Three Months Ended
Nine Months Ended
3Q25
2Q25
3Q24
2025
2024
Revenues
$
727
$
643
$
674
$
2,026
$
1,968
Gross margin (total revenues less cost of goods sold)
$
50
$
27
$
46
$
110
$
125
Selling, general and administrative expense
$
56
$
55
$
62
$
168
$
187
Net income (loss)
$
(16
)
$
(33
)
$
(199
)
$
(86
)
$
(250
)
Net income (loss) per ferrous ton(5)
$
(14
)
$
(30
)
$
(178
)
$
(26
)
$
(77
)
Diluted income (loss) per share from continuing operations attributable to Radius shareholders
Reported
$
(0.59
)
$
(1.15
)
$
(6.97
)
$
(3.04
)
$
(8.82
)
Adjusted(1)
$
(0.39
)
$
(0.99
)
$
(0.59
)
$
(2.71
)
$
(2.28
)
Adjusted EBITDA(1)
$
22
$
—
$
9
$
22
$
12
Adjusted EBITDA per ferrous ton(1) (5)
$
19
$
—
$
8
$
6
$
4
Cash flows from (used in) operating activities
$
3
$
20
$
(1
)
$
21
$
(57
)
Ferrous sales volumes (LT, in thousands)(2)
1,137
1,094
1,112
3,337
3,244
Avg. net ferrous sales prices ($/LT)(3)
$
341
$
330
$
350
$
336
$
361
Nonferrous sales volumes (pounds, in millions)(2) (4)
215
174
183
567
541
Avg. nonferrous sales prices ($/pound)(3) (4)
$
1.10
$
1.03
$
1.04
$
1.05
$
0.97
Finished steel average net sales price ($/ST)(3)
$
787
$
756
$
817
$
773
$
827
Finished steel sales volumes (ST, in thousands)
151
131
126
407
369
Rolling mill utilization (%)
107
%
88
%
88
%
92
%
88
%
LT = Long Ton, which is equivalent to 2,240 poundsST = 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
Nine Months Ended
May 31,2025
February 28,2025
May 31,2024
May 31,2025
May 31,2024
Revenues
$
726,991
$
642,508
$
673,920
$
2,026,036
$
1,967,876
Cost of goods sold
677,444
615,011
628,390
1,915,587
1,842,806
Selling, general and administrative expense
56,350
54,943
62,100
167,977
187,362
(Income) from joint ventures
(231
)
(188
)
(300
)
(867
)
(1,003
)
Goodwill impairment charges
—
—
215,941
—
215,941
Asset impairment charges
256
—
—
440
1,476
Restructuring charges and other exit-related activities
375
1,422
3,275
3,694
6,485
Operating income (loss)
(7,203
)
(28,680
)
(235,486
)
(60,795
)
(285,191
)
Interest expense
(9,131
)
(8,771
)
(7,368
)
(26,764
)
(17,981
)
Other income (expense), net
(400
)
209
(187
)
445
(620
)
Income (loss) from continuing operations before income taxes
(16,734
)
(37,242
)
(243,041
)
(87,114
)
(303,792
)
Income tax (expense) benefit
328
4,277
44,551
814
53,526
Income (loss) from continuing operations
(16,406
)
(32,965
)
(198,490
)
(86,300
)
(250,266
)
Income (loss) from discontinued operations, net of tax
—
—
(21
)
—
(54
)
Net income (loss)
(16,406
)
(32,965
)
(198,511
)
(86,300
)
(250,320
)
Net (income) loss attributable to noncontrolling interests
(558
)
(12
)
121
(814
)
(13
)
Net income (loss) attributable to Radius shareholders
$
(16,964
)
$
(32,977
)
$
(198,390
)
$
