In This Article:
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Cash Flow from Operations: $344 million, including $103 million from working capital.
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Capital Expenditures (CapEx): $90 million internally, with over $300 million in acquisitions.
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Return on Invested Capital: 15% in 2024, averaging 24% over the past three years.
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Revenue: $1 billion in Q4, down due to seasonality compared to Q3.
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EBITDA: $61 million in Q4, with a flat EBITDA margin of 6%.
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Earnings Per Share (EPS): $0.47 per share in Q4.
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Net Cash Position: $32 million at the end of 2024.
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Share Buybacks and Dividends: $131 million in share buybacks and $98 million in dividends, totaling $229 million returned to shareholders in 2024.
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Inventory Turns: Overall company average of 3.6 in Q4.
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Book Value Per Share: Over $29 per share at the end of 2024.
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Service Center Revenue Contribution: 67% of total revenues in 2024.
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US Platform Revenue Contribution: 39% of total revenues in 2024.
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Specialty Metals Revenue Contribution: 9% of total revenues in 2024.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Russel Metals Inc (RUSMF) generated strong cash flow from operations, totaling $344 million in 2024, despite steel price volatility and economic uncertainty.
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The company completed significant capital investments, including $90 million in CapEx and over $300 million in acquisitions, marking the largest investment year in its history.
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Return on invested capital was solid at 15% for 2024, with a three-year average of 24%, reflecting a strong pay-for-performance culture.
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Russel Metals Inc (RUSMF) returned a record $229 million to shareholders through share buybacks and dividends in 2024.
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The company maintained a strong balance sheet, ending the year with a net cash position of $32 million and $580 million in liquidity, with no long-term debt.
Negative Points
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Revenues were down 5% in Q4 compared to Q3 due to seasonal dynamics, impacting overall financial performance.
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EBITDA decreased to $61 million in Q4, with a flat EBITDA margin of 6%, indicating pressure on profitability.
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The company faced increased D&A and interest expenses due to recent acquisitions, impacting net earnings.
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Market conditions led to cautious buying activity, affecting revenues in the steel distributors segment.
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The integration of recent acquisitions, such as Samuel, incurred non-recurring costs and is expected to continue impacting results until late 2025.
Q & A Highlights
Q: How do you expect tariffs to impact pricing in Canada, given that Canada is a net exporter of steel to the US? Are there any early indications of impacts on volumes or project referrals due to recent announcements? A: The tariff situation is evolving, and it's too early to see definitive impacts on projects or volumes. Historically, tariffs have led to increased steel prices, as seen in 2018. The current situation is fluid, and while there might be some noise in the market, it's premature to predict specific project impacts. However, the expectation is that tariffs could lead to price increases in the near term, similar to past experiences.