Canada’s Russel Metals Poised for US Revenue Growth

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Reporting fourth quarter and full-year 2025 results, Canada’s Russel Metals said the implementation of tariffs on steel and aluminum in early 2025 led to an increase in metal prices late in the first quarter of 2025. Steel prices moderated over the subsequent six months before stabilizing late in the year, according to the company, which is one of the largest metals distributors in North America.

Russel said the 2025 average price for hot-rolled coil was US$849 per ton, which was higher than the US$772 per ton average for 2024. Plate prices averaged US$1,035 per ton in 2025, which was down from the 2024 average of US$1,070 per ton.

The company reported revenues of C$4.6 billion in 2025 and C$1.1 billion in Q4 2025, and EBITDA of C$337 million in 2025 and C$69 million in Q4 2025. Russel closed its acquisition of seven Kloeckner service centers on December 31, 2025, as it started generating benefits from its 2024 acquisitions and internal investment initiatives.

The Q4 revenues of C$1.1 billion represented a 5% increase over the fourth quarter of 2024. Total revenues for 2025 represented a 9% increase over 2024. The increases were primarily related to the two acquisitions that were completed in the second half of 2024, according to the company.

“The metal service centers segment had solid shipments in the fourth quarter of 2025, even though it is typically a seasonally slower period,” Russel said in its earnings statement. The fourth quarter 2025 tons shipped were down 5% versus the third quarter of 2025, but up 1% versus the fourth quarter of 2024. For 2025, tons shipped achieved an annual record of almost 1.6 million tons, which was 15% higher than the 2024 tons shipped.

The Kloeckner acquisition for about US$95 million is seen as a complementary fit with Russel’s existing US locations, as they tie into a footprint in key regions of Florida/Georgia/Carolinas, Iowa/Wisconsin and Texas. “As a result of this transaction, we expect our average annual revenues to grow by approximately US$500 million and expand the relative contribution from our US-based businesses to over 50%,” Russel said. US operations represented 44% of consolidated 2025 revenues.

“Going into the first quarter of 2026, there has been an improvement in market tone and an increase in most steel prices, which should lead to an improvement in our (metal service center) margins in the first quarter of 2026 as compared to the fourth quarter of 2025,” Russel added. “In addition, we expect to see a seasonal recovery in shipments in the first quarter of 2026, subject to weather-related factors, that is similar in magnitude to the seasonal improvement that had been experienced in the past.”

Over the medium-term, Russel expects to benefit from further rebuilding of the US industrial manufacturing base, Canadian nation building projects, as well as infrastructure-related investments in areas such as data centers. The company’s energy field stores are expected to continue to ride solid energy activity in 2026, according to Russel.

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