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Russel Metals posted record Q3 2026 results: Revenue topped CAD 1.8 billion, up 56% year over year, and adjusted EPS reached a quarterly record CAD 2.67.
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Broad-based demand, higher price realizations and improved margins lifted performance; service-center gross margin per ton rose to CAD 700, up CAD 171 from Q2. Kloeckner branches contributed CAD 33 million of EBITDA and had generated a reported 42% annualized return on capital so far.
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Management said pricing and margins remained strong in early October and expects Q4 2026 to outperform the year-earlier quarter, while cautioning that seasonal holidays will reduce shipping days and later-quarter demand is uncertain.
Russel Metals (TSE:RUS) reported record third-quarter 2026 revenue and earnings as strong steel demand, higher margins and contributions from acquired Kloeckner branches lifted results across its operations.
Revenue exceeded CAD 1.8 billion, up 10% from the second quarter and 56% from a year earlier, Executive Vice President and Chief Financial Officer Martin Juravsky said on the company’s earnings call. Adjusted EBITDA rose to CAD 230 million from CAD 154 million in the prior quarter, while unadjusted EBITDA was CAD 200 million.
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Earnings per share reached CAD 2.29, and adjusted earnings per share were CAD 2.67. Both were quarterly records, Juravsky said. Adjusted results excluded a CAD 37 million mark-to-market expense on stock-based compensation and a CAD 7 million pretax gain from the sale of Color Steels.
Margins and Canadian operations improve
Juravsky attributed the quarter’s performance to broad-based market strength, progress integrating Kloeckner and improved results at the company’s Canadian service centers. Overall gross margin increased 330 basis points from the second quarter.
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Metal service center shipments rose 29% from a year earlier, including the effect of the Kloeckner acquisition, and 7% on a same-store basis. Shipments fell approximately 3% from the second quarter because of seasonal factors, but price realizations per ton rose 13%.
Gross margin per ton in the service center business reached CAD 700, up CAD 171 from the second quarter. Juravsky said the margin improvement contributed approximately CAD 85 million, more than offsetting a CAD 7 million impact from lower volumes.
