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Nov 30, 2024

Schnitzer Q1 2025 Earnings Report

Reported a net loss of $37 million and loss per share of $(1.30) for the first quarter of fiscal year 2025.

Key Takeaways

Radius Recycling reported a net loss of $37 million, with a loss per share of $(1.30) for the first quarter of fiscal 2025. The results were impacted by a detriment on income tax. Contribution from recycled metals improved due to productivity efficiencies and stronger nonferrous demand, offsetting weaker ferrous markets. Finished steel contribution decreased due to weaker domestic market conditions.

Net loss was $(37) million, and loss per share was $(1.30).

Adjusted EBITDA was break-even.

Recycled metals contribution improved due to productivity efficiencies and stronger nonferrous demand.

Finished steel contribution was lower due to weaker domestic steel market conditions and a scheduled maintenance outage.

Total Revenue
$657M
Previous year: $673M
-2.4%
EPS
-$1.33
Previous year: -$0.64
+107.8%
Mill Utilization
81%
Previous year: 95%
-14.7%
SG&A Costs
$10
0
Gross Profit
$33.4M
Previous year: $39.5M
-15.4%
Cash and Equivalents
$15.2M
Previous year: $4.41M
+245.3%
Free Cash Flow
-$14M
Total Assets
$1.51B
Previous year: $1.69B
-10.7%

Schnitzer

Schnitzer

Forward Guidance

The company expects inventory rebuilding and seasonality to drive improved demand in the second half of the fiscal year. They anticipate positive long-term demand for recycled metals, supported by infrastructure investments, industrial reshoring, growth in U.S. electric arc furnace steelmaking capacity, and the transition to low-carbon technologies

Positive Outlook

  • Inventory rebuilding will drive improved demand
  • Seasonality will drive improved demand
  • Increased investments in infrastructure will drive demand
  • Industrial reshoring will drive demand
  • Continued growth in U.S. electric arc furnace steelmaking capacity will drive demand

Challenges Ahead

  • Market conditions during the quarter were more challenging than a year ago
  • Tight scrap environment
  • Softer global ferrous markets
  • Weaker domestic steel conditions
  • Scheduled maintenance outage