Tue, Jul 1, 6:35 PM (12 days ago)
### Summary of Radius Recycling, Inc. (RDUS) Q3 2025 Financial Performance **Overview:** Radius Recycling, Inc. (RDUS) reported its third-quarter 2025 financial results, highlighting improvements in financial performance compared to the previous year. The company is in the process of being acquired by Toyota Tsusho America, Inc. (TAI), with the merger expected to close in the second half of 2025. **Financial Highlights:** - **Revenue:** Total revenues increased by 8% to $727 million for the quarter, driven by stronger market conditions for nonferrous products and higher sales volumes of finished steel products. - **Net Loss:** Net loss narrowed significantly to $16 million, compared to $199 million in the prior year quarter, which included a substantial goodwill impairment charge. - **Adjusted EBITDA:** Adjusted EBITDA improved to $22 million, up from $9 million in the prior year quarter. - **Earnings Per Share:** Diluted loss per share from continuing operations was $(0.59), compared to $(6.97) in the prior year quarter. - **Cash Flow:** Net cash provided by operating activities was $21 million for the first nine months of fiscal 2025, compared to a net cash outflow of $57 million in the prior year period. **Operational Metrics:** - **Ferrous Revenues:** Decreased by 4% to $321 million, reflecting a 3% decrease in average net selling prices. - **Nonferrous Revenues:** Increased by 25% to $229 million, with a 6% increase in average net selling prices. - **Steel Revenues:** Increased by 16% to $126 million, with a 20% increase in sales volumes. - **Retail and Other Revenues:** Increased by 8% to $51 million. **Liquidity and Capital Resources:** - **Debt:** Total debt increased to $454 million as of May 31, 2025, primarily due to increased borrowings to fund working capital needs and capital expenditures. - **Cash Balances:** Cash balances were $16 million as of May 31, 2025, compared to $6 million as of August 31, 2024. **Future Outlook:** - The merger with TAI is expected to close in the second half of 2025, subject to certain customary closing conditions. - The company continues to invest in capital expenditures, including environmental and safety-related assets, to support its operations and growth initiatives. **Conclusion:** Radius Recycling, Inc. has shown significant improvement in its financial performance for the third quarter of 2025, driven by stronger market conditions and operational efficiencies. The upcoming merger with TAI is expected to further enhance the company's strategic position and financial stability.