Radius Recycling Reports 8% Revenue Growth and Reduced Net Loss in Q3 Fiscal 2025

Radius Recycling, Inc. reported a notable improvement in its financial performance for the third quarter of fiscal 2025, with revenues reaching $726.99 million, an increase of 8% compared to $673.92 million in the same period last year. The company’s net loss for the quarter was $16.41 million, a significant reduction from a loss of $198.51 million in the prior year, which included a substantial goodwill impairment charge of $216 million. The diluted loss per share from continuing operations was $(0.59), compared to $(6.97) in the previous year, reflecting the absence of the prior year’s impairment charge.

In the nine months ending May 31, 2025, Radius Recycling generated total revenues of $2.03 billion, up 3% from $1.97 billion in the same period of the previous year. The company’s operating income showed improvement, with an adjusted EBITDA of $22 million for the third quarter, compared to $9 million in the prior year. This positive trend was attributed to stronger market conditions for nonferrous products, increased sales volumes of finished steel, and the benefits of productivity improvement initiatives. Nonferrous sales volumes hit a record high, increasing by 17% year-over-year, while average selling prices rose by 6%.

Radius Recycling is also in the process of a strategic merger with Toyota Tsusho America, Inc. (TAI), which was announced on March 13, 2025. The merger agreement has been approved by both the company’s Board of Directors and its shareholders, with the transaction expected to close in the second half of calendar year 2025, pending customary closing conditions. Under the terms of the merger, each share of Radius common stock will be converted into the right to receive $30.00 in cash. This strategic move is anticipated to enhance the company’s operational capabilities and market position.

Operationally, Radius Recycling has maintained a steady workforce, with 50 retail self-service auto parts stores and 53 metals recycling facilities. The company reported a slight decrease in its inventory levels, which stood at $272.96 million as of May 31, 2025, down from $293.93 million a year earlier. The company’s cash and cash equivalents increased to $16.21 million from $5.55 million, reflecting improved liquidity. Additionally, the company’s total debt rose to $454.41 million, up from $414.77 million, primarily due to increased borrowings to support working capital needs and capital expenditures.

Looking ahead, Radius Recycling anticipates continued growth driven by favorable market conditions and the successful integration of its merger with TAI. The company is focused on enhancing its operational efficiency and expanding its market share in the recycling and steel production sectors. However, it remains cautious of potential challenges, including fluctuations in commodity prices and ongoing supply chain disruptions, which could impact its financial performance in the future.