Radius Recycling Reports Q2 2025 Financial Results with $33 Million Net Loss

Radius Recycling, Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a net loss of $33 million for the quarter, slightly improved from a loss of $34 million in the same period last year. For the first six months, the company recorded a net loss of $70 million, compared to a loss of $52 million in the prior year. Revenue for the second quarter increased by 3% to $642.5 million, while total revenue for the first half remained flat at $1.3 billion. The diluted loss per share from continuing operations was $(1.15) for the quarter, compared to $(1.19) in the prior year.

The company experienced a decline in average selling prices for its ferrous products, which were down 14% year-over-year, attributed to increased Chinese steel exports and tight supply conditions in the U.S. market. Conversely, nonferrous product prices rose by 10% due to stronger global demand. The company’s selling, general, and administrative expenses decreased by 12% in the second quarter, reflecting cost reduction initiatives implemented in the previous fiscal year.

Radius Recycling is also navigating significant strategic developments, including a planned merger with Toyota Tsusho America, Inc. (TAI), announced on March 13, 2025. Under the terms of the merger agreement, Radius shareholders will receive $30.00 in cash per share. The merger is expected to close in the second half of 2025, subject to customary conditions, including shareholder approval. The company has indicated that it will continue to operate as a wholly owned subsidiary of TAI post-merger.

Operationally, Radius Recycling reported a 12% increase in ferrous sales volumes in the second quarter, driven by timing of shipments, while finished steel sales volumes rose by 15%. The company’s cash position as of February 28, 2025, was $5.4 million, down from $5.6 million at the end of the previous fiscal year. Total debt increased to $430 million, primarily due to increased borrowings to fund working capital and capital expenditures. The company anticipates continued investments in capital projects, including environmental compliance initiatives, with planned expenditures of approximately $60 million for fiscal 2025.

Looking ahead, Radius Recycling remains focused on managing its operational efficiency and navigating market conditions that impact pricing and demand for recycled metals. The company is also preparing for the implications of the merger with TAI, which could reshape its operational landscape and financial strategy moving forward.