Radius Recycling, Inc. (NASDAQ:RDUS) shares are trading lower on Wednesday. On Tuesday, the company reported first-quarter revenue of $656.54 million, missing the consensus of $665.6 million.
Ferrous sales volumes (LT, in thousands) decreased to 1,106 from 1,152 a year ago; adjusted EBITDA per ferrous ton sold ($/LT) was nil compared to $1 in the prior year quarter.
Average net ferrous sales prices ($/LT) fell to $338 from $354 last year. Finished steel average net sales price ($/ST) came in at $775 (vs. 831 a year ago), and sales volumes (ST, in thousands) of 125 (vs. 129 in the comparable period).
Nonferrous prices rose 12%, offsetting a 5% decline in ferrous prices due to soft global markets and high Chinese steel exports.
Finished steel contribution fell due to weaker domestic conditions and a drop in prices. Lower mill utilization in the first quarter, from scheduled maintenance, also impacted results.
Gross margin declined to $33 million from $39 million a year ago, and adjusted EBITDA was nil, compared to $1 million a year ago.
Adjusted loss per share was $1.33 compared to a loss of $0.64 prior year, also missing the consensus loss of $0.10.
The company witnessed strong stronger recycled metals contribution driven by productivity gains and higher nonferrous demand.
The company’s operating cash flow was nearly break-even in the first quarter of fiscal 2025. Total debt stood at $445 million at the end of the quarter, and debt, net of cash, was $430 million.
Dividend: The Board of Directors declared a cash dividend of $0.1875 per common share, payable on February 18, 2025, to shareholders of record as of February 3, 2025.
Tamara Lundgren, Chairman and Chief Executive Officer, said, “We expect inventory rebuilding and seasonality will drive improved demand in the second half of our fiscal year.”
“In the longer-term, the demand for recycled metals remains positive, underpinned by increased investments in infrastructure, including for energy projects, industrial reshoring, continued growth in U.S. electric arc furnace steelmaking capacity, and the transition to low-carbon technologies.”
Price Action: RDUS shares are trading lower by 25.8% at $10.96 at the last check Wednesday.
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