US-based Radius Recycling, Inc. (NASDAQ: RDUS) announced its financial results for the second quarter of fiscal 2025, ending February 28, 2025. The company reported a net loss of USD 33 million in this period. In the same period of the previous year, this figure was recorded as USD 34 million. The company's loss per share was USD 1.15, while last year this amount was USD 1.19. Adjusted loss per share was realized as USD 0.99. Adjusted EBITDA was flat at USD 3 million in the same quarter of 2024.
The decrease in Radius Recycling's operating performance was mainly due to lower global ferrous and finished steel prices and higher steel exports from China. However, this was partially offset by strong demand for non-ferrous products, higher sales volumes and gains from productivity initiatives.
While average net selling prices of ferrous products decreased by 14% y/y, sales volume increased by 12% in the same period. Although prices of non-ferrous products increased by 10% y/y, sales volume decreased by 1%. On the finished steel side, prices decreased by 9% y/y, while sales volume increased by 15%. The company's mill utilization rate rose to 88%, up from 81% in the same quarter last year.
SG&A (Selling, General and Administrative) expenses decreased by 12% compared to the same period of the previous year. The company generated USD 20 million in positive operating cash flow during the quarter, of which USD 13 million was free cash flow. Capital expenditures amounted to USD 11 million.
The company continued its steady return of capital by distributing dividends for the 124th consecutive time in the second quarter of 2025. The Board of Directors declared a cash dividend of USD 0.1875 per share to shareholders as of April 21, to be paid on May 5.
On the other hand, Radius Recycling signed a merger agreement with Toyota Tsusho America, Inc. (TAI) on March 13, 2025. According to the agreement, Radius Recycling will become a wholly owned subsidiary of TAI. The company expects the merger to be completed in the second half of 2025. Due to this process, the company announced that it will not hold an earnings conference call or webcast for its second quarter results.
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