Radius Recycling : Presentation (documents/2025 q1 earnings conf call presentation)
RDUS
NASDAQ: RDUS
Financial Results
First Quarter Fiscal Year 2025 January 8, 2025
Where change begins
Agenda
First Quarter Fiscal 2025 Highlights - Slide 4
Market Dynamics- Slide 5
Our Strategic Initiatives Are Delivering Results - Slide 6
IV. Performance Trends
Recycled Metals Market Dynamics - Slides 7 & 8
Finished Steel Market Dynamics - Slide 9
Balance Sheet & Capital Allocation - Slide 10
Recycling Today for a Sustainable Tomorrow - Slide 11
3
First Quarter Fiscal 2025 Highlights
Financial and Operating Performance
4
Market Dynamics
Ferrous Market Selling Price Trends
($/ton)1Q25
Nonferrous Market Selling Price Trends
($/LB) 1Q25
Rebar & Wire Rod Market Price Trends
($/ST)1Q25
U.S. Manufacturing PMI ® in
contractionary territory for 25 of last
26 months
Below 50 indicates
a contraction in
manufacturing activity
Average vehicle life highest on record,
leading to fewer cars available for
recycling
Chinese Global Finished Steel Exports
(M tons)
5
Sources: Platts, Argus, Institute for Supply Management ®, Bureau of Transportation Statistics, Bloomberg, World Steel Association
(1)
West Coast and East Coast prices are based on HMS CFR prices and Domestic prices are based on Midwest delivered shred.
(2)
Zorba prices are based on Aluminum scrap Zorba min 99/3 cif China USD/lb.
*Domestic rebar and wire rod prices based on US Midwest prices, respectively; import rebar prices based on Houston import prices.
Our Strategic Initiatives Are Delivering Results
Structural Tailwinds
Increased metal intensity of lower carbon-based technologies
Shortage of critical materials
EAF steelmaking growth
Domestic infrastructure investments
Decarbonization
Strategic
Expected Financial
Progress
Initiatives
Contribution
→ Operating run-rate benefits
Operating Run-Rate Benefits
Deploy Advanced
expected to near
of ~$10 EBITDA per
Returns
Metal Recovery
ferrous ton or over $40
$10/ton in 2H25
million(1,2) per year once
Technology
fully deployed
Recycling Services %age of
Recycled Metals Volumes
Expand
→ Asset-light nature of
>10%
Recycling
recycling services provides
Nearly doubled
Services &
growth opportunities at
since FY22
Product Offerings
attractive returns
→ Expect net proceeds from
Adjusted SG&A ($M)
Implement Cost
asset monetization activities
Reduction &
of $35 million in 2H25
(consolidate or reposition
Productivity
business activity and unlock
Initiatives
associated real estate
value)
(1) Based on FY24 ferrous volumes
6 (2) The timeline and achievement of expected benefits are subject to risks and uncertainties, including permit issuance, construction and equipment lead times, and system design and performance
1Q25 Ferrous Market Dynamics
Radius Volume Trends
Radius Average Selling
(000 LTs)
Price Trends
($/LT, net of freight)
Ferrous sales volumes down 4% YoY, primarily driven by the timing of shipments
Radius Total Ferrous Volumes by Destination
1Q241Q25
(1)
(1)
Chinese Global Finished Steel Exports by Destination
(M tons)
In the first 11 months of
CY2024, China's steel exports increased over 20% YoY, with widespread global impact
(2)
(2)
1Q25 Nonferrous Market Dynamics
Radius Volume Trends
Radius Average
(M Lbs)
Selling Price Trends
($/LB, net of freight)
1Q25 Nonferrous Product Mix by Volume (1)
Nonferrous
Nonferrous
from
shredder
other (55%)
production
(45%)
Stronger nonferrous demand led to 12% higher average net selling prices YoY
Deployment of nonferrous technologies
Nonferrous Market Selling Prices - Impact of Volatility
4Q24
($/LB)
1Q25
1Q25 shipments
included sales
contracted at low
point, before
prices rebounded
(1) Excludes brokerage activities
8 (2) The timeline and achievement of expected benefits are subject to risks and uncertainties, including permit issuance, construction and equipment lead times, and system design and performance Source: Platts
1Q25 Finished Steel Market Dynamics
Radius Finished
Radius Finished Steel
Steel Sales Volume
Average Selling Price
Trends
Trends
(000s ST)
($/ST, net of freight)
Annual U.S. Rebar Demand Growth Expectations
(000s ST)
> 1,500
~10,900
~ 9,400
2022
IIJA, IRA, CHIPS
2026e
and Other
Softer domestic market does not yet reflect anticipated demand from U.S. infrastructure bill
Mill utilization rate of 81% in 1Q25 included impact from scheduled maintenance outage
Sustainable solutions to meet needs of an increasingly metal-intensive economy
Note: "IIJA" is Infrastructure Investment & Jobs Act, "IRA" is Inflation Reduction Act and "CHIPS" is Creating
9 Helpful Incentives to Produce Semiconductors Act Source: Company estimates
Balance Sheet & Capital Allocation
Capital Allocation Priorities
Dividend
Reinvesting in
the Business
Paid dividend
Focus on growth
every quarter
investments
since going
with favorable
public in 1993
return profiles
Balance Sheet
Provide ability to re-invest
in business
10
Disclaimer
Radius Recycling Inc. published this content on January 08, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 08, 2025 at 14:48:07.588.