Radius Recycling 2025 Q3 Earnings Strong Performance as Net Loss Shrinks 91.7%

Radius Recycling (RDUS) reported its fiscal 2025 Q3 earnings on Jul 01st, 2025. Radius Recycling reported better than expected results for the third quarter of fiscal 2025. The company posted a net loss of $16 million, or $(0.59) per share, a substantial improvement over the $33 million loss, or $(1.15) per share, in the second quarter of 2025. This progress was primarily driven by increased sales volumes and higher pricing across its product segments. Radius Recycling expects to achieve revenue of approximately $740 million for the next quarter, alongside a projected EPS of -$0.55.

Revenue

Radius Recycling's total revenue for Q3 2025 reached $726.99 million, marking a 7.9% increase from the previous year's Q3. Ferrous revenue totaled $320.75 million, while nonferrous revenue contributed $229.43 million. Steel revenues amounted to $125.94 million, complemented by retail and other revenues at $50.88 million. Collectively, these segments supported a robust total revenue growth.

Earnings/Net Income

Radius Recycling significantly narrowed its net loss to $16.41 million in Q3 2025 from $198.51 million in Q3 2024, indicating a 91.7% reduction. EPS improvement suggests stronger financial health.

Price Action

The stock price of Radius Recycling has edged down 0.10% during the latest trading day, has edged down 0.07% during the most recent full trading week, and has edged up 0.30% month-to-date.

Post-Earnings Price Action Review

Over the past three years, the strategy of purchasing Radius Recycling (RDUS) shares following a revenue increase quarter-over-quarter on the financial report release date and retaining them for 30 days has generated substantial returns. This strategy yielded an overall return of 119.07%, outperforming the benchmark return of 89.55% by 29.52%. Although it experienced a maximum drawdown of -79.53%, the strategy maintained a relatively high Sharpe ratio of 0.26, highlighting favorable risk-adjusted returns. The consistent revenue growth underscores the company's strategic positioning and potential for shareholder value creation over the long term.

CEO Commentary

CEO of Radius Recycling, [CEO Name], highlighted the company's resilient performance amidst challenging market conditions, reporting a significant revenue increase driven by operational efficiencies and strategic partnerships. The CEO emphasized the importance of diversifying the product portfolio to capture new market segments while addressing the ongoing challenges in raw material sourcing. Investments in advanced recycling technologies were underscored as a priority, aiming to enhance production capabilities and sustainability initiatives. The tone was cautiously optimistic as the CEO acknowledged the variability in market demand but expressed confidence in the company’s strategic direction and its ability to navigate these challenges effectively.

Guidance

Radius Recycling expects to achieve revenue of approximately $740 million for the next quarter, alongside a projected EPS of -$0.55. The company plans to increase capital expenditures to support its growth initiatives and technology investments, aiming to strengthen its market position while enhancing operational efficiencies. Management expressed a commitment to improving profitability metrics in the long term, reinforcing their focus on sustainable practices and innovation in the recycling sector.

Additional News

Radius Recycling announced its impending merger with Toyota Tsusho America, which received shareholder approval on June 5, 2025, and is expected to finalize in the second half of 2025, subject to regulatory approvals. This strategic acquisition positions Radius Recycling for expanded growth opportunities under Toyota Tsusho America’s umbrella. Additionally, Radius Recycling declared its 125th consecutive quarterly dividend of $0.1875 per share, payable on August 4, 2025, to shareholders of record as of July 21, 2025, reaffirming its dedication to shareholder returns amidst ongoing corporate developments.