Schnitzer Steel Industries Announces July 2025 Merger with Radius Recycling and Toyota Tsusho America.

Schnitzer Steel Industries (RDUS) has announced that Radius Recycling, Inc. will become a wholly-owned subsidiary of Toyota Tsusho America after receiving regulatory approvals. The merger is expected to close on July 10, 2025. Analysts have a Hold rating with a $22.00 price target. Spark's AI Analyst predicts a Neutral rating due to significant financial challenges and negative profitability metrics.

Radius Recycling, Inc. (RDUS), a leading player in the recycling and steel manufacturing industry, has announced that it will become a wholly-owned subsidiary of Toyota Tsusho America, Inc. (TAI) following the receipt of regulatory approvals. The merger is expected to close on July 10, 2025 [1].

The merger follows significant improvements in Radius Recycling's financial performance during the third quarter of fiscal 2025. The company reported a loss per share of $(0.59) and a net loss of $(16) million, an improvement from the previous quarter's $(1.15) and $(33) million, respectively. Adjusted EBITDA reached $22 million, up from break-even in the previous quarter [2].

Operational highlights include a 23% increase in nonferrous sales volumes with 7% higher prices, a 4% increase in ferrous sales volumes, and a 15% increase in finished steel sales volumes with 4% higher prices. The company's rolling mill utilization improved to 107% from 88% in the prior quarter. Radius Recycling's pending merger with Toyota Tsusho America received shareholder approval on June 5, 2025 [2].

Analysts have a Hold rating with a $22.00 price target, while Spark's AI Analyst predicts a Neutral rating due to significant financial challenges and negative profitability metrics. Despite financial challenges, Radius Recycling maintained its $0.1875 per share quarterly dividend, representing its 125th consecutive payout since going public in 1993 [2].

The merger with Toyota Tsusho America is expected to impact Radius Recycling's operational structure and market presence. The company's focus on its vertically integrated model, which includes acquiring, processing, and recycling end-of-life vehicles and other scrap materials, as well as manufacturing finished steel products, will continue under the new ownership.

References:

[1] Radius Recycling, Inc. [ RDUS ] - 10-Q - Jul. 01, 2025
[2] Radius Recycling's Q3 fiscal 2025 results demonstrate sequential improvement across key metrics despite continuing to operate at a loss. The company narrowed its quarterly loss to $(0.59) per share from $(1.15) in Q2, while Adjusted EBITDA rebounded to $22 million from approximately break-even last quarter.