Radius Recycling Announced Preliminary Q2 FY24 Results

SEATTLE (Scrap Monster): Radius Recycling, Inc. announced preliminary results for its fiscal 2024 second quarter ended February 29, 2024.

The company expects to post net loss of approximately $(35) million during the quarter. The loss per share from continuing operations are likely to range between $(1.19) and $(1.24). The adjusted EBITDA for the quarter is predicted at around $2 million, while the adjusted loss from continuing operations is predicted at $(1.05) - $(1.10) per share.

The sales volumes and metal spreads of both recycled metals and finished steel are likely to be impacted by tight supply flows for recycled metals and unusually wet winter weather conditions. The ferrous sales volumes are expected to see a sequential decline by 15%. The nonferrous sales volume are expected to decline 3% sequentially, but higher by 7% over the prior year quarter.

The operating cash flow for the quarter is expected to range between $50 and $60 million, while capital expenditures for the quarter are projected at around $15 million.

The finished steel sales volumes may surge higher by 5% over the year. The volumes will record a dip by 11% over the sequential quarter. Also, steel mill utilization is expected to see significant improvement from 75% a year before to 81% during the Q2 FY24. The average net selling prices for ferrous recycled metals and nonferrous recycled metals are expected to be up by 8% and 3% sequentially respectively.