Radius Recycling, Inc. has recently released its 10-Q report, providing insights into the company's financial performance and operations. Founded in 1906, the company is a major player in the recycling industry, specializing in ferrous and nonferrous metal recycling, as well as the manufacturing of finished steel products. It operates a network of 50 retail self-service auto parts stores, 53 metals recycling facilities, and an electric arc furnace steel mill. The company's operations include the acquisition, processing, and recycling of salvaged vehicles, rail cars, home appliances, industrial machinery, manufacturing scrap, and construction and demolition scrap.
In the third quarter of fiscal 2025, Radius Recycling, Inc. reported a diluted loss per share from continuing operations attributable to Radius shareholders of $(0.59), compared to $(6.97) in the prior year quarter. However, the adjusted diluted loss per share from continuing operations attributable to Radius shareholders improved to ($0.39) in the third quarter of fiscal 2025, compared to $(0.59) in the prior year quarter. The net loss in the third quarter of fiscal 2025 was $16 million, a significant improvement from $199 million in the prior year quarter. Additionally, the company's adjusted EBITDA in the third quarter of fiscal 2025 was $22 million, up from $9 million in the prior year quarter.
The company attributed the improved financial performance in the third quarter of fiscal 2025 to stronger market conditions for nonferrous products, higher sales volumes of finished steel products, and the benefits of productivity improvement initiatives. Sales volumes for nonferrous products hit a record high, marking a 17% increase year-over-year, while average net selling prices were 6% higher compared to the prior year period. Finished steel sales volumes also saw a 20% increase year-over-year, contributing to higher overall performance.
In terms of liquidity and capital structure, Radius Recycling, Inc. reported that for the first nine months of fiscal 2025, net cash provided by operating activities was $21 million, compared to net cash used in operating activities of $57 million in the prior year period. The company's debt as of May 31, 2025, was $454 million, an increase from $415 million as of August 31, 2024, primarily due to increased borrowings from credit facilities to fund working capital needs and capital expenditures. The debt, net of cash, was $438 million as of May 31, 2025, compared to $409 million as of August 31, 2024.
Furthermore, the company provided a discussion on its merger with Toyota Tsusho America, Inc. (TAI), a U.S. subsidiary of Toyota Tsusho Corporation, which is expected to close in the second half of calendar year 2025, subject to certain customary closing conditions. Additionally, it highlighted the impact of a fire at its metals recycling facility in Everett, Massachusetts, in December 2021, and the subsequent insurance recovery gains recognized in fiscal 2024.
The market has reacted to these announcements by moving the company's shares -0.1% to a price of $29.66. For more information, read the company's full 10-Q submission here.
