The numbers were the best Russel Metals had ever posted. The shares fell 14% the next day.
The metals distributor reported revenues of $1.8 billion for the three months ended September 30, 2026, a quarterly record. Adjusted earnings before interest, taxes, depreciation and amortization — a profitability measure that strips out one-time items — reached $230 million, also a record, against $73 million in the same quarter a year earlier. Adjusted earnings per share were $2.67 for the quarter, compared to $0.60 a year ago.
Shares closed 13.62% lower at $76.87 after the results were released, on dollar volume of about $36.9 million.
The filing does not explain what, if anything, in the results the market found unwelcome. What the figures do show is that strong earnings did not translate into positive cash. Working capital — the inventory Russel was sitting on and the customer invoices not yet collected — absorbed about $204 million during the quarter, leaving cash from operating activities negative for the period.
The company ended September with net debt of $214 million and total available liquidity of $418 million. It also completed the sale of Color Steels, a wholly owned subsidiary, on the last day of the quarter, receiving $42 million in cash proceeds.
Russel said it expects fourth-quarter daily shipments to remain at comparable levels to the first three quarters, though the period will have fewer working days due to holiday schedules in Canada and the US. The company did not provide earnings guidance. What turned a record quarter into a 14% drop in the shares, the results do not say.