The following is a summary of the Radius Recycling, Inc. (RDUS) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Radius Recycling reported a Q3 loss of $6.97 per share, significantly impacted by a $6.21 non-cash goodwill impairment charge and a deferred tax valuation allowance. Adjusted loss per share was $0.59.

• Adjusted EBITDA for the quarter was $9 million, up from $3 million in the previous quarter.

• Revenue and performance were bolstered by increased volumes in ferrous, non-ferrous, and finished steel, with notable improvements in non-ferrous sales prices and volumes, largely due to strengthening global demand.

Business Progress:

• The company is continuing its investment in advanced metal recovery technologies expected to significantly enhance EBITDA.

• Radius has launched a cost reduction and productivity program aimed at achieving $70 million in annual benefits.

• They are expanding their recycling services through the 3PR service line and digital tools to increase volumes and customer recycling rates.

• Significant capital investment is focused on technology enhancements and expanding recycling services, with CapEx for FY '24 projected between $75 million to $80 million.

Opportunities:

• Expected recovery in global manufacturing and auto production, aligning with structural demand for low carbon technologies, presents a notable growth opportunity for Radius.

• Advanced metal recovery technologies investments align with increased demand for non-ferrous metals, offering significant EBITDA potential once fully deployed.

Risks:

• Current market conditions with compressed metal spreads and challenging scrap supply flows pose significant short-term risks.

• Longer-term risks hinge on the cyclical nature of scrap supply flows and potential continued economic downturn impacting the volumes and operational leverage.

More details: Radius Recycling IR

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