The following is a summary of the Radius Recycling, Inc. (RDUS) Q4 2024 Earnings Call Transcript:
Financial Performance:
Radius Recycling reported Q4 adjusted EBITDA of $17 million, doubling from the $9 million in the previous quarter due to higher sales volumes and cost savings.
Net debt stood at $409 million at the end of Q4, with available credit facility capacity up to $800 million.
The effective tax rate showed a benefit of 33% on adjusted figures excluding specific one-off charges.
Business Progress:
Introduced a $70 million annual cost reduction and productivity plan yielding full run-rate benefits this quarter.
Advanced investments in metal recovery technologies, expecting a $40 million annual EBITDA post-full deployment.
Expanded 3PR service business, contributing over 10% to recycled metals volumes.
Strengthened recycled metals sales, growing ferrous by 12%, non-ferrous by 13%, and finished steel by 11%.
Opportunities:
Expected reductions in US interest rates likely to stimulate manufacturing and construction, thereby improving scrap supply and demand for finished steel.
Risks:
The ongoing stickiness in scrap purchase costs continues to compress margins, despite strategic efforts to mitigate impacts.
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