RUSSEL METALS ANNOUNCES RATIONALIZATION INITIATIVES IN WESTERN CANADA

TORONTO, Sept. 17, 2025 /PRNewswire/ - Russel Metals Inc. (TSX: RUS) announces a series of initiatives related to its Western Canadian operations that will rationalize excess capacity/redundant locations, reduce invested capital and gain operational efficiencies.

In December 2023, Russel Metals announced the acquisition of seven service centers, including five in Western Canada, from Samuel, Son & Co., Limited.  At that time, the initial acquisition price was $225 million, with a plan to reduce the invested capital by $50-100 million.  Shortly after closing in the third quarter of 2024, the invested capital was reduced by $58 million due to a reduction in working capital.  Upon completion of today's announced initiatives, the invested capital will be further reduced by $40-50 million for a cumulative invested capital reduction of approximately $100 million, which is the upper end of our original goal. 

The specific initiatives include:

• Binding agreements are in place to sell the real estate associated with our branches in Delta (British Columbia) and Saskatoon (Saskatchewan).  Total cash proceeds will be greater than $40 million and result in gains on sale for each transaction upon their completion, which are expected in Q4'25 for the Saskatoon location and Q2'26 for the Delta location.
• The permanent closure of the Delta location will result in a repatriation of excess working capital, once the inventories are integrated into our other locations in the region.
• Certain processing equipment, racking and cranes at three of our Western Canadian locations (including the Delta location) will be removed, refurbished and relocated to our other operations in North America or sold, resulting in a capital avoidance related to the repurposing of such equipment.
• In Q3'25, we will record a provision for restructuring relating to the permanent closure of the Delta location of approximately $4 million. 

About Russel Metals Inc.
Russel Metals is one of the largest metals distribution companies in North America with a growing focus on value-added processing.  It carries on business in three segments: metals service centers, energy field stores and steel distributors.  Its network of metals service centers carries an extensive line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum and other non-ferrous specialty metals.  Its energy field stores carry a specialized product line focused on the needs of energy industry customers.  Its steel distributors operations act as master distributors selling steel in large volumes to other steel service centers and large equipment manufacturers mainly on an "as is" basis.

Cautionary Statement on Forward-Looking Information
Certain statements contained in this press release constitute forward-looking statements or information within the meaning of applicable securities laws, including statements as to our future capital expenditures and asset sales.  Forward-looking statements relate to future events or our future performance.  All statements, other than statements of historical fact, are forward-looking statements.  Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions.  Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us, inherently involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the factors described below.

We are subject to a number of risks and uncertainties which could have a material adverse effect on our future profitability and financial position, including the risks and uncertainties listed below, which are important factors in our business and the metals distribution industry.  Such risks and uncertainties include, but are not limited to: volatility in metal prices; cyclicality of the metals industry; future acquisitions; facilities modernization; volatility in the energy industry; product claims; significant competition; sources of supply and supply chain disruptions; manufacturers selling directly; material substitution; failure of our key computer-based systems; cybersecurity; credit risk; currency exchange risk; restrictive debt covenants; goodwill or long-term asset impairments; the unexpected loss of key individuals; decentralized operating structure; labour interruptions; laws and governmental regulations; litigious environment; environmental liabilities; climate change; carbon emissions; health and safety laws and regulations; geopolitical risk and common share risk.

While we believe that the expectations reflected in our forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct, and our forward-looking statements included in this press release should not be unduly relied upon.  These statements speak only as of the date of this press release and, except as required by law, we do not assume any obligation to update our forward-looking statements.  Our actual results could differ materially from those anticipated in our forward-looking statements including as a result of the risk factors described above and under the heading "Risk" in our MD&A and under the heading "Risk Management and Risks Affecting Our Business" in our most recent Annual Information Form and as otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca.

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SOURCE Russel Metals Inc.