Canada's Tree Island Steel says Q2 revenue falls 22%, tariffs impact sales

Tree Island Steel

07/08/2025 22:41

Overview

Tree Island Q2 revenue, net of freight and distribution costs, falls C$11.7 mln to C$42.3 mln on lower U.S. sales

Gross profit drops to C$3.9 mln from C$4.6 mln, despite higher selling prices

Adjusted EBITDA declines to C$2.2 mln from C$2.9 mln amid tariff challenges

Outlook

Company focused on improving profitability through cost control and strategy adjustments

Tree Island adapting production and staffing to changing tariff environments

Result Drivers

TARIFF IMPACT - Lower U.S. sales volumes due to tariffs on wire and wire products, leading to revenue decline

STRATEGIC PRODUCT WITHDRAWAL - Revenue decrease partly due to strategic withdrawal from unprofitable products

PROFITABILITY FOCUS - Co adjusting sales and sourcing strategies to improve profitability amid changing tariff environments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
C$44.49 mln
Q2 EPS
Q2 Net Income
C$85,000
Q2 Adjusted EBITDA
C$2.24 mln
Q2 Gross Profit
C$3.87 mln
Q2 Operating Income
C$729,000
Q2 Pretax Profit
C$85,000


Analyst Coverage

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX54dp1S

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)