Radius Experiences $37 Million Loss in First Quarter of 2025

Radius Recycling Inc., based in Portland, Oregon, reported a net loss of $37 million for the first quarter of its 2025 fiscal year, covering September, October, and November 2024. This marks the company’s sixth consecutive quarterly loss, continuing a trend of financial struggles that began in the third quarter of fiscal 2023. The recent loss is notably higher than the $16 million loss from the same period in 2023, reflecting a deeper financial challenge. The company attributes a portion of the loss to tax-related issues, totaling nearly $3.8 million, while the operating loss for the quarter stood at $24.9 million.

Ferrous Scrap Prices and Market Conditions Contribute to Financial Struggles

The ongoing decline in ferrous scrap prices has been a key factor in Radius’s continued losses. The company experienced what it described as “flat” ferrous scrap prices, which led to weak performance in the metal recycling segment. Specifically, Radius’ average ferrous scrap selling price to domestic buyers was $331 per ton, while overseas sales fetched a slightly higher $340 per ton. The firm sold 57% of its ferrous scrap to overseas markets during the quarter. Despite these struggles in the ferrous sector, Radius managed to show some improvement in its nonferrous scrap business, with a year-over-year price increase of 18.7%, although it saw a 5.5% decrease compared to the prior quarter.

Nonferrous Scrap and Cost Reduction Measures Show Promise

Radius indicated that stronger demand for nonferrous materials partially offset the challenges in the ferrous scrap market. The company’s nonferrous scrap fetched an average price of $1.02 per pound in Q1 2025, reflecting a significant gain compared to the same period in 2024. Additionally, Radius benefited from cost reduction and productivity improvement measures, which helped its nonferrous segment remain more resilient amidst the tough conditions in the ferrous market. However, these gains were not enough to fully counterbalance the losses from the ferrous sector.

Challenges at EAF Steel Mill and Weak Domestic Steel Conditions

Radius also faced difficulties at its electric arc furnace (EAF) steel mill in Portland, which reported a decline in year-over-year profits. The mill’s weaker performance was attributed to both softer domestic steel market conditions and a scheduled maintenance outage. However, the company pointed out that its EAF mill’s utilization rate remained relatively strong at 81%, higher than the national average of 75%. The mill’s capacity utilization for long products was seen as one of the few bright spots in an otherwise challenging quarter.

Outlook for Improved Demand in the Second Half of 2025

Looking ahead, CEO Tamara Lundgren expressed optimism for the second half of the fiscal year, citing expectations of inventory rebuilding and seasonality to drive increased demand. In the longer term, the company is confident that demand for recycled metals will remain strong, supported by ongoing investments in infrastructure, energy projects, industrial reshoring, and the growth of U.S. electric arc furnace (EAF) steelmaking capacity. Lundgren also emphasized that the transition to low-carbon technologies will help sustain long-term demand for recycled metals.