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VANCOUVER, British Columbia, Aug. 07, 2025 (GLOBE NEWSWIRE) — Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL) announced today its financial results for the six months ended June 30, 2025.
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For the three-months ended June 30, 2025, revenues, net of freight and distribution costs, decreased by $11.7 million to $42.3 million from $54.0 million in 2024, The decrease was mainly due to lower U.S. sales volumes after the implementation of tariffs on wire and wire products. Although average selling prices rose, gross profit dropped to $3.9 million from $4.6 million on reduced production volumes. Adjusted EBITDA was $2.2 million, down from $2.9 million year-over-year.
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For the six months ended June 30, 2025, revenues, net of freight and distribution, fell by $18.0 million to $92.5 million from $110.5 million in 2024, mainly due to reduced U.S. sales volumes caused by tariffs and a strategic withdrawal from unprofitable products. Gross profit declined to $7.8 million from $9.4 million, and adjusted EBITDA to $4.3 million from $6.0 million.
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“The U.S. and Canadian tariff environments are changing rapidly, which challenges both customers and our supply chain decisions. We remain focused on improving profitability by adjusting sales and sourcing strategies, controlling costs, and adapting production and staffing levels,” commented Nancy Davies, Chief Operating Officer of Tree Island Steel.
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| RESULTS FROM OPERATIONS | ||||||||
| Three Months Ended | Six Months Ended | |||||||
| ($’000 unless otherwise stated) | June 30, | June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenue | 44,494 | 57,718 | 97,795 | 118,308 | ||||
| Freight and distribution costs | (2,156 | ) | (3,732 | ) | (5,266 | ) | (7,769 | ) |
| Subtotal | 42,338 | 53,986 | 92,529 | 110,539 | ||||
| Cost of sales | (37,093 | ) | (48,013 | ) | (81,944 | ) | (98,421 | ) |
| Depreciation | (1,374 | ) | (1,365 | ) | (2,760 | ) | (2,682 | ) |
| Gross profit | 3,871 | 4,608 | 7,825 | 9,436 | ||||
| Selling, general and administrative expenses | (3,142 | ) | (3,288 | ) | (6,436 | ) | (6,679 | ) |
| Operating income | 729 | 1,320 | 1,389 | 2,757 | ||||
| Foreign exchange gain | 135 | 202 | 143 | 584 | ||||
| Loss on disposition of property, plant and equipment | (46 | ) | – | (45 | ) | – | ||
| Other expenses | (217 | ) | (11 | ) | (398 | ) | (11 | ) |
| Interest income | 25 | 128 | 51 | 335 | ||||
| Financing expenses | (540 | ) | (568 | ) | (1,053 | ) | (1,128 | ) |
| Income before income taxes | 85 | 1,071 | 87 | 2,537 | ||||
| Income tax expense | – | (461 | ) | – | (1,301 | ) | ||
| Net income | 85 | 610 | 87 | 1,236 | ||||
| Net income per share | 0.00 | 0.02 | 0.00 | 0.05 | ||||
| Dividends per share | 0.015 | 0.030 | 0.030 | 0.060 | ||||
| June 30, | December 31, | |||||||
| Financial position as at: | 2025 | 2024 | ||||||
| Total assets | 165,276 | 168,817 | ||||||
| Total non-current financial liabilities | 29,756 | 31,246 | ||||||
| Adjusted EBITDA | ||||||||
| Three Months Ended | Six Months Ended | |||||||
| ($’000 unless otherwise stated) | June 30, | June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Operating income | 729 | 1,320 | 1,389 | 2,757 | ||||
| Add back depreciation | 1,374 | 1,365 | 2,760 | 2,682 | ||||
| Foreign exchange gain | 135 | 202 | 143 | 584 | ||||
| Adjusted EBITDA1 | 2,238 | 2,887 | 4,292 | 6,023 | ||||
| 1 See definition on Adjusted EBITDA in Section 2 NON-IFRS MEASURES of the June 30, 2025, MD&A. | ||||||||
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About Tree Island Steel
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Tree Island Steel, headquartered in Richmond, British Columbia since 1964, through its operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction and agricultural applications. Its products include galvanized wire, bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island®, Halsteel®, K-Lath®, TI Wire®, ToughStrand® and ToughPanel® brand names.
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Forward-Looking Statements
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This press release includes forward-looking information with respect to Tree Island including its business, operations and strategies, its dividend policy and the declaration and payment of dividends thereunder as well as financial performance and conditions. The use of forward-looking words such as, “may,” “will,” “expect” or similar variations generally identify such statements. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Although management believes that expectations reflected in forward-looking statements are reasonable, such statements involve risks and uncertainties including risks and uncertainties discussed under the heading “Risks Relating to Our Business” in Tree Island’s most recent annual information form and management discussion and analysis.
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