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