Ms. Nancy Davies reports

TREE ISLAND STEEL ANNOUNCES FULL YEAR 2024 RESULTS

Tree Island Steel Ltd. has released its financial results for the year ended Dec. 31, 2024.

For the three-month period ended Dec. 31, 2024, revenues, net of freight and distribution, decreased by $2.5-million to $44.8-million, from $47.3-million in the same period in 2023. The largest drivers for the decreased earnings are the lower average selling prices and the narrowing of margins between selling prices and raw material costs. This was due to competitive pricing pressures across the company's market segments especially in the residential and industrial segments and led by aggressive import pricing. Gross profit for the fourth quarter decreased to $300,000, from $3.4-million in the same period in 2023, for the same reasons. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to negative $1.6-million, compared with $900,000 during the same period in 2023, from lower gross profit.

For the year ended Dec. 31, 2024, revenues, net of freight and distribution, decreased by $32.6-million to $207.0-million, from $239.6-million in 2023, and gross profit decreased to $11.8-million from $30.3-million. The decrease is due to the same factors noted in the quarter. This resulted in an adjusted EBITDA of $4.4-million, compared with $21.5-million during 2023.

"In the past three months, we have continued to face uncertainty in the market. Generally slower demand from our customers and pricing pressures from competitors continued to impact average selling prices. The inclusion of Canada in the updated U.S. Section 232 steel and aluminum tariffs and any other potential tariffs affecting our U.S. exports also add further uncertainty. We are committed to manage our costs and leverage our operational capabilities on both sides of the border to navigate the challenging economic and trade environment," commented Nancy Davies, chief operating officer of Tree Island Steel.

Given the economic uncertainty, the board of directors has decided to reduce the quarterly dividend by 50 per cent to 1.5 cents per share, on the issued and outstanding common shares of the company, payable on April 15, 2025, to holders of record at the close of business on March 31, 2025.

About Tree Island Steel Ltd.

Tree Island Steel, headquartered in Richmond, B.C., 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 and bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; and 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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