For the three-month period ended December 31, 2025, revenues, net of freight and distribution, were $32.4 million, compared with $44.8 million in the same period last year. The decline primarily reflected lower U.S. sales volumes due to the ongoing impact of expanded U.S. tariffs on wire and wire products, as well as the Company's strategic withdrawal from certain unprofitable product lines. These factors were partially offset by continued growth in Canadian sales, consistent with the Company's increased focus on domestic markets.
For the full year, revenues totaled $161.8 million, down from $207.0 million in 2024. Despite higher average selling prices, gross profit declined to $9.5 million from $11.8 million, and adjusted EBITDA decreased to $3.0 million from $4.3 million, reflecting lower sales and production volumes. During the year, the Company implemented cost-management initiatives, including a 27% workforce reduction, to mitigate the impact of reduced volumes.
"We continue to focus on strengthening our position in the Canadian market as we navigate the challenges posed by U.S. tariffs," said Nancy Davies, Chief Operating Officer of Tree Island Steel.
The Company paid quarterly dividends of $0.015 per share during 2025 and has elected to suspend dividend payments in 2026 in light of ongoing economic uncertainty.
RESULTS FROM OPERATIONS
Three Months Ended
Year Ended
($'000 unless otherwise stated)
December 31,
December 31,
2025
2024*
2025
2024*
Revenue
34,312
47,856
170,830
221,111
Freight and distribution costs
(1,866
)
(3,018
)
(9,017
)
(14,120
)
Subtotal
32,446
44,838
161,813
206,991
Cost of sales
(31,246
)
(43,134
)
(146,845
)
(189,733
)
Depreciation
(1,366
)
(1,406
)
(5,518
)
(5,473
)
Gross profit (loss)
(166
)
298
9,450
11,785
Selling, general and administrative expenses
(2,791
)
(3,455
)
(12,143
)
(13,474
)
Operating Loss
