Tree Island Steel Announces Full Year 2024 Results

VANCOUVER, British Columbia, Canada – March 13, 2025 – Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL) announced today its financial results for the year ended December 31, 2024.

For the three-month period ended December 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 our market segments especially in the residential and industrial segments and led by aggressive import pricing. Gross profit for the fourth quarter decreased to $0.3 million, from $3.4 million in the same period in 2023, for the same reasons. Adjusted EBITDA amounted to negative $1.6 million, compared to $0.9 million during the same period in 2023 from lower gross profit.

For the year ended December 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 to $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 US 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% to $0.015 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.