VANCOUVER, British Columbia, March 12, 2026 (GLOBE NEWSWIRE) -- Tree Island Steel ("Tree Island" or the "Company") (TSX: TSL) today reported its financial results for the year ended December 31, 2025.
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 | (2,957 | - | (3,157 | - | (2,693 | - | (1,689 | - | |||||||
| Foreign exchange gain | 47 | 19 | 200 | 470 | |||||||||||
| Gain (Loss) on disposition of property, plant and equipment | (37 | - | 7 | (129 | - | 7 | |||||||||
| Other expenses | (899 | - | - | (1,648 | - | (44 | - | ||||||||
| Interest income | 84 | 36 | 181 | 452 | |||||||||||
| Financing expenses | (679 | - | (533 | - | (2,354 | - | (2,321 | - | |||||||
| Loss before income taxes | (4,441 | - | (3,628 | - | (6,443 | - | (3,125 | - | |||||||
| Income tax recovery (expense) | 1,115 | 185 | 1,115 | (973 | - | ||||||||||
| Net Loss | (3,326 | - | (3,443 | - | (5,328 | - | (4,098 | - | |||||||
| Net loss per share | (0.13 | - | (0.13 | - | (0.21 | - | (0.16 | - | |||||||
| Dividends per share | 0.015 | 0.03 | 0.06 | 0.12 | |||||||||||
| December 31, | December 31, | ||||||||||||||
| Financial position as at: | 2025 | 2024 | |||||||||||||
| Total assets | 154,880 | 168,817 | |||||||||||||
| Total non-current financial liabilities | 28,073 | 31,244 | |||||||||||||
| Adjusted EBITDA | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| ($'000 unless otherwise stated) | December 31, | December 31, | |||||||||||||
| 2025 | 2024* | 2025 | 2024* | ||||||||||||
| Operating loss | (2,957 | - | (3,157 | - | (2,693 | - | (1,689 | - | |||||||
| Add back depreciation | 1,366 | 1,406 | 5,518 | 5,473 | |||||||||||
| Foreign exchange gain | 47 | 19 | 200 | 470 | |||||||||||
| Adjusted EBITDA1 | (1,543 | - | (1,732 | - | 3,025 | 4,254 | |||||||||
| - Certain comparative figures for the year ended December 31, 2024 have been revised to reflect adjustments as described in Financial Note 2.4. | |||||||||||||||
| 1 See definition on Adjusted EBITDA in Section 2 NON-IFRS MEASURES of the December 31, 2025, MD&A. | |||||||||||||||
About Tree Island Steel
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.
Forward-Looking Statements
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.
The forward-looking statements contained herein reflect management's current beliefs and are based upon certain assumptions that management believes to be reasonable based on the information currently available to management. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these forward-looking statements, shareholders should specifically consider various factors including the risks outlined herein and under the heading "Risk Relating to Our Business" in the recent annual information form, which may cause actual results to differ materially from any forward-looking statement. Such risks and uncertainties include, but are not limited to: general economic, market and business conditions, public health epidemics, the economy and potentially its supply chain, the cyclical nature of our business and demand for our products, the impact of any tax reassessments or appeals therefrom, financial condition of our customers, competition, deterioration in Tree Island Steel's liquidity, leverage, and restrictive covenants, disruption in the supply of raw materials, volatility in the costs of raw materials, dependence on the construction industry, transportation costs and availability, foreign exchange fluctuations, labour relations, trade actions, dependence on key personnel and skilled workers, reliance on key customers, environmental matters, physical impacts of extreme weather conditions, intellectual property risks, energy costs, un-insured loss, credit risk, operating risk, product liability risks, management of growth, success of acquisition and integration strategies, and other risks and uncertainties set forth in our publicly filed materials.
This press release has been reviewed by the Company's Board of Directors and its Audit Committee and contains information that is current as of the date of this press release, unless otherwise noted. Events occurring after that date could render the information contained herein inaccurate or misleading in a material respect. Readers are cautioned not to place undue reliance on this forward-looking information and the management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise except as required by applicable securities laws.
| For further information contact: |
| Ali Mahdavi, Investor Relations |
| Tree Island Steel |
| (416) 962-3300 |
| e-mail: amahdavi@treeisland.com |
| Website: www.treeisland.com |
