In the first quarter of 2026, revenues, net of freight and distribution, were $40.6 million, compared to $50.2 million in the prior year period. The year-over-year decline was primarily driven by lower U.S. sales volumes reflecting the continued impact of expanded U.S. tariffs on wire and wire products and the Company's strategic withdrawal from certain unprofitable product lines in 2025. This was partially offset by steady growth in Canadian sales, consistent with the Company's strategic focus on domestic markets and supported by the positive determination in Canada's steel wire antidumping case and by the Steel Diversion Measures implemented by the Canadian government.
Average selling prices increased in the quarter; however, gross profit decreased to $2.5 million from $3.9 million in the same period in 2025, reflecting lower sales and production volumes. Adjusted EBITDA was $1.0 million, compared to $2.0 million in the same period in 2025, primarily due to lower gross profit.
"We continue to adjust production levels and our workforce in response to changing demand and also pursuing opportunities in new and existing markets," said Nancy Davies, Chief Operating Officer of Tree Island Steel.
RESULTS FROM OPERATIONS
Three Months Ended
($'000 unless otherwise stated)
March 31,
2026
2025
Revenue
43,045
53,301
Freight and distribution costs
(2,468
)
(3,110
)
Subtotal
40,577
50,191
Cost of sales
(36,741
)
(44,857
)
Depreciation
(1,362
)
(1,394
)
Gross profit
2,474
3,940
Selling, general and administrative expenses
(2,744
)
