Reliance, Inc. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Reliance (NYSE: RS) reported Q1 2026 results: net sales $4.03B, diluted EPS $5.10, and non-GAAP diluted EPS $5.16 (up 37% YoY). Pretax income was $349.5M. Record tons sold were 1,672.7k (up 9.4% sequentially). The company repurchased $234.2M of stock and announced two large government contracts, including a DHS border wall award with estimated Phase 1 sales of $1.4B.
Guidance for Q2 2026: tons sold +1.0% to +3.0% vs Q1, ASP +1.5% to +3.5%, and non-GAAP EPS $5.15–$5.35.
AI-generated analysis. Not financial advice.
Positive
- Net sales of $4,026.0 million (Q1 2026)
- Non-GAAP diluted EPS of $5.16, up 37% year-over-year
- Repurchased $234.2 million of common stock in Q1 2026
Negative
- Cash provided by operations down to $151.4 million (seasonal decline)
- Free cash flow fell to $87.2 million, down 57% sequentially
- LIFO expense reduced EPS by approximately $0.54 per diluted share
News Market Reaction – RS
On the day this news was published, RS declined 1.80%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
RS is up 2.98% while key steel peers in the reference set (PKX, STLD, MT, NUE, TX) show negative moves today, indicating this earnings beat is driving a stock-specific reaction rather than a broad sector rally.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Q4/FY 2025 earnings | Positive | -2.7% | Q4 and 2025 net sales growth with record annual tons and capital returns. |
| Oct 22 | Q3 2025 earnings | Positive | -0.2% | Q3 2025 net sales, record tons sold and detailed Q4 guidance. |
| Jul 23 | Q2 2025 earnings | Positive | -12.3% | Strong Q2 2025 sales, higher EPS and outperformance on shipment metrics. |
| Apr 23 | Q1 2025 earnings | Positive | +0.7% | Strong Q1 2025 results with record tons and increased dividend. |
| Feb 19 | Q4/FY 2024 earnings | Positive | +3.1% | Robust 2024 cash flow, buybacks and solid margins plus 2025 outlook. |
Earnings releases have generally been strong fundamentally but often met with mixed to negative next-day price reactions, suggesting a pattern of cautious or fading responses to good news.
Recent history shows a sequence of solid earnings reports for Reliance. Q4 2024 and FY 2024 featured net sales of $13.84 billion and strong EPS, followed by Q1–Q3 2025 with net sales between $3.48–$3.66 billion, record tons sold, and non-GAAP EPS frequently guided in the mid‑$3 to mid‑$4 range. Despite these results, three of the last five earnings events saw negative next‑day moves. Today’s Q1 2026 beat continues the operational strength theme against that backdrop of cautious trading.
Historical Comparison
Over the last five earnings releases, RS averaged a -2.29% next-day move despite generally strong results. Today’s positive 2.98% pre-news gain marks a more constructive setup versus that history.
Earnings releases since early 2024 highlight consistent net sales in the mid‑$3B range per quarter, record shipment levels, solid ~29% gross margins, and ongoing buybacks and dividend increases, showing steady operational and capital return progression.
Market Pulse Summary
This announcement highlights Q1 2026 net sales of $4.03B, non-GAAP EPS of $5.16 beating guidance, record tons sold, and sizable new DHS and Joint Strike Fighter contracts. Historically, earnings reports have been strong but met with mixed price reactions. Investors may focus on shipment growth versus margin trends, execution on the $2.24B border wall award and $654M defense contract, and how capital returns and leverage metrics evolve relative to this expanding backlog.
Key Terms
non-gaap financial
lifo financial
fifo financial
free cash flow financial
net debt-to-ebitda financial
total debt-to-ebitda financial
indefinite delivery/indefinite quantity (idiq) regulatory
section 232 tariffs regulatory
AI-generated analysis. Not financial advice.
- Net sales of
$4 billion , with record tons sold up9.4% sequentially, exceeding expectations - EPS of
$5.10 ; non-GAAP EPS of$5.16 , up37% year-over-year also exceeding expectations - Pretax income of
$349.5 million , up33% year-over-year - Repurchased
$234.2 million of common stock
PHOENIX, April 22, 2026 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) (‘Reliance,’ the ‘Company,’ ‘we,' ‘our,' or ‘us’) today reported its financial results for the first quarter ended March 31, 2026.
| (in millions, except tons sold in thousands, per ton and per share amounts) | |||||||||||||||||||
| Sequential Quarter | Year-Over-Year | ||||||||||||||||||
| Q1 2026 | Q4 2025 | % Change | Q1 2025 | % Change | |||||||||||||||
| Income Statement Data: | |||||||||||||||||||
| Net sales | $ | 4,026.0 | $ | 3,498.6 | $ | 3,484.7 | |||||||||||||
| Gross profit1 | $ | 1,171.9 | $ | 954.7 | $ | 1,033.3 | |||||||||||||
| Gross profit margin1 | ( | ) | |||||||||||||||||
| Non-GAAP gross profit margin1,2 | ( | ) | |||||||||||||||||
| Non-GAAP gross profit margin – FIFO1,2 | ( | ) | |||||||||||||||||
| LIFO expense | $ | 37.5 | $ | 38.7 | $ | 25.0 | |||||||||||||
| LIFO expense as a % of net sales | ( | ) | |||||||||||||||||
| LIFO expense per diluted share, net of tax | $ | 0.54 | $ | 0.56 | $ | 0.35 | |||||||||||||
| Non-GAAP pretax expense adjustments2 | $ | 4.3 | $ | 12.1 | $ | 2.3 | |||||||||||||
| Pretax income | $ | 349.5 | $ | 154.8 | $ | 262.4 | |||||||||||||
| Non-GAAP pretax income2 | $ | 353.8 | $ | 166.9 | $ | 264.7 | |||||||||||||
| Non-GAAP pretax income – FIFO2 | $ | 391.3 | $ | 205.6 | $ | 289.7 | |||||||||||||
| Pretax income margin | |||||||||||||||||||
| Non-GAAP pretax income margin2 | |||||||||||||||||||
| Non-GAAP pretax income margin – FIFO2 | |||||||||||||||||||
| Net income – Reliance | $ | 264.9 | $ | 116.5 | $ | 199.7 | |||||||||||||
| Diluted EPS | $ | 5.10 | $ | 2.22 | $ | 3.74 | |||||||||||||
| Non-GAAP diluted EPS2 | $ | 5.16 | $ | 2.40 | $ | 3.77 | |||||||||||||
| Non-GAAP diluted EPS – FIFO2 | $ | 5.70 | $ | 2.96 | $ | 4.12 | |||||||||||||
| Balance Sheet and Cash Flow Data: | |||||||||||||||||||
| Cash provided by operations | $ | 151.4 | $ | 276.1 | ( | ) | $ | 64.5 | |||||||||||
| Free cash flow2 | $ | 87.2 | $ | 202.9 | ( | ) | $ | (22.4 | ) | ||||||||||
| Net debt-to-total capital2 | |||||||||||||||||||
| Net debt-to-EBITDA2 | 1.0x | 0.9x | 0.9x | ||||||||||||||||
| Total debt-to-EBITDA2 | 1.2x | 1.1x | 1.1x | ||||||||||||||||
| Capital Allocation Data: | |||||||||||||||||||
| Capital expenditures | $ | 64.2 | $ | 73.2 | $ | 86.9 | |||||||||||||
| Dividends | $ | 66.6 | $ | 63.5 | $ | 65.2 | |||||||||||||
| Share repurchases | $ | 234.2 | $ | 200.1 | $ | 253.2 | |||||||||||||
| Key Business Metrics: | |||||||||||||||||||
| Tons sold | 1,672.7 | 1,528.7 | 1,628.9 | ||||||||||||||||
| Average selling price per ton sold | $ | 2,414 | $ | 2,292 | $ | 2,143 | |||||||||||||
| Please refer to the footnotes at the end of this press release for additional information. | |||||||||||||||||||
Management Commentary
“Reliance is off to a strong start to 2026, capitalizing on favorable market fundamentals with first quarter volumes, pricing and earnings exceeding our expectations. Strong pricing and demand momentum continued to build throughout the quarter across our diversified product and end market portfolio,” said Karla Lewis, President and Chief Executive Officer of Reliance. “Our teams executed exceptionally well, converting increased shipments and higher prices into outsized earnings contributions, driving year-over-year growth of
“As previously announced, we also secured two significant government contracts in the first quarter to supply the border wall and Joint Strike Fighter projects through our AMI Metals, Inc. (“AMI”) subsidiary, further reinforcing Reliance’s role as a trusted partner on critical U.S. infrastructure and defense programs. These wins illustrate our ability to support large and complex projects by leveraging the scale, logistics capabilities, processing expertise, deep supply‑chain relationships and existing operating infrastructure of the Reliance Family of Companies. Our diversified platform allows us to concurrently meet the needs of large program partners as well as small-order, quick-turn customers.”
Mrs. Lewis concluded, “Our strong balance sheet and liquidity position remain key competitive advantages, affording us the flexibility to continue to concurrently invest in our business, pursue strategic acquisitions, and return capital to our stockholders while maintaining our disciplined approach to capital deployment. We are encouraged by rising customer optimism and activity across our broad end market exposure, with continued strong and growing momentum in the infrastructure, data center, energy, and defense sectors. Extending lead times at our mill suppliers also bode well for a continued strong pricing environment, where access to metal becomes a strategic advantage. Reliance’s unique scale, diverse portfolio, financial strength, domestic mill relationships and expanding services to support our customers, along with our focus on execution, position us exceptionally well to further capitalize on the opportunities ahead in 2026.”
First Quarter 2026 Financial Highlights
Earnings per share were
Record quarterly tons sold increased
Average selling price per ton sold increased
Gross profit margin of
Growth in shipments and gross profit dollars per ton, supported by continued market share gains, provided operating leverage and improved earnings conversion, driving pretax income of
End Market Commentary
Non-residential construction demand (including infrastructure), representing Reliance’s largest end market by tons, improved from the first quarter of 2025. The Company expects non-residential construction demand to remain healthy in the second quarter of 2026, supported by strong activity across data centers, energy infrastructure, and public infrastructure.
Demand across the broader manufacturing end market Reliance serves improved compared to the first quarter of 2025, primarily due to growth in the industrial machinery, shipbuilding, military, consumer products and construction machinery sectors. Reliance anticipates that demand for its products across the broader manufacturing sector will remain healthy in the second quarter of 2026.
Demand in aerospace improved compared to the first quarter of 2025. Reliance anticipates commercial aerospace demand to remain steady in the second quarter of 2026 with build-rate increases supporting improvement throughout the year. Demand in the defense and space related portions of Reliance’s aerospace business is expected to remain robust in the second quarter of 2026.
Demand for the toll processing services Reliance provides to the automotive market was stable compared to the first quarter of 2025. The Company expects demand for automotive toll processing to remain relatively steady at healthy levels in the second quarter of 2026. Reliance’s toll processing operations remain flexible and able to quickly adapt to the variable demands of the automotive market.
Demand for certain products Reliance sells into the semiconductor market improved compared to the first quarter of 2025. The Company anticipates stable to improving demand for its semiconductor products in the second quarter of 2026.
Balance Sheet, Cash Flow and Stockholder Returns
As of March 31, 2026, Reliance had
The Company returned approximately
On February 17, 2026, Reliance increased its regular quarterly dividend by
Recent Government Contract Awards
As previously announced in March 2026, Reliance’s wholly owned subsidiary, AMI was awarded two significant U.S. government infrastructure and defense contracts that further strengthen the Company’s position as a trusted partner on large‑scale, complex government infrastructure and defense projects.
- AMI was awarded a multi-year contract by the U.S. Department of Homeland Security (“DHS”) with a total maximum estimated value of up to
$2.24 billion to provide steel and steel logistics support services for the construction of the border wall along the Southwest U.S. border. Phase 1 of the project, during which Reliance estimates sales of approximately$1.4 billion , commenced in April 2026 and is expected to continue through mid-2027. - AMI also won a five‑year indefinite delivery/indefinite quantity (IDIQ) contract to supply processed aluminum plate in support of the Joint Strike Fighter defense platforms, including the F‑35 Lightning II. The contract, which is effective from January 2027 through December 2028, renews AMI’s existing contract and provides for up to three one-year renewal periods. The agreement has a maximum estimated value of
$654 million and includes an approximate10% increase in average volumes from previous targets.
These awards highlight Reliance’s scale, logistics capabilities, and processing expertise across both carbon steel and aluminum, and reinforce the Company’s long‑standing relationships with domestic mills and major defense customers.
Business Outlook
Reliance anticipates both demand and pricing in the second quarter of 2026 will remain generally consistent at healthy levels across the key products and end markets it serves, despite ongoing domestic and international trade policy uncertainty and the conflict in the Middle East which could pose supply availability and macroeconomic risks. With underlying assumptions for ongoing activity in the second quarter generally consistent with the prior quarter and factoring in activity under the DHS border wall contract, the Company expects tons sold to increase
Our second quarter 2026 guidance includes an estimated
Conference Call Details
A conference call and simultaneous webcast to discuss Reliance’s first quarter 2026 financial results and business outlook will be held on Thursday, April 23, 2026 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To listen to the live call by telephone, please dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time and use conference ID: 13759369. The call will also be broadcast live over the Internet hosted on the Investors section of the Company's website at investor.reliance.com.
For those unable to participate during the live broadcast, a replay of the call will also be available beginning that same day at 2:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on May 7, 2026, by dialing (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the conference ID: 13759369. The webcast will remain posted on the Investors section of Reliance’s website at reliance.com for 90 days.
About Reliance, Inc.
Founded in 1939, Reliance, Inc. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of approximately 310 locations in 41 states and 10 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full-line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2025, Reliance’s average order size was
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s: industry and end markets; business strategies; acquisitions; expectations concerning the Company’s future growth and profitability; ability to generate industry leading returns for its stockholders; future demand and metals pricing; results of operations; margins; profitability; taxes; liquidity; cash flows; capital expenditures; expectations for macroeconomic conditions, including inflation and the possibility of an economic recession or slowdown; anticipated effects from regulatory changes, including taxation, tariffs and other trade barriers; litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range,” “intend” and “continue,” the negative of these terms, and similar expressions.
These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, actions taken by Reliance, as well as developments beyond its control, including, but not limited to: changes in domestic and worldwide political and economic conditions; changes in U.S. and foreign trade policies and programs, including tariffs and trade policies and programs specifically affecting metals product markets and pricing; slowing economic growth, inflation, rising unemployment or other macroeconomic factors that could materially impact Reliance, its customers and suppliers; metals pricing; demand for Reliance’s products and services; the possibility that the expected benefits of government contracts, acquisitions and capital expenditures may not materialize as expected; and the impacts of labor constraints and supply chain disruptions. Deteriorations in economic conditions, including as a result of tariffs or trade barriers, economic policies, inflation, economic recession, slowing growth, outbreaks of infectious disease, or geopolitical conflicts such as in Ukraine, Iran and the Middle East, could lead to a decline in demand for the Company’s products and services and negatively impact its business, and may also impact financial markets and corporate credit markets which could adversely impact the Company’s access to financing or the terms of any financing. The Company cannot at this time predict all of the impacts of domestic and foreign tariffs and trade policies, inflation, product price fluctuations, economic recession, outbreaks of infectious disease, or geopolitical conflicts and related economic effects, but these factors, individually or in any combination, could have a material adverse effect on the Company’s business, financial position, results of operations and cash flows.
The statements contained in this press release speak only as of the date hereof, and Reliance disclaims any and all obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason, except as may be required by law. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in other documents Reliance files or furnishes with the United States Securities and Exchange Commission.
CONTACT:
(213) 576-2428
investor@reliance.com
or Addo Investor Relations
(310) 829-5400
(Tables to follow)
| First Quarter 2026 Major Commodity Metrics | |||||||||||||||||||||||||||
| Tons Sold (tons in thousands; % change) | Average Selling Price per Ton Sold (% change) | ||||||||||||||||||||||||||
| Q1 2026 | Q4 2025 | Sequential Quarter Change | Q1 2025 | Year-Over-Year Change | Sequential Quarter Change | Year-Over-Year Change | |||||||||||||||||||||
| Carbon steel | 1,383.9 | 1,252.9 | 1,344.4 | ||||||||||||||||||||||||
| Aluminum | 85.1 | 77.1 | 84.1 | ||||||||||||||||||||||||
| Stainless steel | 78.2 | 69.8 | 76.0 | ||||||||||||||||||||||||
| Alloy | 33.0 | 27.9 | 31.5 | ( | ) | ||||||||||||||||||||||
| Copper & brass | 4.9 | 4.9 | — | 5.0 | ( | ) | |||||||||||||||||||||
| Sales ($'s in millions; % change) | |||||||||||||||||||||||||||
| Q1 2026 | Q4 2025 | Sequential Quarter Change | Q1 2025 | Year-Over-Year Change | |||||||||||||||||||||||
| Carbon steel | $ | 2,218.1 | $ | 1,922.3 | $ | 1,904.2 | |||||||||||||||||||||
| Aluminum | $ | 754.6 | $ | 624.5 | $ | 605.6 | |||||||||||||||||||||
| Stainless steel | $ | 539.0 | $ | 467.1 | $ | 503.2 | |||||||||||||||||||||
| Alloy | $ | 180.6 | $ | 155.5 | $ | 158.4 | |||||||||||||||||||||
| Copper & brass | $ | 101.9 | $ | 93.5 | $ | 81.7 | |||||||||||||||||||||
| Sales by Product ($'s as a % of total sales) | |||||||||||||||||||||||||||
| Q1 2026 | Q4 2025 | Q1 2025 | |||||||||||||||||||||||||
| Carbon steel structurals | |||||||||||||||||||||||||||
| Carbon steel plate | |||||||||||||||||||||||||||
| Carbon steel tubing | |||||||||||||||||||||||||||
| Hot-rolled steel sheet & coil | |||||||||||||||||||||||||||
| Carbon steel bar | |||||||||||||||||||||||||||
| Galvanized steel sheet & coil | |||||||||||||||||||||||||||
| Cold-rolled steel sheet & coil | |||||||||||||||||||||||||||
| Carbon steel | |||||||||||||||||||||||||||
| Heat-treated aluminum plate | |||||||||||||||||||||||||||
| Aluminum bar & tube | |||||||||||||||||||||||||||
| Common alloy aluminum sheet & coil | |||||||||||||||||||||||||||
| Common alloy aluminum plate | |||||||||||||||||||||||||||
| Heat-treated aluminum sheet & coil | |||||||||||||||||||||||||||
| Aluminum | |||||||||||||||||||||||||||
| Stainless steel bar & tube | |||||||||||||||||||||||||||
| Stainless steel sheet & coil | |||||||||||||||||||||||||||
| Stainless steel plate | |||||||||||||||||||||||||||
| Stainless steel | |||||||||||||||||||||||||||
| Alloy | |||||||||||||||||||||||||||
| Copper & brass | |||||||||||||||||||||||||||
| Miscellaneous* | |||||||||||||||||||||||||||
| Toll processing & logistics | |||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||
| * Includes titanium, fabricated parts, PVC pipe and scrap. | |||||||||||||||||||||||||||
| RELIANCE, INC. | |||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | |||||||
| (in millions, except shares in thousands and per share amounts) | |||||||
| Three Months Ended March 31, | 2026 | 2025 | |||||
| Net sales | $ | 4,026.0 | $ | 3,484.7 | |||
| Costs and expenses: | |||||||
| Cost of sales (exclusive of depreciation and amortization shown below) | 2,854.1 | 2,451.4 | |||||
| Warehouse, delivery, selling, general and administrative ("SG&A") | 734.8 | 690.2 | |||||
| Depreciation and amortization | 69.2 | 68.7 | |||||
| 3,658.1 | 3,210.3 | ||||||
| Operating income | 367.9 | 274.4 | |||||
| Other (income) expense: | |||||||
| Interest expense | 15.4 | 11.5 | |||||
| Other expense, net | 3.0 | 0.5 | |||||
| Income before income taxes | 349.5 | 262.4 | |||||
| Income tax provision | 83.9 | 61.9 | |||||
| Net income | 265.6 | 200.5 | |||||
| Less: net income – noncontrolling interests | 0.7 | 0.8 | |||||
| Net income – Reliance | $ | 264.9 | $ | 199.7 | |||
| Earnings per share: | |||||||
| Basic | $ | 5.13 | $ | 3.76 | |||
| Diluted | $ | 5.10 | $ | 3.74 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 51,633 | 53,075 | |||||
| Diluted | 51,974 | 53,399 | |||||
| Cash dividends declared per common share | $ | 1.25 | $ | 1.20 | |||
| RELIANCE, INC. | |||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | |||||||
| (in millions, except shares in thousands and par value) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025* | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 249.7 | $ | 216.6 | |||
| Accounts receivable, less allowance for credit losses of | 1,953.5 | 1,539.9 | |||||
| Inventories | 2,234.9 | 2,187.8 | |||||
| Prepaid expenses and other current assets | 135.2 | 165.6 | |||||
| Income taxes receivable | — | 31.2 | |||||
| Total current assets | 4,573.3 | 4,141.1 | |||||
| Property, plant and equipment, net | 2,630.8 | 2,633.3 | |||||
| Operating lease right-of-use assets | 331.5 | 315.2 | |||||
| Goodwill | 2,175.4 | 2,169.9 | |||||
| Intangible assets, net | 953.0 | 960.1 | |||||
| Cash surrender value of life insurance policies, net | 41.9 | 48.0 | |||||
| Other long-term assets | 103.4 | 105.7 | |||||
| Total assets | $ | 10,809.3 | $ | 10,373.3 | |||
| Liabilities and Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 552.1 | $ | 375.2 | |||
| Accrued expenses | 152.5 | 150.0 | |||||
| Accrued compensation and retirement benefits | 171.5 | 198.1 | |||||
| Accrued insurance costs | 56.4 | 56.4 | |||||
| Current maturities of long-term debt | — | 0.7 | |||||
| Current maturities of operating lease liabilities | 69.2 | 67.7 | |||||
| Income taxes payable | 41.1 | — | |||||
| Total current liabilities | 1,042.8 | 848.1 | |||||
| Long-term debt | 1,693.5 | 1,420.2 | |||||
| Operating lease liabilities | 266.3 | 250.9 | |||||
| Long-term retirement benefits | 25.3 | 24.9 | |||||
| Other long-term liabilities | 74.4 | 74.1 | |||||
| Deferred income taxes | 574.9 | 575.6 | |||||
| Total liabilities | 3,677.2 | 3,193.8 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock and additional paid-in capital, | |||||||
| Issued and outstanding shares—51,049 and 51,735 | 0.1 | 0.1 | |||||
| Retained earnings | 7,218.5 | 7,257.6 | |||||
| Accumulated other comprehensive loss | (95.7 | ) | (87.6 | ) | |||
| Total Reliance stockholders’ equity | 7,122.9 | 7,170.1 | |||||
| Noncontrolling interests | 9.2 | 9.4 | |||||
| Total equity | 7,132.1 | 7,179.5 | |||||
| Total liabilities and equity | $ | 10,809.3 | $ | 10,373.3 | |||
| * Derived from audited financial statements. | |||||||
| RELIANCE, INC. | |||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in millions) | |||||||
| Three Months Ended March 31, | 2026 | 2025 | |||||
| Operating activities: | |||||||
| Net income | $ | 265.6 | $ | 200.5 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 69.2 | 68.7 | |||||
| Stock-based compensation | 13.3 | 12.2 | |||||
| Other | 7.6 | 6.5 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (416.2 | ) | (332.1 | ) | |||
| Inventories | (47.7 | ) | (85.9 | ) | |||
| Prepaid expenses and other assets | 83.1 | 80.8 | |||||
| Accounts payable and other liabilities | 176.5 | 113.8 | |||||
| Net cash provided by operating activities | 151.4 | 64.5 | |||||
| Investing activities: | |||||||
| Purchases of property, plant and equipment | (64.2 | ) | (86.9 | ) | |||
| Other | (5.8 | ) | (0.7 | ) | |||
| Net cash used in investing activities | (70.0 | ) | (87.6 | ) | |||
| Financing activities: | |||||||
| Proceeds from long-term debt borrowings | 925.0 | 788.0 | |||||
| Principal payments on long-term debt | (652.7 | ) | (458.0 | ) | |||
| Cash dividends and dividend equivalents | (66.6 | ) | (65.2 | ) | |||
| Share repurchases | (234.2 | ) | (253.2 | ) | |||
| Taxes paid on net-settled restricted stock units | (14.7 | ) | (11.5 | ) | |||
| Other | (3.4 | ) | (18.7 | ) | |||
| Net cash used in financing activities | (46.6 | ) | (18.6 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (1.7 | ) | 1.4 | ||||
| Increase (decrease) in cash and cash equivalents | 33.1 | (40.3 | ) | ||||
| Cash and cash equivalents, beginning balance | 216.6 | 318.1 | |||||
| Cash and cash equivalents, ending balance | $ | 249.7 | $ | 277.8 | |||
| Supplemental cash flow information: | |||||||
| Interest paid | $ | 13.2 | $ | 10.0 | |||
| Income taxes paid, net | $ | 12.5 | $ | 13.9 | |||
| RELIANCE, INC. | |||||||||||||||||||||||
| NON-GAAP RECONCILIATION | |||||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Net Income | Diluted EPS | ||||||||||||||||||||||
| March 31, | December 31, | March 31, | March 31, | December 31, | March 31, | ||||||||||||||||||
| Three Months Ended | 2026 | 2025 | 2025 | 2026 | 2025 | 2025 | |||||||||||||||||
| Net income – Reliance | $ | 264.9 | $ | 116.5 | $ | 199.7 | $ | 5.10 | $ | 2.22 | $ | 3.74 | |||||||||||
| Impairment and restructuring charges | 3.8 | 14.7 | 2.3 | 0.07 | 0.28 | 0.04 | |||||||||||||||||
| Non-recurring settlement charges (credits), net | 0.5 | (1.9 | ) | — | 0.01 | (0.04 | ) | — | |||||||||||||||
| Gains related to sales of non-core assets | — | (0.7 | ) | — | — | (0.01 | ) | — | |||||||||||||||
| Income tax benefit related to above items | (1.1 | ) | (3.1 | ) | (0.6 | ) | (0.02 | ) | (0.05 | ) | (0.01 | ) | |||||||||||
| Non-GAAP net income – Reliance | 268.1 | 125.5 | 201.4 | 5.16 | 2.40 | 3.77 | |||||||||||||||||
| LIFO expense, net of tax | 28.1 | 29.0 | 18.8 | 0.54 | 0.56 | 0.35 | |||||||||||||||||
| Non-GAAP net income – Reliance – FIFO | $ | 296.2 | $ | 154.5 | $ | 220.2 | $ | 5.70 | $ | 2.96 | $ | 4.12 | |||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||||
| Three Months Ended | 2026 | 2025 | 2025 | ||||||||||||||||||||
| Pretax income | $ | 349.5 | $ | 154.8 | $ | 262.4 | |||||||||||||||||
| Impairment and restructuring charges | 3.8 | 14.7 | 2.3 | ||||||||||||||||||||
| Non-recurring settlement charges (credits), net | 0.5 | (1.9 | ) | — | |||||||||||||||||||
| Gains related to sales of non-core assets | — | (0.7 | ) | — | |||||||||||||||||||
| Non-GAAP pretax expense adjustments | 4.3 | 12.1 | 2.3 | ||||||||||||||||||||
| Non-GAAP pretax income | 353.8 | 166.9 | 264.7 | ||||||||||||||||||||
| LIFO expense | 37.5 | 38.7 | 25.0 | ||||||||||||||||||||
| Non-GAAP pretax income – FIFO | $ | 391.3 | $ | 205.6 | $ | 289.7 | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||||
| Three Months Ended | 2026 | 2025 | 2025 | ||||||||||||||||||||
| Gross profit – LIFO | $ | 1,171.9 | $ | 954.7 | $ | 1,033.3 | |||||||||||||||||
| Restructuring charges | 1.0 | 3.0 | 1.8 | ||||||||||||||||||||
| Non-GAAP gross profit | 1,172.9 | 957.7 | 1,035.1 | ||||||||||||||||||||
| LIFO expense | 37.5 | 38.7 | 25.0 | ||||||||||||||||||||
| Non-GAAP gross profit – FIFO | $ | 1,210.4 | $ | 996.4 | $ | 1,060.1 | |||||||||||||||||
| Gross profit margin – LIFO | |||||||||||||||||||||||
| Restructuring charges as a % of sales | — | — | |||||||||||||||||||||
| Non-GAAP gross profit margin | |||||||||||||||||||||||
| LIFO expense as a % of sales | |||||||||||||||||||||||
| Non-GAAP gross profit margin – FIFO | |||||||||||||||||||||||
| Certain percentages may not calculate due to rounding. | |||||||||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||
| Total debt | $ | 1,700.0 | $ | 1,427.7 | $ | 1,481.1 | |||||||||||||||||
| Less: unamortized discounts and costs | (6.5 | ) | (6.8 | ) | (8.1 | ) | |||||||||||||||||
| Carrying amount of debt | 1,693.5 | 1,420.9 | 1,473.0 | ||||||||||||||||||||
| Less: cash and cash equivalents | (249.7 | ) | (216.6 | ) | (277.8 | ) | |||||||||||||||||
| Net debt | 1,443.8 | 1,204.3 | 1,195.2 | ||||||||||||||||||||
| Total Reliance stockholders' equity | 7,122.9 | 7,170.1 | 7,101.8 | ||||||||||||||||||||
| Total capital | $ | 8,566.7 | $ | 8,374.4 | $ | 8,297.0 | |||||||||||||||||
| Net debt-to-total capital | |||||||||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||||
| Twelve Months Ended | 2026 | 2025 | 2025 | ||||||||||||||||||||
| Net income | $ | 806.7 | $ | 741.6 | $ | 774.7 | |||||||||||||||||
| Depreciation and amortization | 278.7 | 278.2 | 273.8 | ||||||||||||||||||||
| Impairment | 9.9 | 9.9 | 11.7 | ||||||||||||||||||||
| Interest expense | 59.6 | 55.7 | 42.1 | ||||||||||||||||||||
| Income taxes | 249.6 | 227.6 | 231.4 | ||||||||||||||||||||
| EBITDA | $ | 1,404.5 | $ | 1,313.0 | $ | 1,333.7 | |||||||||||||||||
| Net debt-to-EBITDA | 1.0x | 0.9x | 0.9x | ||||||||||||||||||||
| Total debt-to-EBITDA | 1.2x | 1.1x | 1.1x | ||||||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||||
| Three Months Ended | 2026 | 2025 | 2025 | ||||||||||||||||||||
| Cash provided by operations | $ | 151.4 | $ | 276.1 | $ | 64.5 | |||||||||||||||||
| Less: capital expenditures | (64.2 | ) | (73.2 | ) | (86.9 | ) | |||||||||||||||||
| Free cash flow | $ | 87.2 | $ | 202.9 | $ | (22.4 | ) | ||||||||||||||||
Reliance presents certain non‑GAAP measures, including non‑GAAP gross profit, pretax income, net income and earnings per share, to provide meaningful period-to-period comparisons of its operating performance. These non‑GAAP measures reflect adjustments for certain items, including impairment and restructuring charges related to the closure or reorganization of certain locations, non‑recurring settlement charges and credits, and gains on the sale of non‑core property, plant and equipment, which can reduce the comparability of GAAP results across periods. Reliance uses first‑in, first‑out (“FIFO”) gross profit, margin, and other FIFO-based performance measures to assess its ongoing performance and provide a basis for comparison with competitors that do not use the last-in, last-out (“LIFO”) inventory accounting method. See footnote 1 for additional information regarding the Company’s gross profit and gross profit margin. In addition, Reliance presents net debt‑to‑EBITDA and total debt‑to‑EBITDA as measures of leverage used by management to monitor debt levels relative to operating performance, for which EBITDA is used as a proxy. Free cash flow is presented as a measure of cash generated by operations that may be used to repay scheduled debt maturities, fund additional growth initiatives, or be returned to stockholders.
Footnotes
1 Gross profit (calculated as net sales less cost of sales) and gross profit margin (calculated as gross profit divided by net sales) are non-GAAP financial measures as they exclude depreciation and amortization expense associated with the corresponding sales. About half of Reliance's orders are basic distribution with no processing services performed. For the remainder of its sales orders, Reliance performs “first-stage” processing, which is generally not labor intensive as it is simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, Reliance’s cost of sales is substantially comprised of the cost of the material it sells. Reliance uses gross profit and gross profit margin, as shown, as measures of operating performance. Gross profit and gross profit margin are important operating and financial measures, as their fluctuations can have a significant impact on Reliance's earnings. Gross profit and gross profit margin, as presented, are not necessarily comparable with similarly titled measures for other companies.
2 See accompanying Non-GAAP Reconciliation.
