RS

Nucor (NYSE:NUE) is scheduled to report its earnings on Monday, October 26, 2026. The company has a market value of about $58.9 billion. Over the last twelve months it generated $36.1 billion in revenue and $4.2 billion in operating profit, with net income of $2.9 billion. The reaction will turn on how the results and guidance land against expectations. Before the release, it helps to know how the stock has behaved after previous reports, and whether an early move has tended to carry on. See the earnings reaction history of all stocks Nucor's Historical Odds Of A Positive Post-Earnings Return Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 19 earnings releases in the last five years, with 14 positive and 5 negative one-day (1D) returns. Positive 1D returns were seen 74% of the time. - Over the last three years that share falls to 55%, across 11 releases. - The median of the 14 positive 1D returns is 4.7%, and the median of the 5 negative ones is -2.7%. - The largest one-day reactions were 9.1% and -8.9%. The table below shows the 1D, 5-day (5D) and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/27/2026 | 7.2% | 5.4% | -0.1% 4/27/2026 | 4.7% | 5.0% | 14.6% 1/26/2026 | -2.3% | 1.9% | -1.2% 10/27/2025 | 5.4% | 2.7% | 8.4% 7/28/2025 | -2.7% | -5.2% | 2.4% 4/28/2025 | 1.9% | 3.4% | -6.6% 1/27/2025 | 3.8% | 7.6% | 10.3% 10/21/2024 | -6.5% | -5.4% | -7.3% 7/22/2024 | -1.1% | -2.4% | -12.2% 4/22/2024 | -8.9% | -8.6% | -10.2% 1/29/2024 | 6.9% | 3.2% | 8.8% 10/23/2023 | 4.8% | 6.0% | 12.3% 7/24/2023 | 3.7% | 3.3% | 1.1% 4/20/2023 | 5.5% | -2.1% | -5.0% 1/26/2023 | 8.4% | 11.7% | 3.7% 10/20/2022 | 2.5% | 12.4% | 16.6% 7/21/2022 | 9.1% | 8.1% | 21.1% 4/21/2022 | 3.7% | -6.1% | -28.7% 1/27/2022 | 4.0% | 20.4% | 39.8% Statistic | 1D | 5D | 21D # Positive | 14 | 13 | 11 # Negative | 5 | 6 | 8 Median Positive | 4.7% | 5.4% | 10.3% Median Negative | -2.7% | -5.3% | -7.0% Max Positive | 9.1% | 20.4% | 39.8% Max Negative | -8.9% | -8.6% | -28.7% Does The First Move Carry On? Another approach is to wait for the initial reaction and ask whether it tends to continue. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. The strongest relationship over five years is between the 5D and the following 21 days, at 0.67 across 19 releases: the early move has tended to continue in the same direction. That is a tendency, not a rule, and it can break on any given report. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | 0.06 | 0.05 | 0.67 3 Years | 0.01 | 0.15 | 0.23 Is There Any Correlation With Peer Earnings? Steel Dynamics (STLD) usually reports a few days before Nucor, and reported this season on October 20, 2026; its stock fell 0.3% the next day. The table compares Steel Dynamics' one-day reaction to its own earnings with Nucor's one-day reaction to the report that followed. It covers the 12 quarters in which Steel Dynamics reported shortly before Nucor. The correlation is -0.04, close to zero: Steel Dynamics' reaction has told you little about how Nucor's stock would react. NUE Earnings Date | NUE 1D | STLD 1D 7/27/2026 | 7.2% | 1.3% 4/27/2026 | 4.7% | 3.3% 10/27/2025 | 5.4% | 5.2% 7/28/2025 | -2.7% | -1.7% 4/28/2025 | 1.9% | 4.0% 1/27/2025 | 3.8% | -0.4% 10/21/2024 | -6.5% | 4.0% 7/22/2024 | -1.1% | -0.7% 1/29/2024 | 6.9% | -0.5% 10/23/2023 | 4.8% | -0.3% 7/24/2023 | 3.7% | -3.0% 1/27/2022 | 4.0% | 2.3% Correlation | - | -0.04 Trading around earnings is a bet on a single event. If you want upside with a smoother ride than an individual stock such as NUE can offer, consider the Trefis High Quality (HQ) Portfolio: about 30 stocks selected for consistent cash generation, strong margins and resilient balance sheets, with a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

Newmont Corporation NEM reported third-quarter 2026 adjusted earnings of $2.2 per share, up 28.7% from $1.71 in the year-ago quarter. The figure topped the Zacks Consensus Estimate of $1.94 by 13.4%. Revenues rose 15.2% year over year to $6.36 billion, beating the Zacks Consensus Estimate of $6.01 billion by 5.9%. Higher realized gold prices supported sales growth, partly offset by lower gold volumes. Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote Newmont's attributable gold production in the third quarter of 2026 was approximately 1.3 million ounces, down 8.5% year over year. The figure surpassed our estimate of 1.26 million. The average realized price of gold rose approximately 22% year over year to $4,317 per ounce, but declined from $4,414 in the preceding quarter. The figure lagged our estimate of $4,427.6 per ounce. The company's CAS for gold on a co-product basis was $1,449 per ounce, up 22.3% year over year. The figure declined from $1,463 per ounce in the prior quarter. The figure was above our estimate of $1,337.6 per ounce. AISC for gold on a co-product basis increased 25.4% year over year to $1,963 per ounce. The figure was up from $1,938 per ounce in the preceding quarter. The figure exceeded our estimate of $1,961 per ounce. Net cash provided by operating activities increased 20.5% year over year to $2.77 billion from $2.3 billion. Free cash flow rose 22.4% to $1.91 billion from $1.56 billion in the prior-year quarter. Cash and cash equivalents totaled $8.83 billion at the end of September 2026, up 56.5% year over year. Debt stood at approximately $5.09 billion, down 1.8% from the year-ago level. Newmont ended the quarter with approximately $12.8 billion in total liquidity, including available revolving credit capacity. Its net cash position was approximately $3.2 billion, providing financial flexibility for capital investment and shareholder returns. Newmont remains on track to achieve its full-year 2026 attributable gold production guidance of approximately 5.26 million ounces. The company expects the fourth quarter to be its strongest production period of the year. Higher output is anticipated at Tanami, Cerro Negro, Ahafo North and Lihir. However, ongoing El Niño-related conditions affecting water availability at Lihir could impact production and costs. Newmont improved its full-year gold by-product CAS guidance to $925 per ounce and AISC guidance to $1,520 per ounce. Sustaining capital expenditures are projected at $1.35 billion, while development capital expenditures are expected to total $900 million. Shares of Newmont have gained 28.3% over the past year compared with the 9.1% rise in its industry. Image Source: Zacks Investment Research NEMcurrently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Basic Materials space are Reliance, Inc. RS, Cabot Corporation CBT and Avient Corporation AVNT. RS currently sports a Zacks Rank #1 (Strong Buy), while CBT and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here The Zacks Consensus Estimate for RS' 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 50.8% over the past year. The Zacks Consensus Estimate for CBT's current fiscal-year earnings is pinned at $6.35 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 4.56%.CBTshares have gained 4.2% over the past year. The Zacks Consensus Estimate for AVNT's fiscal 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM) : Free Stock Analysis Report Reliance, Inc. (RS) : Free Stock Analysis Report Cabot Corporation (CBT) : Free Stock Analysis Report Avient Corporation (AVNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Net Sales: Record quarterly net sales, up 43% year-over-year. - Non-GAAP Diluted EPS: $8.02, up 120% year-over-year; exceeded guidance range of $6.40$6.60. - Gross Profit: Second highest quarterly gross profit of $1.5 billion, up 12% sequentially and 41% year-over-year. - Gross Profit Margin: 27.9%, down 20 basis points sequentially due to higher LIFO expense and product mix from the U.S. Border wall project. - FIFO Gross Profit Margin: Non-GAAP FIFO margin expanded to 31.6% vs. 30.5% in Q2 2026 and 29% in the prior year quarter. - Tons Sold: Record quarterly tons sold, up 4.3% sequentially (including 3.7% from the U.S. Border wall project) and up 15.6% year-over-year vs. industry-wide increase of 10.1%. - Average Selling Price: Up 8.2% sequentially, significantly exceeding expectation of flat to up 2%. - LIFO Expense: Q3 LIFO expense of $187.5 million ($2.74 per share); full-year outlook raised to $450 million from prior $300 million estimate; Q4 expected at $112.5 million. - Non-GAAP SG&A Expense: Up 18% year-over-year; up just 2% on a per-ton basis. - Non-GAAP Pre-Tax Income: $544 million, more than double the prior year amount. - U.S. Border Wall Project Contribution: $0.74 per share in Q3, exceeding expectation of ~$0.60; added 40 basis points to pre-tax income margin. - Cash Flow from Operations: $212 million, improved sequentially despite significant working capital build. - Capital Expenditures: $79 million funded in the quarter; full-year 2026 outlook ~$300 million. - Capital Returns: $64 million in dividends paid and $45 million of shares repurchased at ~$395 average price; repurchase authorization increased to $2.5 billion. - Total Debt: $1.6 billion; net debt to EBITDA ratio of 0.8 times. - Q4 2026 Guidance: Non-GAAP diluted EPS of $7.40$7.60, including ~$1.64 per share of LIFO expense and ~$0.70 per share from the U.S. Border wall project. - End Market Mix (Q3 Sales): Nonresidential construction a little more than one-third; general manufacturing about one-third; aerospace 8%; automotive about 4%. - Warning! GuruFocus has detected 9 Warning Signs with RS. - Is RS fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Reliance Inc (NYSE:RS) delivered record quarterly net sales, second highest gross profit dollars, and third highest quarterly EPS, with non-GAAP diluted EPS of $8.02, up 120% year-over-year. - Record quarterly tons sold increased 4.3% sequentially and 15.6% year-over-year, outperforming the industry-wide increase of 10.1% reported by the Metal Service Center Institute. - Average selling price increased 8.2% sequentially, significantly exceeding guidance of flat to up 2%, driven by tight supply and healthy demand for carbon steel products. - The U.S. Border wall project contributed $0.74 per share in Q3, exceeding expectations, and is expected to contribute approximately $0.70 per share in Q4, with Phase 2 bookings already over half secured. - Strong balance sheet with net debt to EBITDA of 0.8 times, ample liquidity, and a new $2.5 billion share repurchase authorization, supporting continued capital returns and growth investments. - LIFO expense was significantly higher than anticipated at $187.5 million for Q3 versus the $75 million estimate, and full-year LIFO expense outlook increased to $450 million from $300 million, creating a $1.64 per share headwind. - Gross profit margin decreased 20 basis points sequentially to 27.9% due to increased LIFO expense and the dilutive impact of the U.S. Border wall project. - Non-GAAP SG&A expense increased 18% year-over-year, driven by higher incentive compensation, inflation, and freight costs, partially offsetting operating leverage. - Supply constraints for certain products, including carbon plate, hot rolled coil, wide flange beams, and heat-treated aluminum plate, could limit future organic growth. - Fourth quarter guidance implies a sequential decline in volumes due to normal seasonality and fewer shipping days, with potential for more muted seasonal decline if customers remain open longer. Q: Can you discuss the sustainability and timeline of the U.S. Border Wall project, including Phase 1 and Phase 2? A: CEO Karla Lewis explained that Phase 1, valued at $1.45 billion, is expected to be fulfilled by sometime in Q2 2027 at the current run rate. The company has also started receiving bookings for Phase 2, securing orders for over half of the estimated $800 million. Depending on the government's execution of the full Phase 2 amount, the project could run into early 2028. CFO Arthur Ajemyan added that year-to-date through Q3, plus the Q4 guide, puts the company roughly halfway through Phase 1. Q: With customer optimism high, how should we think about Reliance's organic growth outpacing the industry into 2027? A: CEO Karla Lewis stated that while it's difficult to look that far out, the company expects demand to remain healthy. However, organic growth could be constrained by supply availability next year. She noted that Reliance should be able to get enough supply from producers to continue outpacing the industry, but acknowledged the company faces high hurdles compared to the prior year. She remains confident in continued market share gains due to the motivation of field teams. Q: What is driving the better-than-expected volume performance in the border wall project, and is it being pulled forward? A: CEO Karla Lewis clarified that the project, which began shipping in April, has ramped up to a steady flow. The company relies on suppliers to ship metal and then releases it to government subcontractors as instructed. She noted there has been no major disruption and believes the current run rate is a good estimate based on the contract's activity, rather than volume being pulled forward. Q: Can you quantify the SG&A leverage excluding the border wall project and discuss the potential for future leverage? A: CFO Arthur Ajemyan noted it is difficult to quantify precisely because the project utilizes existing infrastructure, but its contribution to SG&A leverage is meaningful. CEO Karla Lewis added that the company was already seeing leverage from organic volume growth before the border wall tons. She highlighted that these gains are partially offset by higher incentive compensation due to improved profitability, as well as inflation in freight, fuel, and medical costs. Q: Given the tight supply environment, is there an increasing propensity to use imported steel for customers without "Made in America" requirements? A: COO Stephen Koch stated that Reliance has always tried to buy the majority of its material domestically to support U.S. manufacturing and control lead times. While the company does bring in some material for traditional import markets like the West Coast and Gulf region, it remains committed to its domestic supplier partnerships. CEO Karla Lewis added that while some imports will occur, the market is not ripe for a flood of inventory due to high freight costs and global uncertainties. Q: Which specific carbon steel products are lagging in pricing, and what is the outlook for the stainless steel market? A: COO Stephen Koch stated that pricing for most carbon products is moving up, and the company is bullish on the category. Regarding stainless steel, he noted that commodity grades are holding their own and specialty grades appear to have hit the bottom, with the company now restocking for its customer base. CFO Arthur Ajemyan added that the stainless market has not seen the same price appreciation as carbon and aluminum, though the semiconductor business is picking up. Q: What is the company's appetite for pursuing similar large-scale opportunities like the border wall contract? A: CEO Karla Lewis stated that the border wall project is larger than anything the company has seen before. She noted that Reliance would look at other opportunities with a similar profilewhere the company can leverage its existing infrastructure and capabilities to service the project well. She added that Reliance is open to doing more business like this if the opportunities arise and fit the company's financial metrics. Q: Can you provide an update on inventory positioning and working capital given the current supply constraints? A: CEO Karla Lewis expressed comfort with current inventory levels, noting the company is focused on turning inventory. CFO Arthur Ajemyan added that inventory turns are up 10% year-over-year, a meaningful improvement. He noted that without these working capital improvements, inventory levels would be over $300 million higher. COO Stephen Koch added that with extended lead times, the company is being conservative and buying what is needed to match customer demand without over-ordering. Q: What is driving the improvement in SG&A as a percentage of sales, which hit a four-year low? A: CFO Arthur Ajemyan attributed the improvement to a combination of factors. He noted that higher selling prices provide tremendous operating leverage. Additionally, the company is leveraging its existing infrastructure to handle increased volumes without adding significant incremental fixed costs. This combination of higher pricing and volume-driven operating leverage is supporting the overall improvement in the business. Q: Where specifically is Reliance seeing market share gains in 2026, and why is the company winning? A: CEO Karla Lewis stated that the gains are fairly broad-based, especially on the carbon side, including flat rolled, plate, and long products. She noted that Reliance had historically been underrepresented in some flat roll markets compared to industry consumption. She attributed the success to the teams balancing volume gains with profitability and winning business through high levels of customer service and providing solutions to customers. Q: Are there indications that the fourth quarter will see a more muted seasonal decline than usual? A: CEO Karla Lewis noted that given the strength of the market and customer optimism, there is potential for a more muted decline if customers stay open longer during the holidays, provided metal is available. However, the company's best estimate is generally normal seasonality. CFO Arthur Ajemyan added that while sequential volumes typically decline in Q4 due to fewer shipping days, the year-over-year growth is expected to be over 5%, which is the more important metric to focus on. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Dow Inc. DOW reported third-quarter 2026 adjusted earnings of 71 cents per share, reversing the year-ago loss of 19 cents per share. The improvement was mainly driven by higher prices and benefits from the company's self-help initiatives, which more than offset higher raw material and logistics costs. It beat the Zacks Consensus Estimate of 64 cents. Net sales rose 13% year over year to around $11.27 billion, beating the Zacks Consensus Estimate of $11.26 billion. Local prices increased 14%, while volume declined 1%, reflecting continued impacts from the Middle East conflict, particularly in Asia Pacific. Currency was flat year over year. Including significant items, primarily costs associated with the company's self-help initiatives, Dow reported GAAP earnings of 62 cents per share compared with earnings of 8 cents in the year-ago quarter. Significant items reduced third-quarter 2026 earnings by 9 cents per share. GAAP net income increased to $525 million from $124 million a year ago. Operating EBIT rose to $887 million from $180 million, while operating EBITDA increased to $1.55 billion from $868 million. Higher integrated margins, favorable pricing and productivity benefits supported the improvement despite higher input costs. Dow Inc. price-consensus-eps-surprise-chart | Dow Inc. Quote Packaging & Specialty Plastics' sales rose 18% year over year to $5.78 billion. Local prices increased 17%, driven by gains across both businesses in EMEAI and the United States and Canada. Volume increased 1%, primarily reflecting growth in EMEAI. Operating EBIT increased $386 million year over year to $585 million, supported by higher polyethylene prices and self-help benefits, partly offset by increased planned maintenance activity. Industrial Intermediates & Infrastructure's sales increased 8% year over year to $3.06 billion. Local prices rose 16%, while volume declined 7% due to weaker demand in Polyurethanes & Construction Chemicals, including impacts from the Middle East conflict. Growth in Industrial Solutions partially offset the decline. Operating EBIT improved to $176 million from a loss of $47 million a year ago, supported by higher margins, self-help benefits and the suspension of recognizing equity losses from Sadara. Performance Materials & Coatings' sales advanced 8% year over year to $2.25 billion. Local prices increased 5%, while volume grew 3%, driven by gains across both businesses, particularly downstream silicones. Consumer Solutions benefited from stronger demand across consumer, electronics and home care applications, while Coatings & Performance Monomers recorded higher acrylic monomers and architectural coatings prices and volumes. Operating EBIT increased $74 million year over year to $154 million, aided by pricing gains, higher volumes and cost savings. Cash flow from operating activities for continuing operations reached $1.84 billion, up $709 million year over year and $515 million sequentially. The improvement reflected higher earnings and better working capital management. Free cash flow totaled $1.1 billion, while trailing 12-month cash flow conversion reached 84%. Cash and cash equivalents stood at $4.14 billion as of Sept. 30, 2026, compared with $3.82 billion at the end of 2025. Dow released more than $400 million in working capital during the quarter and reduced debt by approximately $600 million year to date. Shareholder returns through dividends totaled $253 million during the quarter. Dow remains on track to deliver $700 million in growth and productivity benefits from its Transform to Outperform program in 2026. Management expects approximately $2 billion in total uplift from the initiative by the end of 2027. Benefits from the company's three planned European asset shutdowns are also expected to build through 2027. The company expects its collective self-help initiatives to generate more than $1 billion in EBITDA uplift in both 2026 and 2027. Management plans to prioritize growth and innovation in higher-value applications, including AI infrastructure, home and personal care, electronics, flexible packaging and mobility. Dow also intends to strengthen its cost competitiveness by investing in differentiated low-cost operations while shutting down higher-cost upstream capacity. DOW shares have gained 23.9% in the past year compared with the industry's 2.3% growth. Image Source: Zacks Investment Research DOW currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Basic Materials space are Reliance, Inc. RS, Cabot Corporation CBT and Avient Corporation AVNT. RS currently sports a Zacks Rank #1 (Strong Buy), while CBT and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here The Zacks Consensus Estimate for RS' 2026 earnings is pegged at $23.7 per share, indicating a 66.2% year-over-year surge. RSshares have gained 53.9% over the past year. The Zacks Consensus Estimate for CBT's current fiscal-year earnings is pinned at $6.35 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 4.56%. CBTshares have gained 3.8% over the past year. The Zacks Consensus Estimate for AVNT's fiscal 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dow Inc. (DOW) : Free Stock Analysis Report Reliance, Inc. (RS) : Free Stock Analysis Report Cabot Corporation (CBT) : Free Stock Analysis Report Avient Corporation (AVNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Record quarterly net sales and high profitability were driven by a favorable market environment of healthy demand and tight supply, particularly for carbon steel. - The company outperformed the industry with a 15.6% year-over-year increase in tons sold, compared to the industry-wide increase of 10.1% reported by the MSCI. - Strategic positioning with domestic mill partners allowed Reliance to secure inventory and capitalize on extended lead times and rising pricing levels. - The U.S. Department of Homeland Security border wall contract provided a meaningful contribution, contributing 3.7 percentage points to the 4.3% total sequential shipment growth. - Operational leverage improved as average selling prices increased 8.2% sequentially, significantly exceeding the initial expectation of flat to up 2%. - Management attributes market share gains to high customer service levels and the ability to provide solutions in a volatile supply environment. - Fourth quarter guidance assumes normal seasonal patterns and holiday shutdowns, though year-over-year growth is expected to remain strong at over 5%. - The border wall project is expected to run through 2027, with Phase 2 bookings already exceeding half of the estimated $800 million value. - Capital expenditure for 2026 is projected at approximately $300 million, with 50% dedicated to strategic growth and enhanced processing capabilities. - Management anticipates continued momentum in the semiconductor market, supported by accelerating data center activity and related infrastructure needs. - Organic growth in 2027 may be tempered by supply availability, though Reliance expects to continue outpacing the industry through its domestic supplier relationships. - LIFO expense for the third quarter was $187.5 million, significantly higher than the $75 million estimate due to carbon steel costs rising more than anticipated. - The border wall project is gross margin dilutive but pretax income margin accretive due to its lower-than-average operating cost per ton profile. - A new share repurchase authorization of $2.5 billion was approved in October 2026, reflecting a disciplined approach to capital return. - SG&A expenses increased 18% year-over-year, primarily due to higher incentive compensation linked to improved profitability and inflationary pressures on freight and fuel. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management believes the project has reached a steady run rate in Q3 and expects Phase 1 to conclude in mid-2027. - Phase 2 is already seeing bookings and could extend the project's contribution into early 2028 depending on government execution of the full amount. - Tightness is most acute in carbon plate, hot-rolled coil, specialty wide flange beams, and heat-treated aluminum plate for aerospace and semiconductors. - Reliance is prioritizing long-standing customers and utilizing domestic mill relationships to navigate these constraints. - While some imports are used in traditional markets like the West Coast, management remains committed to a domestic-first sourcing model. - High freight costs and geopolitical uncertainty make a 'flood' of import inventory unlikely despite the price gap between domestic and international steel.

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - President and Chief Executive Officer - Karla Lewis - Executive Vice President and Chief Operating Officer - Stephen Koch - Senior Vice President and Chief Financial Officer - Arthur Ajemyan Operator: Greetings, and welcome to the Reliance, Inc. Third Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. [Operator Instructions] It's now my pleasure to turn the call over to Kim Orlando with ADDO Investor Relations. Kim, please go ahead. Kimberly Orlando: Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's Third Quarter 2026 financial results. I am joined by Karla Lewis, President and Chief Executive Officer; Steve Koch, Executive Vice President and Chief Operating Officer; and Arthur Ajemyan, Senior Vice President and Chief Financial Officer. A recording of this call will be posted in the Investors section of our website at investor.reliance.com. Please read the forward-looking statements disclosure included in our earnings release issued yesterday and note that it applies to all statements made during this teleconference. Reconciliations of the non-GAAP measures are included in the non-GAAP reconciliation section of our earnings release. I will now turn the call over to Karla Lewis, President and CEO of Reliance. Karla Lewis: Good morning, everyone, and thank you for joining us to discuss our third quarter 2026 results. Reliance delivered an exceptional quarter with record quarterly net sales, our second highest gross profit dollars, and our third highest quarterly earnings per share. Reliance capitalized on a favorable market environment characterized by continued healthy demand and tight supply leading to increased pricing levels for most carbon steel products. Our long-term strategy of supporting both our valued customers in our key domestic mill partners positioned us particularly well to benefit from these dynamics. Our scale, product diversification, expansive value-added processing capabilities, and ability to source the inventory our customers need, led by the strong execution of our teams in the field drove our exceptional results. The U.S. Department of Homeland Security border wall contract we were awarded earlier this year continued to ramp and delivered another meaningful contribution to our third quarter earnings. Our smart, profitable growth strategy, once again, produced record quarterly tons sold, contributing to non-GAAP diluted earnings per share of $8.02, up 120% year-over-year. Our strong balance sheet and ample liquidity continue to provide us the means and flexibility to concurrently invest in our businesses, pursue strategic growth investments and return capital to our stockholders. Our full year 2026 capital expenditure outlook remains approximately $300 million, with about half allocated to strategic growth investments that enhance our processing capabilities, strengthen customer service, expand our footprint and increase volumes in attractive markets. And we continue to evaluate acquisition opportunities and stand ready to execute the right opportunities quickly. During the quarter, we funded $79 million of capital expenditures, paid $64 million in dividends and repurchased $45 million of our common stock at an average price of approximately $395 per share. On October 20, our Board of Directors increased our share repurchase authorization to $2.5 billion without a set expiration date, further supporting our disciplined approach to returning capital to our stockholders. Since 2021, we have repurchased $3.4 billion of Reliance common stock at an average price of approximately $236 per share, reducing our outstanding common shares by 23% in that period. Looking ahead, we believe Reliance is very well positioned as customer optimism remains high and strengthens across infrastructure, semiconductor, general manufacturing, and aerospace. Together, our proven business model, outstanding team and current market dynamics give us confidence in our ability to gain market share and invest through cycles to continue driving profitable growth and strong stockholder returns through the remainder of the year and into 2027. I'll now turn the call over to our COO, Steve Koch. Stephen Koch: Thanks, Karla, and good morning, everyone. Our outstanding third quarter results reflect Reliance's ability to capitalize on favorable market conditions. This performance will not be possible without the relentless efforts of our teams across the Reliance family of companies. I want to thank each of them for their unwavering commitment to our customers and the safety of our employees. Turning to our demand and pricing trends. The strength of the market was evident in our shipment volumes, which increased sequentially despite normal seasonal patterns and constrained material availability. Record tons sold increased 4.3% from the prior quarter, including a 3.7% contribution from the U.S. border wall project. Our third quarter year-over-year growth in tons sold of 15.6% outperformed the industry-wide increase of 10.1% reported by the Metals Service Center Institute. Carbon steel products continue to lead our tons sold growth. Our third quarter average selling price increased 8.2% from the second quarter of 2026, significantly exceeding our expectation of flat to up 2%. Pricing for all commodities, particularly carbon steel products, increased during the quarter in a constrained supply, extended lead times, and strengthening demand. These dynamics highlight the value of our strong domestic mill relationships and reliable access to metal, which differentiate Reliance in a tight supply environment. Turning to our end markets. Nonresidential construction represented a little more than 1/3 of our third quarter sales, primarily from carbon steel tubing, plate, and structural products. Third quarter shipments remained strong despite supply constraints, driven by sustained strength in data center and related energy infrastructure projects alongside solid demand in heavy civil and public infrastructure. Our participation in the U.S. border wall project further strengthened our presence in the public infrastructure sector of the nonresidential construction market. General manufacturing represented about 1/3 of our third quarter sales. Our participation spans a diverse range of products, industries, and geographies. Shipments showed strong year-over-year growth, driven by industrial machinery, including data center equipment, as well as shipbuilding, military, and construction machinery. Aerospace products accounted for approximately 8% of our third quarter sales. Commercial aerospace demand improved during the quarter with continued progress in OEM build rates and growing backlogs, though elevated inventories persist. Defense and space-related activity remained strong during the quarter. Automotive, which we primarily serve through our toll processing operations, represented about 4% of our third quarter sales. And as a reminder, our toll processing volumes are excluded from our tons sold. Demand improved compared to the prior year as our flexible toll processing operations quickly adapted to the variable demands of the automotive market. Lastly, demand in the semiconductor market strengthened meaningfully. We're seeing momentum accelerate, supported by increased data center activity. In summary, Reliance continues to distinguish itself through our people, our domestic mill relationships, and our relentless focus on delivering unmatched customer service. Against the backdrop of tight supply and continuing market volatility, our teams remain nimble in adjusting our approach while prioritizing support for our long-standing customers and their metal needs. The strategic investments we've made across our footprint are generating tangible returns, and our dynamic commercial and operational approach continues to drive the market outperformance and profitability that further distinguish us. I will now turn the call over to our CFO, Arthur, to review our financial results and outlook. Arthur Ajemyan: Thanks, Steve, and thanks, everyone, for joining today's call. We delivered a very strong quarter with sales up 43% year-over-year, driven by better-than-anticipated shipments and pricing. As a result, non-GAAP earnings per diluted share of $8.02 significantly exceeded our guidance range of $6.40 to $6.60 despite considerably higher-than-anticipated LIFO expense. On a per share basis, LIFO expense was $2.74 compared to the $1.10 included in our guidance, representing an incremental $1.64 per share headwind. We generated our second highest quarterly gross profit of $1.5 billion, up 12% compared to the second quarter of 2026 and up 41% compared to the third quarter of 2025. Gross profit margin of 27.9% decreased 20 basis points sequentially due to increased LIFO expense associated with carbon steel costs rising significantly more than anticipated and the product mix impact of the U.S. border wall project. On a FIFO basis, non-GAAP gross profit margin expanded to 31.6% compared to 30.5% in the second quarter of 2026 and 29% in the prior year quarter despite a roughly 60 basis point year-over-year reduction attributable to the U.S. border wall project. However, due to the project's below-company-average operating cost per ton profile, it added 40 basis points to pretax income margin. Gross profit dollars per ton remained historically strong for aluminum products and continue to increase across carbon and stainless steel products. With respect to LIFO outlook and true-up, we increased our full year LIFO expense outlook to $450 million from our prior year estimate of $300 million and recorded third quarter LIFO expense of $187.5 million, well above our estimate of $75 million, reflecting the year-to-date catch-up impact of our higher full year LIFO estimate. Based on our updated outlook, we expect to record LIFO expense of $112.5 million in the fourth quarter of 2026. At the end of the third quarter, the LIFO reserve on our balance sheet was nearly $890 million, which remains available to support future operating results by partially mitigating the impact of future metal price declines. Non-GAAP SG&A expense increased 18% compared to the third quarter of 2025, driven by higher incentive compensation from improved profitability, inflationary impact on compensation and related employee benefits, freight and fuel cost inflation and higher variable warehousing and delivery costs associated with our increased tons sold. On a per ton basis, non-GAAP SG&A expense increased just 2%, reflecting favorable operating leverage from higher shipment volumes, including contributions from the U.S. border wall project. Continued market share gains, higher shipment volumes, and increased gross profit dollars drove meaningful operating leverage, resulting in non-GAAP pretax income of $544 million, more than double the prior year amount. As noted, our non-GAAP earnings per diluted share grew 120% year-over-year to $8.02, with the U.S. border wall project contributing $0.74 per share, exceeding our expectation of approximately $0.60 per share. Moving on to our balance sheet and cash flow. Cash flow from operations in the third quarter improved sequentially to $212 million, despite a significant working capital build attributable to increased shipments and higher metal pricing. Our total debt was $1.6 billion at the end of the quarter. Our balance sheet and leverage profile remained very strong with a net debt-to-EBITDA ratio of 0.8x, providing substantial liquidity and flexibility to continue executing on all of our capital allocation priorities. Looking ahead to the fourth quarter, we expect healthy demand and tight supply across our key products and end markets will continue, subject to ongoing risks from domestic and international trade policy and geopolitical conditions as well as normal seasonality. We anticipate fourth quarter 2026 non-GAAP earnings per diluted share in the range of $7.40 to $7.60, including an estimated $112.5 million of LIFO expense or about $1.64 per diluted share. This outlook also includes approximately $0.70 of earnings per share from shipments associated with the U.S. border wall project at pretax income margin levels above the company average. Please refer to our third quarter earnings release for further details on our fourth quarter outlook. This concludes our prepared remarks. Thank you again for your time and participation. And we'll now open the call for your questions. Operator? Operator: [Operator Instructions] Our first question today is coming from Katja Jancic from BMO Capital Markets. Katja Jancic: Starting on the border wall. So it's outperformed expectations on the volume side for this quarter. Can you talk about what's driving that? In other words, is the volume being pulled forward? Or how should we think about it? Karla Lewis: On the border wall, this is a new project for us. It started -- we started shipping under it in April, and the government issues -- we have to first rely on our suppliers who are supporting us to ship the metal to us, and then we release to the government subcontractors as they instruct us to do so. And there could be variability, of course, but it really ramped, and we feel we're at a pretty steady flow now through Q3 where we had a full quarter. So we're just supplying and the subcontractors, everything has been flowing well. We haven't seen any major disruptions. So we think this is a good run rate for us based upon the contract and the activity under the contract. Katja Jancic: And then you mentioned some supply constraints that the industry is dealing with right now. Are there specific products that are more challenging to get for you or you can get across the board without major issues? Karla Lewis: Yes. I mean I think the whole industry supply is tight in many products. Steve will speak a little more specifically on where we're seeing more tightness than others. But that's generally good market environment for Reliance, as I think you saw in our results and our outlook. And our people are working really hard to source the metal that our customers need and make sure we're taking care of our longtime, valued customers, also appropriately allocating our metal the way that our suppliers are doing with their customers. Stephen Koch: Yes, Katja, I just want to go back to your question regarding the border wall. In this time of real tightness and unprecedented demand, I have to complement our domestic suppliers who are using their flat-rolled material, turning it into a tube, so we can deliver on time and maybe even ahead of schedule. So there are some carbon products that are constrained, but we're getting what we need: Carbon plate, hot-rolled coil and specialty wide flange beams, and aluminum plate heat treated. It goes into aerospace, and semiconductor and general engineering has been tight. But again, our domestic suppliers have done a great job for us. Operator: Next question is coming from Nick Cash from Goldman Sachs. Nicklaus Cash: On the ex-border wall shipments of 4% to 6% year-over-year, a lot of you guys have also mentioned customer optimism across a majority of end markets. As you look into '27, should we think about this pace of organic growth continuing to outpace the industry by several points? Or I guess, are current levels benefiting from unusually tight supply and elevated project activity resulting in further tailwinds for you guys? Karla Lewis: Nick, a little difficult given all the varying factors to look out that far. And we have had very strong organic growth, I think, partly because of where we're positioned with the different products, the different end markets and even within the broad end markets, specifically which parts of those end markets that we participate in. And given the customer optimism, their backlogs that we're hearing about, we expect demand to remain healthy. Organic growth, though, could be tempered by supply availability next year given tight supply, although we do feel that we will -- that we should be able to get enough supply from the producers to be able to continue to outpace the industry, but we do have some pretty high hurdles to compare to next year. But we think there's still a lot of opportunity for Reliance, and we think that our teams in the field, they're motivated, they like to grow, and they like to win, and we think we'll continue to see market share gains. Nicklaus Cash: That's extremely helpful. And I guess, one more follow-up sort of [ involvement ] on that basis. But I guess the border wall project is gross margin dilutive, but pretax margin accretive, like you said, because the operating cost per ton is below the company average. Are you able to help quantify or help us understand the underlying SG&A leverage, excluding the project, I guess, how much additional leverage is available if organic shipments continue to improve? Arthur Ajemyan: Yes, Nick, it would be a little difficult because we're using existing infrastructure. Yes, but the contributions are only -- to SG&A leverage is meaningful from that project. And I mean, I think you can make some certain deductions from the disclosures that we've provided to come up with an estimate on your own, but certainly, it's a meaningful contribution. Karla Lewis: And I think, Nick, even in 2025 and the beginning of 2026, as we were organically growing our tons, you could see some leverage that we were picking up before we had the additional border wall tons on the SG&A line. But there are some factors from an SG&A perspective, which we've got higher incentive compensation expense because our profitability is higher. And we're highly structured to be paid for performance. And so we're seeing increased expense there. And then also with the significant increases in freight and fuel cost and just regular inflation on medical costs and things like that, we're trying to offset that with some of those volume gains. Operator: Your next question today is coming from Martin Englert from Seaport Research Partners. Martin Englert: I had a question. I think the volume guide for 4Q implied something at the midpoint around sequential, and that roughly seems to align with the 5-year average. Are there any indications from customers that there could be a more muted seasonal decline this 4Q versus a normal year? Karla Lewis: I mean I think given the strength of the market and the customer optimism, we just talked about, Martin, I think if metal's available, that is -- there is potential if our customers are busier. As we've talked about, I think, every year in the fourth quarter, we're never certain how long some of our customers are going to shut down over the holidays. So if they choose to stay open more days than they have the last few years, we might see a more muted shipment level. But our best estimate at this time is generally normal seasonality. Arthur Ajemyan: And Martin, and when we talk volumes, we often lead with sequential numbers and in 3 out of 4 quarters, it's a downward trend, but what gets lost is the year-over-year growth. So when you, sort of, step back and look at year-over-year growth, Q4 of this year versus last, you're looking at 5%-plus growth. So I think that's the lens that I would use to look at this and not so much the sequential decline, and is that seasonality or not? I just -- fourth quarter has less shipping days and more holidays. So you're always going to have a decline. So anyway, I think we're more focused on the year-over-year growth part. Martin Englert: Okay. That's all I had. Congratulations on the results. Operator: Your next question is coming from Samuel McKinney from KeyBanc Capital Markets. Samuel McKinney: I'm going to follow up on Nick's question. Just fighting the inflationary headwinds, the third quarter SG&A as a percent of sales was the lowest quarterly number you posted in 4 years. Is this solely a function of the lower cost to serve on the border wall contract that saw higher volumes this quarter? Or are you realizing other operational cost benefits within the business to highlight? Arthur Ajemyan: Well, pricing is a big part of that, right? So when you look at it as a percentage of sales as a business, we get tremendous operating leverage when we sell at higher prices. So that's one. And then to the extent that we leverage our infrastructure and increase our volumes without adding too much incremental fixed costs, then that's where we get that operating leverage from incremental volumes. So it's a combination. So you have both of those factors playing out and supporting the improvement in the operating leverage that the business is getting. Samuel McKinney: Okay. And then based on the reported commodity revenues and volumes, third quarter implied stainless pricing was up meaningfully versus the second quarter. Can you just talk about those dynamics and what you expect to see in that arena moving forward. Arthur Ajemyan: Stainless, there's a little bit of a mix impact there. We have our semiconductor business is picking up, and the products that they sell, the average selling price is significantly higher just because of the value-added processing that we do there. But yes, overall, I mean, stainless is across the commodities hasn't been -- has not had similar types of price appreciation as carbon and aluminum. Stephen Koch: Although we're seeing the commodity stainless prices kind of hold their own and the specialty stainless grades, we think that they've hit the bottom, and we're in the restocking for our customer base. Operator: [Operator Instructions] Our next question today is coming from Bennett Moore from JPMorgan. Bennett Moore: Congrats on the strong quarter. Just in, I guess, the context of the border wall contract, I'm wondering what your appetite is to pursue similar opportunities, and frankly, if there are similar opportunities out there that could align with this? Karla Lewis: Bennett, the border wall project is larger than anything we've seen before. I don't know of many other projects of that size for service center-type business that are out there. We're very happy that we were awarded this contract, and it fit our profile of the capabilities we have, along with kind of our financial metric profile that it was -- we looked at it as a very strong piece of business for Reliance to be able to service, and we would look at other opportunities the same way. It's not just about size, it's about what do they need? Can we service that well? The border wall, as we mentioned, we were able to leverage our existing infrastructure. We do service various different types of projects out there, including a lot on the military side, and we continue to look at those opportunities as they're available. And we certainly would do more business like this if the opportunities were there, and the profile fit. Bennett Moore: And then on the inventory side, it looks like the turn rose a bit for this quarter, got some limited availability from your mill suppliers. Just wondering if you could speak to the company's inventory positioning looking ahead here. Karla Lewis: Yes. I mean, we feel good about where our inventory levels are. We always are focused on turning our inventory, and there has been a focus over the last couple of years, too, of really looking at any inventory that's maybe been where we've been a little over-inventoried and how to adjust that. But certainly, a tight market helps improve inventory turns, but we're comfortable at the levels where we are. Stephen Koch: Yes. As lead times are extended, we're keeping a close eye. We're making sure that we're not over-ordering, double ordering. Prices are at pretty high levels. So we're going to keep our conservative nature, continue to buy locally, buy regionally, and buy what we need to, trying to match customer demand. Arthur Ajemyan: And just a little bit more color on overall working capital. I mean, while the total dollars, the investments in working capital, have been significant this year, our working capital metrics actually have improved year-over-year, and particularly on inventory to Karla's and Steve's point, our turns are up 10% year-over-year, and that's a meaningful impact to working capital investments. So to put it another way, our inventory levels would have been over $300 million more had we not had the inventory turn and working capital metric improvements that we've had this year. So a lot of good work has gone on that end throughout the entire enterprise. Bennett Moore: That's a great context, Arthur. And then if I could just squeeze one real quick. You guys talked about rising pricing for most carbon steel products. So just kind of wondering which buckets may be lagging behind a bit. Stephen Koch: Most -- or pretty much all of the carbon requests are moving up. So just some -- maybe a little bit outsized compared to others. But we're pretty bullish and positive on the carbon products. Operator: Your next question is coming from Lawson Winder from Bank of America. Lawson Winder: Thank you for today's presentation and of course, for fitting me in. If I could just follow up on the border wall question. Thank you for the color around that and the fact that you believe it is starting to hit its run rate. What about sustainability? How should we think about how long that business can sustain those Q3 run rate? Karla Lewis: So as we mentioned and when we first announced the border wall project earlier this year, there was Phase 1 of the border wall which the award was on -- based on dollar amounts and these are fully approved funding levels by the government. Phase 1 was $1.45 billion, which we are executing under right now. The initial expectation was for that to run through Q2 2027. And at the run rate we're at, we think sometime in Q2, we'll fulfill the first phase of this. The second phase of the project was $800 million, but that had not been secured or fully executed at the time, although we have felt that the probability is high, is that the government would execute Phase 2. And we have -- although still in progress, we have started to receive bookings under Phase 2, so we're at over half of the estimated $800 million Phase 2 with orders already secured for over half of that. So we think this should run through 2027, depending if they execute the full amount of Phase 2, it could run into early 2028. Arthur Ajemyan: And just a little bit more color on Phase 1, as Karla said. So when you look at year-to-date through Q3 and factor in our Q4 guide for the border wall contributions that will probably put us roughly halfway through the Phase 1 And again, depending on the run rate and how fast the supply chain is able to absorb the quantities and install at that run rate that takes us through a mid-2027-ish to wrap up Phase I. Lawson Winder: Okay. Wow, first of all, yes, that's very helpful. Just following up on a comment, sort of, tangentially picking up on something you said there. So obviously, the border wall, that all has to be American-made steel. But I mean given the supply constraints that you're seeing in the market, is there an increasing propensity to consider imported steel for those customers where made in America isn't necessarily a requirement? Stephen Koch: So we've always tried to buy the majority of our material domestically for reason we want to support U.S. manufacturing. We want to be able to control our inventory lead times. There are some traditional import markets, the West Coast on flat-rolled, the Gulf region, we've brought some material in, whether it's long products or flat rolled. There are opportunities out there, but we're all in with our domestic suppliers. We work with them side by side, and we're going to continue with our business model. There are certain areas where we do have to bring in certain materials, but we're going to kind of stay the course. Karla Lewis: And I think, Lawson, on a broader industry perspective, while you can just look at the price and see the numbers and maybe say it would make sense to start to see a lot more import come in. I think industry-wide people are more hesitant to do that. There's risk with the time involved, there are a lot of higher costs for freight right now, uncertainty because of some of the events going on in the world. So we believe people are being more thoughtful and that there will be some import material brought in, including by us, as Steve said, but we don't believe that the market is ripe for a flood of inventory at this point. Lawson Winder: Thank you very much for that color. And then if I could just follow up on one, sort of, bigger question. So you continue to highlight market share gains. I mean, it's core to your strategy. But nevertheless, I think it just might be helpful to get your thoughts on specifically where you're seeing those gains in 2026. And then why in 2026 is Reliance winning share? Karla Lewis: Well, I think, Lawson, 2025, we had some pretty outsized share gains as well. There are pockets I think on a lot on the carbon side, carbon flat-rolled, also in some of the other commodities from a flat-rolled perspective. Historically, we had been a little underrepresented in some of those markets compared to industry consumption. So we saw some pickup there, but fairly broad-based, especially like I said, on the carbon side, plate, long products, really just encouraging our teams. And it's not just about tons gains, it's also balancing with the profitability and going after the right pieces of business. And we think our teams have been doing a very good job of balancing that. And we hope that we're winning business because of our high levels of customer service and really being able to provide solutions to our customers and helping them. Operator: We reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments. Karla Lewis: Once again, we would like to thank everyone for joining us today and continuing to support Reliance. As we mentioned earlier, we're very thankful to our teams across Reliance, all of our Reliance family members who make it happen every day and keep our people safe. We appreciate all of your efforts. And we're excited about the opportunities ahead, and we look forward to updating you on our continued progress. So thanks, everyone, and goodbye. Operator: Thank you. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Reliance (RS) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in Reliance, Inc.? Here are five stocks we like better. - Record third-quarter performance: Reliance reported record net sales, with non-GAAP diluted EPS of $8.02, up 120% year over year and above its guidance range. Tons sold rose 15.6% year over year, while average selling prices increased 8.2% sequentially amid tight supply and healthy demand. - Border wall contract boosted earnings: The project contributed $0.74 per share to third-quarter earnings and is expected to generate about $0.70 per share in the fourth quarter. Reliance expects to complete the $1.45 billion first phase in the second quarter of 2027 and has booked more than half of a potential $800 million second phase. - Strong outlook despite higher LIFO costs: Reliance raised its full-year LIFO expense outlook to $450 million, pressuring reported margins, but maintained solid cash flow and leverage metrics. Fourth-quarter adjusted EPS is expected at $7.40–$7.60, supported by continued demand, tight supply and border wall shipments. - Why Sticky Services Inflation Could Lift These 3 Stocks Reliance (NYSE:RS) reported record quarterly net sales in the third quarter of 2026, supported by higher metal prices, increased shipment volumes and continued contributions from its U.S. Department of Homeland Security border wall contract. President and Chief Executive Officer Karla Lewis said the company delivered its second-highest quarterly gross profit dollars and its third-highest quarterly earnings per share. Non-GAAP diluted earnings per share reached $8.02, up 120% from a year earlier and above the company's prior guidance range of $6.40 to $6.60. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - Turning Trash to Cash: A $129M Bet on Waste "Reliance capitalized on a favorable market environment characterized by continued healthy demand and tight supply," Lewis said, pointing to increased pricing for most carbon steel products and the company's relationships with domestic mills. Chief Operating Officer Steve Koch said third-quarter tons sold reached a company record, rising 4.3% sequentially despite typical seasonal patterns and material availability constraints. The border wall project accounted for 3.7% of that sequential increase. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - Insider Confidence Is Building in These 3 Very Different Stocks Year-over-year tons sold increased 15.6%, exceeding the 10.1% industrywide increase reported by the Metals Service Center Institute, according to Koch. Carbon steel products led the shipment growth. Average selling prices increased 8.2% from the second quarter, significantly above Reliance's expectation for flat to 2% growth. Koch attributed the gain to constrained supplies, longer lead times and strengthening demand across commodities, especially carbon steel. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price The company said non-residential construction and general manufacturing each represented roughly one-third of third-quarter sales. Non-residential construction demand was driven by data center and related energy infrastructure projects, heavy civil activity and public infrastructure. General manufacturing shipments grew on demand from industrial machinery, including data center equipment, shipbuilding, military equipment and construction machinery. Aerospace accounted for about 8% of sales, while automotive represented approximately 4%. Reliance said commercial aerospace demand improved as original equipment manufacturer build rates and backlogs progressed, while defense and space-related activity remained strong. Semiconductor demand also strengthened meaningfully, supported by data center activity. The border wall contract made a $0.74-per-share contribution to third-quarter earnings, exceeding the company's expectation of approximately $0.60 per share. The project reduced gross margin because of its product mix but added 40 basis points to pretax income margin due to its below-average operating cost per ton profile, Chief Financial Officer Arthur Ajemyan said. Lewis said Reliance began shipping under the project in April and experienced a full-quarter ramp in the third quarter. She said the company believes shipments have reached a relatively steady flow, though the government's subcontractors direct product releases. The project's first phase totals $1.45 billion in fully approved government funding. Lewis said Reliance expects to complete that phase sometime in the second quarter of 2027 at the current run rate. The company has also begun receiving bookings under a potential $800 million second phase and has already secured orders for more than half of that estimated amount. If fully executed, the second phase could extend into early 2028, management said. Third-quarter sales rose 43% from the prior-year period, aided by stronger shipments and pricing. Gross profit totaled $1.5 billion, up 12% sequentially and 41% year over year. Gross profit margin was 27.9%, down 20 basis points from the second quarter, reflecting higher-than-expected LIFO expense and the border wall project's mix impact. On a FIFO basis, non-GAAP gross profit margin expanded to 31.6%, compared with 30.5% in the second quarter and 29% a year earlier. Reliance raised its full-year LIFO expense outlook to $450 million from $300 million. It recorded $187.5 million of LIFO expense in the third quarter, compared with its prior estimate of $75 million, due to a year-to-date catch-up effect tied to higher expected carbon steel costs. The company expects fourth-quarter LIFO expense of $112.5 million, or approximately $1.64 per diluted share. Non-GAAP selling, general and administrative expense increased 18% year over year due to higher incentive compensation, inflation in employee-related costs, freight and fuel inflation, and higher warehousing and delivery expenses tied to volumes. However, SG&A expense per ton rose only 2%, reflecting operating leverage from increased shipments. Cash flow from operations totaled $212 million in the third quarter despite increased working capital needs from higher prices and shipments. Total debt was $1.6 billion at quarter-end, while net debt to EBITDA stood at 0.8 times. Reliance spent $79 million on capital expenditures, paid $64 million in dividends and repurchased $45 million of common stock during the quarter at an average price of about $395 per share. Its full-year capital expenditure outlook remains approximately $300 million, with about half designated for strategic growth investments. On Oct. 20, the board increased the company's share repurchase authorization to $2.5 billion with no expiration date. Since 2021, Reliance has repurchased $3.4 billion of its shares at an average price of about $236, reducing shares outstanding by 23%, Lewis said. For the fourth quarter, Reliance expects non-GAAP earnings per diluted share of $7.40 to $7.60. The outlook includes approximately $0.70 per share from border wall shipments and assumes healthy demand and tight supply conditions continue, subject to trade policy, geopolitical risks and normal seasonal patterns. Reliance, Inc (NYSE: RS) is a diversified metals service center company that supplies processed metal products and related services to industrial manufacturers, fabricators, and other commercial customers. Its product offerings include carbon steel, stainless steel, aluminum, copper, brass, and other specialty metals. The company provides value-added processing services such as cutting, slitting, leveling, blanking, machining, forming, and precision sawing. These services allow customers to purchase metals in customized sizes and specifications, helping reduce their need for in-house processing and inventory management. Founded in 1939, Reliance serves a broad range of industries, including nonresidential construction, transportation, aerospace and defense, energy, electronics, machinery, and general manufacturing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Reliance Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Reliance (RS) came out with quarterly earnings of $8.02 per share, beating the Zacks Consensus Estimate of $6.76 per share. This compares to earnings of $3.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.64%. A quarter ago, it was expected that this metals service-center company would post earnings of $5.38 per share when it actually produced earnings of $6.27, delivering a surprise of +16.54%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Reliance, which belongs to the Zacks Mining - Miscellaneous industry, posted revenues of $5.21 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 11.40%. This compares to year-ago revenues of $3.65 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Reliance shares have added about 44.5% since the beginning of the year versus the S&P 500's gain of 12.7%. While Reliance has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Reliance was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.40 on $4.33 billion in revenues for the coming quarter and $23.70 on $17.67 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining - Miscellaneous is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Teck Resources Ltd (TECK), has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29. This company is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +76.4%. The consensus EPS estimate for the quarter has been revised 11.7% higher over the last 30 days to the current level. Teck Resources Ltd's revenues are expected to be $2.87 billion, up 16.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reliance, Inc. (RS) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Record net sales of $5.21 billion, up 13% sequentially, with record tons sold up 4.3% - EPS of $7.84; non-GAAP EPS of $8.02, up 120% year-over-year, significantly exceeding expectations - Pretax income of $531.9 million, up 115% year-over-year - Increased share repurchase program to $2.5 billion PHOENIX, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) ("Reliance," the "Company," "we," "our," or "us") today reported its financial results for the third quarter ended September 30, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions, except tons sold in thousands, per ton and per share amounts) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Seq. | | | Nine Months Ended September 30, | | | | YoY | | | | | | | YoY | | Q3 2026 | | | Q2 2026 | | | | Chg | | | 2026 | | | 2025 | | | | Chg | | Q3 2025 | | | | Chg | Income Statement Summary: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net sales | $ | 5,213.2 | | | $ | 4,630.0 | | | | 12.6% | | | $ | 13,869.2 | | | $ | 10,795.7 | | | | 28.5% | | $ | 3,651.2 | | | | 42.8% | Gross profit1 | $ | 1,453.9 | | | $ | 1,300.5 | | | | 11.8% | | | $ | 3,926.3 | | | $ | 3,152.8 | | | | 24.5% | | $ | 1,031.6 | | | | 40.9% | Gross profit margin1 | | 27.9% | | | | 28.1% | | | | (0.2) pts | | | | 28.3% | | | | 29.2% | | | | (0.9) pts | | | 28.3% | | | | (0.4) pts | Non-GAAP gross profit margin1,2 | | 28.0% | | | | 28.1% | | | | (0.1) pts | | | | 28.4% | | | | 29.3% | | | | (0.9) pts | | | 28.3% | | | | (0.3) pts | LIFO expense (% of sales) | | 3.6% | | | | 2.4% | | | | 1.2 pts | | | | 2.4% | | | | 0.7% | | | | 1.7 pts | | | 0.6% | | | | 3.0 pts | Non-GAAP gross profit margin – FIFO1,2 | | 31.6% | | | | 30.5% | | | | 1.1 pts | | | | 30.8% | | | | 30.0% | | | | 0.8 pts | | | 29.0% | | | | 2.6 pts | Pretax income | $ | 531.9 | | | $ | 429.8 | | | | 23.8% | | | $ | 1,311.2 | | | $ | 814.4 | | | | 61.0% | | $ | 247.7 | | | | 114.7% | Non-GAAP pretax expense (income) adjustments2 | $ | 12.3 | | | $ | (1.1 | ) | | | | | | $ | 15.5 | | | $ | 7.1 | | | | | | $ | 3.7 | | | | | Non-GAAP pretax income2 | $ | 544.2 | | | $ | 428.7 | | | | 26.9% | | | $ | 1,326.7 | | | $ | 821.5 | | | | 61.5% | | $ | 251.4 | | | | 116.5% | LIFO expense | $ | 187.5 | | | $ | 112.5 | | | | | | | $ | 337.5 | | | $ | 75.0 | | | | | | $ | 25.0 | | | | | Non-GAAP pretax income – FIFO2 | $ | 731.7 | | | $ | 541.2 | | | | 35.2% | | | $ | 1,664.2 | | | $ | 896.5 | | | | 85.6% | | $ | 276.4 | | | | 164.7% | Pretax income margin | | 10.2% | | | | 9.3% | | | | 0.9 pts | | | | 9.5% | | | | 7.5% | | | | 2.0 pts | | | 6.8% | | | | 3.4 pts | Non-GAAP pretax income margin2 | | 10.4% | | | | 9.3% | | | | 1.1 pts | | | | 9.6% | | | | 7.6% | | | | 2.0 pts | | | 6.9% | | | | 3.5 pts | Non-GAAP pretax income margin – FIFO2 | | 14.0% | | | | 11.7% | | | | 2.3 pts | | | | 12.0% | | | | 8.3% | | | | 3.7 pts | | | 7.6% | | | | 6.4 pts | Net income – Reliance | $ | 402.9 | | | $ | 322.9 | | | | 24.8% | | | $ | 990.7 | | | $ | 622.9 | | | | 59.0% | | $ | 189.5 | | | | 112.6% | Diluted EPS | $ | 7.84 | | | $ | 6.29 | | | | 24.6% | | | $ | 19.21 | | | $ | 11.74 | | | | 63.6% | | $ | 3.59 | | | | 118.4% | Non-GAAP diluted EPS2 | $ | 8.02 | | | $ | 6.27 | | | | 27.9% | | | $ | 19.43 | | | $ | 11.84 | | | | 64.1% | | $ | 3.64 | | | | 120.3% | LIFO expense per diluted share2 | $ | 2.74 | | | $ | 1.64 | | | | | | | $ | 4.91 | | | $ | 1.06 | | | | | | $ | 0.35 | | | | | Non-GAAP diluted EPS – FIFO2 | $ | 10.76 | | | $ | 7.91 | | | | 36.0% | | | $ | 24.34 | | | $ | 12.90 | | | | 88.7% | | $ | 3.99 | | | | 169.7% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance Sheet and Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash provided by operations | $ | 212.0 | | | $ | 162.2 | | | | 30.7% | | | $ | 525.6 | | | $ | 555.3 | | | | (5.3)% | | $ | 261.8 | | | | (19.0)% | Free cash flow2 | $ | 133.0 | | | $ | 68.8 | | | | 93.3% | | | $ | 289.0 | | | $ | 299.6 | | | | (3.5)% | | $ | 180.6 | | | | (26.4)% | Net debt / total capital2 | | 15.3% | | | | 16.2% | | | | | | | | 15.3% | | | | 13.3% | | | | | | | 13.3% | | | | | Net debt / EBITDA2 | | 0.8x | | | | 0.9x | | | | | | | | 0.8x | | | | 0.9x | | | | | | | 0.9x | | | | | Total debt / EBITDA2 | | 0.9x | | | | 1.1x | | | | | | | | 0.9x | | | | 1.1x | | | | | | | 1.1x | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Capital Allocation Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Acquisitions, net | $ | – | | | $ | – | | | | | | | $ | – | | | $ | 2.8 | | | | | | $ | – | | | | | Capital expenditures | $ | 79.0 | | | $ | 93.4 | | | | | | | $ | 236.6 | | | $ | 255.7 | | | | | | $ | 81.2 | | | | | Dividends | $ | 63.8 | | | $ | 63.8 | | | | | | | $ | 194.2 | | | $ | 191.2 | | | | | | $ | 62.9 | | | | | Share repurchases | $ | 44.7 | | | $ | – | | | | | | | $ | 278.9 | | | $ | 394.0 | | | | | | $ | 60.9 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Key Business Metrics: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Tons sold | | 1,867.2 | | | | 1,790.1 | | | | 4.3% | | | | 5,330.0 | | | | 4,859.4 | | | | 9.7% | | | 1,615.5 | | | | 15.6% | Average selling price per ton sold | $ | 2,815 | | | $ | 2,602 | | | | 8.2% | | | $ | 2,618 | | | $ | 2,229 | | | | 17.5% | | $ | 2,271 | | | | 24.0% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Please refer to the footnotes at the end of this press release for additional information. | | Management Commentary "Reliance delivered an exceptional third quarter with record quarterly net sales and our third-highest quarterly earnings per share. We capitalized on a favorable market environment, characterized by continued healthy demand and tight supply, leading to increased price levels for most carbon steel products. Our long-term strategy of supporting both our valued customers and key domestic mill partners positioned us particularly well to benefit from these dynamics," said Karla Lewis, President and Chief Executive Officer of Reliance. "Our scale, product diversification, expansive value-added processing capabilities, and ability to source the inventory our customers need, led by the strong execution of our teams in the field, drove our exceptional results. The U.S. Department of Homeland Security border wall contract we were awarded earlier this year continued to ramp and delivered another meaningful contribution to third quarter earnings. Our smart, profitable growth strategy once again produced record quarterly tons shipped, contributing to non-GAAP diluted earnings per share of $8.02, up 120% year-over-year." Mrs. Lewis continued, "Our strong balance sheet and ample liquidity continue to provide us the flexibility to concurrently invest in our businesses, pursue strategic growth opportunities, and return capital to our stockholders. Looking ahead, we believe Reliance remains exceptionally well positioned as customer optimism remains high and strengthens across infrastructure, semiconductor, general manufacturing, and aerospace. Together, our proven business model, outstanding team, and current market dynamics give us confidence in our ability to gain market share and invest through cycles to continue driving profitable growth and strong stockholder returns." Third Quarter 2026 Financial Highlights Earnings per share were $7.84 and non‑GAAP earnings per diluted share were $8.02, significantly exceeding management's guidance of $6.40 to $6.60 and up 120% year-over-year. Results also include $2.74 per share of LIFO expense compared to management's expectation of $1.10, representing an incremental $1.64 per share negative impact, primarily due to higher-than-anticipated carbon steel product costs. In addition, third quarter earnings include a $0.74 per share contribution from the U.S. border wall project, exceeding management's expectation of approximately $0.60 per share. Quarterly tons sold increased 4.3% sequentially, including a 3.7% contribution from the U.S. border wall project. Excluding the border wall project, tons sold increased 0.6% sequentially, exceeding management's expectation of a 2% to 4% decline. Reliance's third quarter year-over-year growth in tons sold of 15.6% includes a 9.4% contribution from the border wall project and exceeds the industry-wide increase of 10.1% reported by the Metals Service Center Institute ("MSCI"). Average selling price per ton sold increased 8.2% sequentially, which includes a 1.7% product mix-related reduction attributable to the U.S. border wall project, exceeding management's expectation of flat to up 2.0% due to stronger-than-anticipated carbon steel pricing. Gross profit of $1.45 billion represented the second-highest quarterly result in the Company's history, as gross profit dollars per ton continued to increase in the third quarter across carbon and stainless steel products and remained historically strong for aluminum products. Gross profit margin of 27.9% decreased 20 basis points sequentially due to increased LIFO expense associated with carbon steel costs rising significantly more than anticipated and product mix impact associated with the U.S. border wall project. Non‑GAAP FIFO gross profit margin, which represents management's ongoing assessment of operating performance, increased 110 basis points sequentially to 31.6% despite a 60 basis point year-over-year reduction attributable to the U.S. border wall project. The project's below-average operating costs per ton contributed 40 basis points of year-over-year pretax income margin expansion during the third quarter, despite its dilutive impact on gross profit margin. Higher shipments and improved gross profit per ton, supported by pricing discipline and continued market share gains, together with the contribution from the U.S. border wall project, drove a 116% year-over-year increase in non-GAAP pretax income to $544.2 million. End Market Commentary Non-residential construction demand (including infrastructure), Reliance's largest end market by tons, improved compared to the third quarter of 2025. Strong demand from data centers, energy infrastructure and public infrastructure projects continued to offset softness in various non-residential construction sectors. The Company expects non-residential construction demand levels to remain solid in the fourth quarter of 2026, subject to normal seasonality and potential headwinds from supply availability. Demand across the broader manufacturing end market Reliance serves improved compared to the third quarter of 2025, supported by continued strength in industrial machinery, shipbuilding, military, and construction machinery sectors. The Company anticipates demand for its products across the broader manufacturing sector will remain healthy in the fourth quarter of 2026 subject to the customary seasonal slowdown. Demand in aerospace improved compared to the third quarter of 2025. Reliance anticipates commercial aerospace demand to modestly improve in the fourth quarter of 2026, with gradual build-rate increases and growing backlogs supporting continued improvement. Demand in the defense and space-related portions of Reliance's aerospace business is expected to remain robust in the fourth quarter of 2026. Demand for the toll processing services Reliance provides to the automotive market improved from the third quarter of 2025. The Company expects demand for automotive toll processing to remain at healthy levels in the fourth 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 meaningfully improved compared to the third quarter of 2025, supported by increasing data center activity. The Company anticipates demand for its semiconductor products will continue to improve in the fourth quarter of 2026. Balance Sheet, Cash Flow and Stockholder Returns As of September 30, 2026, Reliance had $246.0 million of cash and cash equivalents and total debt of $1.6 billion, including $495 million outstanding under its $1.5 billion revolving credit facility. Cash flow from operations was $212.0 million in the third quarter of 2026, despite a significant investment in working capital driven by robust shipment volumes and higher metals prices. The Company returned approximately $109 million to its stockholders in the third quarter of 2026 paying dividends of $64 million and repurchasing $45 million of its shares at an average price of approximately $395 per share. Reliance's 2026 share repurchases have reduced outstanding common shares by 3% year-over-year. On October 20, 2026, Reliance's Board of Directors approved an amendment to Reliance's existing share repurchase plan, increasing the repurchase authorization to $2.5 billion without a set expiration date. Since 2021, Reliance has repurchased $3.4 billion of its common stock at an average price of approximately $236 per share, reducing issued and outstanding common shares by 23%. On October 20, 2026, the Board of Directors declared a quarterly cash dividend of $1.25 per share of common stock, payable on December 4, 2026 to stockholders of record as of November 20, 2026. Fourth Quarter 2026 Business Outlook Reliance anticipates fourth quarter 2026 demand to remain at healthy levels across its key products and end markets, despite ongoing domestic and international trade policy uncertainty and the continued conflicts in Iran and Ukraine, which could pose supply availability and macroeconomic risks. Excluding the impact of the border wall project, the Company estimates tons sold in the fourth quarter of 2026 will be up 4.0% to 6.0% compared to the fourth quarter of 2025, and, consistent with seasonal trends, down 5.5% to 7.5% compared to the third quarter of 2026. Including an estimated 9.5% year-over-year contribution from the U.S. border wall project, we anticipate tons sold will be up 13.5% to 15.5% compared to the fourth quarter of 2025. Reliance expects its average selling price per ton sold for the fourth quarter of 2026 will be up 1.0% to 3.0% compared to the third quarter of 2026. Based on these assumptions, and inclusive of LIFO expense of $112.5 million, or $1.64 per diluted share, the Company anticipates non‑GAAP earnings per diluted share in the range of $7.40 to $7.60 for the fourth quarter of 2026, up over 200% year‑over‑year. This outlook includes approximately $0.70 of earnings per share from shipments associated with the U.S. border wall project at pretax income margin levels above the Company average. Conference Call Details Reliance will host a conference call and simultaneous webcast to discuss its third quarter 2026 financial results and business outlook on Thursday, October 22, 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: 13762971. A live listen-only webcast of the conference call will be available in the Investors section of the Company's website at investor.reliance.com. For those unable to participate during the live webcast, 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 November 5, 2026, by dialing (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the conference ID: 13762971. A replay of the webcast will remain available at investor.reliance.com for 90 days. About Reliance, Inc. With over 85 years of operating experience, 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 $3,120, approximately 49% of orders included value-added processing, and approximately 40% of orders were delivered within 24 hours. Reliance's press releases and additional information are available on the Company's website at reliance.com. 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 and impacts from macroeconomic conditions, including inflation and the possibility of an economic recession or slowdown; anticipated effects from regulations and 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, including the U.S. border wall project, 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 and Iran, 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 [email protected] or Addo Investor Relations (310) 829-5400 (Tables to follow) | | | | | | | | | | | | | | | | | | | | | Q3 2026 Major Commodity Metrics | | | | | | | | Tons Sold (tons in thousands; % chg) | | Avg. Selling Price per Ton Sold (% chg) | | Q3 2026 | | | Q2 2026 | | | Seq. Chg | | | Q3 2025 | | | YoY Chg | | | Seq. Chg | | | YoY Chg | Carbon steel | | 1,570.4 | | | | 1,480.2 | | | | 6.1% | | | | 1,326.1 | | | | 18.4% | | | | 12.1% | | | | 29.5% | Aluminum | | 85.5 | | | | 86.0 | | | | (0.6% | ) | | | 80.4 | | | | 6.3% | | | | 3.5% | | | | 30.4% | Stainless steel | | 81.6 | | | | 81.3 | | | | 0.4% | | | | 75.9 | | | | 7.5% | | | | 6.5% | | | | 20.6% | Alloy | | 30.2 | | | | 36.6 | | | | (17.5% | ) | | | 29.7 | | | | 1.7% | | | | 21.6% | | | | 15.0% | Copper & brass | | 5.8 | | | | 5.8 | | | | — | | | | 5.6 | | | | 3.6% | | | | 4.4% | | | | 20.2% | | | | | | | | | | | | | | | | | | | | | | | Sales ($ in millions; % chg) | | | | | | | | Q3 2026 | | | Q2 2026 | | | Seq. Chg | | | Q3 2025 | | | YoY Chg | | | | | | | | Carbon steel | $ | 3,119.3 | | | $ | 2,621.4 | | | | 19.0% | | | $ | 2,032.5 | | | | 53.5% | | | | | | | | Aluminum | $ | 861.7 | | | $ | 837.9 | | | | 2.8% | | | $ | 621.5 | | | | 38.6% | | | | | | | | Stainless steel | $ | 634.9 | | | $ | 595.2 | | | | 6.7% | | | $ | 489.9 | | | | 29.6% | | | | | | | | Alloy | $ | 186.8 | | | $ | 186.2 | | | | 0.3% | | | $ | 159.6 | | | | 17.0% | | | | | | | | Copper & brass | $ | 129.1 | | | $ | 123.7 | | | | 4.4% | | | $ | 102.6 | | | | 25.8% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year-to-Date (9 Months) Major Commodity Metrics | | | | | | | | Tons Sold (tons in thousands; % chg) | | Avg. Selling Price per Ton Sold (% chg) | | | | | | | | | | | 2026 | | | 2025 | | | YoY Chg | | | YoY Chg | | | | | | | | | | | Carbon steel | | 4,434.5 | | | | 3,996.9 | | | | 10.9% | | | | 20.0% | | | | | | | | | | | Aluminum | | 256.6 | | | | 248.3 | | | | 3.3% | | | | 28.6% | | | | | | | | | | | Stainless steel | | 241.1 | | | | 227.4 | | | | 6.0% | | | | 12.6% | | | | | | | | | | | Alloy | | 99.8 | | | | 92.3 | | | | 8.1% | | | | 5.5% | | | | | | | | | | | Copper & brass | | 16.5 | | | | 16.1 | | | | 2.5% | | | | 22.0% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sales ($ in millions; % chg) | | | | | | | | | | | | | | 2026 | | | 2025 | | | YoY Chg | | | | | | | | | | | | | | Carbon steel | $ | 7,958.8 | | | $ | 5,980.9 | | | | 33.1% | | | | | | | | | | | | | | Aluminum | $ | 2,454.2 | | | $ | 1,847.0 | | | | 32.9% | | | | | | | | | | | | | | Stainless steel | $ | 1,769.1 | | | $ | 1,482.3 | | | | 19.3% | | | | | | | | | | | | | | Alloy | $ | 553.6 | | | $ | 485.5 | | | | 14.0% | | | | | | | | | | | | | | Copper & brass | $ | 354.7 | | | $ | 283.2 | | | | 25.2% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sales by Product | | | | | | | | | | Nine Months Ended | | | | | | | | | | | | | | | | | | September 30, | | | | | | | | | Q3 2026 | | | Q2 2026 | | | Q3 2025 | | | 2026 | | | 2025 | | | | | | | | Carbon steel structurals | | 13% | | | | 12% | | | | 12% | | | | 12% | | | | 12% | | | | | | | | Carbon steel tubing | | 13% | | | | 12% | | | | 9% | | | | 12% | | | | 9% | | | | | | | | Carbon steel plate | | 12% | | | | 11% | | | | 12% | | | | 12% | | | | 12% | | | | | | | | Hot-rolled steel sheet & coil | | 9% | | | | 9% | | | | 9% | | | | 9% | | | | 9% | | | | | | | | Galvanized steel sheet & coil | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | | | | | Carbon steel bar | | 4% | | | | 4% | | | | 5% | | | | 4% | | | | 5% | | | | | | | | Cold-rolled steel sheet & coil | | 2% | | | | 2% | | | | 2% | | | | 2% | | | | 2% | | | | | | | | Carbon steel | | 58% | | | | 55% | | | | 54% | | | | 56% | | | | 54% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Heat-treated aluminum plate | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | | | | | Common alloy aluminum sheet & coil | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | | | | | Aluminum bar & tube | | 4% | | | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | | | | | Common alloy aluminum plate | | 1% | | | | 1% | | | | 1% | | | | 1% | | | | 1% | | | | | | | | Heat-treated aluminum sheet & coil | | 1% | | | | 1% | | | | 1% | | | | 1% | | | | 1% | | | | | | | | Aluminum | | 16% | | | | 17% | | | | 17% | | | | 17% | | | | 17% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Stainless steel bar & tube | | 6% | | | | 6% | | | | 6% | | | | 6% | | | | 6% | | | | | | | | Stainless steel sheet & coil | | 4% | | | | 4% | | | | 5% | | | | 4% | | | | 5% | | | | | | | | Stainless steel plate | | 2% | | | | 2% | | | | 2% | | | | 2% | | | | 2% | | | | | | | | Stainless steel | | 12% | | | | 12% | | | | 13% | | | | 12% | | | | 13% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Alloy | | 3% | | | | 4% | | | | 4% | | | | 4% | | | | 4% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Copper & brass | | 2% | | | | 3% | | | | 3% | | | | 2% | | | | 3% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Miscellaneous* | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | 5% | | | | | | | | Toll processing & logistics | | 4% | | | | 4% | | | | 4% | | | | 4% | | | | 4% | | | | | | | | Other | | 9% | | | | 9% | | | | 9% | | | | 9% | | | | 9% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | 100% | | | | 100% | | | | 100% | | | | 100% | | | | 100% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | * 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 | | | Nine Months Ended | | September 30, | | | September 30, | | 2026 | | | 2025 | | | 2026 | | | 2025 | Net sales | $ | 5,213.2 | | | $ | 3,651.2 | | | $ | 13,869.2 | | | $ | 10,795.7 | | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | Cost of sales (exclusive of depreciation and amortization shown below) | | 3,759.3 | | | | 2,619.6 | | | | 9,942.9 | | | | 7,642.9 | Warehouse, delivery, selling, general and administrative ("SG&A") | | 829.7 | | | | 701.3 | | | | 2,353.9 | | | | 2,097.5 | Depreciation and amortization | | 70.1 | | | | 70.5 | | | | 208.8 | | | | 208.9 | Impairment | | 2.0 | | | | – | | | | 2.0 | | | | – | | | 4,661.1 | | | | 3,391.4 | | | | 12,507.6 | | | | 9,949.3 | | | | | | | | | | | | | Operating income | | 552.1 | | | | 259.8 | | | | 1,361.6 | | | | 846.4 | | | | | | | | | | | | | Other (income) expense: | | | | | | | | | | | | Interest expense | | 18.4 | | | | 14.4 | | | | 52.0 | | | | 40.2 | Other expense (income), net | | 1.8 | | | | (2.3 | ) | | | (1.6 | ) | | | (8.2 | ) Income before income taxes | | 531.9 | | | | 247.7 | | | | 1,311.2 | | | | 814.4 | Income tax provision | | 128.5 | | | | 57.7 | | | | 318.6 | | | | 189.7 | Net income | | 403.4 | | | | 190.0 | | | | 992.6 | | | | 624.7 | Less: net income – noncontrolling interests | | 0.5 | | | | 0.5 | | | | 1.9 | | | | 1.8 | Net income – Reliance | $ | 402.9 | | | $ | 189.5 | | | $ | 990.7 | | | $ | 622.9 | | | | | | | | | | | | | Earnings per share: | | | | | | | | | | | | Basic | $ | 7.90 | | | $ | 3.61 | | | $ | 19.34 | | | $ | 11.82 | Diluted | $ | 7.84 | | | $ | 3.59 | | | $ | 19.21 | | | $ | 11.74 | | | | | | | | | | | | | Weighted average shares outstanding: | | | | | | | | | | | | Basic | | 51,019 | | | | 52,482 | | | | 51,232 | | | | 52,720 | Diluted | | 51,388 | | | | 52,817 | | | | 51,577 | | | | 53,044 | | | | | | | | | | | | | Cash dividends declared per common share | $ | 1.25 | | | $ | 1.20 | | | $ | 3.75 | | | $ | 3.60 | | | | | | | | | | | | | | | | | | RELIANCE, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (in millions, except shares in thousands and par value) | September 30, | | | December 31, | | 2026 | | | 2025* | Assets | | | | | Current assets: | | | | | Cash and cash equivalents | $ | 246.0 | | | $ | 216.6 | Accounts receivable, less allowance for credit losses of $23.4 and $22.1 | | 2,477.2 | | | | 1,539.9 | Inventories | | 2,482.5 | | | | 2,187.8 | Prepaid expenses and other current assets | | 169.7 | | | | 165.6 | Income taxes receivable | | 4.8 | | | | 31.2 | Total current assets | | 5,380.2 | | | | 4,141.1 | Property, plant and equipment, net | | 2,671.1 | | | | 2,633.3 | Operating lease right-of-use assets | | 321.3 | | | | 315.2 | Goodwill | | 2,173.8 | | | | 2,169.9 | Intangible assets, net | | 935.7 | | | | 960.1 | Cash surrender value of life insurance policies, net | | 30.2 | | | | 48.0 | Other long-term assets | | 102.8 | | | | 105.7 | Total assets | $ | 11,615.1 | | | $ | 10,373.3 | | | | | | Liabilities and Equity | | | | | Current liabilities: | | | | | Accounts payable | $ | 649.4 | | | $ | 375.2 | Accrued expenses | | 190.0 | | | | 150.0 | Accrued compensation and retirement benefits | | 257.2 | | | | 198.1 | Accrued insurance costs | | 62.5 | | | | 56.4 | Current maturities of long-term debt | | – | | | | 0.7 | Current maturities of operating lease liabilities | | 67.9 | | | | 67.7 | Income taxes payable | | 80.1 | | | | – | Total current liabilities | | 1,307.1 | | | | 848.1 | Long-term debt | | 1,639.3 | | | | 1,420.2 | Operating lease liabilities | | 259.0 | | | | 250.9 | Long-term retirement benefits | | 27.1 | | | | 24.9 | Other long-term liabilities | | 75.1 | | | | 74.1 | Deferred income taxes | | 574.1 | | | | 575.6 | Total liabilities | | 3,881.7 | | | | 3,193.8 | Commitments and contingencies | | | | | Equity: | | | | | Preferred stock, $0.001 par value: 5,000 shares authorized; none issued or outstanding | | – | | | | – | Common stock and additional paid-in capital, $0.001 par value and 200,000 shares authorized | | | | | Issued and outstanding shares—50,942 and 51,735 | | 0.1 | | | | 0.1 | Retained earnings | | 7,813.1 | | | | 7,257.6 | Accumulated other comprehensive loss | | (89.5 | ) | | | (87.6 | ) Total Reliance stockholders' equity | | 7,723.7 | | | | 7,170.1 | Noncontrolling interests | | 9.7 | | | | 9.4 | Total equity | | 7,733.4 | | | | 7,179.5 | Total liabilities and equity | $ | 11,615.1 | | | $ | 10,373.3 | | | | | | * Derived from audited financial statements. | | | | | | | | | | RELIANCE, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | Nine Months Ended | | September 30, | | 2026 | | | 2025 | Operating activities: | | | | | Net income | $ | 992.6 | | | $ | 624.7 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | Depreciation and amortization | | 208.8 | | | | 208.9 | Impairment | | 2.0 | | | | – | Stock-based compensation | | 55.6 | | | | 43.2 | Other | | 8.6 | | | | (9.1 | ) Changes in operating assets and liabilities: | | | | | Accounts receivable | | (938.6 | ) | | | (331.0 | ) Inventories | | (293.3 | ) | | | (275.4 | ) Prepaid expenses and other assets | | 80.6 | | | | 154.4 | Accounts payable and other liabilities | | 409.3 | | | | 139.6 | Net cash provided by operating activities | | 525.6 | | | | 555.3 | | | | | | Investing activities: | | | | | Acquisitions | | – | | | | (2.8 | ) Purchases of property, plant and equipment | | (236.6 | ) | | | (255.7 | ) Proceeds from sales of property, plant and equipment | | 16.2 | | | | 13.8 | Other | | 4.5 | | | | 12.0 | Net cash used in investing activities | | (215.9 | ) | | | (232.7 | ) | | | | | Financing activities: | | | | | Proceeds from long-term debt borrowings | | 2,248.0 | | | | 2,062.0 | Principal payments on long-term debt | | (2,030.7 | ) | | | (1,824.0 | ) Cash dividends and dividend equivalents | | (194.2 | ) | | | (191.2 | ) Share repurchases | | (278.9 | ) | | | (394.0 | ) Taxes paid on net-settled restricted stock units | | (15.3 | ) | | | (11.8 | ) Excise tax on repurchase of common shares | | (5.4 | ) | | | (10.0 | ) Other | | (4.2 | ) | | | (18.2 | ) Net cash used in financing activities | | (280.7 | ) | | | (387.2 | ) Effect of exchange rate changes on cash and cash equivalents | | 0.4 | | | | 7.7 | Increase (decrease) in cash and cash equivalents | | 29.4 | | | | (56.9 | ) Cash and cash equivalents, beginning balance | | 216.6 | | | | 318.1 | Cash and cash equivalents, ending balance | $ | 246.0 | | | $ | 261.2 | | | | | | Supplemental cash flow information: | | | | | Interest paid | $ | 49.2 | | | $ | 37.8 | Income taxes paid, net | $ | 213.6 | | | $ | 115.7 | | | | | | | | | | | | | | | | | | RELIANCE, INC. NON-GAAP RECONCILIATION (in millions, except per share amounts) | Net Income | | Diluted EPS Three Months Ended | September 30, | | | June 30, | | | September 30, | | | September 30, | | | June 30, | | | September 30, | 2026 | | | 2026 | | | 2025 | | | 2026 | | | 2026 | | | 2025 | Net income – Reliance | $ | 402.9 | | | $ | 322.9 | | | $ | 189.5 | | | $ | 7.84 | | | $ | 6.29 | | | $ | 3.59 | Impairment and restructuring charges | | 2.4 | | | | 1.1 | | | | 1.2 | | | | 0.05 | | | | 0.02 | | | | 0.02 | Settlement charges | | 9.9 | | | | 1.5 | | | | 2.2 | | | | 0.19 | | | | 0.03 | | | | 0.04 | Debt financing expenses | | – | | | | – | | | | 0.3 | | | | – | | | | – | | | | 0.01 | Gains on non-core asset sales | | – | | | | (3.7 | ) | | | – | | | | – | | | | (0.07 | ) | | | – | Income tax (benefit) expense on adjustments | | (3.1 | ) | | | 0.3 | | | | (0.9 | ) | | | (0.06 | ) | | | – | | | | (0.02 | ) Non-GAAP net income – Reliance | | 412.1 | | | | 322.1 | | | | 192.3 | | | | 8.02 | | | | 6.27 | | | | 3.64 | LIFO expense, net of tax | | 140.6 | | | | 84.4 | | | | 18.8 | | | | 2.74 | | | | 1.64 | | | | 0.35 | Non-GAAP net income – FIFO | $ | 552.7 | | | $ | 406.5 | | | $ | 211.1 | | | $ | 10.76 | | | $ | 7.91 | | | $ | 3.99 | | | | | | | | | | | | | | | | | | | | | | Net Income | | Diluted EPS | | | Nine Months Ended | | | | September 30, | | | September 30, | | | September 30, | | | September 30, | | | | | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | Net income – Reliance | | | | $ | 990.7 | | | $ | 622.9 | | | $ | 19.21 | | | $ | 11.74 | | | | Impairment and restructuring charges | | | | | 7.3 | | | | 13.7 | | | | 0.14 | | | | 0.26 | | | | Settlement charges | | | | | 11.9 | | | | 2.2 | | | | 0.23 | | | | 0.04 | | | | Debt financing expenses | | | | | – | | | | 0.3 | | | | – | | | | – | | | | Gains on non-core asset sales | | | | | (3.7 | ) | | | (9.1 | ) | | | (0.07 | ) | | | (0.17 | ) | | | Income tax benefit on adjustments | | | | | (3.9 | ) | | | (1.7 | ) | | | (0.08 | ) | | | (0.03 | ) | | | Non-GAAP net income – Reliance | | | | | 1,002.3 | | | | 628.3 | | | | 19.43 | | | | 11.84 | | | | LIFO expense, net of tax | | | | | 253.1 | | | | 56.3 | | | | 4.91 | | | | 1.06 | | | | Non-GAAP net income – FIFO | | | | $ | 1,255.4 | | | $ | 684.6 | | | $ | 24.34 | | | $ | 12.90 | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | September 30, | | | June 30, | | | September 30, | | | September 30, | | | September 30, | | | | | 2026 | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | Pretax income | $ | 531.9 | | | $ | 429.8 | | | $ | 247.7 | | | $ | 1,311.2 | | | $ | 814.4 | | | | Impairment and restructuring charges | | 2.4 | | | | 1.1 | | | | 1.2 | | | | 7.3 | | | | 13.7 | | | | Settlement charges | | 9.9 | | | | 1.5 | | | | 2.2 | | | | 11.9 | | | | 2.2 | | | | Debt financing expenses | | – | | | | – | | | | 0.3 | | | | – | | | | 0.3 | | | | Gains on non-core asset sales | | – | | | | (3.7 | ) | | | – | | | | (3.7 | ) | | | (9.1 | ) | | | Total non-GAAP pretax expense (income) adjustments | | 12.3 | | | | (1.1 | ) | | | 3.7 | | | | 15.5 | | | | 7.1 | | | | Non-GAAP pretax income | | 544.2 | | | | 428.7 | | | | 251.4 | | | | 1,326.7 | | | | 821.5 | | | | LIFO expense | | 187.5 | | | | 112.5 | | | | 25.0 | | | | 337.5 | | | | 75.0 | | | | Non-GAAP pretax income – FIFO | $ | 731.7 | | | $ | 541.2 | | | $ | 276.4 | | | $ | 1,664.2 | | | $ | 896.5 | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | September 30, | | | June 30, | | | September 30, | | | September 30, | | | September 30, | | | | | 2026 | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | Gross profit – LIFO | $ | 1,453.9 | | | $ | 1,300.5 | | | $ | 1,031.6 | | | $ | 3,926.3 | | | $ | 3,152.8 | | | | Settlement charge | | 4.4 | | | | – | | | | – | | | | 4.4 | | | | – | | | | Restructuring charges | | – | | | | 0.4 | | | | 0.8 | | | | 1.4 | | | | 8.9 | | | | Non-GAAP gross profit | | 1,458.3 | | | | 1,300.9 | | | | 1,032.4 | | | | 3,932.1 | | | | 3,161.7 | | | | LIFO expense | | 187.5 | | | | 112.5 | | | | 25.0 | | | | 337.5 | | | | 75.0 | | | | Non-GAAP gross profit – FIFO | $ | 1,645.8 | | | $ | 1,413.4 | | | $ | 1,057.4 | | | $ | 4,269.6 | | | $ | 3,236.7 | | | | | | | | | | | | | | | | | | | | | Gross profit margin – LIFO | | 27.9% | | | | 28.1% | | | | 28.3% | | | | 28.3% | | | | 29.2% | | | | Settlement charges (% of sales) | | 0.1% | | | | – | | | | – | | | | 0.1% | | | | – | | | | Restructuring charges (% of sales) | | – | | | | – | | | | – | | | | – | | | | 0.1% | | | | Non-GAAP gross profit margin | | 28.0% | | | | 28.1% | | | | 28.3% | | | | 28.4% | | | | 29.3% | | | | LIFO expense (% of sales) | | 3.6% | | | | 2.4% | | | | 0.6% | | | | 2.4% | | | | 0.7% | | | | Non-GAAP gross profit margin – FIFO | | 31.6% | | | | 30.5% | | | | 29.0% | | | | 30.8% | | | | 30.0% | | | | | | | | | | | | | | | | | | | | | Certain percentages may not calculate due to rounding. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, | | | June 30, | | | September 30, | | | | | | | | | 2026 | | | 2026 | | | 2025 | | | | | | | | Total debt | $ | 1,645.0 | | | $ | 1,670.0 | | | $ | 1,389.1 | | | | | | | | | | Less: unamortized discounts and costs | | (5.7 | ) | | | (6.1 | ) | | | (7.3 | ) | | | | | | | | | Carrying amount of debt | | 1,639.3 | | | | 1,663.9 | | | | 1,381.8 | | | | | | | | | | Less: cash and cash equivalents | | (246.0 | ) | | | (235.4 | ) | | | (261.2 | ) | | | | | | | | | Net debt | | 1,393.3 | | | | 1,428.5 | | | | 1,120.6 | | | | | | | | | | Total Reliance stockholders' equity | | 7,723.7 | | | | 7,401.5 | | | | 7,305.3 | | | | | | | | | | Total capital | $ | 9,117.0 | | | $ | 8,830.0 | | | $ | 8,425.9 | | | | | | | | | | | | | | | | | | | | | | | | | | | Net debt / total capital | | 15.3% | | | | 16.2% | | | | 13.3% | | | | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended | September 30, | | | June 30, | | | September 30, | | | | | | | | | | 2026 | | | 2026 | | | 2025 | | | | | | | | | | Net income | $ | 1,109.5 | | | $ | 896.1 | | | $ | 730.7 | | | | | | | | | | Depreciation and amortization | | 278.1 | | | | 278.5 | | | | 279.5 | | | | | | | | | | Impairment | | 11.9 | | | | 9.9 | | | | 11.7 | | | | | | | | | | Interest expense | | 67.5 | | | | 63.5 | | | | 50.2 | | | | | | | | | | Income taxes | | 356.5 | | | | 285.7 | | | | 217.2 | | | | | | | | | | EBITDA | $ | 1,823.5 | | | $ | 1,533.7 | | | $ | 1,289.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | Net debt / EBITDA | | 0.8x | | | | 0.9x | | | | 0.9x | | | | | | | | | | Total debt / EBITDA | | 0.9x | | | | 1.1x | | | | 1.1x | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | September 30, | | | June 30, | | | September 30, | | | September 30, | | | September 30, | | | | | 2026 | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | Cash provided by operations | $ | 212.0 | | | $ | 162.2 | | | $ | 261.8 | | | $ | 525.6 | | | $ | 555.3 | | | | Less: capital expenditures | | (79.0 | ) | | | (93.4 | ) | | | (81.2 | ) | | | (236.6 | ) | | | (255.7 | ) | | | Free cash flow | $ | 133.0 | | | $ | 68.8 | | | $ | 180.6 | | | $ | 289.0 | | | $ | 299.6 | | | | | | | | | | | | | | | | | | 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, including the resolution of certain customs duty matters, non-recurring debt financing expenses related to a term loan agreement, 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, FIFO gross profit margin, and other FIFO‑based non-GAAP performance measures to assess its ongoing operating performance and provide a basis for comparison with competitors that do not use the last‑in, first‑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.