Reliance (RS) came out with quarterly earnings of $3.64 per share, missing the Zacks Consensus Estimate of $3.68 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 -1.09%. A quarter ago, it was expected that this metals service-center company would post earnings of $4.72 per share when it actually produced earnings of $4.43, delivering a surprise of -6.14%.Over the last four quarters, ...

Financial Performance - Net sales for Q3 2025 reached $3.65 billion, a 6.2% increase year-over-year, with record tons sold[1] - EPS for Q3 2025 was $3.59, with non-GAAP EPS at $3.64, reflecting an 18.8% decrease from Q3 2024[2] - Net sales for the three months ended September 30, 2025, were $3,651.2 million, an increase from $3,420.3 million in the same period of 2024, representing a growth of 6.8%[33] - Net income attributable to Reliance for the three months ended September 30, 2025, was $189.5 million, compared to $199.2 million in 2024, a decline of 3.4%[34] - Basic earnings per share attributable to Reliance stockholders for the three months ended September 30, 2025, was $3.61, slightly down from $3.64 in 2024[34] - Net income attributable to Reliance for the three months ended September 30, 2025, was $189.5 million, a decrease from $233.7 million for the same period in 2024, representing a decline of approximately 18.9%[40] - Diluted EPS for the three months ended September 30, 2025, was $3.59, down from $4.42 in the same period last year, reflecting a decrease of about 18.7%[40] - Non-GAAP net income attributable to Reliance for the nine months ended September 30, 2025, was $622.9 million, compared to $769.9 million for the same period in 2024, indicating a decline of approximately 19.1%[40] Operational Metrics - Tons sold in Q3 2025 were 1,615.5 thousand, flat compared to Q2 2025, and up 6.2% from Q3 2024[3] - In Q3 2025, carbon steel tons sold were 1,326.1 thousand, a 6.4% increase year-over-year[28] - Reliance's total sales for carbon steel in Q3 2025 were $2,032.5 million, a 9.5% increase compared to Q3 2024[30] - Year-to-date, carbon steel tons sold increased by 7.0% compared to 2024, while the average selling price per ton decreased by 5.2%[31] Cash Flow and Capital Management - Cash provided by operations was $261.8 million, a 14.3% increase from Q2 2025, while free cash flow was $180.6 million, up 27.7%[3] - Reliance generated cash flow from operations of $261.8 million in Q3 2025, demonstrating strong operational cash flow throughout market cycles[14] - Cash dividends declared per common share increased to $1.20 for the three months ended September 30, 2025, compared to $1.10 in 2024, an increase of 9.1%[34] - Cash and cash equivalents at the end of September 30, 2025, were $261.2 million, down from $318.1 million at the beginning of the period, a decrease of 16%[38] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $555.3 million, down from $956.5 million in 2024, a decrease of 42%[37] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $1.20 per share, payable on December 5, 2025[16] - Reliance repurchased $60.9 million of common stock during the quarter[1] - Reliance repurchased 211,873 shares of common stock in Q3 2025 at an average price of $287.71 per share, totaling $60.9 million[16] - Reliance's share repurchase program has $963.6 million remaining, replenished to $1.5 billion on October 22, 2024[17] Market Position and Outlook - Reliance's U.S. market share increased to 17.1%, up from 14.5% in 2023, outperforming the industry by approximately nine percentage points[5] - Demand for non-residential construction, Reliance's largest end market, is expected to remain healthy in Q4 2025[8] - Demand in the aerospace sector is anticipated to remain soft in Q4 2025 due to excess inventory in the supply chain[10] - Reliance anticipates tons sold in Q4 2025 will increase by 3.5% to 5.5% compared to Q4 2024, but decrease by 5.0% to 7.0% compared to Q3 2025[19] - The company expects non-GAAP earnings per diluted share in the range of $2.65 to $2.85 for Q4 2025, including a LIFO expense of $25.0 million[19] Financial Position - As of September 30, 2025, Reliance's cash and cash equivalents totaled $261.2 million, with total debt outstanding of $1.39 billion[13] - Total current assets increased to $4,355.7 million as of September 30, 2025, compared to $3,895.5 million as of December 31, 2024, marking an increase of 11.8%[35] - Total liabilities rose to $3,233.9 million as of September 30, 2025, compared to $2,791.2 million as of December 31, 2024, an increase of 15.9%[36] - Total debt as of September 30, 2025, was $1,389.1 million, a slight decrease from $1,433.1 million as of June 30, 2025[43] - Net debt-to-total capital ratio improved to 13.3% as of September 30, 2025, compared to 14.1% as of June 30, 2025[43] - Reliance's total assets reached $10,549.7 million as of September 30, 2025, compared to $10,021.8 million as of December 31, 2024, an increase of 5.3%[35] Cost and Profitability - Gross profit margin was 28.3%, down from 29.7% in Q2 2025, and non-GAAP gross profit margin was 29.0%[2] - Gross profit margin on a LIFO basis for the three months ended September 30, 2025, was 28.3%, down from 29.7% in the same period last year[42] - Fluctuations in gross profit and gross profit margin significantly impact Reliance's earnings[45] - Reliance's cost of sales primarily consists of the cost of the material sold[45] - Gross profit is calculated as net sales less cost of sales, excluding depreciation and amortization expenses[45]

Core Insights - Reliance, Inc. reported net sales of $3.65 billion for Q3 2025, marking a 6.2% increase year-over-year with record tons sold [1][5] - The gross profit margin was 28.3%, while the non-GAAP FIFO gross profit margin was 29.0% [1][2] - The company experienced a LIFO expense of $25 million, contrasting with a LIFO income of $50 million in Q3 2024 [1][2] - Earnings per share (EPS) were reported at $3.59, with a non-GAAP EPS of $3.64 [1][2] - Reliance repurchased $60.9 million of common stock during the quarter [1][2] Financial Performance - Net sales for Q3 2025 were $3,651.2 million, a slight decrease of 0.2% from Q2 2025 but an increase of 6.8% from Q3 2024 [2][31] - Gross profit was $1,031.6 million, down 5.2% sequentially and 2.5% year-over-year [2][31] - The company reported a pretax income of $247.7 million, an 18.6% decrease from Q2 2025 and a 4.9% decrease from Q3 2024 [2][31] - Net income attributable to Reliance was $189.5 million, down 18.9% from Q2 2025 and 4.9% from Q3 2024 [2][31] Market Position and Strategy - Reliance's tons sold reached a record high in Q3 2025, outperforming the industry by approximately nine percentage points, increasing U.S. market share to 17.1% from 14.5% in 2023 [5][6] - The company attributed its success to a strong customer service approach and broad inventory capabilities, which helped offset declining industry shipment trends [5][6] - Management expressed confidence in maintaining a long-term sustainable gross profit margin range of 29% to 31% despite short-term headwinds [5][6] Demand and End Markets - Demand for non-residential construction, Reliance's largest end market, improved compared to Q3 2024, with expectations for continued healthy demand in Q4 2025 [7] - The broader manufacturing sector showed improved demand, particularly in military, industrial machinery, and consumer products [8] - Aerospace demand remained stable, but commercial aerospace is expected to remain soft due to excess inventory [9] - Demand for automotive toll processing services improved, with expectations for stability in Q4 2025 [10] Balance Sheet and Cash Flow - As of September 30, 2025, Reliance had cash and cash equivalents of $261.2 million and total debt of $1.39 billion [12][33] - The company generated cash flow from operations of $261.8 million in Q3 2025, reflecting strong cash generation capabilities [13] - Reliance's free cash flow was reported at $180.6 million, a 27.7% increase from Q2 2025 [13] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $1.20 per share, payable on December 5, 2025 [15] - Reliance repurchased 211,873 shares at an average price of $287.71 per share, totaling $60.9 million in Q3 2025 [16]

Wall Street expects a year-over-year increase in earnings on higher revenues when Reliance (RS) reports results for the quarter ended September 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 22. On ...

Core Points - Reliance, Inc. will report its third quarter 2025 financial results on October 22, 2025, after market close [1] - A conference call to discuss the results will be held on October 23, 2025, at 11:00 a.m. Eastern Time [1][2] - The call will be accessible via a live webcast on the company's website [1][2] Conference Call Details - Date: October 23, 2025 [3] - Time: 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time, 10:00 a.m. Central Time) [3] - Dial-in numbers: (877) 407-0792 (U.S. and Canada), (201) 689-8263 (International) [3] - Conference ID: 13756198 [3] - Replay available from October 23, 2025, at 2:00 p.m. Eastern Time until November 6, 2025 [3] Company Overview - Reliance, Inc. is a leading global diversified metal solutions provider and the largest metals service center company in North America [4] - The company operates approximately 320 locations across 41 states and 10 countries, serving over 125,000 customers [4] - In 2024, the average order size was $2,980, with about 50% of orders including value-added processing and 40% delivered within 24 hours [4]

Core Insights - Reliance, Inc. has appointed John G. Sznewajs as an independent member of its Board of Directors, effective October 1, 2025, with his term expiring at the 2026 Annual Meeting of Stockholders [1][2] - Following this appointment, Reliance's Board will consist of nine members, with eight being independent [1] Company Overview - Reliance, Inc. is a leading global diversified metal solutions provider and the largest metals service center company in North America, founded in 1939 [3] - The company operates approximately 320 locations across 41 states and 10 countries, providing value-added metals processing services and distributing over 100,000 metal products to more than 125,000 customers [3] - In 2024, Reliance's average order size was $2,980, with about 50% of orders including value-added processing and approximately 40% delivered within 24 hours [3] Leadership Background - John G. Sznewajs brings extensive financial expertise and experience in corporate strategy, finance, and multinational industrial operations to Reliance's Board [2] - He previously served as Vice President and Chief Financial Officer of Masco Corporation from 2007 to 2023 and is currently a director at CMS Energy Corporation [2]

Company Overview - Reliance is a metal service center company focused on processing and distribution of metals, founded in Los Angeles in 1939, with over 85 years of experience [1] - The company operates approximately 320 locations, primarily in the U.S. and North America, with some international presence [1] - Reliance has diversified its offerings, selling over 100,000 metal products to more than 125,000 customers [1] Business Strategy - The company employs a decentralized operational model, often through acquisitions, while maintaining the brand names of acquired companies [1] - Reliance believes in the value of the companies it acquires and differentiates itself from larger service center companies through its focus on diversification [1]

Summary of Reliance Inc. Conference Call Company Overview - **Company Name**: Reliance Inc. - **Industry**: Metals and Mining - **Founded**: 1939 in Los Angeles - **Locations**: Approximately 320 locations, primarily in the US and North America, with some international presence - **Product Range**: Over 100,000 metal products sold to more than 125,000 customers - **Revenue**: $15 billion with an average order size of $3,000 [10] Core Business Model - **Decentralized Operations**: Focus on local relationships and decision-making to enhance customer service and profitability [5] - **Inventory Management**: Emphasis on spot pricing and limited long-term contracts, primarily in aerospace [7] - **Value-Added Processing**: Approximately 50% of orders involve value-added processing, leading to improved gross profit margins from 25%-27% to 29%-31% [11] Financial Performance - **Cash Flow**: Strong and consistent cash flows, even in down markets, with significant capital expenditures (CapEx) of about $1.8 billion over the last five years [13][11] - **Acquisitions**: Completed 76 acquisitions since IPO in 1994, with four acquisitions in 2024 [14] - **Dividends**: Regular quarterly dividends paid for 66 years, with a commitment to increase dividends sustainably [15] Market Demand and Trends - **Demand Stability**: Overall steady demand with strength in non-residential construction and data centers, while agriculture has been weaker [19][20] - **Reshoring Trends**: Increased discussions about bringing manufacturing back to the US and Mexico, particularly in the automotive and pharmaceutical sectors [23][26] - **Impact of Tariffs**: Tariffs have generally supported higher pricing levels by reducing imports, benefiting domestic mills and allowing Reliance to pass on costs to customers [27][28] Industry Dynamics - **Market Fragmentation**: Reliance represents only 16% of MSCI shipments, indicating significant growth opportunities through acquisitions and organic growth [14] - **Competitor Landscape**: Domestic mills have increased capacity, which could replace imports and maintain a balanced market [38] Challenges and Considerations - **Uncertainty in Trade Policies**: Ongoing uncertainty in trade policies is affecting customer investment decisions [17] - **Volatility in Metal Prices**: Reliance's earnings are significantly impacted by metal prices, which have been structurally higher since 2018 [57] Strategic Outlook - **Acquisition Strategy**: Focus on acquiring well-run, family-owned businesses that align with Reliance's decentralized model [42][46] - **Market Valuation**: Reliance aims to maintain a consistent valuation methodology based on normalized earnings rather than market cycles [46] Conclusion Reliance Inc. continues to navigate a complex metals and mining landscape with a strong focus on customer relationships, value-added services, and strategic acquisitions. The company is well-positioned to capitalize on market opportunities while managing the challenges posed by trade policies and metal price volatility.

Company Overview - Reliance, Inc. is a leading global diversified metal solutions provider and the largest metals service center company in North America, founded in 1939 [3] - The company operates approximately 320 locations across 41 states and 10 countries outside the United States, serving over 125,000 customers in various industries [3] - Reliance offers a full line of over 100,000 metal products and focuses on small orders with quick turnaround and value-added processing services [3] Financial and Operational Highlights - In 2024, Reliance's average order size was $2,980, with approximately 50% of orders including value-added processing [3] - Approximately 40% of orders were delivered within 24 hours, indicating a strong operational efficiency [3] Upcoming Events - Karla Lewis, President and CEO, and Stephen Koch, Executive Vice President and COO, will participate in the Jefferies Industrials Conference on September 3, 2025, at 3:30 p.m. ET [1] - The presentation will be webcast live and available for replay on the company's website for 90 days following the event [2]

Core Insights - Reliance, Inc. has secured a $400 million unsecured term loan facility, effective August 14, 2025, maturing in August 2028, to refinance existing debt [1][9] - The company's net debt-to-EBITDA ratio stands at 0.9x as of June 30, 2025, indicating a conservative debt structure [2][9] - Reliance aims to enhance financial flexibility to support organic growth, strategic acquisitions, and consistent returns to shareholders through dividends and share repurchases [3][9] Financial Performance - Reliance's stock has increased by 4.1% over the past year, compared to an 11.2% rise in the industry [5] - The company expects a 1% to 3% decrease in tons sold in Q3 2025 compared to Q2 2025, but a 3% to 5% increase compared to Q3 2024 [6] - Average selling price per ton is projected to fluctuate between a 1% decline and a 1% increase from the previous quarter, with adjusted earnings per share forecasted between $3.60 and $3.80 for Q3 2025 [7] Market Outlook - Overall demand is expected to remain steady in Q3 2025, influenced by seasonal trends and uncertainties in domestic and global trade policies [6] - The company is committed to maintaining a balanced capital deployment approach while investing in high-return opportunities [3]