Core Insights - Reliance, Inc. (RS) shares have increased by 12.7% over the past three months, outperforming the Zacks Mining-Miscellaneous industry's 9.6% rise and the S&P 500's approximately 7.4% increase during the same period [1] Group 1: Financial Performance - RS's shipment levels rose by around 9% year over year and 5.6% on a same-store basis, driven by organic growth and strong domestic mill relationships [3][8] - The company experienced an expansion in gross margins in the first quarter of 2025, supported by pricing improvements in the trade environment [3][8] - RS declared a 9.1% increase in its regular quarterly dividend, marking the 32nd increase since its 1994 IPO [6][8] - In the first quarter, RS repurchased 922,656 shares for a total of $253.2 million, ending the quarter with cash flow from operations of $64.5 million and cash and cash equivalents of $277.8 million, highlighting its financial flexibility [6] Group 2: Market Demand and Outlook - The non-residential construction sector, RS's largest end market, performed well, with expectations to maintain momentum due to ongoing new construction projects across various sectors [4] - The company anticipates stable demand across its diversified end markets in the second quarter, expecting tons sold to increase by 3-5% compared to the year-ago quarter [5]

Core Viewpoint - Reliance shares have increased by approximately 3.7% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings Report and Estimates - Fresh estimates for Reliance have trended upward over the past month, with the consensus estimate shifting by 16.54% [2] - The most recent earnings report indicates important drivers that may influence future performance [1] Group 2: VGM Scores - Reliance has a subpar Growth Score of D, a Momentum Score of C, and a Value Score of B, placing it in the second quintile for the value investment strategy [3] - The aggregate VGM Score for Reliance is C, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - The upward trend in estimates and the magnitude of revisions appear promising for Reliance [4] - Reliance holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4]

Group 1 - The article highlights Reliance, Inc. (NYSE: RS) as a reliable operator, noting that its shares reached all-time highs despite lower sales and earnings reported in 2023 after a peak performance in 2022 [1] - The investing group "Value In Corporate Events" focuses on providing members with opportunities related to IPOs, mergers & acquisitions, earnings reports, and changes in corporate capital allocation, covering 10 major events a month [2]

Sales Performance - In Q1 2025, the company sold a record 1.63 million tons, a 9% increase year-over-year, while same-store tons sold rose by 5.6%[72] - Acquisitions in 2024 contributed $99.4 million to net sales in Q1 2025, compared to $16.1 million in Q1 2024[77] Financial Results - Net sales for Q1 2025 were $3,484.7 million, a decrease of 4.4% from $3,644.8 million in Q1 2024, primarily due to lower metals prices[79] - The gross profit margin for Q1 2025 was 29.7%, down from 31.0% in Q1 2024, reflecting a decline in average selling prices despite record tons sold[73] - Earnings per diluted share decreased to $3.74 in Q1 2025 from $5.23 in Q1 2024, attributed to lower metals prices[73] - Operating income for Q1 2025 was $274.4 million, or 7.9% of net sales, down from $393.1 million in Q1 2024, reflecting a 30.2% decline[90] Cash Flow and Investments - Cash flow from operations in Q1 2025 was $64.5 million, down from $126.3 million in Q1 2024, mainly due to lower net income[74] - Net cash provided by operations decreased to $64.5 million in Q1 2025, down $61.8 million from $126.3 million in Q1 2024, primarily due to a $103.3 million decline in net income[93] - Net cash used in investing activities decreased to $87.6 million in Q1 2025, down $89.8 million from $177.4 million in Q1 2024, mainly due to reduced capital expenditures[94] - Net cash used in financing activities decreased to $18.6 million in Q1 2025, down $71.7 million from $90.3 million in Q1 2024, with $330.0 million in net debt borrowings[96] Shareholder Returns - The company returned $318.4 million to stockholders in Q1 2025, including $253.2 million in share repurchases and $65.2 million in cash dividends, reflecting a 9.1% increase in the quarterly dividend rate[75] - The company declared a cash dividend of $1.20 per share for Q2 2025, marking a 9.1% increase from the previous dividend rate[97] - The company has remaining authorization to repurchase $1.02 billion of common stock under its $1.5 billion share repurchase program[99] Cost and Expenses - The cost of sales in Q1 2025 was $2,451.4 million, representing 70.3% of net sales, compared to 69.0% in Q1 2024[84] - SG&A expense for Q1 2025 was $690.2 million, representing 19.8% of net sales, an increase from 18.4% in Q1 2024, with a slight decrease in same-store SG&A expense[89] Market Conditions - The company experienced a decline in demand for its products due to lower commodity prices and economic uncertainties, impacting financial performance[67] - Gross profit margin declined from elevated levels in Q1 2024 but remained strong, with average selling price per ton sold improving in March 2025[87] Balance Sheet - As of March 31, 2025, the company had $277.8 million in cash and cash equivalents and a net debt-to-total capital ratio of 14.4%, up from 10.2% at the end of 2024[102] - Goodwill amounted to $2.17 billion as of March 31, 2025, representing approximately 21% of total assets and 30% of total equity[107] Pricing Trends - The average selling price per ton sold decreased by 12.2% to $2,143 in Q1 2025 from $2,442 in Q1 2024[79]

Core Viewpoint - Reliance, Inc. reported a decline in profits and net sales for the first quarter of 2025, but exceeded earnings estimates despite challenges in pricing and economic uncertainties [1][2][5]. Financial Performance - The company posted profits of $199.7 million or $3.74 per share, down from $302.9 million or $5.23 per share year-over-year [1]. - Net sales were $3,484.7 million, a decrease of approximately 4% year-over-year, but above the Zacks Consensus Estimate of $3,456.5 million [2]. - Earnings per share, excluding one-time items, were $3.77, down from $5.30 a year ago, but surpassed the Zacks Consensus Estimate of $3.66 [1][2]. Volumes and Pricing - Reliance reported a 9% year-over-year increase in shipments to 1,628.9 thousand tons, exceeding estimates [2]. - The average selling price per ton fell around 12% year-over-year to $2,143, which was lower than the estimated $2,175 [3]. Financial Position - At the end of the quarter, Reliance had cash and cash equivalents of $277.8 million, a decrease of about 13% from the previous quarter, and total outstanding debt of $1.48 billion [4]. - The company generated cash flow from operations of $64.5 million in the first quarter [4]. Q2 Outlook - Reliance expects stable demand across its diversified end markets in the second quarter, despite ongoing economic uncertainties [5]. - The company anticipates tons sold to be down 1% to up 1% compared to the first quarter, and up 3-5% from the year-ago quarter [6]. - Average selling price per ton is expected to increase by 1-3% compared to the first quarter, with adjusted earnings per share projected to be in the range of $4.50-$4.70 for Q2 [6]. Stock Performance - RS shares have declined by 1.9% over the past year, contrasting with an 11.3% decline in the Zacks Mining – Miscellaneous industry [7].

Financial Data and Key Metrics Changes - The company reported non-GAAP earnings per diluted share of $3.77, exceeding expectations and reflecting a gross profit margin increase of 140 basis points quarter over quarter [5][21][23] - Cash flow from operations was $64.5 million, despite a significant working capital investment [26][27] - The company revised its LIFO estimate for 2025 to reflect a $100 million expense, up from a prior estimate of $60 million income due to rising carbon steel and aluminum costs [24] Business Line Data and Key Metrics Changes - Tons sold in Q1 2025 reached a record, increasing 12.8% compared to Q4 2024, and 9% year-over-year, significantly outperforming the service center industry's decline of 0.5% [11][12] - The nonresidential construction market, which includes carbon steel tubing, plate, and structural products, represented about one-third of sales and showed strong growth [13] - The general manufacturing business also represented roughly one-third of total sales, with strong demand in industrial machinery and military sectors [15] Market Data and Key Metrics Changes - Demand in the nonresidential construction market remained solid, supported by data center construction and publicly funded infrastructure projects [14] - The aerospace sector saw stable demand, with commercial aerospace increasing sequentially and defense-related aerospace remaining strong [17] - The semiconductor industry faced pressure due to excess inventories, impacting shipments [19] Company Strategy and Development Direction - The company maintains a focus on growth and profitability, with a capital expenditure budget of $325 million for 2025, aiming for strategic acquisitions [6][31] - The management emphasized the importance of sourcing metal primarily from domestic producers, with over 95% of purchases made domestically [38] - The company is exploring opportunities for value-added processing and fabrication to better serve customer needs [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, highlighting strong customer relationships and operational execution [46][90] - The outlook for Q2 2025 anticipates stable demand across diversified end markets, with tons sold expected to be down 1% to up 1% compared to Q1 2025 [31][32] - Non-GAAP earnings per diluted share for Q2 2025 are projected to be in the range of $4.50 to $4.70, inclusive of LIFO expense [33] Other Important Information - The company funded stockholder return activities totaling $318 million, including a 9.1% increase in quarterly dividends [7][28] - Share repurchases have resulted in a cumulative 2.3% reduction in total shares outstanding since December 31, 2024 [29] Q&A Session Summary Question: Discussion on exposure within COGS and CapEx related to imports impacted by tariffs - Management confirmed that over 95% of metal purchases are from domestic producers, resulting in limited exposure to imports [38] Question: Impact of tariffs on long-term CapEx decisions - Management indicated that while tariffs can influence decisions, the majority of sourcing remains domestic, and no major shifts in CapEx strategy are anticipated [41] Question: Customer conversations regarding reshoring activity - Management noted increased discussions with customers about reshoring, with some experiencing higher volumes due to domestic manufacturing growth [44] Question: Changes in LIFO assumptions for aerospace - Management stated that baseline assumptions regarding LIFO income for aerospace remain relatively unchanged [52] Question: Current inventory levels and restocking needs - Management reported that inventory levels are slightly above target, with strong relationships with domestic mills ensuring access to inventory [82] Question: General market conditions and performance amidst economic challenges - Management acknowledged macroeconomic challenges but emphasized the company's ability to grow and service customers effectively [90]

Reliance (RS) Q1 2025 Earnings Call April 24, 2025 11:00 AM ET Company Participants Kimberly Orlando - Senior Managing DirectorKarla Lewis - President & CEOStephen Koch - Executive VP & COOArthur Ajemyan - CFO & Senior VPJohn Tumazos - Owner and CEO Conference Call Participants Martin Englert - Senior Equity Research Analyst - Metals & MiningPhil Gibbs - Director, Metals Equity Research AnalystKatja Jancic - AnalystMike Harris - Analyst Operator Greetings, and welcome to the Reliance, Inc. First Quarter twe ...

-- Net sales of $3.48 billion with record tons sold, up 9.0% year-over-year (same-store tons sold up 5.6%) -- Strong gross profit margin of 29.7% -- EPS of $3.74; non-GAAP EPS of $3.77 -- Repurchased $253.2 million of common stock SCOTTSDALE, Ariz., April 23, 2025 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) today reported its financial results for the first quarter ended March 31, 2025. EXHIBIT 99.1 Reliance, Inc. Reports First Quarter 2025 Financial Results (in millions, except tons sold which are in tho ...

Core Insights - Reliance, Inc. reported net sales of $3.48 billion for Q1 2025, a 9.0% increase year-over-year, with same-store tons sold up 5.6% [1][4] - The company achieved a strong gross profit margin of 29.7% and a diluted EPS of $3.74, with non-GAAP EPS at $3.77 [1][5] - Reliance repurchased $253.2 million of common stock during the quarter [1][17] Financial Performance - Net sales increased by 11.5% sequentially from Q4 2024 but decreased by 4.4% compared to Q1 2024 [2] - Gross profit rose to $1.03 billion, a 16.6% increase from Q4 2024, but down 8.4% from Q1 2024 [2] - The company reported a pretax income of $262.4 million, up 96.6% from Q4 2024 but down 33.8% from Q1 2024 [2][5] Operational Highlights - Reliance sold a record 1.63 million tons in Q1 2025, reflecting a 9.0% year-over-year increase and a 12.8% increase from Q4 2024 [4][7] - The average selling price per ton sold decreased slightly by 1.2% compared to Q4 2024, primarily due to a shift in product mix [4][5] - The company’s non-GAAP FIFO gross profit margin expanded to 30.4% from 28.8% in Q4 2024 [4] Market Demand - Demand for non-residential construction, Reliance's largest end market, improved, with expectations for continued healthy levels in Q2 2025 [8] - Broader manufacturing sector demand increased, particularly in industrial machinery and heavy construction equipment [9] - Demand in the semiconductor market remained depressed, with expectations for continued pressure in Q2 2025 [13] Balance Sheet and Cash Flow - As of March 31, 2025, Reliance had cash and cash equivalents of $277.8 million and total debt of $1.48 billion [14] - The company generated cash flow from operations of $64.5 million, a decrease of 86.4% from Q4 2024 [15] - Reliance's net debt-to-total capital ratio stood at 14.4% [2] Shareholder Returns - The company declared a quarterly cash dividend of $1.20 per share, marking a 9.1% increase from the previous quarter [16] - Reliance has repurchased approximately 16.3 million shares since 2020, totaling $3.2 billion [17] Business Outlook - Reliance anticipates stable demand across diversified end markets in Q2 2025, with tons sold expected to be down 1.0% to up 1.0% compared to Q1 2025 [19] - The company expects its average selling price per ton sold to increase by 1% to 3% in Q2 2025 [19] - Non-GAAP earnings per diluted share are projected to be in the range of $4.50 to $4.70 for Q2 2025 [19]

Wall Street expects a year-over-year decline in earnings on lower revenues when Reliance (RS) reports results for the quarter ended March 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 earnings report, which is expected to be released on April 23, 2025, might help the stock move higher if these key numbers are better than expectations ...