Financial Data and Key Metrics Changes - Non-GAAP earnings per diluted share for Q3 2025 were reported at $3.64, consistent with expectations and the same quarter in 2024 [6][14] - Operating cash flow generated in Q3 was approximately $262 million, with capital expenditures for the year remaining at $325 million [6][18] - The company returned $124 million to shareholders through dividends and share repurchases during the quarter [7] Business Line Data and Key Metrics Changes - Tonnes sold in Q3 reached a record high, increasing by 6.2% compared to Q3 2024, outperforming the service center industry which reported a decrease of 2.9% [3][8] - Non-residential construction accounted for roughly one-third of Q3 sales, driven by strong demand in public infrastructure projects [10] - Aerospace products represented about 9% of total sales, with demand in defense and space-related programs remaining strong despite slight declines in commercial demand [12] Market Data and Key Metrics Changes - U.S. market share increased to 17.1% in Q3 2025, up from 14.5% in 2023, attributed to a profitable growth strategy [3] - The competitive market environment has led to pricing pressures, particularly in carbon steel products, affecting gross profit margins [4][9] - The semiconductor market continued to face pressure from excess inventory, impacting pricing and margins across various products [15] Company Strategy and Development Direction - The company aims to maintain a long-term sustainable gross profit margin range of 29% to 31% despite short-term headwinds [4] - Focus on capital allocation strategies to drive growth and enhance shareholder returns, including investments in advanced processing equipment [6][19] - The company is committed to pursuing M&A opportunities to enhance geographic reach and expand value-added capabilities [6][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying margin profile of the business, despite current market challenges [4] - Anticipated stable overall demand in Q4 2025, with an estimated increase in tonnes sold compared to Q4 2024 [20] - Management expects pricing for most products to stabilize entering Q4, with flat to slightly improved gross profit margins anticipated [20] Other Important Information - The company generated strong cash flow from operations, allowing for strategic investments and shareholder returns [18] - The net debt to EBITDA ratio remains favorable at less than 1, providing significant liquidity for capital allocation priorities [20] Q&A Session Summary Question: Is any of the gross profit margin compression attributable to the focus on growing volumes? - Management acknowledged the unique market conditions affecting margins, emphasizing that while volume growth is important, current pricing pressures are primarily due to market dynamics [23][24] Question: Can you discuss the inventory levels on the balance sheet? - Management indicated that inventory levels have increased due to mill price increases and a slight uptick in tonnes sold, allowing the company to better service customers [27] Question: How does Reliance win new business? - The company focuses on execution and customer service rather than price, leveraging expanded processing capabilities and strong relationships to win new business [35][36] Question: When do you expect to see a neutral LIFO environment? - Management explained that LIFO expenses are based on annual estimates and will likely continue into Q4, with expectations for improvement in 2026 [37][39] Question: What is the outlook for the aerospace and semiconductor markets? - Management anticipates continued improvement in these markets as supply chains work through excess inventory, with a positive long-term outlook [45][46] Question: How do you view the M&A landscape? - The company sees a steady flow of M&A opportunities and believes it is a reasonable environment for acquisitions, with valuations generally considered reasonable [63] Question: Are there any SG&A levers to protect operating margins? - Management is focused on operational efficiencies and has reduced headcount while maintaining service levels to protect margins [68][69]

Financial Data and Key Metrics Changes - Non-GAAP earnings per diluted share for the third quarter of 2025 were reported at $3.64, consistent with expectations and the same quarter in 2024 [5][14] - Operating cash flow generated in the third quarter was approximately $262 million, reflecting strong financial performance [5][18] - The company maintained a long-term sustainable gross profit margin range of 29% to 31% despite experiencing short-term headwinds [4][19] Business Line Data and Key Metrics Changes - Tonnes sold reached a record for the third quarter, increasing by 6.2% compared to the same quarter in 2024, significantly outperforming the service center industry which reported a decrease of 2.9% [3][8] - Non-residential construction accounted for roughly one-third of third quarter sales, driven by strong demand in public infrastructure projects [10] - Aerospace products represented approximately 9% of total sales, with demand in defense and space-related programs remaining strong despite slight declines in commercial demand [11] Market Data and Key Metrics Changes - The company's U.S. market share increased to 17.1%, up from 14.5% in 2023, attributed to a smart growth strategy and high levels of customer service [3][10] - The competitive market environment has led to pricing pressures, particularly in carbon steel products, impacting gross profit margins [4][9] - Demand in the semiconductor market remained under pressure due to excess inventory, affecting pricing and margins [11][15] Company Strategy and Development Direction - The company is focused on investing for growth and delivering value to customers and stockholders, supported by strong cash generation [7][19] - A balanced capital allocation strategy is in place, with $124 million returned to stockholders through dividends and share repurchases during the quarter [5][6] - The company is pursuing M&A opportunities to enhance geographic reach and expand value-added capabilities [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying margin profile of the business despite current market challenges, anticipating stabilization in pricing for most products entering the fourth quarter [4][19] - The company expects overall demand in the fourth quarter to remain stable, with tons sold estimated to increase by 3.5% to 5.5% compared to the fourth quarter of 2024 [19][20] - Management highlighted the importance of maintaining service levels and operational efficiency to navigate the competitive environment [57] Other Important Information - The company generated $81 million in capital expenditures during the third quarter, with a total capital expenditure budget of $325 million for 2025 [5][18] - The net debt to EBITDA ratio remains favorable at less than 1, providing significant liquidity for capital allocation priorities [18][19] Q&A Session Summary Question: Is any of the gross profit margin compression attributable to the focus on growing volumes? - Management acknowledged the unique market conditions affecting margins and emphasized that while volume growth is important, the primary impact on margins has been from market dynamics and specialty product performance [23][24] Question: Can you discuss the inventory levels on the balance sheet? - Management explained that inventory levels have increased due to pricing and higher tonnes sold, allowing the company to better service customers while competitors have pulled back on inventory [27] Question: When do you expect to see appropriate levels of inventory? - Management indicated that destocking is ongoing, with signs of improvement in lead times for certain products, suggesting a potential inflection point in inventory levels [31][32] Question: How does Reliance win new business? - Management highlighted that winning new business is primarily through execution and service rather than price, with a focus on expanding processing capabilities and customer education [33][34] Question: What is the outlook for the aerospace and semiconductor markets? - Management expects continued improvement in the supply chain for high-value products in aerospace and semiconductors, with a positive long-term outlook [39][40] Question: How do you view the M&A landscape? - Management noted a steady flow of M&A opportunities, with reasonable valuations and a favorable environment for potential acquisitions [55] Question: How are you managing SG&A expenses amidst gross profit margin headwinds? - Management is focused on operational efficiencies and has reduced headcount while maintaining service levels to protect operating margins [57][58] Question: What is the expected impact of seasonality on the business? - Management anticipates typical seasonal trends, with Q1 and Q2 being the strongest quarters, and expects a bounce back in Q1 2026 after the usual Q4 decline [81][82]

Financial Data and Key Metrics Changes - The company reported non-GAAP earnings per diluted share of $3.64, consistent with expectations and guidance for the quarter [6][17][24] - Operating cash flow generated in the third quarter was approximately $262 million, which was strategically redeployed into high-value initiatives [7][21] - The capital expenditure budget for 2025 remains at $325 million, with more than half directed towards growth initiatives [7][22] Business Line Data and Key Metrics Changes - Tons sold in the third quarter reached a record high, increasing by 6.2% compared to 2024, significantly outperforming the service center industry, which reported a decrease of 2.9% [11][12] - Non-residential construction represented roughly one-third of third-quarter sales, driven by strong demand in public infrastructure projects [13] - Aerospace products comprised approximately 9% of total sales, with demand in defense and space-related programs remaining strong despite slight declines in commercial demand [14][15] Market Data and Key Metrics Changes - The company's U.S. market share increased to 17.1%, up from 14.5% in 2023, attributed to a smart profitable growth strategy [5][4] - The aerospace and semiconductor markets continue to face challenges due to excess inventories, impacting pricing and margins [6][18] - The overall demand in the fourth quarter is anticipated to remain stable across diversified end markets, with tons sold expected to increase by 3.5% to 5.5% compared to 2024 [23][24] Company Strategy and Development Direction - The company emphasizes a capital allocation strategy designed to drive growth and deliver strong returns to stockholders, including investments in advanced processing equipment [7][8] - The focus remains on investing for growth and delivering value to customers and stockholders, supported by strong cash generation [10] - The company is committed to maintaining a long-term sustainable gross profit margin range of 29% to 31% despite short-term headwinds [6][27] Management's Comments on Operating Environment and Future Outlook - Management noted that trade policy uncertainty and excess inventory have created a competitive market, making it difficult to increase selling prices [5][18] - The company remains confident in its underlying margin profile and expects pressure on gross profit margins to ease as market conditions improve [18][24] - Management anticipates a potential recovery in demand and pricing stability entering 2026, particularly in the aerospace and semiconductor markets [52][54] Other Important Information - The company returned $124 million through dividends and share repurchases during the quarter, with year-to-date repurchases totaling over 1.4 million shares [9][22] - The net debt to EBITDA ratio remains favorable at less than one, providing significant liquidity for capital allocation priorities [22] Q&A Session Summary Question: Is any of the gross margin compression attributable to the focus on growing volumes? - Management acknowledged that while there is some impact from growing volumes, the primary reason for margin compression is the unique market conditions and excess inventory affecting specialty products [26][27] Question: Can you discuss the inventory levels on the balance sheet? - Management explained that the increase in inventory is partly due to mill price increases and a slight uptick in tons sold, allowing the company to better service customers [30][31] Question: How close are we to resolving excess inventory issues? - Management indicated that while destocking is ongoing, there are signs of improvement, and they believe gross profit margins have likely troughed in Q3 [36][37] Question: How does Reliance win new business? - Management emphasized that winning new business is primarily through execution and high levels of customer service rather than price competition [38][39] Question: What is the outlook for the semiconductor and aerospace markets? - Management expects continued improvement in these markets as excess inventories are worked through, with a positive long-term outlook [52][53] Question: What is the anticipated capital expenditure for 2026? - Management indicated that the 2026 capital expenditure budget is expected to be lower than 2025, focusing on better utilization of existing equipment [54][56] Question: How does the company view share buybacks versus investing in the business? - Management views share buybacks as a low-risk use of capital and adjusts their activity based on market conditions [95][96] Question: Is the company impacted by aluminum supply disruptions in New York State? - Management confirmed that there have been disruptions but emphasized their collaborative efforts to mitigate the impact [99][100] Question: What is the expected seasonality for the business going forward? - Management expects typical seasonality patterns to continue, with Q1 and Q2 being the strongest quarters, followed by declines in Q3 and Q4 [102][104]

分组1 - Reliance reported quarterly earnings of $3.64 per share, missing the Zacks Consensus Estimate of $3.68 per share, representing an earnings surprise of -1.09% [1] - The company posted revenues of $3.65 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.46%, compared to year-ago revenues of $3.42 billion [2] - Over the last four quarters, Reliance has surpassed consensus revenue estimates four times, but has only exceeded consensus EPS estimates once [2] 分组2 - The current consensus EPS estimate for the coming quarter is $3.15 on revenues of $3.32 billion, and for the current fiscal year, it is $15.06 on revenues of $13.99 billion [7] - The Zacks Industry Rank for Mining - Miscellaneous is currently in the top 16% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

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]