分组1 - Reliance reported quarterly earnings of $4.43 per share, missing the Zacks Consensus Estimate of $4.72 per share, and down from $4.65 per share a year ago, representing an earnings surprise of -6.14% [1] - The company posted revenues of $3.66 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.79%, and up from $3.64 billion year-over-year [2] - Reliance shares have increased approximately 26.4% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $3.93 on revenues of $3.47 billion, and for the current fiscal year, it is $15.82 on revenues of $13.86 billion [7] - The Mining - Miscellaneous industry, to which Reliance belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) [1.1 Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) Reliance, Inc. achieved strong Q2 2025 financial results with **$3.66 billion net sales**, **record quarterly shipments up 4.0% YoY**, a **29.9% non-GAAP gross margin**, and **non-GAAP diluted EPS increasing 18% QoQ to $4.43** Key Financial Data for Q2 2025 | Metric | Q2 2025 | Q1 2025 | QoQ Change | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales (Millions USD) | $3,659.8 | $3,484.7 | 5.0% | $3,643.3 | 0.5% | | Gross Profit (Millions USD) | $1,087.9 | $1,033.3 | 5.3% | $1,086.0 | 0.2% | | Non-GAAP Gross Margin | 29.9% | 29.7% | 0.2% | 29.8% | 0.1% | | Pre-tax Income (Millions USD) | $304.3 | $262.4 | 16.0% | $349.7 | (13.0%) | | Diluted EPS (USD) | $4.42 | $3.74 | 18.2% | $4.67 | (5.4%) | | Non-GAAP Diluted EPS (USD) | $4.43 | $3.77 | 17.5% | $4.65 | (4.7%) | | Shipments (Thousand Tons) | 1,615.0 | 1,628.9 | (0.9%) | 1,553.5 | 4.0% | | Average Selling Price/Ton (USD) | $2,273 | $2,143 | 6.1% | $2,348 | (3.2%) | - The company achieved **record shipments** in Q2 2025, with a **4.0% year-over-year increase**, reflecting continued market share growth[1](index=1&type=chunk)[5](index=5&type=chunk) - Average selling price per ton **exceeded expectations**, increasing **6.1% quarter-over-quarter**, double the high end of the company's guidance range[6](index=6&type=chunk) [1.2 Management Commentary](index=3&type=section&id=1.2%20Management%20Commentary) CEO Karla Lewis emphasized the company's business model resilience, achieving robust performance and market share growth in a volatile environment while maintaining strong gross margins and returning capital to shareholders - CEO Karla Lewis stated that despite market uncertainties, the company achieved **record Q2 shipments** and significantly **outperformed the industry** through its unique scale, domestic metal sourcing, and extensive processing capabilities[9](index=9&type=chunk) - The company maintained a **strong gross margin of 29% to 31%**, aligning with its "smart, profitable growth" strategy, leading to an **18% QoQ increase in non-GAAP diluted EPS**[9](index=9&type=chunk) - The company consistently returned capital to shareholders through dividends and stock repurchases, totaling **$143 million in Q2** and repurchasing **over 1.2 million shares**[9](index=9&type=chunk) [Detailed Financial Performance](index=7&type=section&id=Detailed%20Financial%20Performance) [2.1 Consolidated Income Statement](index=7&type=section&id=2.1%20Consolidated%20Income%20Statement) In Q2 2025, net sales were $3.66 billion, operating income was $312.2 million, and net income was $233.7 million, showing a slight increase in net sales but a decrease in operating and net income compared to the prior year Consolidated Income Statement Summary (Millions USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $3,659.8 | $3,643.3 | $7,144.5 | $7,288.1 | | Cost of Sales | $2,571.9 | $2,557.3 | $5,023.3 | $5,073.9 | | Operating Income | $312.2 | $351.7 | $586.6 | $744.8 | | Pre-tax Income | $304.3 | $349.7 | $566.7 | $745.9 | | Net Income Attributable to Reliance | $233.7 | $267.8 | $433.4 | $570.7 | | Diluted EPS (USD) | $4.42 | $4.67 | $8.15 | $9.90 | [2.2 Consolidated Balance Sheet](index=8&type=section&id=2.2%20Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets reached $10.49 billion, up from $10.02 billion at year-end 2024, with cash and cash equivalents at $239.5 million, total liabilities at $3.25 billion, and stockholders' equity at $7.23 billion Consolidated Balance Sheet Summary (Millions USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $239.5 | $318.1 | | Accounts Receivable | $1,668.2 | $1,342.0 | | Inventory | $2,254.8 | $2,026.8 | | Total Current Assets | $4,293.1 | $3,895.5 | | Property, Plant, and Equipment, Net | $2,605.6 | $2,544.9 | | Goodwill | $2,170.4 | $2,161.8 | | Total Assets | $10,490.0 | $10,021.8 | | Total Current Liabilities | $1,348.1 | $1,213.0 | | Long-term Debt | $1,025.5 | $742.8 | | Total Liabilities | $3,245.9 | $2,791.2 | | Equity Attributable to Reliance Stockholders | $7,234.1 | $7,219.6 | | Total Equity | $7,244.1 | $7,230.6 | [2.3 Consolidated Cash Flow Statement](index=9&type=section&id=2.3%20Consolidated%20Cash%20Flow%20Statement) In H1 2025, cash flow from operations was $293.5 million, investing activities used $158.8 million, and financing activities used $222 million, showing decreased operating cash flow but significantly reduced investing outflows YoY Consolidated Cash Flow Statement Summary (Millions USD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $293.5 | $492.6 | | Net Cash Used in Investing Activities | ($158.8) | ($562.0) | | Net Cash Used in Financing Activities | ($222.0) | ($654.1) | | Decrease in Cash and Cash Equivalents | ($78.6) | ($729.4) | | Cash and Cash Equivalents at End of Period | $239.5 | $350.8 | - Operating cash flow in Q2 2025 was **$229 million**, a significant **255.0% increase** from **$64.5 million in Q1**[3](index=3&type=chunk) - Free cash flow reached **$141.4 million in Q2**, compared to a **negative $22.4 million in Q1**[3](index=3&type=chunk) [2.4 Non-GAAP Reconciliations](index=10&type=section&id=2.4%20Non-GAAP%20Reconciliations) The company provided non-GAAP financial reconciliations to better reflect core operating performance, excluding items like restructuring charges and non-core asset sale gains, with non-GAAP gross margin (FIFO) at 30.6% and non-GAAP pre-tax income at $305.4 million Non-GAAP Net Income and Diluted EPS Reconciliation (Millions USD, except per share amounts) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income Attributable to Reliance | $233.7 | $199.7 | $267.8 | | Restructuring Charges | $10.2 | $2.3 | $0.4 | | Gain on Sale of Non-Core Assets | ($9.1) | — | — | | Non-GAAP Net Income Attributable to Reliance | $234.6 | $201.4 | $266.6 | | Diluted EPS (USD) | $4.42 | $3.74 | $4.67 | | Non-GAAP Diluted EPS (USD) | $4.43 | $3.77 | $4.65 | Non-GAAP Pre-tax Income Reconciliation (Millions USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Pre-tax Income | $304.3 | $262.4 | $349.7 | | Restructuring Charges | $10.2 | $2.3 | $0.4 | | Gain on Sale of Non-Core Assets | ($9.1) | — | — | | Non-GAAP Pre-tax Income | $305.4 | $264.7 | $348.1 | Non-GAAP Gross Margin Reconciliation | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Gross Margin - LIFO | 29.7% | 29.7% | 29.8% | | Non-GAAP Gross Margin | 29.9% | 29.7% | 29.8% | | Non-GAAP Gross Margin - FIFO | 30.6% | 30.4% | 28.4% | Leverage Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net Debt/Total Capital | 14.1% | 14.4% | 9.4% | | Net Debt/EBITDA | 0.9x | 0.9x | 0.5x | | Total Debt/EBITDA | 1.1x | 1.1x | 0.7x | [Operational Performance and Market Trends](index=2&type=section&id=Operational%20Performance%20and%20Market%20Trends) [3.1 Key Business Metrics](index=2&type=section&id=3.1%20Key%20Business%20Metrics) In Q2 2025, the company achieved record shipments, increasing 4.0% YoY but slightly decreasing 0.9% QoQ, while the average selling price per ton grew 6.1% QoQ, exceeding expectations Key Business Metrics | Metric | Q2 2025 | Q1 2025 | QoQ Change | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Shipments (Thousand Tons) | 1,615.0 | 1,628.9 | (0.9%) | 1,553.5 | 4.0% | | Same-Store Shipments (Thousand Tons) | 1,560.1 | 1,565.7 | (0.4%) | 1,496.3 | 4.3% | | Average Selling Price/Ton (USD) | $2,273 | $2,143 | 6.1% | $2,348 | (3.2%) | | Same-Store Average Selling Price/Ton (USD) | $2,292 | $2,166 | 5.8% | $2,371 | (3.3%) | - The company's Q2 shipments increased **4.0% year-over-year**, significantly **outperforming the industry's overall 3.1% decline**[10](index=10&type=chunk) [3.2 End Market Commentary](index=3&type=section&id=3.2%20End%20Market%20Commentary) Non-residential construction demand improved and is expected to remain healthy, while broad manufacturing demand anticipates a seasonal slowdown, aerospace demand is stable but commercial may weaken, automotive processing services are stable, and semiconductor demand remains pressured - Non-residential construction (including infrastructure) demand improved from Q2 2024 and is expected to remain **healthy in Q3 2025**, supported by new projects in data centers, energy infrastructure, manufacturing, and public infrastructure[11](index=11&type=chunk) - Demand in the broad manufacturing sector increased from Q2 2024 but is expected to experience a **seasonal slowdown in Q3 2025**[12](index=12&type=chunk) - Aerospace demand is stable, but commercial aerospace demand is expected to **slightly weaken in Q3**, while military and space-related business demand remains strong[13](index=13&type=chunk) - Automotive market processing services demand is stable but impacted by North American trade policy uncertainties; semiconductor market demand remains **sluggish and is expected to remain pressured in Q3**[14](index=14&type=chunk)[15](index=15&type=chunk) [3.3 Major Commodity Metrics](index=5&type=section&id=3.3%20Major%20Commodity%20Metrics) In Q2 2025, carbon steel shipments increased 4.1% YoY with an 8.8% QoQ price increase, aluminum saw YoY growth in both shipments and price, stainless steel shipments grew 2.6% YoY but prices declined 8.7% YoY, and alloy shipments decreased 4.3% YoY Q2 2025 Major Commodity Shipments and Average Selling Price | Commodity Type | Q2 2025 Shipments (Thousand Tons) | QoQ Change | YoY Change | Q2 2025 Average Selling Price/Ton (USD) | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Carbon Steel | 1,326.4 | (1.3%) | 4.1% | $1,541 | 8.8% | (3.1%) | | Aluminum | 83.8 | (0.4%) | 3.1% | $7,397 | 2.6% | 2.4% | | Stainless Steel | 75.5 | (0.7%) | 2.6% | $6,479 | (2.3%) | (8.7%) | | Alloy | 31.1 | (1.3%) | (4.3%) | $5,386 | 6.9% | 4.8% | Q2 2025 Major Commodity Net Sales (Millions USD) | Commodity Type | Q2 2025 Net Sales | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | Carbon Steel | $2,044.2 | 7.4% | 0.9% | | Aluminum | $619.9 | 2.4% | 5.5% | | Stainless Steel | $489.2 | (2.8%) | (6.2%) | | Alloy | $167.5 | 5.7% | 0.4% | H1 2025 Major Commodity Net Sales Mix | Commodity Type | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Carbon Steel | 54% | 53% | 54% | 53% | 54% | | Aluminum | 16% | 17% | 16% | 17% | 16% | | Stainless Steel | 13% | 14% | 14% | 13% | 14% | | Alloy | 4% | 4% | 4% | 4% | 5% | | Other (Miscellaneous, Processing Logistics, Copper & Brass) | 13% | 12% | 12% | 13% | 11% | | **Total** | **100%** | **100%** | **100%** | **100%** | **100%** | [Capital Allocation and Shareholder Returns](index=4&type=section&id=Capital%20Allocation%20and%20Shareholder%20Returns) [4.1 Capital Allocation Activities](index=4&type=section&id=4.1%20Capital%20Allocation%20Activities) The company completed $2.8 million in acquisitions and incurred $87.6 million in capital expenditures in Q2 2025, continuously generating strong operating cash flow to fund opportunistic capital allocation strategies including investments in value-added processing equipment, organic growth, and accretive acquisitions Capital Allocation Data (Millions USD) | Metric | Q2 2025 | Q1 2025 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Acquisitions | $2.8 | — | $2.8 | $346.5 | | Capital Expenditures | $87.6 | $86.9 | $174.5 | $206.9 | - The company consistently generates **strong cash flow from operations**, which is deployed to invest in **value-added processing equipment, organic growth, and accretive acquisitions**[9](index=9&type=chunk)[17](index=17&type=chunk) [4.2 Stockholder Return Activity](index=4&type=section&id=4.2%20Stockholder%20Return%20Activity) The Board declared a quarterly cash dividend of $1.20 per common share, and the company repurchased $79.9 million of common stock at an average price of $265.17 per share in Q2, with $1.02 billion remaining under the stock repurchase program as of June 30, 2025 Stockholder Return Data (Millions USD) | Metric | Q2 2025 | Q1 2025 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Dividends | $63.1 | $65.2 | $128.3 | $127.9 | | Stock Repurchases | $79.9 | $253.2 | $333.1 | $519.3 | - The Board of Directors declared a **quarterly cash dividend of $1.20 per common share**, payable on August 29, 2025[18](index=18&type=chunk) - In Q2 2025, the company repurchased **301,279 shares of common stock** totaling **$79.9 million**, with **$1.02 billion remaining** under the repurchase program as of June 30[19](index=19&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) [5.1 Third Quarter 2025 Guidance](index=4&type=section&id=5.1%20Third%20Quarter%202025%20Guidance) Reliance anticipates stable overall demand in Q3 2025, influenced by seasonal patterns and trade policy uncertainties, with shipments expected to decrease 1.0% to 3.0% QoQ but increase 3.0% to 5.0% YoY, average selling price to be flat or slightly down QoQ, and non-GAAP diluted EPS projected between $3.60 and $3.80 - Q3 2025 shipments are expected to **decrease 1.0% to 3.0% quarter-over-quarter** but **increase 3.0% to 5.0% year-over-year** compared to Q3 2024[20](index=20&type=chunk) - Average selling price per ton in Q3 2025 is projected to **decrease 1.0% to increase 1.0% quarter-over-quarter**, primarily due to lower carbon steel prices, partially offset by higher aluminum and stainless steel prices[20](index=20&type=chunk) - Non-GAAP diluted EPS for Q3 2025 is anticipated to be between **$3.60 and $3.80**, including a **$25 million LIFO expense** (or **$0.36 per share**)[20](index=20&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) [6.1 About Reliance, Inc.](index=4&type=section&id=6.1%20About%20Reliance%2C%20Inc.) Founded in 1939, Reliance, Inc. is North America's leading global diversified metal solutions provider and largest metal service center company, offering value-added processing and distributing over 100,000 metal products to more than 125,000 customers through approximately 320 locations across 41 states and 10 countries - Reliance, Inc. is **North America's largest metal service center company**, with approximately **320 locations** serving **over 125,000 customers**[23](index=23&type=chunk) - The company focuses on **small orders, quick turnaround, and value-added processing services**, with an **average order size of $2,980 in 2024**, approximately **50% of orders including value-added processing**, and about **40% delivered within 24 hours**[23](index=23&type=chunk) [6.2 Forward-Looking Statements](index=4&type=section&id=6.2%20Forward-Looking%20Statements) This press release contains forward-looking statements regarding the company's industry, markets, business strategy, acquisitions, future growth, and profitability, which are based on management's estimates and assumptions, but actual results may differ materially due to various factors including trade policies, inflation, recessions, metal pricing volatility, labor constraints, and supply chain disruptions - Forward-looking statements cover Reliance's industry, end markets, business strategy, acquisitions, and expectations for future growth, profitability, demand, and metal pricing[24](index=24&type=chunk)[25](index=25&type=chunk) - Actual results may differ materially due to various important factors, including changes in domestic and international political and economic conditions, trade policies, inflation, recessions, labor constraints, and supply chain disruptions[26](index=26&type=chunk) [6.3 Conference Call Details](index=4&type=section&id=6.3%20Conference%20Call%20Details) The company will host a conference call and webcast on July 24, 2025, to discuss Q2 2025 financial results and business outlook, with a replay available for a specified period - Reliance will host a conference call and webcast on **July 24, 2025, at 11:00 a.m. ET / 8:00 a.m. PT** to discuss Q2 financial results and business outlook[21](index=21&type=chunk) - A replay of the conference call will be available from **2:00 p.m. ET on the same day until 11:59 p.m. ET on August 7, 2025**[22](index=22&type=chunk)

Financial Performance - Net sales for Q2 2025 reached $3.66 billion, marking a 5.0% increase from Q1 2025 and a 0.5% increase year-over-year [2][5] - Non-GAAP gross profit margin was reported at 29.9%, slightly up from 29.7% in Q1 2025 [7] - Pretax income increased by 16% from Q1 2025 to $304.3 million, while net income attributable to Reliance was $233.7 million, up 17% year-over-year [2][34] - Earnings per share (EPS) for Q2 2025 was $4.42, an 18% increase from Q1 2025 [2][34] Sales and Market Dynamics - The company sold a record 1,615.0 thousand tons in Q2 2025, a 4.0% increase year-over-year, despite a 0.9% decline from Q1 2025 [5][9] - Average selling price per ton sold increased by 6.1% compared to Q1 2025, exceeding the company's guidance [6][7] - Demand for non-residential construction, the largest end market, improved, and is expected to remain healthy in Q3 2025 [10] Cash Flow and Capital Allocation - Cash flow from operations was $229.0 million in Q2 2025, reflecting a significant increase of 255% from Q1 2025 [16] - The company repurchased $79.9 million of common stock in Q2 2025, with a total of $143.0 million returned to shareholders through dividends and share repurchases [18][17] Business Outlook - Reliance anticipates a seasonal decline in tons sold of 1.0% to 3.0% in Q3 2025 compared to Q2 2025, but an increase of 3.0% to 5.0% compared to Q3 2024 [19] - The company expects average selling prices in Q3 2025 to remain stable, with potential fluctuations in carbon steel and aluminum prices [19]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Reliance due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Reliance is expected to report earnings of $3.66 per share, reflecting a year-over-year change of -0.4%, with revenues projected at $3.57 billion, down 1.9% from the previous year [3][12]. - The earnings report is scheduled for July 23, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - Reliance's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.38%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 [10]. - Reliance currently holds a Zacks Rank of 1, enhancing the likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Reliance exceeded the expected earnings of $3.66 per share by delivering $3.77, resulting in a surprise of +3.01% [13]. - Over the past four quarters, Reliance has only beaten consensus EPS estimates once [14]. Conclusion - Reliance is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [17].

Core Viewpoint - Reliance, Inc. will report its second quarter 2025 financial results on July 23, 2025, after market close, followed by a conference call on July 24, 2025, at 11:00 a.m. Eastern Time [1]. Group 1: Financial Reporting Details - The financial results for the second quarter of 2025 will be announced on July 23, 2025 [1]. - A conference call to discuss the results will take place on July 24, 2025, at 11:00 a.m. Eastern Time [1]. - The conference call will be accessible via the company's website and will also have a replay available until August 7, 2025 [2][3]. Group 2: 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 320 locations across 41 states and 10 countries, serving over 125,000 customers with more than 100,000 metal products [4]. - In 2024, the average order size was $2,980, with approximately 50% of orders including value-added processing and 40% delivered within 24 hours [4].

Company Overview - Reliance is a leading global diversified metal solutions provider with over 85 years of operational experience[7,8] - The company serves over 125,000 customers with over 100,000 metal products[8,16] - In 2024, approximately 50% of orders included value-added processing[14] Financial Performance - Reliance achieved EPS of $15.56 in 2024, the 4th highest level in its history[20] - In 2024, the company reported cash flow from operations of $1.43 billion, the 3rd highest in its history[23] - For Q1 2025, net sales were $3.48 billion[67] - Q1 2025 saw a gross profit margin of 29.7%[69] Capital Allocation and Stockholder Returns - Since 2020, Reliance has repurchased $3.20 billion of its common stock[50] - In Q1 2025, $253.2 million of share repurchases resulted in a 2% reduction in outstanding shares[50] - The company's capital expenditures since 2020 total $1.74 billion[52] Market Position and Growth - Reliance's U S tons sold represented approximately 15% of total Metals Service Center Institute shipments in 2024[93] - In Q1 2025, Reliance's year-over-year growth in shipments outperformed MSCI by 9.5%[58] - 2024 acquisitions contributed approximately $400 million of annualized net sales[111]

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]