Reliance(US:RS)2025-10-22 20:10Financial 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]