Reliance(RS) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales for the third quarter of 2025 were $3,651.2 million, a 6.8% increase from $3,420.3 million in the same period of 2024[72] - Gross profit margin for the third quarter of 2025 was 28.3%, down 1.1 percentage points from 29.4% in the third quarter of 2024[77] - Operating income for the third quarter of 2025 was $259.8 million, a decrease from $273.4 million in the third quarter of 2024, reflecting a decline in profitability[72] - Tons sold increased by 6.2% in the third quarter of 2025 compared to the same period in 2024, outperforming the industry-wide decline of 2.9%[74] - Net sales for Q3 2025 increased to $3,651.2 million, a 6.8% increase from $3,420.3 million in Q3 2024[84] - Tons sold in Q3 2025 reached 1,615.5 thousand tons, up 6.2% from 1,521.4 thousand tons in Q3 2024[84] - Average selling price per ton sold in Q3 2025 was $2,271, reflecting a 1.1% increase from $2,246 in Q3 2024[84] - Gross profit for Q3 2025 was $1,031.6 million, representing 28.3% of net sales, compared to 29.4% in Q3 2024[89] - Operating income for Q3 2025 decreased to $259.8 million, a decline of 5.0% from $273.4 million in Q3 2024[94] Cash Flow and Investments - Cash flow from operations for the nine months ended September 30, 2025, was $555.3 million, down from $956.5 million in the same period of 2024 due to increased working capital requirements[79] - Net cash provided by operations in the nine months ended September 30, 2025 was $555.3 million, down $401.2 million from $956.5 million in the same period in 2024[97] - Net cash used in investing activities was $232.7 million in the nine months ended September 30, 2025, a decrease of $440.7 million from $673.4 million in the same period in 2024[99] - Net cash used in financing activities decreased to $387.2 million in the nine months ended September 30, 2025, down $661.5 million from $1.05 billion in the same period in 2024[100] Shareholder Returns and Acquisitions - Returns to stockholders in the nine months ended September 30, 2025, were $585.2 million, a decline from $1.14 billion in the same period of 2024, attributed to decreased share repurchases[80] - The company did not complete any acquisitions during the nine months ended September 30, 2025, compared to $366.7 million spent on four acquisitions in the same period of 2024[81] - Combined net sales from 2024 acquisitions for the nine months ended September 30, 2025, were $294.3 million, up from $203.9 million in the same period of 2024[82] Debt and Liquidity - As of September 30, 2025, the company had remaining authorization to repurchase $963.6 million of its common stock under its $1.5 billion share repurchase program[103] - The company entered into a $400.0 million unsecured Term Loan Agreement maturing on August 14, 2028, using the proceeds to repay $400.0 million in senior unsecured notes due August 15, 2025[106] - As of September 30, 2025, the company had $261.2 million in cash and cash equivalents, with a net debt-to-total capital ratio of 13.3%, up from 10.2% as of December 31, 2024[108] - The company has $401.1 million of debt obligations due before the $1.5 billion unsecured revolving credit facility matures on September 10, 2029[109] - The company believes its liquidity sources, including $1.26 billion available for borrowing, will be sufficient for future operating needs and strategic growth[110] Assets and Compliance - Goodwill amounted to $2.17 billion as of September 30, 2025, representing approximately 21% of total assets and 30% of total equity[113] - Other intangible assets, net, totaled $977.6 million as of September 30, 2025, or approximately 9% of total assets and 13% of total equity[113] - The company was in compliance with the financial maintenance covenant under its Credit Agreement and Term Loan as of September 30, 2025[111] - There were no material changes to the company's critical accounting estimates compared to the previous year[117] Operational Trends - The effective income tax rate for Q3 2025 was 23.3%, consistent with the same period in 2024[96] - The company has a $1.5 billion revolving credit facility, which is expected to satisfy cash requirements and stockholder return activities over the next 12 months[108] - The company has not observed material seasonal trends in overall operations, although certain months typically show lower revenues due to holidays and customer closures[112]