Reliance, Inc. Reports Third Quarter 2025 Financial Results

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]