Investment Rating - The industry view is rated as Attractive, indicating a positive outlook for the sector over the next 12-18 months [8]. Core Insights - Well-supplied oil markets in the second half of 2025 are expected to lead to positive earnings surprises for refiners and fuel retailers in Asia, particularly in India, Thailand, and Australia [2][10]. - The OPEC+ decision to increase production quotas by 411 kb/d in June contributes to an anticipated oversupply of 1.1 mbpd in oil markets for 2H25 and 1.9 mbpd in 2026, leading to lowered Brent oil price forecasts of US$57.5/bbl for 2H25 and US$56.9/bbl for 2026 [4]. - Key beneficiaries identified include HPCL, Indian Oil, GAIL, Reliance, and Ampol, while PTTEP is noted as a key underweight [5][10]. - Asian refiners have consistently outperformed or matched regional benchmarks since 2015, with refined product supply from 2025 to 2027 expected to remain below demand growth [10][11]. Summary by Sections Oil Market Dynamics - The report highlights a significant oversupply in the oil market, with projections of 1.1 mbpd in 2H25 and 1.9 mbpd in 2026, alongside a reduction in Brent oil price forecasts [4]. - The refining cycle is expected to see incremental supply growth of approximately 0.4-0.5 mbpd from 2025 to 2027, against a demand growth of 0.7-0.8 mbpd [11]. Company Performance - Fuel refiners and retailers are projected to maintain margins near mid-cycle levels despite declining industry cracks in 1Q25, with Indian fuel retailers benefiting from stable fuel prices and lower oil costs [10]. - Thai refiners, particularly Thai Oil and PTTOR, are highlighted as strong cash flow plays due to rising crude supply and lower working capital needs [10]. Regional Insights - The report emphasizes that Indian fuel retailers are well-positioned due to steady fuel prices and lower oil costs, with no immediate risk of fuel price cuts [10]. - In Australia, Ampol is identified as a key beneficiary from lower oil prices, reinforcing the positive outlook for the region's refiners [10].

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]

Core Viewpoint - Reliance, Inc. reported a decline in profits and net sales for the first quarter of 2025, but exceeded earnings estimates despite challenges in pricing and economic uncertainties [1][2][5]. Financial Performance - The company posted profits of $199.7 million or $3.74 per share, down from $302.9 million or $5.23 per share year-over-year [1]. - Net sales were $3,484.7 million, a decrease of approximately 4% year-over-year, but above the Zacks Consensus Estimate of $3,456.5 million [2]. - Earnings per share, excluding one-time items, were $3.77, down from $5.30 a year ago, but surpassed the Zacks Consensus Estimate of $3.66 [1][2]. Volumes and Pricing - Reliance reported a 9% year-over-year increase in shipments to 1,628.9 thousand tons, exceeding estimates [2]. - The average selling price per ton fell around 12% year-over-year to $2,143, which was lower than the estimated $2,175 [3]. Financial Position - At the end of the quarter, Reliance had cash and cash equivalents of $277.8 million, a decrease of about 13% from the previous quarter, and total outstanding debt of $1.48 billion [4]. - The company generated cash flow from operations of $64.5 million in the first quarter [4]. Q2 Outlook - Reliance expects stable demand across its diversified end markets in the second quarter, despite ongoing economic uncertainties [5]. - The company anticipates tons sold to be down 1% to up 1% compared to the first quarter, and up 3-5% from the year-ago quarter [6]. - Average selling price per ton is expected to increase by 1-3% compared to the first quarter, with adjusted earnings per share projected to be in the range of $4.50-$4.70 for Q2 [6]. Stock Performance - RS shares have declined by 1.9% over the past year, contrasting with an 11.3% decline in the Zacks Mining – Miscellaneous industry [7].

Financial Data and Key Metrics Changes - The company reported non-GAAP earnings per diluted share of $3.77, exceeding expectations and reflecting a gross profit margin increase of 140 basis points quarter over quarter [5][21][23] - Cash flow from operations was $64.5 million, despite a significant working capital investment [26][27] - The company revised its LIFO estimate for 2025 to reflect a $100 million expense, up from a prior estimate of $60 million income due to rising carbon steel and aluminum costs [24] Business Line Data and Key Metrics Changes - Tons sold in Q1 2025 reached a record, increasing 12.8% compared to Q4 2024, and 9% year-over-year, significantly outperforming the service center industry's decline of 0.5% [11][12] - The nonresidential construction market, which includes carbon steel tubing, plate, and structural products, represented about one-third of sales and showed strong growth [13] - The general manufacturing business also represented roughly one-third of total sales, with strong demand in industrial machinery and military sectors [15] Market Data and Key Metrics Changes - Demand in the nonresidential construction market remained solid, supported by data center construction and publicly funded infrastructure projects [14] - The aerospace sector saw stable demand, with commercial aerospace increasing sequentially and defense-related aerospace remaining strong [17] - The semiconductor industry faced pressure due to excess inventories, impacting shipments [19] Company Strategy and Development Direction - The company maintains a focus on growth and profitability, with a capital expenditure budget of $325 million for 2025, aiming for strategic acquisitions [6][31] - The management emphasized the importance of sourcing metal primarily from domestic producers, with over 95% of purchases made domestically [38] - The company is exploring opportunities for value-added processing and fabrication to better serve customer needs [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, highlighting strong customer relationships and operational execution [46][90] - The outlook for Q2 2025 anticipates stable demand across diversified end markets, with tons sold expected to be down 1% to up 1% compared to Q1 2025 [31][32] - Non-GAAP earnings per diluted share for Q2 2025 are projected to be in the range of $4.50 to $4.70, inclusive of LIFO expense [33] Other Important Information - The company funded stockholder return activities totaling $318 million, including a 9.1% increase in quarterly dividends [7][28] - Share repurchases have resulted in a cumulative 2.3% reduction in total shares outstanding since December 31, 2024 [29] Q&A Session Summary Question: Discussion on exposure within COGS and CapEx related to imports impacted by tariffs - Management confirmed that over 95% of metal purchases are from domestic producers, resulting in limited exposure to imports [38] Question: Impact of tariffs on long-term CapEx decisions - Management indicated that while tariffs can influence decisions, the majority of sourcing remains domestic, and no major shifts in CapEx strategy are anticipated [41] Question: Customer conversations regarding reshoring activity - Management noted increased discussions with customers about reshoring, with some experiencing higher volumes due to domestic manufacturing growth [44] Question: Changes in LIFO assumptions for aerospace - Management stated that baseline assumptions regarding LIFO income for aerospace remain relatively unchanged [52] Question: Current inventory levels and restocking needs - Management reported that inventory levels are slightly above target, with strong relationships with domestic mills ensuring access to inventory [82] Question: General market conditions and performance amidst economic challenges - Management acknowledged macroeconomic challenges but emphasized the company's ability to grow and service customers effectively [90]

Financial Data and Key Metrics Changes - The company reported non-GAAP earnings per share of $3.77, exceeding expectations, with a gross profit margin increase of 140 basis points quarter over quarter [5][15] - Cash flow from operations was generated despite a working capital investment to support growth efforts, with a capital expenditure budget of $325 million for 2025 [5][18] - The LIFO expense for the first quarter was $25 million, impacting earnings per share by $0.35, with a revised full-year LIFO estimate of $100 million [15][16] Business Line Data and Key Metrics Changes - Record tons sold increased by 12.8% compared to Q4 2024, with a 9% increase year over year, outperforming the service center industry's decline of 0.5% [8][9] - Non-residential construction products represented approximately one-third of Q1 sales, showing significant growth in shipments [10] - Aerospace products accounted for about 10% of sales, with stable demand despite supply chain challenges [12] Market Data and Key Metrics Changes - The company experienced strong demand in non-residential construction, driven by data center construction and publicly funded infrastructure projects [10] - General manufacturing demand remained robust, particularly in industrial machinery and military sectors, while consumer products showed weaker demand [11] - Semiconductor industry shipments faced pressure due to excess inventories, impacting overall market conditions [13] Company Strategy and Development Direction - The company remains focused on growth and profitability, with a commitment to executing additional acquisitions that align with strategic criteria [6][19] - The management emphasized the importance of maintaining strong relationships with domestic producers to mitigate risks associated with tariffs and imports [26][29] - The company is exploring opportunities for value-added processing and potential fabrication operations, while being selective to avoid competition with existing customers [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maximize earnings power despite ongoing macroeconomic uncertainty, with positive pricing momentum expected [6][20] - The outlook for Q2 2025 anticipates stable demand across diversified end markets, with tons sold expected to be down 1% to up 1% compared to Q1 2025 [20] - Management noted that the current inventory levels are above target, with strong relationships with domestic mills ensuring access to inventory [64] Other Important Information - The company has $1 billion remaining for share repurchases under its $1.5 billion plan, with a cumulative 2.3% reduction in total shares outstanding since December 31, 2024 [19][18] - A quarterly dividend increase of 9.1% was announced, marking the 32nd increase since the company's IPO in 1994 [18] Q&A Session Summary Question: Exposure to COGS and CapEx regarding imports and tariffs - Management indicated that over 95% of metal purchases are from domestic producers, resulting in limited exposure to imports [26] Question: Long-term CapEx considerations due to tariffs - Management stated that while tariffs can influence decisions, the majority of sourcing remains domestic, and there are no major shifts in CapEx strategy [29] Question: Customer conversations regarding reshoring activity - Management noted increased discussions with customers about reshoring and bringing supply chains closer to U.S. operations [30] Question: LIFO calculation changes and aerospace assumptions - Management confirmed that the baseline assumption for aerospace remains unchanged, with LIFO expense indicating rising prices [39][40] Question: Current inventory levels and restocking needs - Management reported that inventory levels are slightly above target, with no immediate need for restocking due to strong relationships with domestic mills [64] Question: General steel market conditions and company performance - Management acknowledged macroeconomic challenges but emphasized the company's focus on growth and customer service [72]

Reliance (RS) came out with quarterly earnings of $3.77 per share, beating the Zacks Consensus Estimate of $3.66 per share. This compares to earnings of $5.30 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 3.01%. A quarter ago, it was expected that this metals service-center company would post earnings of $2.74 per share when it actually produced earnings of $2.22, delivering a surprise of -18.98%. Over the last four quarte ...

-- Net sales of $3.48 billion with record tons sold, up 9.0% year-over-year (same-store tons sold up 5.6%) -- Strong gross profit margin of 29.7% -- EPS of $3.74; non-GAAP EPS of $3.77 -- Repurchased $253.2 million of common stock SCOTTSDALE, Ariz., April 23, 2025 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) today reported its financial results for the first quarter ended March 31, 2025. EXHIBIT 99.1 Reliance, Inc. Reports First Quarter 2025 Financial Results (in millions, except tons sold which are in tho ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Reliance (RS) reports results for the quarter ended March 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 earnings report, which is expected to be released on April 23, 2025, might help the stock move higher if these key numbers are better than expectations ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES For the transition period from _______ to _______ Commission file number: 001-13122 95-1142616 (I.R.S. Employer Identification No.) 16100 N. 71st Street, Suite 400 Scottsdale, Arizona 85254 (Addres ...

Financial Data and Key Metrics Changes - The company reported a non-GAAP earnings per share of $15.92 for 2024, reflecting strong execution of targeted growth strategies and effective working capital management [7][12] - The full-year gross profit margin was 29.7%, consistent with the company's sustainable annual range [6][27] - Cash flow from operations reached $1.43 billion, marking the third-highest annual cash flow in the company's history [7][34] Business Line Data and Key Metrics Changes - The company successfully acquired and integrated four businesses in 2024, contributing approximately $400 million in net sales on an annualized basis [6][10] - Fourth-quarter tons sold decreased by 5.1% compared to the third quarter but increased by 6.7% year-over-year, outperforming the service center industry's decline [15][16] - The average selling price per ton in Q4 was $1,170, a decline of 3.4% from the previous quarter [16] Market Data and Key Metrics Changes - Demand remained solid in key end markets such as non-residential construction, aerospace, and automotive, with market share gains across nearly all product groups [15][18] - The company noted that carbon steel product prices were under pressure, while aluminum and stainless steel prices began to stabilize [16][22] - The toll processing business saw a 5.8% increase in processed tons from Q4 2023, driven by healthy demand in the US and Mexico [22] Company Strategy and Development Direction - The company aims to maintain a balanced and disciplined approach to capital deployment, with a capital expenditure budget of $325 million for 2025 [9][12] - Priorities for 2025 include increasing volumes through smart, profitable growth, maintaining gross profit margins, and enhancing value-added processing capabilities [12][36] - The company is well-positioned to capitalize on potential improvements in end-market demand, particularly in infrastructure and data center projects [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, anticipating modest demand improvement across most end markets despite macroeconomic uncertainties [13][36] - The company expects tons sold to increase by 6% to 8% in Q1 2025 compared to Q4 2024, with pricing expected to remain flat [36][70] - Management highlighted the potential positive impact of tariffs on pricing, although they are currently not factoring this into their guidance [70] Other Important Information - The company maintained a net debt to EBITDA ratio of less than one, providing significant liquidity for capital allocation priorities [35] - The LIFO reserve on the balance sheet was $435 million, which can benefit future operating results [32] Q&A Session Summary Question: Demand activity and seasonal gains - Management noted steady demand through 2024, with growth in non-residential construction and optimism for Q1 2025 due to customer activity ahead of potential tariffs [40][42] Question: Focus on increasing volume - The company plans to achieve volume growth through both organic growth and acquisitions, with a significant portion of 2024's growth attributed to acquisitions [51][52] Question: Operating expenses and inflation - Management acknowledged wage inflation and the need to retain trained employees, while also looking for ways to reduce costs [60][64] Question: Clarification on first-quarter guidance - The company provided a conservative outlook for pricing, not factoring in potential tariff impacts at this time [70] Question: Exposure to cross-border material - The company primarily operates domestically, with limited exposure to materials from Canada or Mexico, and does not anticipate significant impacts from tariffs [75][76]