PresentationGood morning, everyone. This morning, we're starting with Reliance. And with us today is CEO, Karla Lewis. Karla, over to you.Karla LewisPresident, CEO & Director Good morning, everyone. Thanks for joining us today, and thank you to BMO and Katja for inviting Reliance to the conference. We're just going to kick it off with a really quick overview of who Reliance is. We're a metal service center and processor. Most diversified and largest company. We've been in business since 1939. We've grown th ...

Key Takeaways AKAM is set to report Q4 results on Feb. 19, with revenues seen rising to $1.07B from $1.02B a year ago.Akamai expanded Apiiro ties and launched Inference Cloud solution powered by NVIDIA Blackwell GPUs.AKAM's ISV Catalyst program aims to grow its cloud ecosystem and expand its client base.Akamai Technologies, Inc. (AKAM) is scheduled to release fourth-quarter 2025 results on Feb. 19, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 13.41%. It ...

Industry Overview - Earnings season is approaching for major North American steel companies, with results expected in the coming weeks [1] - Steel equities have outperformed, rising 17% over the past three months compared to the State Street SPDR S&P Metals & Mining ETF's 15%, driven by a supply-driven rally in Hot Rolled Coil (HRC) prices, which increased by 17% despite weak underlying demand [1] Market Dynamics - HRC metal margins have expanded over 20% relative to pre-tariff levels, and post-tariff mill utilization is approximately 160 basis points above historical norms [2] - Forward demand indicators are mixed as medium- and smaller-scale buyers adjust to trade uncertainty [2] Regulatory Environment - Clarity on the United States-Mexico-Canada Agreement (USMCA) and International Emergency Economic Powers Act (IEEPA) tariffs is needed to trigger larger steel-intensive projects, as the Supreme Court of the US recently deferred these matters [3] Company Projections - Price momentum is expected to continue through at least the first quarter, with projected HRC prices at $955 per ton, although upside is limited by a narrowing import arbitrage and a seasonal slowdown anticipated in summer [4] - Fourth-quarter results are expected to show weaker earnings due to seasonally lighter shipments and lagging sheet contracts, with a potential decline of up to 8% quarter-over-quarter [4] Company-Specific Insights - Nucor Corporation (NUE) is expected to outperform due to a conservative mid-quarter guide, while Cleveland-Cliffs (CLF) may report weakness from elevated costs [5] - Reliance, Inc. (RS) could exceed its fourth-quarter/first-quarter EPS guidance due to stronger pricing and lower customer pushback, despite risks from unplanned outages at Steel Dynamics's Butler mill and a transformer fire at Sinton [5] - Commercial Metals Company (CMC) reported that many large construction projects remain on hold but noted positive momentum in rebar fabrication, an area where NUE has exposure [6]

Core Points - The presentation is led by Reliance's team, including President and CEO Karla Lewis and EVP and COO Steve Koch [1][2] - The event is organized by Robert W. Baird & Co. Incorporated, focusing on sustainable energy and mobility [1] Company Overview - Karla Lewis provides a brief background of herself before the presentation [2] - The session includes a Q&A segment, encouraging audience participation [2]

Core Insights - Kaiser Aluminum Corporation has appointed James D. Hoffman as an independent director, serving a term that will expire at the 2026 annual meeting of stockholders [1][2] - Mr. Hoffman brings over 43 years of experience in the metals distribution and fabrication industries, with a strong background in strategic development and leadership [2][3] - The company is focused on growth and aims to leverage Mr. Hoffman's expertise to advance its long-term objectives [2][3] Company Overview - Kaiser Aluminum Corporation, headquartered in Franklin, Tennessee, is a leading producer of semi-fabricated specialty aluminum products, serving various industries including aerospace, automotive, and general engineering [3] - The company has a strong commitment to quality, innovation, and service, which has been integral to its culture since its founding in 1946 [3] - Kaiser Aluminum's stock is included in the Russell 2000® index and the S&P Small Cap 600® index, indicating its position in the market [3]

Company Overview - Reliance is a metal service center company focused on processing and distribution of metals, founded in Los Angeles in 1939, with over 85 years of experience [1] - The company operates approximately 320 locations, primarily in the U.S. and North America, with some international presence [1] - Reliance has diversified its offerings, selling over 100,000 metal products to more than 125,000 customers [1] Business Strategy - The company employs a decentralized operational model, often through acquisitions, while maintaining the brand names of acquired companies [1] - Reliance believes in the value of the companies it acquires and differentiates itself from larger service center companies through its focus on diversification [1]

Core Insights - Reliance, Inc. reported a profit of $233.7 million or $4.42 per share for Q2 2024, a decrease from $267.8 million or $4.67 per share in the same quarter last year, missing the Zacks Consensus Estimate of $4.72 [1] - The company achieved net sales of $3,659.8 million, reflecting a year-over-year increase of approximately 0.5%, surpassing the Zacks Consensus Estimate of $3,631.1 million [1] Financial Performance - Earnings per share, excluding one-time items, were recorded at $4.43, which is lower than the consensus estimate [1] - Reliance's cash and cash equivalents stood at $239.5 million as of June 30, 2025, with total outstanding debt of $1.43 billion, including $282 million borrowed from a $1.5 billion revolving credit facility [7] - The company generated $229 million in operating cash flow during Q2 2025, factoring in typical seasonal working capital investments [8] Market Demand and Pricing - Shipments increased by 3.9% year-over-year to 1,615 thousand tons, although this fell short of the estimate of 1,621.5 thousand tons [2] - The average selling price per ton decreased by 3.2% year-over-year to $2,273, which exceeded the estimate of $2,171.5 [2] - Demand for non-residential construction, Reliance's largest end market, is expected to remain strong, driven by ongoing construction activities in various sectors [3] - Aerospace demand is stable, but a slight decline is anticipated in the commercial aerospace market due to surplus inventory [4] - Demand for toll processing services in the automotive sector remains stable, although uncertainties in North American trade policies could impact the outlook [5] - The semiconductor sector continues to experience weak demand, expected to persist through Q3 2025 due to inventory surpluses [6] Future Outlook - Reliance anticipates a 1% to 3% decrease in tons sold in Q3 2025 compared to Q2 2025, but expects sales to be 3% to 5% higher than in Q3 2024 [9][10] - The average selling price per ton in Q3 is projected to fluctuate between a 1% decline and a 1% increase from the previous quarter, influenced by lower carbon steel prices and rising prices for select aluminum and stainless steel products [10] - Adjusted earnings per share for Q3 2025 are forecasted to be between $3.60 and $3.80, including an estimated LIFO expense of $25 million [11] Stock Performance - Reliance's shares have increased by 17% over the past year, outperforming the industry average rise of 12.2% [12]