Core Insights - Reliance, Inc. reported strong Q4 growth with net sales of $3.5 billion, an increase of 11.9% year-over-year, and record tons sold of 6.4 million, up 6.2% for the full year 2025 [1][4][8] - The company repurchased $594.1 million of common stock in 2025, reducing outstanding shares by 4%, and increased its quarterly dividend by 4.2% to $1.25 per share [1][21][22] - Management expressed confidence in continued demand and pricing strength entering 2026, with expectations for tons sold to increase by 5% to 7% in Q1 2026 compared to Q4 2025 [11][23] Financial Performance - Q4 2025 net sales were $3,498.6 million, a decrease of 4.2% from Q3 2025 but an increase of 11.9% from Q4 2024 [2][37] - Gross profit for 2025 was $4.11 billion, consistent with the prior year, while non-GAAP FIFO gross profit margin expanded to 29.6% [9][10] - Net income attributable to Reliance for Q4 2025 was $116.5 million, down 38.5% year-over-year, with diluted EPS of $2.22, a decrease of 38.2% from Q4 2024 [2][10][37] Market Dynamics - The company achieved a significant increase in domestic market share to approximately 17% from 15% in 2024, driven by strong operational execution and market demand [11] - Demand in non-residential construction, the largest end market, improved, with expectations for continued healthy demand in early 2026 [13] - The broader manufacturing sector showed improved demand, particularly in military, industrial machinery, and construction machinery sectors [14] Cash Flow and Capital Allocation - Reliance generated cash flow from operations of $276.1 million in Q4 2025 and $831.4 million for the full year [19] - For 2025, the company deployed $1.18 billion towards stockholder returns and organic growth activities, including $594.1 million in share repurchases and $254.7 million in dividends [20][22] Business Outlook - The company anticipates a modest improvement in FIFO gross profit margin in Q1 2026 and expects non-GAAP earnings per diluted share to be in the range of $4.50 to $4.70, reflecting year-over-year growth of 19% to 25% [23]