Ryerson Quarterly Release Presentation Q4 2025 Certain statements made in this release and other written or oral statements made by or on behalf of the Company constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding our future performance, as well as management's expectations, beliefs, intentions, plans, estimates, objectives, or projections relating to the future. Such statements can be identified by the use of forward-looking terminology su ...

PHOENIX, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced today that Karla Lewis, President and Chief Executive Officer, Arthur Ajemyan, Senior Vice President and Chief Financial Officer, and Stephen Koch, Executive Vice President and Chief Operating Officer, will participate in the BMO Global Metals, Mining & Critical Minerals Conference on Tuesday, February 24, 2026, and Wednesday, February 25, 2026, in Hollywood, Florida. Reliance is scheduled to present on Wednesday, February 25th a ...

Financial Performance - Net income for the third quarter of 2025 was $2.2 million, or $0.18 per diluted share, down from $2.7 million, or $0.23 per diluted share in the third quarter of 2024 [2] - Adjusted EBITDA for the third quarter of 2025 was $15.4 million, an increase from $13.0 million in the third quarter of 2024 [2] - Sales totaled $491 million in the third quarter of 2025, representing a 4.5% increase compared to $470 million in the third quarter of 2024 [3] Business Strategy and Outlook - The CEO highlighted the resilience of the business model despite softer demand due to trade and interest rate uncertainties, with all three business segments contributing to profitability [4] - The Specialty Metals segment achieved its strongest shipping quarterly volume in the past three years, indicating strong performance [4] - The company has been diversifying its business, focusing on higher-margin opportunities, and maintaining operational discipline to strengthen competitiveness [4] Dividend and Merger Announcement - The Board of Directors approved a regular quarterly cash dividend of $0.16 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025 [4] - A definitive merger agreement has been reached with Ryerson Holding Corporation, with the transaction expected to close in the first quarter of 2026, pending regulatory and shareholder approvals [5]

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]

Core Viewpoint - Ryerson's Q2 2025 financial results showed a decline in earnings and revenue, reflecting ongoing challenges in profit margins and industrial demand, despite some operational achievements in market share [1][5][12] Financial Performance - Diluted EPS (GAAP) was $0.06, missing estimates of $0.19, while revenue was $1.17 billion, slightly below the expected $1.18 billion [1][2] - Year-over-year revenue decreased by 4.6% from $1.23 billion in Q2 2024, and net income attributable to Ryerson fell 80.8% to $1.9 million from $9.9 million [2][9] - Adjusted EBITDA (excluding LIFO) increased by 5.6% year-over-year to $45 million, indicating some operational resilience [2][5] Business Overview and Strategy - Ryerson operates a broad metals service center network, distributing carbon steel, stainless steel, and aluminum products across various sectors, which helps mitigate dependence on any single market [3] - The company's strategy focuses on expanding value-added services and increasing market reach through organic growth and targeted acquisitions [4] Operational Highlights - Tons shipped were 501,000, a slight decrease of 1.4% year-over-year, but better than the 2.1% decline in the broader North American service center industry, indicating modest market share gains [5] - Average selling price per ton (GAAP) was $2,334, down 3.2% year-over-year, but showed improvement from the first quarter [6] Sales Mix and Cost Management - The company has shifted its sales mix towards more transactional business, with growth in transactional sales for five consecutive quarters, helping to offset declines in contractual OEM business [7] - Cost management efforts resulted in a 0.7% increase in warehousing, delivery, and administrative expenses from Q1 to Q2 2025, with expenses declining as a percentage of revenue [8] Future Guidance - For Q3 2025, management projects GAAP revenue between $1.14 billion and $1.18 billion, with shipments expected to fall 2% to 4% quarter-over-quarter [11] - Average selling price per ton is anticipated to rise by 1% to 3%, while adjusted EBITDA excluding LIFO is expected to be in the $40 million to $45 million range [11] - Management expressed cautiousness regarding manufacturing and industrial metal demand, particularly from large OEM customers [12]

Company Overview - Reliance is the largest metals service center company in North America, operating a network of 320 locations across 41 states and 10 countries outside the US [1] - The company serves more than a significant number of clients, indicating a robust market presence [1] Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The focus has been on value investing, with a particular interest in metals and mining stocks, as well as other industries like consumer discretionary, REITs, and utilities [1]

Core Insights - Reliance, Inc. reported net sales of $3.48 billion for Q1 2025, a 9.0% increase year-over-year, with same-store tons sold up 5.6% [1][4] - The company achieved a strong gross profit margin of 29.7% and a diluted EPS of $3.74, with non-GAAP EPS at $3.77 [1][5] - Reliance repurchased $253.2 million of common stock during the quarter [1][17] Financial Performance - Net sales increased by 11.5% sequentially from Q4 2024 but decreased by 4.4% compared to Q1 2024 [2] - Gross profit rose to $1.03 billion, a 16.6% increase from Q4 2024, but down 8.4% from Q1 2024 [2] - The company reported a pretax income of $262.4 million, up 96.6% from Q4 2024 but down 33.8% from Q1 2024 [2][5] Operational Highlights - Reliance sold a record 1.63 million tons in Q1 2025, reflecting a 9.0% year-over-year increase and a 12.8% increase from Q4 2024 [4][7] - The average selling price per ton sold decreased slightly by 1.2% compared to Q4 2024, primarily due to a shift in product mix [4][5] - The company’s non-GAAP FIFO gross profit margin expanded to 30.4% from 28.8% in Q4 2024 [4] Market Demand - Demand for non-residential construction, Reliance's largest end market, improved, with expectations for continued healthy levels in Q2 2025 [8] - Broader manufacturing sector demand increased, particularly in industrial machinery and heavy construction equipment [9] - Demand in the semiconductor market remained depressed, with expectations for continued pressure in Q2 2025 [13] Balance Sheet and Cash Flow - As of March 31, 2025, Reliance had cash and cash equivalents of $277.8 million and total debt of $1.48 billion [14] - The company generated cash flow from operations of $64.5 million, a decrease of 86.4% from Q4 2024 [15] - Reliance's net debt-to-total capital ratio stood at 14.4% [2] Shareholder Returns - The company declared a quarterly cash dividend of $1.20 per share, marking a 9.1% increase from the previous quarter [16] - Reliance has repurchased approximately 16.3 million shares since 2020, totaling $3.2 billion [17] Business Outlook - Reliance anticipates stable demand across diversified end markets in Q2 2025, with tons sold expected to be down 1.0% to up 1.0% compared to Q1 2025 [19] - The company expects its average selling price per ton sold to increase by 1% to 3% in Q2 2025 [19] - Non-GAAP earnings per diluted share are projected to be in the range of $4.50 to $4.70 for Q2 2025 [19]