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]