Reliance, Inc. (RS)

Reliance, Inc. reported record net sales of $5.21 billion for the third quarter of 2026, up 13% from the second quarter 1.

Diluted earnings per share were $7.84, against $3.59 a year earlier 1.

Tons sold, the volume of metal shipped, rose 15.6% from a year before, and 9.4 percentage points of that came from a new federal border wall contract 12.

The company said the Department of Homeland Security awarded the multi-year contract in the first quarter of 2026 for steel and steel logistics support on the Southwest border wall 2.

Reliance also said carbon steel prices rose on tight supply, solid demand and a 50% Section 232 tariff, a US import tax on steel 2.

The board raised the share repurchase authorization to $2.5 billion on 20 October 2026 and declared a quarterly dividend of $1.25 per share 1.

The open question is how long the border wall shipments last, since the company expects them to add about $0.70 of earnings per share in the fourth quarter 1.

Reliance began on 3 February 1939 as a single metals service center in Los Angeles that cut steel reinforcing bar 3.

Its stock began trading on the New York Stock Exchange with the initial public offering of 16 September 1994 3.

The company says it has been profitable every year since then, even through recessions and a pandemic 3.

A metals service center buys metal from mills, cuts and prepares it, and delivers it in small lots to manufacturers that cannot meet a mill's minimum order 3.

Reliance grew mostly by buying other service centers, and it usually keeps their names and customer relationships 3.

Net sales were $14,805.9 million in 2023 and $13,835.0 million in 2024, a year the company describes as one of declining metal prices 3.

In 2024 it paid cash for Cooksey Iron & Metal Company, American Alloy Steel, Mid-West Materials and certain assets of the FerrouSouth division of Ferragon Corporation 3.

Those purchases added $389.2 million of net sales in 2025 3.

No acquisition followed in 2025, and growth spending fell $463.5 million, as acquisition spending ended and capital spending dropped $101.7 million 3.

Net sales rose 3.3% to $14.29 billion in 2025 because record tons sold, up 6.2%, more than offset a 2.6% fall in the average price per ton 3.

Tons sold grew more than 7 percentage points faster than the 1.0% industry decline reported by the Metals Service Center Institute 3.

Net income fell to $741.6 million from $878.0 million a year before, because tariff-driven metal costs were not fully passed on to customers, especially for aluminum 3.

What it sells

Reliance is a metals service center: it buys metal from mills, processes it to order and delivers it to customers who order in small amounts 3.

It distributes over 100,000 metal products to more than 125,000 customers 3.

In 2025 carbon steel brought $7,903.2 million of sales and 53% of the total, aluminum $2,471.5 million and 17%, and stainless steel $1,949.4 million and 13% 3.

Alloy steel brought $641.0 million, copper and brass $376.7 million, and toll processing and logistics $646.9 million 3.

In toll processing, Reliance processes metal that the customer owns for a fee, mainly for the auto industry 3.

In 2025 the average order was $3,120, about 49% of orders included value-added processing, and about 40% were delivered within 24 hours 1.

Where it works and who runs it

At the end of 2025 the company ran about 310 locations in 41 U.S. states and 10 other countries 3.

It leased 75 of its service center facilities, and the buildings and land it owns cover about 33.3 million square feet, around 85% of its operating space 3.

The facilities run at about 50-60% of capacity, and the company says it could raise output significantly without new facilities if demand rose 3.

A fleet of about 1,800 trucks, mostly leased, delivered the majority of 2025 orders 3.

Karla Lewis is president and chief executive, and Arthur Ajemyan is senior vice president and chief financial officer 3.

The company had 15,700 employees at the end of 2025, and about 11% were covered by union agreements 3.

Rivals and current pressures

The industry is fragmented: the annual report cites about 10,700 metal wholesaling locations run by about 8,400 U.S. companies in 2025 3.

Reliance names Olympic Steel, Ryerson, Worthington Enterprises and Russel Metals as its peer group 3.

Its U.S. tons sold were about 17% of the industry total in 2025, up from 15% in 2024, by the Metals Service Center Institute's count 3.

Reliance reports no pending legal proceedings other than routine litigation incidental to its business 3.

The company said trade policy uncertainty and the conflicts in Iran and Ukraine could pose supply and economic risks 1.

When metal costs climb faster than expected, an accounting charge called LIFO expense grows: it was $187.5 million in the third quarter, against $25.0 million a year earlier 1.

The umbrella, in words

Reliance is a network of operating companies that mostly keep the names of the businesses it bought 3.

Its trade name list totals 311 locations, led by Earle M. Jorgensen with 30, Metals USA with 21 and Phoenix Metals Company with 19 3.

Exhibit 21 lists the principal subsidiaries, among them Earle M. Jorgensen Company, Feralloy Corporation, Siskin Steel & Supply Company, Yarde Metals and Valex Corp. 4.

It says all other affiliates together would not be a significant subsidiary 4.

The trade name list marks three partly owned businesses: Oregon Feralloy Partners at 40%, Indiana Pickling and Processing Company at 56% and Valex Korea at 96% 3.

The company reported 150 stockholders of record and 51,733,277 shares of common stock outstanding on 20 February 2026 3.

For the fourth quarter of 2026 the company expects non-GAAP earnings (earnings adjusted for one-off items) of $7.40 to $7.60 per diluted share 1.

Without the border wall, it estimates tons sold up 4.0% to 6.0% from the fourth quarter of 2025 and down 5.5% to 7.5% from the third quarter of 2026 1.

With an estimated 9.5% contribution from the border wall, it anticipates tons sold up 13.5% to 15.5% from a year before 1.

It expects its average price per ton to be up 1.0% to 3.0% from the third quarter 1.

The company anticipates healthy demand across key products and end markets, with commercial aerospace modestly improving and semiconductor demand continuing to improve 1.

The $1.25 dividend is payable on 4 December 2026 to stockholders of record on 20 November 1.

The company says it expects to keep growing through acquisitions and internal growth that broaden its footprint and processing capabilities 3.

Its $1.5 billion revolving credit facility matures on 10 September 2029, and $400.0 million outstanding under a term loan is due in 2028 3.