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Reliance, Inc.
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NYSE: RS Materials Metals 🔎 Screen
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$21.4B
Market Cap
20.7
P/E
1.73
PEG
9.4%
ROCE
10.3%
ROE
0.24
D/E
7.3%
OPM
-4.9%
% from 52W High
83
α RS
🔍 RS is showing a multi-screen setup because it matches 3 of 39 tracked screener presets, Sector RRG has Materials in the Improving quadrant with the trail still strengthening, RS Rating is 83, and it has maintained a 24-day Near 52-Week High momentum persistence. The main caution: the Graham Defensive preset's Backtest win rate is only 43.6%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG RS Rating Momentum Streaks Backtest
Sources
Conviction 3/39 · Materials in Improving quadrant · RS Rating 83 · Near 52-Week High streak: 24d · Backtest win rate 43.6%
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About

Reliance, Inc. operates as a diversified metal solutions provider and metals service center company primarily in the United States and Canada. The company distributes metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and other specialty steel products; and provides metals processing services to consumer products, general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, industrial machinery, and heavy industries. It sells its products directly to original equipment manufacturers, which primarily include small machine shops and fabricators. The company was formerly known as Reliance Steel & Aluminum Co. and changed its name to Reliance, Inc. in February 2024. Reliance, Inc. was founded in 1939 and is based in Phoenix, Arizona.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$4.63B
+26.5% YoY
Pretax Income
$0.43B
+41.2% YoY
Pretax Margin
9.3%
+1.0pp YoY
Net Income
$322.9M
+38.2% YoY
What Went Right
  • Record quarterly tons sold of 1.79M, up 10.8% YoY and 7.0% sequentially, well above guidance
  • Non-GAAP EPS of $6.27 beat guidance, up 42% YoY, with the border wall contract adding $0.41/share
  • Non-GAAP pre-tax income rose 40% YoY to $428.7M on strong pricing and operating leverage
What to Watch
  • LIFO expense surged to $112.5M vs. the $37.5M guided estimate; FY26 LIFO outlook raised to $300M from $150M
  • Aluminum tariffs are driving roughly 100bps of margin compression noise from LIFO and FIFO impacts
  • Extended mill lead times and supply constraints, especially in beams, plate and heat-treated aluminum, are limiting growth potential
Management Guidance
  • Q3 2026 non-GAAP EPS guided to $6.40-$6.60, up 76%-81% YoY, including ~$75M LIFO expense ($1.10/share)
  • Full-year 2026 capital expenditures remain approximately $300 million, with about half for strategic growth
  • Border wall phase one expected to contribute ~$1.4B of sales through mid-2027, with up to $800-$900M of potential phase two volume
Investor Lens
The thesis is stronger after this call. Reliance again beat shipment and EPS expectations, driven by record volumes, favorable pricing and the early contribution from the border wall contract. Management expects Q3 EPS to rise further despite higher LIFO costs, underscoring momentum in non-residential construction, general manufacturing, aerospace and semiconductors. The main watch item remains aluminum-related margin noise and supply tightness, but the company's scale, mill relationships and balance sheet leave it well positioned.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter with record tons, EPS up 42% to $6.27
Revenue
Q2 revenue was $4.63B, up 26.5% YoY and 15% sequentially, helped by record tons sold of 1.79M and average selling prices up 7.8% QoQ. Non-residential construction and general manufacturing each represented about one-third of sales, with aerospace at 9% and automotive at 4%.
Profitability
Net income attributable to Reliance was $322.9M, up 38.2% YoY. Non-GAAP diluted EPS of $6.27 climbed 42% YoY and beat guidance, while GAAP diluted EPS was $6.29.
Margins
Non-GAAP pretax income margin expanded to 9.3% from 8.3% a year ago. FIFO non-GAAP gross margin was 30.5%, down slightly YoY, but gross profit dollars rose 20% YoY to $1.30B. The border wall project added roughly 30bps to pretax margin despite diluting gross margin by 40bps.
Balance Sheet
Operating cash flow was $162.2M in Q2 despite working capital build; net debt to EBITDA remained low at 0.9x. Capital expenditures were $93.4M, dividends were $63.8M, and no shares were repurchased in the quarter.
Key Risks
Management flagged elevated LIFO expense, aluminum tariff-driven margin distortion, and supply constraints across beams, plate and heat-treated aluminum. The U.S.-Iran conflict is adding freight and fuel cost inflation, and trade policy risk remains an ongoing factor.
Outlook
Q3 2026 non-GAAP EPS is expected at $6.40-$6.60, up 76%-81% YoY, including about $1.10/share of LIFO expense. Demand and pricing are expected to remain healthy with normal seasonality, and the border wall contract will ramp further in Q3.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Second quarter saw record tons sold, 27% sales growth, and a 42% rise in non-GAAP EPS, driven by strong demand, favorable pricing, and the U.S. border wall contract. Outlook remains robust with continued growth expected in key markets and a strong balance sheet.
Q1 2026 Q1 2026 2026-04-23
First quarter 2026 saw record shipments, strong pricing, and earnings growth, with major government contracts secured and robust performance across key end markets. Guidance for Q2 remains strong, supported by healthy demand and pricing, despite ongoing tariff and geopolitical risks.
Q4 2025 Q4 2025 2026-02-19
Record shipment growth and market share gains in 2025 drove strong cash flow and profitability, despite margin pressure from aluminum tariffs. 2026 guidance calls for higher volumes, improved margins, and continued capital returns, with optimism in key end markets like infrastructure and manufacturing.
Q3 2025 Q3 2025 2025-10-23
Third quarter results set a record for tons sold and market share, with strong cash flow and disciplined capital allocation. Gross margin faced headwinds from trade policy and excess inventory, but pricing and demand are stabilizing, and Q4 guidance anticipates steady performance.
Q2 2025 Q2 2025 2025-07-24
Record Q2 tons sold and strong EPS growth outpaced industry trends, supported by robust cash flow and disciplined capital allocation. Guidance for Q3 is conservative amid tariff and pricing uncertainty, with stable demand but margin pressure expected.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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