Reliance (RS) Q1 2026 earnings summary

Executive summary

• Net sales reached $4.03 billion in Q1 2026, up 15.5% year-over-year, with record tons sold rising 2.7% year-over-year and 9.4% sequentially, outpacing industry declines.

• Non-GAAP EPS was $5.16, up 37% year-over-year and above guidance, with GAAP EPS at $5.10; net income attributable to shareholders was $264.9 million, up 32.7%.

• Secured two major government contracts: $2.24 billion DHS border wall (Phase 1: $1.4 billion through mid-2027) and a $654 million Joint Strike Fighter contract, representing up to $3 billion in revenue.

• Strong operating and free cash flow, disciplined capital deployment, and robust shareholder returns, including $234 million in share repurchases and a 4.2% dividend increase to $1.25 per share.

• Diversified business model, decentralized operations, and resilience through economic cycles support continued growth.

Financial highlights

• Gross profit margin (LIFO) was 29.1%; non-GAAP FIFO gross profit margin was 30.1%, up sequentially.

• Operating income grew 34.1% to $367.9 million, with a 9.1% margin; non-GAAP pre-tax income rose 33% year-over-year to $354 million.

• Non-GAAP earnings per diluted share rose nearly 37% year-over-year to $5.16.

• Cash flow from operations totaled $831 million in 2025; operating cash flow for Q1 2026 was $151.4 million.

• SG&A expense per ton increased 3.7%, but margin declined 150 basis points due to operating leverage.

Outlook and guidance

• Q2 2026 tons sold expected to increase 1.0%–3.0% sequentially and 4.5%–6.5% year-over-year; average selling price per ton to rise 1.5%–3.5% sequentially.

• Non-GAAP EPS guidance for Q2 2026 is $5.15–$5.35, up 16%–21% year-over-year, including $0.54 per share LIFO expense.

• Border wall contract expected to contribute 3% to tons sold and $0.15–$0.20 EPS in Q2 2026.

• Full-year 2026 capital expenditures projected at $300 million, with less than half for strategic growth investments.

• Risks include trade policy, macroeconomic volatility, inflation, supply chain disruptions, and geopolitical conflicts, particularly in the Middle East.