Reliance Steel & Aluminum Stock Earnings Reports

Reliance reported a strong Q1 2026 with record tons sold (sequential and year-over-year), sales up 15% y/y, and non-GAAP diluted EPS of $5.16 (up ~37% y/y). Average selling prices rose and volumes were broad-based across carbon, aluminum and stainless products, driving gross profit expansion (FIFO gross margin ~30.1%) and operating leverage (non-GAAP pretax income up ~33% to $354M). Management highlighted two sizable government wins through AMI Metals — Department of Homeland Security (border wall) and Joint Strike Fighter work — representing up to ~$3 billion of revenue and expected to ramp through 2026/2027, with Q2 activity included in guidance and higher activity anticipated in Q3. Balance sheet and capital allocation: strong operating cash flow ($151M in Q1 despite seasonal working capital build), $234M of buybacks in the quarter (about $529M authorization remaining), dividend increased 4% to an annualized $5.00, capex guide of ~ $300M for 2026 (about half strategic growth), and net debt/EBITDA ~1x. Key near-term headwinds: higher-than-expected LIFO expense driven by rising metal costs (Q1 LIFO $37.5M; full-year LIFO outlook raised to $150M from $100M) and margin pressure from 50% Section 232 aluminum tariffs (pressuring aluminum margin percentage though aluminum gross profit dollars are higher y/y). Management expects Q2 non-GAAP EPS of $5.15–$5.35 (including estimated $37.5M LIFO or ~$0.54/sh), with demand and pricing broadly healthy but subject to trade policy and geopolitical risks. Operational strengths cited include scale, domestic mill relationships, processing capabilities and logistics footprint that support market share gains and contract execution.