Reliance (RS) investor relations material

Executive summary

• Net sales reached $4.63 billion for Q2 2026, up 26.5% year-over-year and 15% sequentially, driven by record tons sold, higher average selling prices, and strong demand across most end markets, with a significant contribution from the U.S. border wall contract.

• Earnings per diluted share rose 42.3% year-over-year to $6.29, with non-GAAP EPS at $6.27, both exceeding guidance and including a $0.41 per share contribution from the border wall project.

• Pretax income rose 41% year-over-year to $429.8 million, reflecting improved operating leverage, higher selling prices, and the border wall project.

• Operating cash flow increased to $313.6 million in the first half, despite higher working capital needs from shipment volume and metals pricing.

• Outperformed industry shipment trends due to scale, diversification, and strong domestic mill partnerships.

Financial highlights

• Q2 2026 net income was $323.6 million, up from $234.2 million in Q2 2025; gross profit margin (LIFO) was 28.1% for Q2, with FIFO gross profit margin at 30.5%.

• Non-GAAP pre-tax income rose 40% year-over-year to $429 million.

• Diluted EPS was $6.29 for Q2, with non-GAAP EPS at $6.27, both up over 40% year-over-year.

• Cash flow from operations was $162 million for Q2 and $313.6 million year-to-date; free cash flow for the quarter was $68.8 million.

• Return to shareholders in the first half totaled $364.6 million, including $234.2 million in share repurchases and $130.4 million in dividends.

Outlook and guidance

• Q3 2026 non-GAAP EPS expected at $6.40–$6.60, up 76–81% year-over-year, including $0.60 per share from the border wall project.

• Tons sold projected to be down 2–4% sequentially (excluding border wall project) due to seasonality, but up 9–11% year-over-year including the project.

• Border wall contract shipments expected to sustain Q3 run rate through mid-2027, with potential for phase two extension.

• Full-year 2026 capex outlook remains at $300 million, half for strategic growth investments.

• Management expects continued strong demand and pricing, supported by robust end markets and sufficient liquidity.