Reliance (RS) investor relations material

Executive summary

• Net sales reached $4.03 billion in Q1 2026, up 15.5% year-over-year, with record tons sold and a 12.6% increase in average selling price per ton sold, outperforming industry trends for the 13th consecutive quarter.

• Non-GAAP EPS was $5.16, up 37% year-over-year and above guidance, with GAAP EPS at $5.10; pretax income rose 33% year-over-year to $354 million.

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

• Strong operating cash flow and disciplined capital deployment supported growth investments and shareholder returns, with $301 million returned via dividends and share repurchases.

• Operating cash flow increased to $151.4 million, up $86.9 million year-over-year.

Financial highlights

• Gross profit margin (LIFO) was 29.1%, up 180 bps sequentially but down 60 bps year-over-year; non-GAAP FIFO gross profit margin was 30.1%.

• Operating income grew 34.1% to $367.9 million, with operating margin up 120 basis points to 9.1%.

• Net income attributable to shareholders was $264.9 million, up 32.7% year-over-year.

• Non-GAAP pre-tax income grew 33% year-over-year to $354 million, with an 8.8% pre-tax income margin.

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

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 $37.5 million 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 domestic and international trade policy, macroeconomic volatility, inflation, supply chain disruptions, and Middle East conflict.