Reliance (RS) investor relations material

Executive summary

• Net sales reached $4.63 billion for Q2 2026, up 27% year-over-year, driven by record tons sold, higher average selling prices, and a significant contribution from the U.S. border wall contract.

• Non-GAAP EPS was $6.27, up 42% year-over-year, with $0.41 per share from the border wall project.

• Outperformed industry shipment trends, with tons sold up 10.8% year-over-year and market share rising to 18%.

• Maintained strong profitability, robust balance sheet, and disciplined capital allocation.

• Operating cash flow increased, supporting growth, dividends, and share repurchases.

Financial highlights

• Net sales for Q2 2026 were $4.63B, up 27% year-over-year; gross profit margin (FIFO) was 30.5%, and LIFO margin was 28.1%.

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

• Cash flow from operations was $162 million for Q2 and $313.6 million year-to-date.

• Net debt/EBITDA at 0.9x; net debt-to-total capital at 16.2%.

• Return to shareholders included $63.8 million in dividends; no share repurchases in Q2, with $529 million remaining authorized.

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.

• 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.

• LIFO reserve of $699M can offset margin pressure from future pricing declines.