Reliance (RS) Jefferies Global Industrials Conference 2026 summary

Demand and end markets

• Demand broadly positive; non-residential construction and infrastructure remain healthy, while general manufacturing has begun recovering after several low-activity years.

• Data center electrification, schools, hospitals, public infrastructure and airports remain active; automotive demand is healthy, and consumer products, machinery and construction equipment have picked up.

• Aerospace activity is improving as supply-chain inventory clears; higher build rates and multi-year backlogs support a positive outlook, with semiconductor demand also starting to pick up.

• Agricultural markets remain the main laggard, though some activity is emerging; copper busbar, aluminum plate, carbon plate and several carbon steel products face tight supply, with some allocations extending into 2027.

• 95% of supply is domestic; 320 locations across the U.S., Canada, Mexico, Asia and Europe support customer access to material.

Trade and pricing

• A North American trade deal could support trade flows and activity; tariff changes may alter prices, while Section 232 protections are viewed as favorable for the metals industry.

• Last year's 50% aluminum tariffs disrupted supply and lifted prices; demand has since improved, customers pay tariffs and base-price markups, but tariff reductions could trigger inventory devaluation.

• Lower tariffs could ease prices while keeping them at healthy levels; modest price reductions may support more activity, and a quota system could help normalize supply for domestic mills.

• Customers prioritize secure supply for equipment and data center projects and are less price-sensitive; domestic sourcing is increasingly favored over taking larger overseas positions.

• Mill suppliers are balancing elevated prices and extended lead times with supply commitments and capacity additions to keep customers supplied and limit pressure for import relief.

Growth and consolidation

• 76 acquisitions completed since the 1994 IPO; since around 2015, investment in advanced processing equipment has supported more customer value-add as customers outsource processing, design and assembly.

• Organic growth strategy targets profitable volume alongside high-margin business; shipments outpaced industry by a couple percentage points per quarter over the last two years.

• In 2025, shipments grew by more than 400,000 tons against annual shipments of 6–6.5 million tons; acquisition activity remains selective amid seller valuation expectations.

• Industry consolidation is expected to continue; recent service-center mergers may improve pricing discipline, while merger-related disruption has created opportunities to gain customers and employees.

• Acquisition targets are assessed for strategic fit and immediate earnings and cash-flow accretion; valuation discipline typically uses 5x–7x normalized forward EBITDA, with recent deals nearer 7x.