Reliance (RS) Q2 2025 earnings summary

Executive summary

• Achieved record second-quarter tons sold, up 4.0% year-over-year, with net sales of $3.66 billion and strong gross profit margin of 29.9%, outperforming industry trends.

• Non-GAAP pre-tax income rose over 15% sequentially to $304.3 million; non-GAAP EPS increased 18% to $4.43 from Q1 2025.

• Net income attributable to stockholders was $233.7 million, down from $267.8 million in Q2 2024, but up 17% sequentially.

• Strong cash flow from operations at $229 million in Q2, supporting investments and shareholder returns.

• Continued market share gains attributed to scale, domestic sourcing, and value-added processing.

Financial highlights

• Q2 non-GAAP EPS of $4.43, up 17.5% sequentially; diluted EPS was $4.42.

• Q2 non-GAAP FIFO gross profit margin increased to 30.6% from 30.4% in Q1; GAAP gross profit margin was 29.9%.

• Q2 average selling price per ton was $2,273, down 3.2% year-over-year but up 6.1% sequentially.

• Q2 operating cash flow of $229 million, despite $100 million working capital investment.

• Returned $143 million to shareholders in Q2 via dividends and share repurchases.

Outlook and guidance

• Q3 tons sold expected to decline 1%-3% sequentially, but rise 3%-5% year-over-year.

• Average selling price per ton in Q3 projected to be flat to down 1% sequentially.

• Q3 non-GAAP EPS guidance: $3.60-$3.80, including $25 million LIFO expense.

• Gross profit margin expected to remain under pressure in Q3 due to pricing and tariff uncertainty.

• Demand across end markets anticipated to remain stable, with normal seasonal slowdown.