Reliance (RS) Q2 2026 earnings summary

Executive summary

• Achieved second highest quarterly revenue and record tons sold, with net sales reaching $4.63 billion, up 15% sequentially and 26.5% year-over-year, outperforming industry shipment trends due to scale, diversification, and strong domestic mill partnerships.

• EPS was $6.29 and non-GAAP EPS $6.27, both up over 40% year-over-year and exceeding guidance, with $0.41 per share from the U.S. border wall project.

• Pretax income rose 41% year-over-year to $429.8 million, driven by higher shipments, strong pricing, and contributions from the U.S. border wall project.

• Benefited from initial contributions of the U.S. border wall contract, exceeding guidance and meaningfully boosting Q2 earnings.

• Non-residential construction, general manufacturing, aerospace, and semiconductor markets showed strong or improving sales.

Financial highlights

• Q2 sales increased 27% year-over-year, driven by higher shipments and pricing, with gross profit of $1.3 billion, up 11% sequentially and 20% year-over-year.

• Gross profit margin (FIFO) at 30.5%, with LIFO margin at 28.1%, down 100 bps sequentially due to increased LIFO expense and project mix.

• Non-GAAP pre-tax income rose 40% year-over-year to $429 million; net income for the quarter was $322.9 million, up 38.2% year-over-year.

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

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

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 and $75 million LIFO expense.

• 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.

• Average selling price per ton sold expected to be flat to up 2% sequentially.

• 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.