Reliance (RS) Q3 2026 earnings summary

Executive summary

• Record Q3 net sales of $5.21B rose 42.8% YoY; record tons sold and stronger pricing supported the second-highest quarterly gross profit on record.

• Non-GAAP diluted EPS was $8.02, up 120% YoY and above guidance; the border wall project contributed $0.74 per share despite elevated LIFO expense.

Financial highlights

• Gross profit was $1.45B, up 41% YoY; gross margin was 27.9%, down 20 bps QoQ, while FIFO gross margin rose to 31.6% from 30.5% QoQ.

• Net income was $402.9M versus $189.5M YoY; diluted EPS was $7.84 versus $3.59. Non-GAAP pretax income rose 116% to $544.2M.

• Nine-month net sales were $13.87B, up 28.5% YoY; net income was $990.7M versus $622.9M, and diluted EPS was $19.21 versus $11.74.

Outlook and guidance

• Q4 non-GAAP diluted EPS guidance is $7.40–$7.60, including $112.5M of LIFO expense ($1.64 per share) and ~$0.70 per share from border wall shipments.

• Q4 tons sold excluding the project are expected up 4.0%–6.0% YoY and down 5.5%–7.5% QoQ; including it, tons are expected up 13.5%–15.5% YoY.

• Q4 average selling price per ton is expected up 1.0%–3.0% QoQ; healthy demand and tight supply are expected, subject to seasonality and external risks.

• FY 2026 LIFO expense estimate increased to $450M from $300M; FY capital expenditure outlook remains ~$300M, with ~half for strategic growth.