Reliance (RS) Q4 2025 earnings summary

Executive summary

• Achieved strong operational execution and expanded market share in 2025, with tons shipped up 6.2% and U.S. market share rising to 17% from 15% year-over-year.

• Record tons sold of 6.4 million, outperforming the industry by over seven percentage points.

• Full-year 2025 net sales rose 3.3% to $14.3 billion, with Q4 net sales up 11.9% year-over-year to $3.5 billion.

• Increased quarterly dividend by 4.2% to $1.25 per share and repurchased $594.1 million in stock, reducing shares outstanding by 4%.

• Diversified business model and scale offset market-specific weaknesses, supporting stable performance through cycles.

Financial highlights

• 2025 non-GAAP gross profit margin was 28.8%, just outside the sustainable range due to $114 million in tariff-driven LIFO expense.

• Q4 2025 net income attributable to shareholders was $116.5 million, up 10.6% year-over-year, but down 38.5% sequentially.

• Q4 non-GAAP diluted EPS was $2.40, up 8% year-over-year; adjusted for LIFO and tax, EPS would have been $2.65.

• Generated $831 million in operating cash flow in 2025.

• Returned $849 million to shareholders via dividends and share repurchases; dividend increased by 4% to $5/share annual rate.

Outlook and guidance

• 2026 CapEx budget set at $275 million, with total expected spending of $300–$325 million including carryover, about half for growth initiatives.

• First quarter 2026 tons sold expected to rise 5%-7% sequentially, with average selling price per ton up 3%-5%.

• First quarter 2026 non-GAAP EPS guidance is $4.50–$4.70, up 19%-25% year-over-year, including $25 million LIFO expense.

• Gross profit margin expected to improve in 2026 as tariff impacts lessen and demand strengthens.