Reliance Steel & Aluminum Co
NYSE:RS
Reliance Steel & Aluminum Co
In the industrial heartlands of America, Reliance Steel & Aluminum Co. stands as a stalwart of strength and versatility, crafting a legacy that has formed the backbone of myriad sectors from aerospace to construction. Founded in 1939, the company has evolved into a titan of metal distribution and processing, leveraging an expansive network that spans over 300 locations across the globe. At its core, Reliance operates as a vastly efficient conduit between raw material producers and a diverse clientele who demand high-quality, processed metals tailored to precise specifications. From aluminum sheets to steel plates, the company ensures a seamless supply chain that hinges on its commitment to swift delivery and rolling stock maintenance, minimizing the lead time for its customers.
But Reliance doesn’t merely rest on its logistical prowess; it's deeply invested in adding value to its offerings through a multitude of processing services. This includes cutting, bending, slitting, and any custom processing required to make metals ready for manufacturing. By owning warehouses and processing facilities rather than relying solely on distribution, Reliance has crafted a competitive advantage that shields it from market volatilities in metal pricing. This dual focus on distribution and value-added services allows Reliance Steel & Aluminum Co. to provide a one-stop solution for its clients, which in turn, ensures a steady revenue stream. The company skillfully navigates the cyclical nature of the metals market, transforming potential challenges into opportunities through strategic acquisitions and relentless optimization of its supply chain capabilities. This business model not only underpins its financial stability but also cements its reputation as a trusted ally in the supply chain of many industries worldwide.
In the industrial heartlands of America, Reliance Steel & Aluminum Co. stands as a stalwart of strength and versatility, crafting a legacy that has formed the backbone of myriad sectors from aerospace to construction. Founded in 1939, the company has evolved into a titan of metal distribution and processing, leveraging an expansive network that spans over 300 locations across the globe. At its core, Reliance operates as a vastly efficient conduit between raw material producers and a diverse clientele who demand high-quality, processed metals tailored to precise specifications. From aluminum sheets to steel plates, the company ensures a seamless supply chain that hinges on its commitment to swift delivery and rolling stock maintenance, minimizing the lead time for its customers.
But Reliance doesn’t merely rest on its logistical prowess; it's deeply invested in adding value to its offerings through a multitude of processing services. This includes cutting, bending, slitting, and any custom processing required to make metals ready for manufacturing. By owning warehouses and processing facilities rather than relying solely on distribution, Reliance has crafted a competitive advantage that shields it from market volatilities in metal pricing. This dual focus on distribution and value-added services allows Reliance Steel & Aluminum Co. to provide a one-stop solution for its clients, which in turn, ensures a steady revenue stream. The company skillfully navigates the cyclical nature of the metals market, transforming potential challenges into opportunities through strategic acquisitions and relentless optimization of its supply chain capabilities. This business model not only underpins its financial stability but also cements its reputation as a trusted ally in the supply chain of many industries worldwide.
Market Share Gains: Reliance grew tons shipped by 6.2% in 2025 to a record 6.4 million, raising US market share to 17% from 15%.
Strong Cash Flow: Generated $831 million in operating cash flow in 2025, fueling capital investments and $849 million returned to shareholders via dividends and buybacks.
Margin Dynamics: Non-GAAP gross profit margin was 28.8%, just below the 29%–31% sustainable range due to tariff-driven LIFO expense. Management expects margins to improve in 2026.
Aluminum Tariff Impact: Tariff-related aluminum costs drove significant LIFO expense ($114 million) and limited margin gains despite higher selling prices.
Healthy 2026 Outlook: Management sees continued healthy demand and strong pricing for Q1 2026, with volumes and prices both expected to rise sequentially.
CapEx Plans: 2026 capital expenditure budget is set at $275 million, with potential to increase if compelling growth opportunities arise.
Acquisitions Approach: M&A remains a priority, but management emphasizes disciplined valuation and highlights significant recent organic growth over acquisitions.
