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.
Tons Sold Outperformance: Reliance set a third-quarter record for tons sold, outperforming the industry by about 9 percentage points and growing U.S. market share to 17.1%.
Margin Headwinds: Gross profit margins faced short-term pressure due to trade policy uncertainty, competitive pricing, and excess inventory, especially in carbon steel and specialty products for aerospace and semiconductors.
Consistent EPS: Non-GAAP earnings per diluted share were $3.64, matching expectations and prior-year levels, despite a $1.03 per share unfavorable LIFO impact year-over-year.
Stable Pricing & Demand: Average selling prices stayed steady with the prior quarter, and pricing is expected to remain flat into Q4. Demand is forecast to be stable, with Q4 tons sold up 3.5% to 5.5% YoY but down 5% to 7% sequentially.
Strong Cash Flow & Capital Returns: $262 million in operating cash flow was generated, $124 million was returned via dividends and buybacks, and year-to-date share repurchases reduced shares outstanding by 2%.
CapEx and M&A: 2025 capital expenditure budget is $325 million, with total cash outlays of $340–$360 million including carryover. CapEx for 2026 is expected to be directionally lower.
Q4 Guidance: Non-GAAP EPS guidance for Q4 is $2.65–$2.85, including $25 million in LIFO expense.
