A month has gone by since the last earnings report for Reliance (RS Quick QuoteRS - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Reliance due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Reliance, Inc. before we dive into how investors and analysts have reacted as of late.

Reliance's Earnings Miss, Revenues Beat Estimates in Q2

Reliance posted profits of $233.7 million or $4.42 per share for the second quarter of 2024, down from $267.8 million or $4.67 per share in the year-ago quarter.

Barring one-time items, the company recorded earnings of $4.43 per share. It lagged the Zacks Consensus Estimate of $4.72.

The company recorded net sales of $3,659.8 million, up around 0.5% year over year. The top line beat the Zacks Consensus Estimate of $3,631.1 million.

Volumes and Pricing

Reliance reported a 3.9% year-over-year increase in shipments (thousand tons sold) to 1,615. The figure missed our estimate of 1,621.5. The average selling price per ton fell 3.2% year over year to $2,273. It beat our estimate of $2,171.5.

Demand for non-residential construction, including infrastructure, which is Reliance’s largest end market by volume, improved from the second quarter of 2024. The company expects this demand to stay strong in the third quarter of 2025, driven by ongoing construction activity in various areas such as data centers, energy infrastructure, manufacturing and public works. 

Aerospace demand remained steady compared to the second quarter of 2024. However, Reliance expects slightly lower demand in the commercial aerospace market during the third quarter of 2025, primarily due to surplus inventory in the supply chain. In contrast, demand in the military and space-related segments of the aerospace business is projected to stay strong and consistent.

Demand for Reliance’s toll processing services in the automotive sector also remained stable sequentially. The company expects this stability to continue into the third quarter of 2025, although uncertainty around North American trade policies could adversely impact the outlook. Reliance’s toll processing operations are designed to remain agile and responsive to market shifts.

In the semiconductor sector, demand continued to lag behind second-quarter 2024 levels. The company foresees ongoing weakness in this market through the third quarter of 2025, driven by persistent inventory surpluses within the supply chain.

Financial Position

As of June 30, 2025, Reliance held $239.5 million in cash and cash equivalents, with total outstanding debt amounting to $1.43 billion. This includes $282 million borrowings under the company’s $1.5 billion revolving credit facility.

Outlook

Reliance expects overall demand to remain steady in the third quarter of 2025 across its diverse end markets, factoring in typical seasonal trends. These include a decline in shipping volumes due to planned customer shutdowns and vacation schedules, along with ongoing uncertainty surrounding both domestic and global trade policies. As a result, the company projects that tons sold will decrease 1% to 3% from the second quarter of 2025, but will be 3% to 5% higher than in the third quarter of 2024.

Reliance also anticipates its average selling price per ton in the third quarter will range from a 1% decline to a 1% increase from the previous quarter. This outlook is largely influenced by lower pricing for carbon steel products, partially offset by rising prices for select aluminum and stainless steel products. As a result, the company’s FIFO gross profit margin is expected to have faced continued pressure during the quarter.

Based on these projections, Reliance forecasts adjusted earnings per share to be between $3.60 and $3.80 for the third quarter of 2025, which includes an estimated LIFO expense of $25 million, or 36 cents per share.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in estimates review.

VGM Scores

At this time, Reliance has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Reliance has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.