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Why Is Reliance (RS) Up 5.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Reliance (RS - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Reliance due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Reliance, Inc. before we dive into how investors and analysts have reacted as of late.
Reliance’s Q1 Earnings and Sales Surpass Estimates on Higher Prices
Reliance posted profits of $264.9 million or $5.10 per share for the first quarter of 2026, up from $199.7 million or $3.74 per share in the year-ago quarter.
Barring one-time items, the company recorded earnings of $5.16 per share. It outpaced the Zacks Consensus Estimate of $4.63.
The company reported net sales of $4,026 million, representing a year-over-year increase of approximately 15.5%. The top line also beat the Zacks Consensus Estimate of $3,835.3 million.
Segment Update
Reliance reported a 2.7% year-over-year increase in shipments (thousand tons sold) to 1,672.7. The figure surpassed our estimate of 1,633.8. The average selling price per ton rose 12.6% year over year to $2,414. It was above our estimate of $2,362.2.
Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened compared with the first quarter of 2025. The company expects demand in this sector to remain healthy through the second quarter of 2026, supported by strong activity across data centers, energy infrastructure and public infrastructure.
Demand within the broader manufacturing market improved year over year, driven by growth across the military, industrial machinery, consumer products, construction machinery sectors and shipbuilding. Reliance expects the demand to remain healthy in the second quarter.
Aerospace demand was higher compared with the prior-year quarter. Reliance expects commercial aerospace demand to remain consistent in the second quarter due to build-rate increases, while defense and space-related activity is expected to remain strong.
Demand for automotive toll processing services remained flat year over year. Reliance expects steady performance through the second quarter. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations.
In the semiconductor market, demand improved relative to the first quarter of 2025. Reliance expects stable to improving demand conditions in the second quarter.
Financial Position
As of March 31, 2026, Reliance held $249.7 million in cash and cash equivalents, with total outstanding debt amounting to $1.7 billion. This includes $550 million borrowings under the company’s $1.5 billion revolving credit facility.
In the first quarter, Reliance generated $151.4 million in operating cash flow. It reflects the typical increase in seasonal working capital caused by strong shipment volume and higher metals pricing.
Reliance repurchased its common stock during the first quarter, bringing down the outstanding common shares by 3% year over year, at an average price of $299 per share, for a total of $234 million.
Outlook
Reliance expects demand in the first quarter to remain healthy across its diverse end markets, though ongoing domestic and international trade policy uncertainty and Middle East conflict could pose supply availability and macroeconomic risks, influencing performance. The company projects tons sold to increase 1% to 3% from the prior quarter and 4.5% to 6.5% from the year-ago quarter.
The average selling price per ton is anticipated to be up 1.5-3.5% sequentially. Based on these assumptions, the company forecasts adjusted earnings per share in the range of $5.15 to $5.35 for the second quarter, which includes an estimated LIFO expense of $37.5 million, or 54 cents per share.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 7.35% due to these changes.
VGM Scores
At this time, Reliance has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for value investors.
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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Reliance has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Reliance (RS) Up 5.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Reliance (RS - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Reliance due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Reliance, Inc. before we dive into how investors and analysts have reacted as of late.
Reliance’s Q1 Earnings and Sales Surpass Estimates on Higher Prices
Reliance posted profits of $264.9 million or $5.10 per share for the first quarter of 2026, up from $199.7 million or $3.74 per share in the year-ago quarter.
Barring one-time items, the company recorded earnings of $5.16 per share. It outpaced the Zacks Consensus Estimate of $4.63.
The company reported net sales of $4,026 million, representing a year-over-year increase of approximately 15.5%. The top line also beat the Zacks Consensus Estimate of $3,835.3 million.
Segment Update
Reliance reported a 2.7% year-over-year increase in shipments (thousand tons sold) to 1,672.7. The figure surpassed our estimate of 1,633.8. The average selling price per ton rose 12.6% year over year to $2,414. It was above our estimate of $2,362.2.
Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened compared with the first quarter of 2025. The company expects demand in this sector to remain healthy through the second quarter of 2026, supported by strong activity across data centers, energy infrastructure and public infrastructure.
Demand within the broader manufacturing market improved year over year, driven by growth across the military, industrial machinery, consumer products, construction machinery sectors and shipbuilding. Reliance expects the demand to remain healthy in the second quarter.
Aerospace demand was higher compared with the prior-year quarter. Reliance expects commercial aerospace demand to remain consistent in the second quarter due to build-rate increases, while defense and space-related activity is expected to remain strong.
Demand for automotive toll processing services remained flat year over year. Reliance expects steady performance through the second quarter. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations.
In the semiconductor market, demand improved relative to the first quarter of 2025. Reliance expects stable to improving demand conditions in the second quarter.
Financial Position
As of March 31, 2026, Reliance held $249.7 million in cash and cash equivalents, with total outstanding debt amounting to $1.7 billion. This includes $550 million borrowings under the company’s $1.5 billion revolving credit facility.
In the first quarter, Reliance generated $151.4 million in operating cash flow. It reflects the typical increase in seasonal working capital caused by strong shipment volume and higher metals pricing.
Reliance repurchased its common stock during the first quarter, bringing down the outstanding common shares by 3% year over year, at an average price of $299 per share, for a total of $234 million.
Outlook
Reliance expects demand in the first quarter to remain healthy across its diverse end markets, though ongoing domestic and international trade policy uncertainty and Middle East conflict could pose supply availability and macroeconomic risks, influencing performance. The company projects tons sold to increase 1% to 3% from the prior quarter and 4.5% to 6.5% from the year-ago quarter.
The average selling price per ton is anticipated to be up 1.5-3.5% sequentially. Based on these assumptions, the company forecasts adjusted earnings per share in the range of $5.15 to $5.35 for the second quarter, which includes an estimated LIFO expense of $37.5 million, or 54 cents per share.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 7.35% due to these changes.
VGM Scores
At this time, Reliance has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for value investors.
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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Reliance has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.