We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RS Q2 Earnings Beat Estimates on Record Shipments and Pricing
Read MoreHide Full Article
Key Takeaways
Reliance beat Q2 estimates as record shipments and higher pricing lifted earnings and sales.
Tons sold hit a record 1.79 million, while average selling price per ton rose 14.5% year over year.
RS sees Q3 shipments up 9-11% year over year, with adjusted EPS of $6.40-$6.60.
Reliance, Inc. (RS - Free Report) reported second-quarter 2026 adjusted earnings of $6.27 per share, up 41.5% year over year. The figure beat the Zacks Consensus Estimate of $5.38 by 16.5%, driven by higher shipments, improved gross profit per ton and contributions from the U.S. border wall project.
Net sales rose 26.5% to $4.63 billion and surpassed the consensus estimate of $4.17 billion by 10.9%. Tons sold increased 10.8% year over year to a quarterly record of 1.79 million, exceeding management’s projection of 1-3% growth. The figure surpassed our estimate of 1.7 million.
The average selling price per ton advanced 14.5% to $2,602. The average selling price per ton climbed 7.8% from the first quarter, topping the company’s forecast of 1.5-3.5% growth. Higher carbon steel and aluminum prices supported the increase. It was above our estimate of $2,479.
Demand in non-residential construction, including infrastructure, improved year over year, supported by data centers, energy infrastructure and public projects. The company expects demand in this sector to continue to improve in the third quarter, supported by strong activity across data centers, energy infrastructure and public infrastructure.
Broader manufacturing demand strengthened on healthy activity in industrial machinery, shipbuilding, military, consumer products and construction machinery. Reliance expects the demand to remain healthy in the third quarter.
Aerospace demand improved from the second quarter. Reliance expects gradual commercial aerospace build-rate increases and robust defense and space activity. Reliance expects commercial aerospace demand to remain strong in the third quarter.
Automotive toll-processing demand also improved and is expected to remain steady at healthy levels. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations.
Semiconductor demand increased meaningfully year over year, aided by growing data center activity. The company expects semiconductor-related demand to continue improving during the third quarter.
RS’ Financial Position
Reliance ended June 30, 2026, with cash and cash equivalents of $235.4 million. Total outstanding debt was $1.7 billion, including $520 million drawn under the company’s $1.5 billion revolving credit facility.
Operating cash flow totaled $162.2 million in the quarter. Free cash flow was $68.8 million.
RS did not repurchase common shares during the second quarter. However, the company repurchased $234.2 million of stock during the first half of 2026. Roughly $529 million remained available under its share-repurchase authorization at quarter-end.
Reliance’s Outlook
Reliance expects third-quarter 2026 adjusted earnings of $6.40-$6.60 per share. The projection includes LIFO expense of $75 million, or $1.10 per share, and approximately 60 cents per share of earnings from the U.S. border wall project.
Excluding the project, tons sold are expected to decline 2-4% sequentially due to normal seasonality. Including an estimated 2% sequential contribution from the project, total shipments are projected to increase 9-11% year over year.
The average selling price per ton is expected to be flat to up 2% from the second quarter. Management anticipates generally healthy to improving demand and pricing, although trade-policy uncertainty, geopolitical conflict and potential supply constraints remain risks.
RS’ Stock Price Performance
RS’ shares have gained 28.2% in the past year compared with the industry’s growth of 29%.
Image Source: Zacks Investment Research
RS’ Zacks Rank & Key Picks
RS currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
Image: Bigstock
RS Q2 Earnings Beat Estimates on Record Shipments and Pricing
Key Takeaways
Reliance, Inc. (RS - Free Report) reported second-quarter 2026 adjusted earnings of $6.27 per share, up 41.5% year over year. The figure beat the Zacks Consensus Estimate of $5.38 by 16.5%, driven by higher shipments, improved gross profit per ton and contributions from the U.S. border wall project.
Net sales rose 26.5% to $4.63 billion and surpassed the consensus estimate of $4.17 billion by 10.9%. Tons sold increased 10.8% year over year to a quarterly record of 1.79 million, exceeding management’s projection of 1-3% growth. The figure surpassed our estimate of 1.7 million.
The average selling price per ton advanced 14.5% to $2,602. The average selling price per ton climbed 7.8% from the first quarter, topping the company’s forecast of 1.5-3.5% growth. Higher carbon steel and aluminum prices supported the increase. It was above our estimate of $2,479.
Reliance, Inc. Price and Consensus
Reliance, Inc. price-consensus-chart | Reliance, Inc. Quote
Reliance’s Segment Update
Demand in non-residential construction, including infrastructure, improved year over year, supported by data centers, energy infrastructure and public projects. The company expects demand in this sector to continue to improve in the third quarter, supported by strong activity across data centers, energy infrastructure and public infrastructure.
Broader manufacturing demand strengthened on healthy activity in industrial machinery, shipbuilding, military, consumer products and construction machinery. Reliance expects the demand to remain healthy in the third quarter.
Aerospace demand improved from the second quarter. Reliance expects gradual commercial aerospace build-rate increases and robust defense and space activity. Reliance expects commercial aerospace demand to remain strong in the third quarter.
Automotive toll-processing demand also improved and is expected to remain steady at healthy levels. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations.
Semiconductor demand increased meaningfully year over year, aided by growing data center activity. The company expects semiconductor-related demand to continue improving during the third quarter.
RS’ Financial Position
Reliance ended June 30, 2026, with cash and cash equivalents of $235.4 million. Total outstanding debt was $1.7 billion, including $520 million drawn under the company’s $1.5 billion revolving credit facility.
Operating cash flow totaled $162.2 million in the quarter. Free cash flow was $68.8 million.
RS did not repurchase common shares during the second quarter. However, the company repurchased $234.2 million of stock during the first half of 2026. Roughly $529 million remained available under its share-repurchase authorization at quarter-end.
Reliance’s Outlook
Reliance expects third-quarter 2026 adjusted earnings of $6.40-$6.60 per share. The projection includes LIFO expense of $75 million, or $1.10 per share, and approximately 60 cents per share of earnings from the U.S. border wall project.
Excluding the project, tons sold are expected to decline 2-4% sequentially due to normal seasonality. Including an estimated 2% sequential contribution from the project, total shipments are projected to increase 9-11% year over year.
The average selling price per ton is expected to be flat to up 2% from the second quarter. Management anticipates generally healthy to improving demand and pricing, although trade-policy uncertainty, geopolitical conflict and potential supply constraints remain risks.
RS’ Stock Price Performance
RS’ shares have gained 28.2% in the past year compared with the industry’s growth of 29%.
Image Source: Zacks Investment Research
RS’ Zacks Rank & Key Picks
RS currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).