RELIANCE, INC.
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 28, 2026
RS$417.00+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001104659-26-051524
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0001104659-26-087528
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 71 previous paragraphs and 72 current paragraphs.
36 unchanged; 21 reworded; 14 added; 13 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Record tons sold and significant increases in average selling price per ton sold drove net sales to $4.63 billion in the second quarter and $8.66 billion in the first six months of 2026, up 26.5% and 21.2%, respectively, from the prior year periods. For the second quarter of 2026, tons sold increased 10.8% and average selling price per ton sold improved 14.5% year-over-year, reflecting strong underlying demand across most end markets. In the first quarter of 2026, we were awarded a multi-year contract by the U.S. Department of Homeland Security to provide steel and steel logistics support services for the construction of the border wall along the Southwest U.S. border (the U.S. border wall project). Steel deliveries under the contract began in the second quarter of 2026 and contributed 5.2 percentage points to year-over-year tons sold growth in the quarter.
Current report
Gross profit margin under our LIFO method was 28.1% for the second quarter and 28.6% for the first six months of 2026, compared to 29.7% for the same 2025 periods. Higher carbon steel and aluminum product costs significantly increased our LIFO expense, year-over-year. On a FIFO basis, which excludes the impact of LIFO accounting and is how management evaluates operating performance, gross profit margin improved 10 basis points in the second quarter of 2026 compared to the prior year period despite shipments under the U.S. border wall project reducing gross profit margin by approximately 40 basis points. The contract, however, was accretive to pretax income margin due to our ability to leverage our existing infrastructure, resulting in lower incremental operating costs.
Current report
The increases in SG&A expense were primarily due to variable warehousing and delivery costs associated with higher tons sold, increased incentive compensation resulting from higher profitability, inflationary impacts on transportation costs from higher fuel prices and wage and benefit inflation. On a per ton basis, SG&A expense increases were more moderate at 0.9% and 2.3% in the second quarter and first six months of 2026. The U.S. border wall project generated favorable operating leverage due to a below-average SG&A expense per ton profile, contributing approximately 30 basis points to our pretax income margin in the second quarter of 2026.
Current report
Driven by higher selling prices, improved operating leverage, and a $0.41 EPS contribution from the U.S. border wall project, earnings per diluted share increased 42.3% for the second quarter of 2026 and 39.6% for the first six months of 2026 compared to 2025.
Current report
Operating cash flow in the first six months of 2026 increased $20.1 million to $313.6 million, despite a significant working capital increase related to strong shipment volume and higher metals pricing.
Current report
Second Quarter and Six Months Ended June 30, 2026 Compared to Second Quarter and Six Months Ended June 30, 2025
Current report
Our FIFO gross profit margins, which exclude the impact of LIFO accounting, were generally consistent year-over-year.
Current report
The increases in SG&A expense were primarily due to variable warehousing and delivery costs associated with higher tons sold, increased incentive compensation resulting from higher profitability, inflationary impacts on transportation costs from higher fuel prices and wage and benefit inflation. On a per ton basis, SG&A expense increases were more moderate at 0.9% and 2.3% in the second quarter and first six months of 2026, respectively.
Current report
SG&A margin improved as higher ASP enhanced operating leverage. Shipments under the U.S. border wall project also generated favorable operating leverage due to a below-average SG&A expense per ton profile, contributing to increases in our operating income margins.
Current report
Operating income increased as record tons sold and higher ASP more than offset increases in LIFO and SG&A expenses.
Current report
Improved operating leverage increased operating margin, including a benefit of approximately 30 basis points and 20 basis points from shipments under the U.S. border wall project in the second quarter and first six months of 2026, respectively.
Current report
Net cash provided by operating activities in the first six months of 2026 increased $20.1 million year-over-year to $313.6 million, primarily due to a significant increase in profitability, which was largely offset by higher working capital requirements associated with stronger shipment volumes and higher metals pricing.
Current report
Net cash used in investing activities was $146.8 million in the first six months of 2026, a decrease of $12.0 million from $158.8 million in 2025. The decrease was primarily attributable to a $16.9 million reduction in capital expenditures. Capital expenditures in both periods included significant investments in growth initiatives.
Current report
Income taxes paid were $142.7 million in the six months ended June 30, 2026 compared to $71.0 million in 2025. The increase was mainly due to higher estimated tax payments as a result of increased pretax income.
Removed paragraphs (13)
Previous report
Net sales were $4.03 billion in the first quarter of 2026, an increase of 15.5% compared to 2025, driven by record tons sold, which increased 2.7%, and a 12.6% increase in average selling price per ton sold. Shipments grew across most end markets, with notably strong underlying demand across the broader manufacturing
Previous report
Gross profit margin under our LIFO method was 29.1% compared to 29.7% in 2025. On a FIFO basis, which excludes the impact of LIFO accounting and is how we evaluate our ongoing operating performance, gross profit margin declined approximately 40 basis points to 30.0%. Despite the lower margin, gross profit per ton increased for most of the products we sold.
Previous report
SG&A expense per ton increased 3.7%, reflecting higher incentive-based compensation associated with increased profitability, inflationary impacts on compensation and related benefits, and on certain warehousing and delivery costs. However, higher average selling price per ton sold improved operating leverage, resulting in a 150 basis point decline in SG&A margin.
Previous report
Pretax income increased $87.1 million, or 33.2%, driven by volume growth, improved gross profit per ton, and improved operating leverage. As a result, pretax income margin improved 120 basis points to 8.7%.
Previous report
Earnings per diluted share were $5.10 compared to $3.74 in 2025, an increase of 36.4%. The increase was primarily driven by higher profitability and, to a lesser extent, a 3% reduction in outstanding shares from continued share repurchase activity.
Previous report
Operating cash flow increased $86.9 million to $151.4 million, primarily due to improved profitability.
Previous report
Investments in capital expenditures declined $22.7 million in the first quarter of 2026 compared to 2025.
Previous report
First Quarter Ended March 31, 2026 Compared to First Quarter Ended March 31, 2025
Previous report
to purchase in smaller quantities more frequently in the current operating environment, and that our diversified business model and high levels of customer service support growth in tons sold, enabling us to outperform the industry-wide decline in shipments.
Previous report
SG&A expense per ton increased 3.7%, reflecting higher incentive-based compensation associated with increased profitability, inflationary impacts on compensation and related benefits, and on certain warehousing and delivery costs. SG&A margin improved as higher average selling price per ton sold improved operating leverage.
Previous report
Operating income increased due to record tons sold and a higher average selling price per ton sold that offset a moderate decline in gross profit margin. Operating margin increased 120 basis points from improved operating leverage of our operating expenses.
Previous report
Net cash provided by operating activities increased $86.9 million to $151.4 million, primarily due to improved profitability.
Previous report
Net cash used in investing activities of $70.0 million in the first quarter of 2026 decreased $17.6 million compared to $87.6 million in 2025. Our investment in capital expenditures declined $22.7 million in the first quarter of 2026 compared to 2025. The majority of our capital expenditures in the first quarter of 2026 and 2025 were related to growth initiatives.
Reworded paragraphs (21)
Previous wording
This report contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Our forward-looking statements may include, but are not limited to, discussions of our: industry and end markets; business strategies; acquisitions; expectations concerning our future growth and profitability; ability to generate industry leading returns for our stockholders; future demand and metals pricing; results of operations; margins; profitability; taxes; liquidity; cash flows; capital expenditures; expectations for macroeconomic conditions, including inflation, and the possibility of an economic recession or slowdown; anticipated effects from regulatory changes, including taxation, tariffs and other trade barriers; litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range,” “intend” and “continue,” the negative of these terms, and similar expressions. All statements contained in this report that are not statements of historical fact are forward-looking statements. These forward-looking statements are based on management’s estimates, projections and assumptions as of the date of such statements. We caution readers not to place undue reliance on forward-looking statements.
Current wording
This report contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Our forward-looking statements may include, but are not limited to, discussions of our: industry and end markets; business strategies; acquisitions; expectations concerning our future growth and profitability; ability to generate industry leading returns for our stockholders; future demand and metals pricing; results of operations; margins; profitability; taxes; liquidity; cash flows; capital expenditures; expectations for and impacts from macroeconomic conditions, including inflation, and the possibility of an economic recession or slowdown; anticipated effects from regulations and regulatory changes, including taxation, tariffs and other trade barriers; litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range,” “intend” and “continue,” the negative of these terms, and similar expressions. All statements contained in this report that are not statements of historical fact are forward-looking statements. These forward-looking statements are based on management’s estimates, projections and assumptions as of the date of such statements. We caution readers not to place undue reliance on forward-looking statements.
Previous wording
Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, actions taken by us, as well as developments beyond our control, including, but not limited to: changes in domestic and worldwide political and economic conditions; changes in U.S. and foreign trade policies and programs, including tariffs and trade policies and programs specifically affecting metal product markets and pricing; slowing economic growth, inflation, rising unemployment or other macroeconomic factors that could materially impact us, our customers and suppliers; metals pricing; demand for our products and services; the possibility that the expected benefits of government contracts, acquisitions and capital expenditures may not materialize as expected; and the impacts of labor constraints and supply chain disruptions. Deteriorations in economic conditions, including as a result of tariffs or trade barriers, economic policies, inflation, economic recession, slowing growth, outbreaks of infectious disease, or geopolitical conflicts such as in Ukraine, Iran and the Middle East, could lead to a decline in demand for our products and services and negatively impact our business, and may also impact financial markets and corporate credit markets which could adversely impact our access to financing, or the terms of any financing. Other factors which could cause actual results to differ materially from our forward-looking statements include those disclosed in this report and in other reports we have filed with the United States Securities and Exchange Commission (the “SEC”). Important risks and uncertainties about our business can be found elsewhere in this Quarterly Report on Form 10-Q and in Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC and in other documents Reliance files or furnishes with the SEC. The Company cannot at this time predict all of the impacts of domestic and foreign tariffs and trade policies, inflation, product price fluctuations, economic recession, outbreaks of infectious disease, geopolitical conflicts and related economic effects, but these factors, individually or in any combination, could have a material adverse effect on the Company’s business, financial position, results of operations and cash flows.
Current wording
Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, actions taken by us, as well as developments beyond our control, including, but not limited to: changes in domestic and worldwide political and economic conditions; changes in U.S. and foreign trade policies and programs, including tariffs and trade policies and programs specifically affecting metal product markets and pricing; slowing economic growth, inflation, rising unemployment or other macroeconomic factors that could materially impact us, our customers and suppliers; metals pricing; demand for our products and services; the possibility that the expected benefits of government contracts, including the U.S. border wall project, acquisitions and capital expenditures may not materialize as expected; and the impacts of labor constraints and supply chain disruptions. Deteriorations in economic conditions, including as a result of tariffs or trade barriers, economic policies, inflation, economic recession, slowing growth, outbreaks of infectious disease, or geopolitical conflicts such as in Ukraine and Iran, could lead to a decline in demand for our products and services and negatively impact our business, and may also impact financial markets and corporate credit markets which could adversely impact our access to financing, or the terms of any financing. Other factors which could cause actual results to differ materially from our forward-looking statements include those disclosed in this report and in other reports we have filed with the United States Securities and Exchange Commission (the “SEC”). Important risks and uncertainties about our business can be found elsewhere in this Quarterly Report on Form 10-Q and in Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC and in other documents Reliance files or furnishes with the SEC. The Company cannot at this time predict all of the impacts of domestic and foreign tariffs and trade policies, inflation, product price fluctuations, economic recession, outbreaks of infectious disease, geopolitical conflicts and related economic effects, but these factors, individually or in any combination, could have a material adverse effect on the Company’s business, financial position, results of operations and cash flows.
Previous wording
The following sets forth certain income statement data for the first quarter of 2026 and 2025 (dollars are shown in millions, except per share amounts, and certain percentages may not calculate due to rounding):
Current wording
The following sets forth certain income statement data for the second quarters and first six months of 2026 and 2025 (dollars are shown in millions, except per share amounts, and certain percentages may not calculate due to rounding):
Previous wording
Growth in tons sold exceeded the industry-wide decline of 5.1% reported by the Metals Service Center Institute (“MSCI”) by nearly 8 percentage points, continuing a multi-year trend of outperformance relative to industry shipments. We believe our scale, diversified business model, and customer service capabilities, including next-day delivery and value-added processing, enabled us to gain market share in a complex operating environment.
Current wording
Our second quarter of 2026 year-over-year growth in tons sold exceeded the industry-wide increase of 5.5% reported by the Metals Service Center Institute by over five percentage points, continuing a multi-year trend of outperformance relative to industry shipments. We believe our scale, diversified business model, and customer service capabilities, including delivery and value-added processing, enabled us to gain market share in a complex operating environment.
Previous wording
Carbon steel prices have benefited from tight supply conditions and solid underlying demand. Aluminum prices are at record levels, driven primarily by the 50% tariff imposed under Section 232 in June 2025.
Current wording
Carbon steel prices have benefited from tight supply conditions and solid underlying demand. Aluminum prices continue to be at historically elevated levels, largely due to the 50% tariff imposed under Section 232 in June 2025.
Previous wording
Returns to stockholders totaled $300.8 million, consisting of $234.2 million of share repurchases and $66.6 million of cash dividends, including a 4.2% increase in our regular quarterly dividend.
Current wording
We did not repurchase any shares in the second quarter of 2026. Returns to stockholders in the first six months of 2026 totaled $364.6 million, consisting of $234.2 million of share repurchases and $130.4 million of cash dividends, including a 4.2% increase in our regular quarterly dividend in the first quarter.
Previous wording
(in millions, except tons in thousands and average selling price per ton sold)
Current wording
(in millions, except tons in thousands and average selling price per ton sold (“ASP”))
Previous wording
Tons sold and average selling price per ton sold exclude our toll processed tons. Our average selling price per ton sold includes intercompany transactions that are eliminated from our consolidated net sales.
Current wording
Tons sold and ASP exclude our toll processed tons. Our ASP includes intercompany transactions that are eliminated from our consolidated net sales.
Previous wording
Net sales increased due to record tons sold and an increase in average selling price per ton sold.
Current wording
Net sales increased due to record tons sold, including a 5.2 percentage point contribution from the U.S. border wall project, and higher ASP.
Previous wording
sector, primarily due to growth in industrial machinery, shipbuilding, military, consumer products and construction machinery. Demand in our largest end market by tons sold, non-residential construction, including infrastructure and data centers, also improved year-over-year.
Current wording
The increases in tons sold reflect improved demand across most of our end markets, as well as market share gains despite ongoing trade policy uncertainty. Underlying demand was notably strong across the broader manufacturing sector, primarily due to growth in the industrial machinery, shipbuilding, military, consumer products and construction machinery sectors. Demand in our largest end market by tons sold, non-residential construction, including infrastructure and data centers, also improved year-over-year.
Previous wording
Since we primarily purchase and sell our inventories in the spot market, our average selling prices generally fluctuate with the changes in replacement costs of the various metals we purchase. The mix of products sold can also have an impact on our average selling price per ton sold. As carbon steel sales represent a majority of our gross sales, changes in carbon steel prices have the most significant impact on changes in our average selling price per ton sold.
Current wording
Since we primarily purchase and sell our inventories in the spot market, our ASP generally fluctuates with changes in replacement costs of the various metals we purchase. Product mix can also have an impact on our ASP. Because carbon steel sales represent a majority of our gross sales, changes in carbon steel prices have the most significant impact on our ASP.
Previous wording
Carbon steel prices have benefited from tight supply conditions and solid underlying demand. Aluminum prices are at record levels, driven primarily by the 50% tariff imposed under Section 232 in June 2025.
Current wording
Carbon steel prices have benefited from tight supply conditions and solid underlying demand. Aluminum prices continue to be at historically elevated levels, largely due to the 50% tariff imposed under Section 232 in June 2025.
Previous wording
The mix of our total sales by major commodity products and year-over-year changes in selling prices are presented below:
Current wording
The following presents the mix of our total sales by major product category and year-over-year changes in ASP:
Previous wording
We record, in cost of sales, noncash adjustments to our LIFO method inventory valuation reserve that, in effect, reflect cost of sales at current replacement costs. The increase in LIFO expense was due to more significant increases in metal pricing in 2026 compared to 2025. As of March 31, 2026, the inventory balance in our consolidated balance sheet includes a LIFO method inventory valuation reserve of $586.1 million.
Current wording
We record in cost of sales noncash adjustments to our LIFO method inventory valuation reserve that, in effect, reflect cost of sales at current replacement costs. The increases in LIFO expense were due to more significant increases in metal pricing in 2026 compared to 2025. As of June 30, 2026, the inventory balance in our consolidated balance sheet includes a LIFO method inventory valuation reserve of $698.6 million.
Previous wording
See “Overview” and*“Net Sales”*above for further discussion of our gross profit margin and discussion of trends in both demand and costs of our products, and product pricing.
Current wording
See “Overview” and*“Net Sales”*above for further discussion of our LIFO and FIFO gross profit margins and discussion of trends in both demand and costs of our products, and product pricing.
Previous wording
Our effective income tax rates for the first quarters of 2026 and 2025 were 24.0% and 23.6%, respectively. The differences between our effective income tax rates and the U.S. federal statutory rate of 21.0% were mainly due to state income taxes partially offset by the net effects of company-owned life insurance policies.
Current wording
Our effective income tax rates for the second quarters and six months ended June 30, 2026 were 24.7% and 24.4%, respectively, compared to 23.0% and 23.3% for the respective 2025 periods. The differences between our effective income tax rates and the U.S. federal statutory rate of 21.0% were mainly due to state income taxes partially offset by the net effects of company-owned life insurance policies.
Previous wording
As of March 31, 2026, we had $249.7 million in cash and cash equivalents, and our net debt-to-total capital ratio was 16.9%, compared to 14.4% at December 31, 2025, reflecting increased borrowings under our revolving credit facility.
Current wording
As of June 30, 2026, we had $235.4 million in cash and cash equivalents, and our net debt-to-total capital ratio was 16.2%, compared to 14.4% at December 31, 2025, reflecting increased borrowings under our revolving credit facility.
Previous wording
Net cash used in financing activities of $46.6 million in the first quarter of 2026 increased $28.0 million from $18.6 million in 2025. The increase was mainly the result of reduced net debt borrowings under our revolving credit facility of $57.7 million, partially offset by a $19.0 million decrease in share repurchases. Our returns to stockholders also included a 4.2% increase in our quarterly dividend rate effective in the first quarter of 2026; however, total dividend payments of $66.6 million in the first quarter of 2026 were consistent with 2025, as our share repurchase activity reduced outstanding shares by 3.0% year-over-year.
Current wording
Net cash used in financing activities was $146.2 million in the first six months of 2026, a decrease of $75.8 million from $222.0 million in 2025. The decrease primarily resulted from $98.9 million lower share repurchases, partially offset by a $39.0 million decrease in net borrowings under our revolving credit facility. Returns to stockholders also reflected a 4.2% increase in our quarterly dividend rate, effective in the first quarter of 2026. Total dividend payments were $130.4 million in the first six months of 2026, up slightly from the first six months of 2025 due to the offsetting impact of share repurchase activity.
Previous wording
We believe we will continue to have sufficient liquidity to fund future operating needs and repay debt obligations as they become due. In addition to funds generated from operations and $950.0 million of remaining borrowing capacity under our unsecured revolving credit facility, we expect to be able to access the capital markets to raise funds, if desired. We believe our investment grade credit ratings enhance our ability to effectively raise capital. We believe our sources of liquidity will continue to be adequate to maintain operations, make necessary capital expenditures, finance strategic growth through acquisitions and internal initiatives, and fund our stockholder return activities.
Current wording
capacity under our unsecured revolving credit facility, we expect to be able to access the capital markets to raise funds, if desired. We believe our investment grade credit ratings enhance our ability to effectively raise capital. We expect our sources of liquidity to remain adequate to maintain operations, make necessary capital expenditures, finance strategic growth through acquisitions and internal initiatives, and fund our stockholder return activities.
Previous wording
On April 17, 2026, our Board of Directors declared the 2026 second quarter cash dividend of $1.25 per share.
Current wording
On July 17, 2026, our Board of Directors declared the 2026 third quarter cash dividend of $1.25 per share.
Previous wording
Decisions regarding the timing and amount of share repurchases are made within the context of our overall capital allocation priorities, including funding operating needs, planned capital expenditures, strategic acquisitions, maintaining targeted leverage metrics and returning capital to stockholders. The execution of repurchases may be affected by market conditions, business performance, liquidity considerations and other factors.
Current wording
Decisions regarding the timing and amount of share repurchases are made within the context of our overall capital allocation priorities, including funding operating needs, planned capital expenditures, strategic acquisitions, maintaining financial flexibility and returning capital to stockholders. The execution of repurchases may be affected by market conditions, business performance, liquidity considerations and other factors.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We believe we will continue to have sufficient liquidity to fund future operating needs and repay debt obligations as they become due. In addition to funds generated from operations and $980.0 million of remaining borrowing
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Our increase in tons sold reflects improved demand across most of our end markets, as well as market share gains achieved against a backdrop of ongoing trade policy uncertainty. We believe customers have continued