RELIANCE, INC.

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying unaudited consolidated financial statements include the accounts of Reliance, Inc. and its subsidiaries (collectively the “Company,” “we,” “our,” or “us”) and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In management’s opinion, the consolidated financial statements include all material adjustments of a normal recurring nature necessary for a fair presentation of interim results. Interim results are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Inventories

The majority of our inventory is valued using the last-in, first-out (“LIFO”) method, which is not in excess of market. Under this method, older costs are included in inventory, which may be higher or lower than current costs. We estimate the effect of LIFO on interim periods by allocating the projected year-end LIFO calculation to interim periods on a pro rata basis.

Goodwill and Other Indefinite-Lived Intangible Assets

There have been no material changes to the Company’s accounting policies related to goodwill and other indefinite-lived intangible assets from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Recently Issued Accounting Standards

Disaggregation of Income Statement Expenses—In November 2024, the Financial Accounting Standards Board issued guidance requiring disaggregated quantitative disclosure of prescribed expense categories included within relevant income statement expense captions. These changes will be effective beginning with our 2027 fiscal year and subsequent interim periods, with early adoption permitted. As the guidance only requires additional disclosure, there will be no impact to our results of operations, financial condition or cash flows.

NOTE 2. REVENUES

The following table presents our net sales disaggregated by product and service (in millions):

NOTE 3. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consists of the following (in millions):

As of June 30, 2026 and December 31, 2025, noncash investing activities included $3.8 million and $7.5 million of capital expenditures, respectively, reflected in accounts payable and accrued expenses.

NOTE 4. GOODWILL

The change in the carrying amount of goodwill is as follows (in millions):

We hadno accumulated impairment losses related to goodwill as of June 30, 2026 and December 31, 2025.

During the first quarter of 2026, in connection with an operational realignment, the Company changed its reporting units. As a result, goodwill was reallocated among reporting units using a relative fair value approach, with no change in the consolidated carrying amount of goodwill. The Company performed an impairment assessment and determined that goodwill was not impaired. There was no change to the Company's reportable segments.

NOTE 5. INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following (in millions):

The change in the carrying amount of intangible assets, net is as follows (in millions):

The following is a summary of estimated future amortization expense (in millions):

NOTE 6. DEBT

Debt consisted of the following (in millions):

The weighted average effective interest rates on the Company’s outstanding borrowings as of June 30, 2026 and December 31, 2025 were 4.20% and 4.24%, respectively.

Unsecured Revolving Credit Facility

We have a $1.5 billion unsecured five-year revolving credit facility (“Credit Agreement”). As of June 30, 2026, borrowings under the Credit Agreement bear interest at variable rates based on SOFR plus 1.00% or the bank prime rate, and we pay a commitment fee of 0.10% on the unused portion of the facility. Interest rates under the Credit Agreement are subject to quarterly adjustment based on our total net leverage ratio (as defined in the Credit Agreement).

Weighted average interest rates on borrowings outstanding under the revolving credit facility were 4.71% and 5.29% as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, no letters of credit were outstanding compared to $0.7 million outstanding as of December 31, 2025.

Unsecured Term Loan

As of June 30, 2026, the $400 million outstanding under the Company’s unsecured term loan (the “Term Loan”) bore interest at SOFR plus 0.75%. Interest rates under the Term Loan are subject to quarterly adjustment based on our total net leverage ratio that is defined similarly as in our Credit Agreement.

The interest rates on the outstanding balance of the term loan were 4.39% and 4.49% as of June 30, 2026 and December 31, 2025, respectively.

Senior Unsecured Notes

Under the indentures for each series of our senior notes (the “indentures”), the notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations. If we experience a change in control accompanied by a downgrade in our credit rating, we will be required to make an offer to repurchase each series of notes at a price equal to 101% of their principal amount plus accrued and unpaid interest.

Letters of Credit/Letters of Guarantee Facility

We have a $50.0 million standby letters of credit/letters of guarantee agreement with one of the lenders under our Credit Agreement. We had $31.4 million and $31.7 million outstanding under this facility as of June 30, 2026 and December 31, 2025, respectively.

Covenants

The Credit Agreement, Term Loan and indentures governing our debt securities include customary representations, warranties, covenants and events of default provisions. The covenants under the Credit Agreement and Term Loan include, among other things, a financial maintenance covenant that requires us to comply with a maximum total net leverage ratio. We were in compliance with the financial maintenance covenant under our Credit Agreement and Term Loan as of June 30, 2026.

NOTE 7. LEASES

Supplemental cash flow and balance sheet information is presented below (in millions):

NOTE 8. INCOME TAXES

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.

NOTE 9. EQUITY

Stock-Based Compensation Plans

We grant long-term equity incentive awards annually to officers and key employees in the form of service-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”). RSUs vest over an approximately three-year period ending December 1 and settle into an equivalent number of shares of our common stock. PSUs vest based on continued service and the achievement of a return on assets metric over a three-year performance period ending December 31 and settle into shares of our common stock on a sliding scale up to a maximum of 200% of the number of PSUs granted.

The following summarizes the activity of our unvested RSUs and PSUs (in thousands, except per unit amounts):

As of June 30, 2026, there was $97.4 million of total unrecognized compensation cost related to unvested RSUs and PSUs that is expected to be recognized, net of actual forfeitures and cancellations, over a weighted average period of 1.9 years.

Common Stock

We have paid regular quarterly cash dividends on our common stock for 67 consecutive years without a suspension or reduction. Our Board of Directors increased the quarterly dividend from $1.20 to $1.25 per share in February 2026.

On July 17, 2026, our Board of Directors declared the 2026 third quarter cash dividend of $1.25 per share of common stock, payable on August 28, 2026 to stockholders of record as of August 14, 2026.

Share Repurchases

On October 22, 2024, our Board of Directors amended our share repurchase program, which has no expiration date, to replenish the repurchase authorization to$1.5 billion. As of June 30, 2026, we had remaining authorization to repurchase$529.3 million of our common stock under the share repurchase program.

Our share repurchase activity consisted of the following (in millions, except shares in thousands and per share amounts):

Our share repurchase table above excludes shares withheld related to net share settlements upon the vesting of RSUs and PSUs to settle employees’ tax withholding obligations of$14.8 million and$11.6 million in the first six months of 2026 and 2025, respectively.

Accumulated Other Comprehensive Loss

The change in accumulated other comprehensive income (loss) consisted of the following (in millions):

SeeNote 15**—**“Equity” to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of accumulated other comprehensive loss and related tax effects.

NOTE 10. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (in millions, except shares in thousands and per share amounts):

NOTE 11. COMMITMENTS AND C****ONTINGENCIES

Environmental Contingencies

We are currently involved with an environmental remediation project related to activities at former manufacturing operations of Earle M. Jorgensen Company (“EMJ”), ourwholly owned subsidiary, that were sold many years prior to our acquisition of EMJ in 2006. Although the potential cleanup costs could be significant, EMJ maintained insurance policies during the time it owned the manufacturing operations that have covered costs incurred to date and are expected to continue to cover the majority of the related costs. We do not expect that this obligation will have a material adverse impact on our consolidated financial position, results of operations or cash flows.

Legal Matters

From time to time, we are named as a defendant in legal actions. These actions generally arise in the ordinary course of business. We are not currently a party to any pending legal proceedings other than routine litigation incidental to the business. We expect that these matters will be resolved without having a material adverse impact on our consolidated financial position, results of operations or cash flows. We maintain general liability insurance against risks arising in the ordinary course of business.

NOTE 12. SEGMENT INFORMATION

Reliance derives revenue primarily in the United States from its metals service center businesses. Following an operational realignment completed during the first quarter of 2026, the Company manages its business through operating segments that have been aggregated into asingle reportable segment—metals service centers—based on similar economic characteristics. The operational realignment did not result in a change to the Company’s reportable segments and, accordingly, previously reported segment information has not been recast.

The measure of segment assets is reported on the accompanying consolidated balance sheet as total assets.

The measure of segment profit and loss is net income reported on the accompanying consolidated income statements.

Information about our segment revenue, net income, significant expenses, and other quantitative information is presented below (in millions):