Reliance, Inc. Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy RS?
Source: seekingalpha
- Volume Growth: Reliance, Inc. achieved a record shipment of 6.4 million tons in Q4 2025, reflecting a 6.2% increase year-over-year, outperforming the industry by over 7 percentage points, with market share rising from 15% in 2024 to 17%, indicating strong competitive positioning.
- Profitability Improvement: The FIFO gross profit margin increased by 90 basis points in 2025 compared to 2024, primarily driven by rising prices for carbon products and robust demand, showcasing effective pricing discipline and operational execution.
- Capital Expenditure Plans: The company anticipates a capital expenditure budget of $275 million for 2026, with total spending expected between $300 million and $325 million, half of which is directed towards growth initiatives, reflecting confidence in future expansion opportunities.
- Dividend Increase: Reliance raised its dividend by 4% to an annual rate of $5 per share in Q1 2026, demonstrating a commitment to shareholder returns amid strong earnings growth and solid cash flow generation.
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Analyst Views on RS
Wall Street analysts forecast RS stock price to fall
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 336.440
Low
284.00
Averages
314.50
High
340.00
Current: 336.440
Low
284.00
Averages
314.50
High
340.00
About RS
Reliance, Inc. is a global-diversified metal solutions provider and the metals service center company in North America. The Company provides value-added metals processing services and distributes a full line of over 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and other specialty steel products. It focuses on small orders with quick turnaround and value-added processing services. The Company services more than 125,000 customers in a variety of industries, including consumer products, general manufacturing, non-residential construction (including infrastructure and renewable energy), transportation (rail, truck trailer and shipbuilding), aerospace (commercial, military, defense and space), energy (oil and natural gas), electronics and semiconductor fabrication, industrial machinery and heavy industry (agricultural, construction and mining equipment). It also services the auto industry, through its toll processing operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Reliance, Inc. Q4 2025 Earnings Call Insights
- Volume Growth: Reliance, Inc. achieved a record shipment of 6.4 million tons in Q4 2025, reflecting a 6.2% increase year-over-year, outperforming the industry by over 7 percentage points, with market share rising from 15% in 2024 to 17%, indicating strong competitive positioning.
- Profitability Improvement: The FIFO gross profit margin increased by 90 basis points in 2025 compared to 2024, primarily driven by rising prices for carbon products and robust demand, showcasing effective pricing discipline and operational execution.
- Capital Expenditure Plans: The company anticipates a capital expenditure budget of $275 million for 2026, with total spending expected between $300 million and $325 million, half of which is directed towards growth initiatives, reflecting confidence in future expansion opportunities.
- Dividend Increase: Reliance raised its dividend by 4% to an annual rate of $5 per share in Q1 2026, demonstrating a commitment to shareholder returns amid strong earnings growth and solid cash flow generation.
See More
Reliance, Inc. Announces 4.2% Increase in Quarterly Dividend
- Dividend Increase: Reliance, Inc. has raised its quarterly dividend from $1.20 to $1.25 per share, marking a 4.2% increase, which reflects the company's robust performance in profitability and cash flow management.
- Yield Metrics: The forward yield of 1.49% indicates the company's commitment to shareholder returns in the current market environment, appealing to investors seeking stable income.
- Payment Schedule: The new dividend will be payable on March 20, with a record date of March 6 and an ex-dividend date also on March 6, ensuring shareholders receive their enhanced returns promptly.
- Financial Performance: Reliance, Inc. reported a non-GAAP EPS of $2.96, beating estimates by $0.14, with revenue of $3.5 billion exceeding expectations by $50 million, showcasing the company's strong financial health.
See More
Reliance, Inc. Q4 Earnings Exceed Expectations
- Earnings Highlights: Reliance, Inc. reported a Q4 non-GAAP EPS of $2.96, beating expectations by $0.14, with revenue of $3.5 billion reflecting an 11.8% year-over-year increase, surpassing estimates by $50 million, indicating robust financial performance.
- Market Demand Outlook: The company anticipates continued healthy demand in Q1 2026, estimating tons sold will increase by 5% to 7% compared to Q4 2025, aligning with normal seasonal patterns and building on record sales figures.
- Price Increase Expectations: Reliance expects its average selling price per ton in Q1 2026 to rise by 3% to 5% compared to Q4 2025, driven by strong market demand and announced mill price increases, enhancing revenue potential.
- Earnings Forecast: Based on these expectations, Reliance projects non-GAAP earnings per diluted share in the range of $4.50 to $4.70 for Q1 2026, reflecting a year-over-year growth of 19% to 25%, inclusive of a $25 million LIFO expense, equating to $0.36 per diluted share.
See More
Reliance, Inc. to Announce Q4 Earnings on February 18
- Earnings Announcement Date: Reliance, Inc. is set to release its Q4 earnings on February 18 after market close, with consensus EPS estimate at $2.82 and revenue at $3.45 billion, reflecting investor anticipation and focus on the company's performance.
- Performance Beat Record: Over the past two years, Reliance, Inc. has beaten EPS estimates 38% of the time and revenue estimates 75% of the time, showcasing the company's robust performance amid market fluctuations, which bolsters investor confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen five upward revisions and two downward adjustments, while revenue estimates have experienced four upward revisions and one downward, indicating a generally optimistic outlook from analysts that could influence stock price movements.
- Industry Conference Participation: Reliance, Inc. will also present at the 2025 Goldman Sachs Industrials and Materials Conference, further enhancing its visibility among investors and potentially opening new investment opportunities for the company.
See More
North American Steel Companies Prepare for Earnings Season with HRC Prices Up 17%
- Strong Steel Performance: North American steel equities have risen 17% over the past three months, outperforming the SPDR S&P Metals & Mining ETF's 15% increase, demonstrating market resilience amid a supply-driven rally in Hot Rolled Coil (HRC) prices.
- HRC Margin Expansion: HRC metal margins have expanded over 20% relative to pre-tariff levels, with post-tariff mill utilization approximately 160 basis points above historical norms, indicating the industry's profitability despite weak demand.
- Demand Outlook Uncertainty: While medium and smaller buyers adjust their purchasing strategies due to trade uncertainties, the analyst believes clarity on the USMCA and IEEPA tariffs will be crucial to trigger larger steel-intensive projects.
- Earnings Forecast Adjustments: The analyst expects fourth-quarter results to be weaker due to seasonally lighter shipments, although Nucor may beat expectations; however, unplanned outages at Steel Dynamics and a transformer fire at Sinton could impact first-quarter shipments.
See More
Reliance (RS) Receives Overweight Rating with $316.25 Price Target
- Rating Analysis: Reliance has received an average overweight rating, indicating market optimism regarding its future performance, which may attract more investor attention.
- Price Target Setting: The analysts have set a price target of $316.25, reflecting confidence in the company's growth potential, which could drive the stock price towards this level.
- Market Reaction: The release of this rating and price target may influence investor decisions, further enhancing Reliance's market performance and competitiveness within the industry.
- Investor Confidence: An overweight rating typically suggests analysts have a positive outlook on the company's future profitability, potentially boosting investor confidence in Reliance and facilitating capital inflows.
See More
Reliance, Inc. Q4 2025 Earnings Call Insights
- Volume Growth: Reliance, Inc. achieved a record shipment of 6.4 million tons in Q4 2025, reflecting a 6.2% increase year-over-year, outperforming the industry by over 7 percentage points, with market share rising from 15% in 2024 to 17%, indicating strong competitive positioning.
- Profitability Improvement: The FIFO gross profit margin increased by 90 basis points in 2025 compared to 2024, primarily driven by rising prices for carbon products and robust demand, showcasing effective pricing discipline and operational execution.
- Capital Expenditure Plans: The company anticipates a capital expenditure budget of $275 million for 2026, with total spending expected between $300 million and $325 million, half of which is directed towards growth initiatives, reflecting confidence in future expansion opportunities.
- Dividend Increase: Reliance raised its dividend by 4% to an annual rate of $5 per share in Q1 2026, demonstrating a commitment to shareholder returns amid strong earnings growth and solid cash flow generation.
See More
Reliance, Inc. Announces 4.2% Increase in Quarterly Dividend
- Dividend Increase: Reliance, Inc. has raised its quarterly dividend from $1.20 to $1.25 per share, marking a 4.2% increase, which reflects the company's robust performance in profitability and cash flow management.
- Yield Metrics: The forward yield of 1.49% indicates the company's commitment to shareholder returns in the current market environment, appealing to investors seeking stable income.
- Payment Schedule: The new dividend will be payable on March 20, with a record date of March 6 and an ex-dividend date also on March 6, ensuring shareholders receive their enhanced returns promptly.
- Financial Performance: Reliance, Inc. reported a non-GAAP EPS of $2.96, beating estimates by $0.14, with revenue of $3.5 billion exceeding expectations by $50 million, showcasing the company's strong financial health.
See More
Reliance, Inc. Q4 Earnings Exceed Expectations
- Earnings Highlights: Reliance, Inc. reported a Q4 non-GAAP EPS of $2.96, beating expectations by $0.14, with revenue of $3.5 billion reflecting an 11.8% year-over-year increase, surpassing estimates by $50 million, indicating robust financial performance.
- Market Demand Outlook: The company anticipates continued healthy demand in Q1 2026, estimating tons sold will increase by 5% to 7% compared to Q4 2025, aligning with normal seasonal patterns and building on record sales figures.
- Price Increase Expectations: Reliance expects its average selling price per ton in Q1 2026 to rise by 3% to 5% compared to Q4 2025, driven by strong market demand and announced mill price increases, enhancing revenue potential.
- Earnings Forecast: Based on these expectations, Reliance projects non-GAAP earnings per diluted share in the range of $4.50 to $4.70 for Q1 2026, reflecting a year-over-year growth of 19% to 25%, inclusive of a $25 million LIFO expense, equating to $0.36 per diluted share.
See More
Reliance, Inc. to Announce Q4 Earnings on February 18
- Earnings Announcement Date: Reliance, Inc. is set to release its Q4 earnings on February 18 after market close, with consensus EPS estimate at $2.82 and revenue at $3.45 billion, reflecting investor anticipation and focus on the company's performance.
- Performance Beat Record: Over the past two years, Reliance, Inc. has beaten EPS estimates 38% of the time and revenue estimates 75% of the time, showcasing the company's robust performance amid market fluctuations, which bolsters investor confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen five upward revisions and two downward adjustments, while revenue estimates have experienced four upward revisions and one downward, indicating a generally optimistic outlook from analysts that could influence stock price movements.
- Industry Conference Participation: Reliance, Inc. will also present at the 2025 Goldman Sachs Industrials and Materials Conference, further enhancing its visibility among investors and potentially opening new investment opportunities for the company.
See More
North American Steel Companies Prepare for Earnings Season with HRC Prices Up 17%
- Strong Steel Performance: North American steel equities have risen 17% over the past three months, outperforming the SPDR S&P Metals & Mining ETF's 15% increase, demonstrating market resilience amid a supply-driven rally in Hot Rolled Coil (HRC) prices.
- HRC Margin Expansion: HRC metal margins have expanded over 20% relative to pre-tariff levels, with post-tariff mill utilization approximately 160 basis points above historical norms, indicating the industry's profitability despite weak demand.
- Demand Outlook Uncertainty: While medium and smaller buyers adjust their purchasing strategies due to trade uncertainties, the analyst believes clarity on the USMCA and IEEPA tariffs will be crucial to trigger larger steel-intensive projects.
- Earnings Forecast Adjustments: The analyst expects fourth-quarter results to be weaker due to seasonally lighter shipments, although Nucor may beat expectations; however, unplanned outages at Steel Dynamics and a transformer fire at Sinton could impact first-quarter shipments.
See More
Reliance (RS) Receives Overweight Rating with $316.25 Price Target
- Rating Analysis: Reliance has received an average overweight rating, indicating market optimism regarding its future performance, which may attract more investor attention.
- Price Target Setting: The analysts have set a price target of $316.25, reflecting confidence in the company's growth potential, which could drive the stock price towards this level.
- Market Reaction: The release of this rating and price target may influence investor decisions, further enhancing Reliance's market performance and competitiveness within the industry.
- Investor Confidence: An overweight rating typically suggests analysts have a positive outlook on the company's future profitability, potentially boosting investor confidence in Reliance and facilitating capital inflows.
See More
