Q2 2026 Reliance Inc Earnings Call Transcript
Key Points
- Reliance Inc (RS) achieved its second highest quarterly revenue and record quarterly tons sold, outperforming broader industry shipment trends.
- The company benefited from initial contributions from the U.S. Department of Homeland Security border wall contract, exceeding guidance and contributing significantly to earnings.
- Non-residential construction end market sales remained strong, with improvements in general manufacturing, aerospace, and semiconductor markets.
- Reliance Inc (RS) reported a 40% year-over-year increase in non-GAAP pretax income and the highest EPS result since the second quarter of 2023.
- The company's strong domestic mill partnerships ensure reliable material availability, supporting strategic growth investments and ongoing returns to stockholders.
- Higher-than-anticipated carbon and aluminum product costs led to an increase in the full year LIFO expense outlook, impacting gross profit margins.
- The U.S. border wall project, while contributing to earnings, introduced a margin headwind due to higher shipment volumes of lower-priced products.
- Inflationary impacts on compensation, freight, and fuel costs, as well as higher variable warehousing and delivery costs, increased SG&A expenses.
- The company faces ongoing risks from domestic and international trade policy and geopolitical conflicts, which could impact demand and pricing.
- Supply constraints and extended lead times in certain products, such as beams and carbon plate, could limit the company's ability to meet customer demand fully.
Greetings, and welcome to the Reliance Inc. Second Quarter 2026 Earnings Conference Call. (Operator Instructions)
It's now my pleasure to turn the call over to Kim Orlando, Investor Relations. Kim, please go ahead.
Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's second quarter 2026 financial results. I am joined by Karla Lewis, President and Chief Executive Officer; Steve Koch, Executive Vice President and Chief Operating Officer; and Arthur Ajemyan, Senior Vice President and Chief Financial Officer. A recording of this call will be posted on the Investors section of our website at investor.reliance.com. Please read the forward-looking statement disclosures included in our earnings release issued yesterday and note that it applies to all statements made during this teleconference.
The reconciliations of the adjusted numbers are included in the non-GAAP reconciliation part of our earnings release. I will now turn the
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