Q1 2026 Reliance Inc Earnings Call Transcript
Key Points
- Reliance Inc (RS) reported record tons sold in the first quarter, with volumes up both sequentially and year-over-year.
- The company secured two significant government contracts, including a $3 billion contract with the Department of Homeland Security, reinforcing its role in critical US infrastructure and defense programs.
- Reliance Inc (RS) achieved a 15% increase in sales, driven by higher shipments and prices, resulting in over 30% year-over-year growth in non-GAAP pretax income.
- The company increased its dividend rate by 4% and repurchased $234 million of its shares, demonstrating strong shareholder returns.
- Reliance Inc (RS) maintained a strong balance sheet with a net debt-to-EBITDA ratio of 1, providing substantial liquidity and flexibility for capital allocation priorities.
- The 50% Section 232 tariffs have negatively impacted aluminum gross profit margins, despite higher gross profit dollars.
- Higher-than-anticipated material costs resulted in a first-quarter LIFO expense of $37.5 million, prompting an increase in the full-year LIFO outlook.
- The commercial aerospace demand remains subdued due to elevated inventories across the supply chain.
- The company faces ongoing risks from domestic international trade policy and the conflict in the Middle East, which could impact future demand and pricing.
- Reliance Inc (RS) has not disclosed specific tonnage under the Department of Homeland Security contract, creating uncertainty about the exact volume impact.
Greetings, and welcome to the Reliance Inc., first quarter 2026 earnings call. (Operator Instructions) Please note, this conference is being recorded.
I will now turn the conference over to your host, Kimberly Orlando with Investor Relations. Please go ahead.
Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's first 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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
