Companies

Reliance Lifts Buyback Authorization to $2.5 Billion

The Tip Desk · October 26, 2026 · 3 min read

Non-GAAP earnings of $8.02 a share beat the $6.40 to $6.60 outlook as record sales of $5.21 billion and 1,867.2 thousand tons followed a second-quarter beat.

Reliance, Inc. (RS), the North American metals service center, reported non-GAAP diluted earnings of $8.02 a share for the third quarter ended September 30, 2026, up 120% from a year earlier and well above its $6.40 to $6.60 outlook.

GAAP diluted earnings were $7.84 a share, and pretax income was $531.9 million, up 115% year over year. The company said the beat reflected stronger-than-anticipated carbon steel pricing and a U.S. border wall project that added $0.74 a share, versus an expected roughly $0.60.

Net sales reached a record $5.21 billion, up 12.6% sequentially after a 15% sequential increase in the second quarter. Tons sold hit a record 1,867.2 thousand, up 4.3% sequentially, slowing from a 7.0% sequential rise. Average selling price per ton was $2,815, up 8.2% sequentially.

The border wall contract, awarded earlier in the year, contributed 3.7% of the sequential tons increase and 9.4% of year-over-year tons growth. Excluding the project, tons were up 0.6% sequentially, versus a management expectation of a 2% to 4% decline. The mix also reduced average selling price 1.7%. President and Chief Executive Officer Karla Lewis said the contract “continued to ramp and delivered another meaningful contribution to third quarter earnings.”

Carbon steel accounted for $3.12 billion of sales, or 58% of the total, versus 55% in the second quarter. Carbon steel tons were 1,570.4 thousand, up 6.1% sequentially, and carbon steel selling price rose 12.1% sequentially. Aluminum sales were $861.7 million, stainless steel $634.9 million, alloy $186.8 million and copper and brass $129.1 million. Alloy tons fell 17.5% sequentially to 30.2 thousand.

Gross profit was $1.45 billion, the second-highest quarterly result in company history. LIFO gross profit margin compressed 20 basis points sequentially to 27.9% as LIFO expense rose to $187.5 million, or $2.74 a share, from $112.5 million, or $1.64 a share, versus a $1.10 a share expectation. The company attributed the LIFO increase primarily to higher-than-anticipated carbon steel costs. Non-GAAP FIFO gross profit margin expanded 110 basis points sequentially to 31.6%.

Non-GAAP pretax income was $544.2 million. The company said higher shipments, improved gross profit per ton and the border wall project drove a 116% year-over-year increase in that measure.

Cash from operations was $212.0 million. Free cash flow was $133.0 million. Cash and cash equivalents were $246.0 million and total debt was $1.6 billion, including $495 million drawn on a $1.5 billion revolving credit facility.

The board increased the share-repurchase authorization to $2.5 billion without an expiration date. The company repurchased $44.7 million of shares in the third quarter at an average of about $395 a share after none in the second quarter, and declared a $1.25 quarterly cash dividend payable December 4.

For the fourth quarter, Reliance anticipates non-GAAP earnings of $7.40 to $7.60 a share, up over 200% year over year, including about $0.70 a share from the border wall. Excluding that project, it estimates tons up 4.0% to 6.0% versus the year-ago quarter and down 5.5% to 7.5% sequentially, with average selling price up 1.0% to 3.0% sequentially.

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