01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. (NYSE: RS), formerly Reliance Steel & Aluminum Co., reported net sales of $13.84 billiona for 2024, down 6.6% from $14.81 billion in 2023, as lower metals prices offset a 4.0% increase in total tons sold.
Operating income fell to $1.16 billionb from $1.74 billion, and net income attributable to Reliance was $875.2 million, or $15.56 per diluted share, versus $22.64 in 2023. Gross profit margin was 29.7%, compared with 30.7% a year earlier, which management attributes to lower metals pricing partly mitigated by inventory management, small-order focus and value-added processing. Cash flow from operations was $1.43 billion, down from $1.67 billion, while the company returned $1.34 billion to stockholders, including a record $1.09 billion of share repurchases and $249.7 million of dividends.
Capital expenditures were $430.6 millionc and the company spent $364.6 million on four 2024 acquisitions. Year-end cash was $318.1 million, total debt was about $1.15 billion, and $1.5 billion was available under the revolving credit facility. The Board raised the quarterly dividend 9.1% to $1.20 per share in February 2025.
The filing describes a diversified metals service center network of 320 locations in 41 U.S. states and 10 foreign countries, with carbon steel at 53%d of gross sales and aluminum at 16%. The auditor KPMG issued an unqualified opinion on both the financial statements and internal control over financial reporting. Risk factors center on metals price volatility, tariff policy under Section 232, cyclical demand and acquisition integration.
02—Key points
Key Highlights
- Net sales of $13.84 billion in 2024, down 6.6% from $14.81 billion, with same-store net sales down 8.5%
- Net income attributable to Reliance of $875.2 million; diluted EPS of $15.56 versus $22.64 in 2023
- Gross profit margin of 29.7% versus 30.7% in 2023; operating income of $1.16 billion versus $1.74 billion
- Total tons sold rose 4.0% to 6,013.2 thousand tons, while average selling price per ton fell 10.4% to $2,303
- Record $1.09 billion of share repurchases in 2024; $1.15 billion of repurchase authorization remaining as of February 25, 2025
- Quarterly dividend increased 9.1% to $1.20 per share in February 2025, the 32nd increase since the 1994 IPO
- Four acquisitions in 2024 for $364.6 million, contributing $286.2 million to 2024 net sales; year-end cash of $318.1 million and $1.5 billion of revolver capacity
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $13.84B$14.81B | −6.6% |
| SG&A Expenses | $2.67B$2.56B | +4.1% |
| Operating Expenses | $12.68B$13.07B | −3.0% |
| Operating Income | $1.16B$1.74B | −33.3% |
| Net Income | $875.20M$1.34B | −34.5% |
| EPS (Basic) | $15.70$22.90 | −31.4% |
| EPS (Diluted) | $15.56$22.64 | −31.3% |
| Shares Outstanding (Basic) | 55.75M58.33M | −4.4% |
| Shares Outstanding (Diluted) | 56.25M59.02M | −4.7% |
05—Questions
Frequently Asked Questions
Why did Reliance's earnings decline in 2024 even though it sold more tons?
The filing attributes the decline mainly to lower metals prices. Total tons sold increased 4.0%, but the average selling price per ton fell 10.4%, reducing net sales, gross profit and operating income.
How much did Reliance return to shareholders in 2024?
Returns totaled $1.34 billion, consisting of $1.09 billion of share repurchases and $249.7 million of cash dividends.
What is Reliance's debt position and liquidity?
Total debt was about $1.15 billion at December 31, 2024, with $400.0 million of senior notes due in August 2025. The company had $318.1 million of cash and a $1.5 billion unsecured revolving credit facility with no outstanding borrowings, and it stated it was in compliance with its financial maintenance covenant.
Are Reliance's sales concentrated among a few customers?
No. The filing states its largest customer represented 0.7% of 2024 net sales, and it generated sales greater than $30 million from only 22 customers.
How is Reliance exposed to tariff policy?
The filing says the February 2025 executive orders reinstated a 25% tariff on steel imports and raised aluminum tariffs from 10% to 25% effective March 12, 2025. It states that these tariffs have had a favorable impact on the prices of products it sells, but that the status of the tariffs is fluid and their ultimate impact cannot yet be predicted.
06—Continue