01—Abstract
Summary
Summary of the 10-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. (NYSE: RS) reported 2025 net sales of $14.29 billiona, up 3.3% from 2024, driven by record tons sold, which rose 6.2%, while average selling price per ton fell 2.6%.
Operating income declined 12.7% to $1.01 billion and diluted EPS fell to $13.98b from $15.56, mainly because LIFO inventory valuation swung from $144.4 million of income in 2024 to $113.7 million of expense in 2025, driven in part by higher aluminum costs. Management states FIFO gross profit margin rose 80 basis points to 29.5%, and excluding significant LIFO impacts, profitability improved. Cash flow from operations fell to $831.4 million from $1.43 billion, mainly due to higher working capital tied to volume and rising metals prices.
Shareholder returns totaled $848.8 millionc, including $594.1 million of share repurchases and $254.7 million of dividends. Net debt-to-total capital rose to 14.4% from 10.2%, and total debt was $1.43 billion at year-end, with $763.5 million remaining under the repurchase authorization.
The company flagged tariff volatility as a key risk, noting that Section 232 steel and aluminum tariffs were raised to 50% in June 2025, and that a February 20, 2026 Supreme Court ruling on IEEPA tariffs does not directly affect Section 232 tariffs. In February 2026, the Board raised the quarterly dividend 4.2% to $1.25d per share, the company's 66th consecutive year of dividends.
02—Key points
Key Highlights
- Net sales of $14.29 billion (+3.3%); tons sold rose 6.2% to a record 6,388.1 thousand, outpacing the MSCI industry decline of 1.0%
- Operating income fell 12.7% to $1,012.7 million; operating margin declined to 7.1% from 8.4%, mainly from LIFO inventory valuation adjustments
- Diluted EPS of $13.98 versus $15.56 in 2024; net income attributable to Reliance of $739.4 million
- FIFO gross profit margin rose 80 basis points to 29.5%, while reported LIFO gross profit margin was 28.7%, down 100 basis points
- Operating cash flow of $831.4 million, down $598.4 million, due to higher working capital requirements
- Returned $848.8 million to stockholders through $594.1 million of buybacks and $254.7 million of dividends; quarterly dividend raised 4.2% to $1.25 per share
- Net debt-to-total capital rose to 14.4% from 10.2%; $1.5 billion revolving credit facility matures September 2029, with $277.0 million drawn
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $14.29B$13.84B | +3.3% |
| SG&A Expenses | $2.81B$2.67B | +5.3% |
| Operating Expenses | $13.28B$12.68B | +4.8% |
| Operating Income | $1.01B$1.16B | −12.7% |
| Net Income | $739.40M$875.20M | −15.5% |
| EPS (Basic) | $14.07$15.70 | −10.4% |
| EPS (Diluted) | $13.98$15.56 | −10.2% |
| Shares Outstanding (Basic) | 52.55M55.75M | −5.7% |
| Shares Outstanding (Diluted) | 52.88M56.25M | −6.0% |
05—Questions
Frequently Asked Questions
How did tariffs affect Reliance's 2025 profitability?
Tariff-related carbon steel and aluminum cost increases in the first half of 2025 initially supported higher metals pricing. Because these increases were not demand-driven, gross profit margin softened from the third quarter as higher metal costs were not fully passed through to customers, particularly for aluminum. The company also states that tariffs had a favorable impact on the prices it sells at to date, and that the Section 232 tariffs were increased to 50% in June 2025.
Why did operating income decline despite record tons sold?
Operating income declined mainly due to a 100-basis-point decline in gross profit margin from LIFO inventory valuation adjustments, which swung from $144.4 million of income in 2024 to $113.7 million of expense in 2025. This outweighed the benefit of higher tons sold. SG&A expense also rose 5.3% to $2.81 billion, though same-store SG&A per ton sold declined 1.0%.
How is Reliance's balance sheet and liquidity position?
At December 31, 2025, the company had $216.6 million of cash, $1.43 billion of total debt, and a total net leverage ratio of 17% against a covenant maximum of 60%. It had approximately $1.22 billion available under its unsecured revolving credit facility. Net debt-to-total capital increased to 14.4% from 10.2%, primarily due to increased revolver borrowings. Management believes liquidity is sufficient for the next 12 months and beyond.
What is the outlook for shareholder returns?
The Board raised the regular quarterly dividend 4.2% to $1.25 per share in February 2026 and has never reduced or suspended the dividend. As of December 31, 2025, $763.5 million remained under the $1.5 billion repurchase program, which has no expiration date and may be suspended at any time. Future dividend increases will be evaluated by the Board based on earnings, cash flows and capital requirements.
06—Continue