01—Abstract
Summary
Summary of the 10-Q filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. reported first-quarter 2025 net sales of $3,484.7 milliona, down from $3,644.8 million a year earlier, while net income attributable to Reliance fell to $199.7 million from $302.9 million.
Diluted earnings per share were $3.74b versus $5.23. The filing attributes the decline mainly to lower metals prices and gross profit margin, even though tons sold reached a first-quarter record of 1.63 million tons, up 9% year-over-year. Gross profit margin was 29.7% compared with 31.0% in the prior-year quarter, and operating income declined to $274.4 million from $393.1 million.
The company noted that metals prices rose strongly through March and held into April. Cash flow from operations was $64.5 millionc, down from $126.3 million, mainly due to lower net income. Reliance returned $318.4 million to stockholders during the quarter, including $253.2 million of share repurchases and $65.2 million of dividends.
Total debt rose to $1,481.1 milliond principal, with $330.0 million drawn on the $1.5 billion revolving credit facility. The net debt-to-total capital ratio increased to 14.4% from 10.2% at year-end 2024. Cash and cash equivalents stood at $277.8 million at March 31, 2025, and $400.0 million of senior notes mature in August 2025.
The company stated it was in compliance with its financial maintenance covenant as of March 31, 2025. It declared a second-quarter 2025 dividend of $1.20 per share and had $1.02 billion remaining under its share repurchase authorization as of April 25, 2025, after repurchasing an additional 301,279 shares subsequent to quarter end.
02—Key points
Key Highlights
- Net sales declined 4.4% to $3,484.7 million, while same-store net sales fell 6.7%, as lower commodity selling prices outweighed record tons sold.
- Record first-quarter tons sold of 1.63 million, up 9.0% year-over-year, with same-store tons up 5.6%.
- Operating income fell 30.2% to $274.4 million; operating margin declined to 7.9% from 10.8%.
- Diluted EPS was $3.74 versus $5.23 a year earlier; net income attributable to Reliance was $199.7 million versus $302.9 million.
- Gross profit margin narrowed to 29.7% from 31.0%, with LIFO expense of $25.0 million in Q1 2025 compared with LIFO income of $50.0 million in Q1 2024.
- Net debt-to-total capital rose to 14.4% from 10.2%, with $330.0 million drawn on the revolving credit facility and $400.0 million of senior notes due August 2025.
- Returned $318.4 million to stockholders in the quarter, and declared a $1.20 per share second-quarter dividend; $1.02 billion remained under the repurchase authorization as of April 25, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 1, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.48B$3.64B | −4.4% |
| SG&A Expenses | $690.20M$671.50M | +2.8% |
| Operating Expenses | $3.21B$3.25B | −1.3% |
| Operating Income | $274.40M$393.10M | −30.2% |
| Net Income | $199.70M$302.90M | −34.1% |
| EPS (Basic) | $3.76$5.28 | −28.8% |
| EPS (Diluted) | $3.74$5.23 | −28.5% |
| Shares Outstanding (Basic) | 53.08M57.34M | −7.4% |
| Shares Outstanding (Diluted) | 53.40M57.88M | −7.7% |
05—Questions
Frequently Asked Questions
Why did Reliance's earnings decline in the first quarter of 2025?
The filing attributes the decline mainly to lower metals prices, which reduced average selling price per ton sold and gross profit. Gross profit margin also decreased from 31.0% to 29.7%, and operating income fell to $274.4 million from $393.1 million, even though tons sold hit a first-quarter record.
How is Reliance funding its shareholder returns and debt obligations?
Reliance drew $330.0 million on its $1.5 billion revolving credit facility, which matures September 10, 2029. It had $277.8 million of cash at quarter end and stated that operating cash flow, cash, and the revolver should be sufficient for the next 12 months and beyond. Cash from operations was $64.5 million in the quarter.
What debt maturities does Reliance face near term?
The filing states that $401.1 million of debt comes due before the revolving credit facility matures, including $400.0 million of senior unsecured notes at a 1.30% rate maturing August 15, 2025.
What is the outlook for dividends and share repurchases?
The Board declared a second-quarter 2025 cash dividend of $1.20 per share, payable June 6, 2025. The company repurchased 922,656 shares in the first quarter for $253.2 million and an additional 301,279 shares after quarter end, leaving $1.02 billion available under its $1.5 billion program as of April 25, 2025.
06—Continue