01—Abstract
Summary
Summary of the 10-Q filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. reported second-quarter 2025 net sales of $3,659.8 milliona, up slightly from $3,643.3 million in the prior-year quarter, while operating income declined to $312.2 million from $351.7 million and net income attributable to Reliance fell to $233.7 million from $267.8 million.
Diluted EPS was $4.42b versus $4.67. For the first six months, net sales were $7,144.5 million versus $7,288.1 million, operating income was $586.6 million versus $744.8 million, and diluted EPS was $8.15 versus $9.90. Management attributes the earnings decline mainly to a lower average selling price per ton sold, partly offset by record tons sold (up 4.0% in the quarter and 6.4% for the six months).
Gross profit margin held at 29.7% for both the quarter and six months, within what management describes as its estimated sustainable range. Balance sheet and liquidity shifted over the period. Total debt rose to $1,433.1 millionc from $1,151.1 million at year-end 2024, with $282.0 million drawn on the revolving credit facility and $400.0 million of senior notes due August 15, 2025.
Cash and cash equivalents were $239.5 milliond at June 30, 2025, and the net debt-to-total capital ratio was 14.1%, up from 10.2% at December 31, 2024. Operating cash flow was $293.5 million for the first six months, down from $492.6 million, mainly due to lower net income and higher working capital investment.
Returns to stockholders totaled $461.4 million in the first half, including $333.1 million of share repurchases, and the Board declared a $1.20 per share third-quarter dividend. Management stated the company was in compliance with its financial maintenance covenant as of June 30, 2025.
02—Key points
Key Highlights
- Q2 2025 net sales were $3,659.8 million, up from $3,643.3 million, with tons sold rising 4.0% to a second-quarter record of 1,615.0 thousand tons.
- Q2 2025 operating income fell to $312.2 million (8.5% of net sales) from $351.7 million (9.7%), mainly due to a lower average selling price per ton sold.
- Diluted EPS was $4.42 for Q2 2025 versus $4.67 a year earlier; for the first six months, diluted EPS was $8.15 versus $9.90.
- Gross profit margin was 29.7% for both the quarter and six months, which management says remained within its estimated sustainable range.
- Total debt increased to $1,433.1 million from $1,151.1 million, including $282.0 million drawn on the $1.5 billion revolver; the net debt-to-total capital ratio rose to 14.1% from 10.2%.
- First-half operating cash flow was $293.5 million, down from $492.6 million, reflecting lower net income and a larger working capital investment as metals prices rose.
- The Board declared a $1.20 per share third-quarter dividend, and $333.1 million of shares were repurchased in the first half, leaving $1.02 billion of authorization remaining.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $3.66B$3.64B | +0.5% |
| SG&A Expenses | $706.00M$667.70M | +5.7% |
| Operating Expenses | $3.35B$3.29B | +1.7% |
| Operating Income | $312.20M$351.70M | −11.2% |
| Net Income | $233.70M$267.80M | −12.7% |
| EPS (Basic) | $4.44$4.71 | −5.7% |
| EPS (Diluted) | $4.42$4.67 | −5.4% |
| Shares Outstanding (Basic) | 52.61M56.88M | −7.5% |
| Shares Outstanding (Diluted) | 52.92M57.39M | −7.8% |
05—Questions
Frequently Asked Questions
Why did Reliance's operating income decline despite record sales volumes?
Management attributes the decline mainly to a lower average selling price per ton sold. Tons sold reached record levels, with the second quarter up 4.0% and the first six months up 6.4% compared with 2024, but the lower pricing outweighed that volume gain. Operating expenses also rose, with same-store SG&A up $34.6 million in the quarter, mainly from inflationary wage adjustments and higher warehousing and delivery expenses.
How much debt does Reliance have coming due, and how will it be funded?
As of June 30, 2025, $401.1 million of debt obligations were due before the $1.5 billion revolving credit facility matures on September 10, 2029, including $400.0 million of senior notes due August 15, 2025. Management states that operating cash flow, cash on hand and approximately $1.22 billion of available revolver capacity are expected to be sufficient, and that it may also access capital markets.
Did Reliance make any acquisitions in the first half of 2025?
No. The filing states that Reliance completed no new acquisitions in the first six months of 2025, compared with three acquisitions completed for $346.5 million in the same period of 2024.
What is the impact of the One Big Beautiful Bill Act on Reliance?
The company states that the law, enacted July 4, 2025, is not expected to have a material impact on its effective tax rate. Reliance does anticipate that the 100% bonus depreciation provision will affect its deferred income taxes and income tax payments.
Has Reliance continued returning cash to shareholders?
Yes. Returns to stockholders in the first six months of 2025 totaled $461.4 million, comprising $333.1 million of share repurchases and $128.3 million of cash dividends. On July 22, 2025, the Board declared a $1.20 per share third-quarter dividend, payable August 29, 2025, and the company has paid regular quarterly dividends for 66 consecutive years.
06—Continue