01—Abstract
Summary
Summary of the 10-Q filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. reported third-quarter 2025 net sales of $3.65 billiona, up from $3.42 billion a year earlier, driven by record third-quarter tons sold of 1,615.5 thousand (up 6.2%).
Net income attributable to Reliance was $189.5 millionb, or $3.59 diluted EPS, versus $199.2 million and $3.61 in the prior-year quarter. Operating income fell to $259.8 million from $273.4 million, which the company attributes mainly to a lower gross profit margin of 28.3% (down from 29.4%), partly offset by higher tons sold. For the nine months, net sales were $10.80 billion and net income attributable to Reliance was $622.9 million, versus $769.9 million a year earlier.
Cash flow from operations was $555.3 millionc for the nine months, down from $956.5 million, mainly due to higher working capital tied to rising metals prices. Cash and cash equivalents were $261.2 million at September 30, 2025, and the net debt-to-total capital ratio rose to 13.3% from 10.2% at year-end 2024. Total debt was $1.39 billion, and the company repaid $400.0 million of 1.30% senior notes in August 2025 using a new $400.0 million term loan.
Share repurchases totaled $394.0 milliond in the nine months, compared with $951.3 million a year earlier. The company declared a fourth-quarter 2025 cash dividend of $1.20 per share, payable December 5, 2025. Management states that it has $963.6 million remaining under its $1.5 billion share repurchase authorization and that it was in compliance with its financial maintenance covenant as of September 30, 2025.
02—Key points
Key Highlights
- Third-quarter net sales rose 6.8% to $3,651.2 million, with tons sold up 6.2% to a third-quarter record of 1,615.5 thousand tons.
- Gross profit margin declined to 28.3% from 29.4% in the prior-year quarter, which management attributes to short-term pressure from price increases that were not demand driven.
- Operating income fell 5.0% to $259.8 million for the quarter and 16.9% to $846.4 million for the nine months.
- Diluted EPS was $3.59 for the quarter versus $3.61 a year earlier, and $11.74 for the nine months versus $13.55.
- Operating cash flow fell to $555.3 million for the nine months from $956.5 million, mainly due to higher working capital investment.
- Net debt-to-total capital rose to 13.3% from 10.2% at December 31, 2024, after a $238.0 million revolver draw and a $400.0 million term loan refinancing of maturing notes.
- The Board declared a $1.20 per share fourth-quarter dividend, and the company has paid quarterly cash dividends for 66 consecutive years.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 28, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.65B$3.42B | +6.8% |
| SG&A Expenses | $701.30M$665.00M | +5.5% |
| Operating Expenses | $3.39B$3.15B | +7.8% |
| Operating Income | $259.80M$273.40M | −5.0% |
| Net Income | $189.50M$199.20M | −4.9% |
| EPS (Basic) | $3.61$3.64 | −0.8% |
| EPS (Diluted) | $3.59$3.61 | −0.6% |
| Shares Outstanding (Basic) | 52.48M54.69M | −4.0% |
| Shares Outstanding (Diluted) | 52.82M55.18M | −4.3% |
05—Questions
Frequently Asked Questions
Why did profitability decline even though sales volume grew?
Management states that tariffs imposed in the first half of 2025 initially supported higher selling prices, but this benefit was short-lived because the price increases were not demand driven. This led to gross profit margin pressure, particularly for carbon steel, which represents the majority of sales. Same-store SG&A also rose 5.1% in the third quarter, partly due to higher incentive-based compensation.
How much debt does Reliance have and when does it mature?
Total debt was $1,389.1 million at September 30, 2025. This includes $238.0 million on the unsecured revolving credit facility maturing September 10, 2029, a $400.0 million term loan due August 14, 2028, $500.0 million of 2.15% notes maturing August 15, 2030, and $250.0 million of 6.85% notes maturing November 15, 2036.
Is Reliance still returning cash to shareholders?
Yes. Dividends paid were $191.2 million in the nine months, and the company repurchased $394.0 million of common stock. Remaining repurchase authorization was $963.6 million under the $1.5 billion program authorized October 22, 2024. Returns to stockholders totaled $585.2 million in the nine months, down from $1.14 billion a year earlier.
What drove the decline in operating cash flow?
The company said the decline was mainly due to an increase in working capital. Rising metals prices during the nine months required a greater working capital investment than in the prior-year period, when metals prices were declining. Accounts receivable rose by $331.0 million and inventories by $275.4 million in the cash flow statement.
Are there any material legal or environmental liabilities?
The company is involved in an environmental remediation project related to former operations of its subsidiary Earle M. Jorgensen Company. Although cleanup costs could be significant, insurance policies are expected to cover the majority of costs, and management does not expect a material adverse impact. The company states it is not party to pending legal proceedings other than routine litigation.
06—Continue