01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. reported first-quarter 2026 net sales of $4.03 billiona, up 15.5% from $3.48 billion in the first quarter of 2025, driven by record tons sold (1,672.7 thousand, up 2.7%) and a 12.6% increase in average selling price per ton sold to $2,414.
Operating income rose to $367.9 millionb from $274.4 million, a 34.1% increase, and net income attributable to Reliance was $264.9 million, or $5.10 per diluted share, compared with $3.74 in the prior-year quarter. Management attributed the gain to volume growth, improved gross profit per ton and operating leverage, while LIFO-basis gross profit margin declined to 29.1% from 29.7%. Cash flow and balance sheet trends were mixed.
Operating cash flow improved to $151.4 millionc from $64.5 million, but net debt-to-total capital rose to 16.9% from 14.4% at year-end 2025, reflecting higher revolving credit facility borrowings. Total debt was $1.70 billion at March 31, 2026, up from $1.43 billion, and cash and cash equivalents stood at $249.7 million. Accounts receivable and inventories both increased, and the company reported $30 million of remaining revolver capacity beyond the $550.0 million drawn, with $950.0 million of remaining borrowing capacity under the $1.5 billion unsecured revolving credit facility.
Returns to stockholders totaled $300.8 milliond in the quarter, including $234.2 million of share repurchases and $66.6 million of cash dividends. The Board declared a second-quarter 2026 dividend of $1.25 per share, and $529.3 million remained under the share repurchase authorization. Management stated it was in compliance with the financial maintenance covenant under its Credit Agreement and Term Loan.
02—Key points
Key Highlights
- Net sales rose 15.5% to $4.03 billion, driven by record tons sold (up 2.7%) and a 12.6% increase in average selling price per ton sold.
- Operating income increased 34.1% to $367.9 million, with operating margin rising to 9.1% from 7.9% of net sales.
- Diluted EPS was $5.10 versus $3.74 a year earlier, an increase of 36.4%.
- Operating cash flow increased to $151.4 million from $64.5 million, primarily due to improved profitability.
- Net debt-to-total capital rose to 16.9% from 14.4% at December 31, 2025, reflecting increased revolver borrowings; total debt was $1.70 billion.
- Returned $300.8 million to stockholders in the quarter through $234.2 million of share repurchases and $66.6 million of dividends; Q2 2026 dividend declared at $1.25 per share.
- LIFO gross profit margin was 29.1% versus 29.7%, while FIFO gross profit margin declined to 30.0% from 30.4%, and LIFO expense rose to $37.5 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.03B$3.48B | +15.5% |
| SG&A Expenses | $734.80M$690.20M | +6.5% |
| Operating Expenses | $3.66B$3.21B | +13.9% |
| Operating Income | $367.90M$274.40M | +34.1% |
| Net Income | $264.90M$199.70M | +32.6% |
| EPS (Basic) | $5.13$3.76 | +36.4% |
| EPS (Diluted) | $5.10$3.74 | +36.4% |
| Shares Outstanding (Basic) | 51.63M53.08M | −2.7% |
| Shares Outstanding (Diluted) | 51.97M53.40M | −2.7% |
05—Questions
Frequently Asked Questions
What drove the increase in Reliance's first-quarter 2026 earnings?
Management attributed higher profitability primarily to record tons sold, a higher average selling price per ton sold, and improved operating leverage over operating expenses. Net income attributable to Reliance rose to $264.9 million from $199.7 million.
Why did gross profit margin decline even though sales grew?
On a LIFO basis, gross profit margin fell to 29.1% from 29.7%, and the filing notes that LIFO expense rose to $37.5 million from $25.0 million due to more significant metal price increases in 2026 compared to 2025. On a FIFO basis, margin declined approximately 40 basis points to 30.0%, though gross profit per ton increased for most products sold.
How did Reliance's leverage and liquidity change during the quarter?
Total debt increased to $1.70 billion from $1.43 billion, mainly from higher revolving credit facility borrowings, lifting net debt-to-total capital to 16.9% from 14.4%. The company stated it had $950.0 million of remaining capacity under its $1.5 billion revolving credit facility and was in compliance with its financial maintenance covenant.
What are Reliance's capital return plans?
The Board declared a 2026 second-quarter cash dividend of $1.25 per share, payable June 5, 2026 to holders of record as of May 22, 2026. As of March 31, 2026, $529.3 million remained under the $1.5 billion share repurchase authorization, which has no specific expiration date.
What did management say about demand and market conditions?
Management reported that tons sold grew 2.7% while the industry-wide decline in shipments reported by MSCI was 5.1%, which management said reflected market share gains. Demand improved across most end markets, including industrial machinery, shipbuilding, military, consumer products and construction machinery. Aluminum prices were at record levels, driven primarily by a 50% Section 232 tariff imposed in June 2025.
06—Continue