01—Abstract
Summary
Summary of the 10-Q filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. reported record tons sold and higher average selling prices in the second quarter of 2026, with net sales of $4.63 billiona, up 26.5% from the prior-year quarter, and net income attributable to Reliance of $322.9 million, or $6.29 diluted earnings per share, compared to $4.42 a year earlier.
For the first six months, net sales were $8.66 billionb (up 21.2%) and diluted EPS was $11.38 versus $8.15. Management attributed the growth to strong demand across most end markets, market share gains, and a multi-year U.S. border wall project contract that began shipping in the second quarter and contributed 5.2 percentage points to year-over-year tons sold growth. Gross profit margin under LIFO fell to 28.1% in the quarter from 29.7%, driven by a $112.5 million LIFO expense, while FIFO gross profit margin improved 10 basis points.
Balance sheet and cash flow were affected by higher working capital. Accounts receivable rose to $2.21 billionc from $1.54 billion at year-end 2025, and inventories rose to $2.33 billion. Total debt, net of discount, rose to $1.66 billion of long-term debt, and the net debt-to-total capital ratio was 16.2% versus 14.4% at December 31, 2025.
Operating cash flow was $313.6 milliond for the first six months. The company repurchased no shares in the second quarter, though it spent $234.2 million on repurchases in the first half, and it declared a $1.25 quarterly dividend for the third quarter. The filing states the company was in compliance with its financial maintenance covenants as of June 30, 2026, and that it had $980.0 million of remaining revolving credit capacity.
02—Key points
Key Highlights
- Net sales of $4.63 billion in Q2 2026, up 26.5% year-over-year, driven by record tons sold (up 10.8%) and a 14.5% increase in average selling price per ton.
- Diluted EPS of $6.29 for Q2 2026 versus $4.42 in Q2 2025; the company cited a $0.41 EPS contribution from the U.S. border wall project.
- LIFO gross profit margin declined to 28.1% in Q2 2026 from 29.7%, reflecting a $112.5 million LIFO expense, while FIFO gross profit margin improved 10 basis points.
- Operating income rose 41.4% to $441.6 million in Q2 2026, with operating margin of 9.5% versus 8.5% a year earlier.
- Working capital increased materially: accounts receivable rose to $2.21 billion and inventories to $2.33 billion from year-end 2025 levels, contributing to operating cash flow of $313.6 million for the first six months.
- Net debt-to-total capital ratio rose to 16.2% from 14.4% at December 31, 2025, reflecting increased revolver borrowings; long-term debt totaled $1.66 billion.
- Quarterly dividend increased to $1.25 per share from $1.20, and the Board declared a third-quarter dividend of $1.25 payable August 28, 2026; no shares were repurchased in Q2 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 28, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $4.63B$3.66B | +26.5% |
| SG&A Expenses | $789.40M$706.00M | +11.8% |
| Operating Expenses | $4.19B$3.35B | +25.1% |
| Operating Income | $441.60M$312.20M | +41.4% |
| Net Income | $322.90M$233.70M | +38.2% |
| EPS (Basic) | $6.33$4.44 | +42.6% |
| EPS (Diluted) | $6.29$4.42 | +42.3% |
| Shares Outstanding (Basic) | 51.05M52.61M | −3.0% |
| Shares Outstanding (Diluted) | 51.38M52.92M | −2.9% |
05—Questions
Frequently Asked Questions
What drove Reliance's revenue growth in the second quarter of 2026?
Net sales rose 26.5% to $4.63 billion, driven by record tons sold, which increased 10.8%, and an average selling price per ton that rose 14.5%. The U.S. border wall project contributed 5.2 percentage points to tons sold growth in the quarter, and management cited improved demand across most end markets and market share gains.
Why did LIFO gross profit margin decline even though sales grew?
LIFO expense increased to $112.5 million in Q2 2026 from $25.0 million a year earlier, as the filing attributes to larger metal price increases in 2026. Gross profit margin under LIFO fell to 28.1% from 29.7%, while FIFO gross profit margin, which excludes LIFO effects, was described as improving 10 basis points in the quarter.
How did the U.S. border wall project affect the company's results?
The contract, which began steel deliveries in Q2 2026, contributed 5.2 percentage points to tons sold growth and a $0.41 EPS contribution for the quarter. Management said it reduced gross profit margin by approximately 40 basis points but was accretive to pretax income margin, contributing approximately 30 basis points due to favorable operating leverage.
How is the company's liquidity and debt position?
As of June 30, 2026, the company had $235.4 million of cash and $980.0 million of remaining borrowing capacity under its $1.5 billion revolving credit facility. Total long-term debt was $1.66 billion, the net debt-to-total capital ratio was 16.2%, and the company stated it was in compliance with its financial maintenance covenants.
What are the company's capital return plans?
Returns to stockholders totaled $364.6 million in the first six months of 2026, including $234.2 million of share repurchases and $130.4 million of cash dividends. No shares were repurchased in Q2 2026, and $529.3 million remained under the repurchase authorization. The Board declared a $1.25 per share dividend for the third quarter of 2026.
06—Continue