01—Abstract
Summary
Summary of the 10-Q filed October 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. reported record net sales of $5.21 billiona for the third quarter of 2026 (up 42.8% year-over-year) and $13.87 billion for the nine months ended September 30, 2026 (up 28.5%), driven by record tons sold and higher average selling prices.
Net income attributable to Reliance was $402.9 millionb for the quarter, or $7.84 per diluted share, compared with $3.59 in the prior-year quarter, and $990.7 million, or $19.21 per diluted share, for the nine months. The company stated that the U.S. border wall project contributed $0.74 and $1.14 to diluted EPS in the third quarter and nine months, respectively, and that it reduced FIFO gross profit margin while being accretive to pretax income margin. Gross profit margin under the LIFO method declined to 27.9% in the third quarter from 28.3% a year earlier, reflecting a LIFO expense of $187.5 million versus $25.0 million, while FIFO gross profit margin improved 260 basis points.
SG&A rose 18.3% to $829.7 millionc in the quarter, primarily from variable warehousing and delivery costs tied to higher volume, incentive compensation, fuel costs and wage inflation. Operating cash flow for the nine months was $525.6 million, down $29.7 million, as working capital needs for higher volumes and metals prices outweighed higher profitability. Balance sheet activity included total debt of $1.65 billion at September 30, 2026, up from $1.43 billion at year-end 2025, with the company stating it was in compliance with its financial maintenance covenant.
The company repurchased $278.9 milliond of shares in the nine months and paid $194.2 million in dividends. On October 20, 2026, the Board declared a fourth-quarter dividend of $1.25 per share and increased the share repurchase authorization to $2.5 billion.
02—Key points
Key Highlights
- Net sales of $5,213.2 million in Q3 2026, up from $3,651.2 million, with tons sold up 15.6% and average selling price per ton up 24.0%
- Diluted EPS of $7.84 for Q3 2026 versus $3.59 in Q3 2025; $19.21 for the nine months versus $11.74
- Operating income of $552.1 million in Q3 2026 versus $259.8 million, with operating margin of 10.6% versus 7.1%
- LIFO gross profit margin fell to 27.9% from 28.3%, while FIFO gross profit margin improved 260 basis points; LIFO expense rose to $187.5 million from $25.0 million
- U.S. border wall project contributed 9.4 percentage points to Q3 tons sold growth and $0.74 to diluted EPS in the quarter
- Cash and equivalents of $246.0 million; total debt of $1,645.0 million gross; net debt-to-total capital ratio of 15.3% versus 14.4% at year-end 2025
- Board increased share repurchase authorization to $2.5 billion and declared a $1.25 quarterly dividend payable December 4, 2026
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 27, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $5.21B$3.65B | +42.8% |
| SG&A Expenses | $829.70M$701.30M | +18.3% |
| Operating Expenses | $4.66B$3.39B | +37.4% |
| Operating Income | $552.10M$259.80M | +112.5% |
| Net Income | $402.90M$189.50M | +112.6% |
| EPS (Basic) | $7.90$3.61 | +118.8% |
| EPS (Diluted) | $7.84$3.59 | +118.4% |
| Shares Outstanding (Basic) | 51.02M52.48M | −2.8% |
| Shares Outstanding (Diluted) | 51.39M52.82M | −2.7% |
05—Questions
Frequently Asked Questions
What drove the increase in Reliance's third-quarter 2026 results?
The company attributed the increase to record tons sold and higher average selling prices, with tons sold up 15.6% and average selling price per ton up 24.0% year-over-year. Demand improved across most end markets and the company cited market share gains, including from the U.S. border wall project contract that began deliveries in the second quarter of 2026.
Why did LIFO gross profit margin decline even though profits grew?
LIFO expense rose to $187.5 million in the third quarter from $25.0 million a year earlier because of larger increases in metal pricing in 2026. On a FIFO basis, which management uses to evaluate operating performance, gross profit margin improved 260 basis points due to higher margins on carbon steel products.
How did operating cash flow and working capital change?
Net cash provided by operating activities for the nine months was $525.6 million, a decrease of $29.7 million. Accounts receivable increased by $938.6 million in the cash flow statement, reflecting higher working capital needs from stronger shipment volumes and higher metals pricing, which offset higher profitability.
What are the company's capital return plans?
In the nine months, Reliance repurchased shares totaling $278.9 million and paid $194.2 million in cash dividends. On October 20, 2026, the Board declared a $1.25 per share fourth-quarter dividend payable December 4, 2026, and amended the repurchase program to $2.5 billion with no expiration date.
What is the status of the company's debt and credit facilities?
Total debt was $1,645.0 million gross at September 30, 2026, versus $1,427.7 million at December 31, 2025, with the increase reflecting higher revolving credit facility borrowings of $495.0 million. The company had $1.01 billion of remaining borrowing capacity under its $1.5 billion revolving facility and stated it was in compliance with its financial maintenance covenant.
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