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Reliance 8-K Report, Financial Results (Apr 23, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 23, 2025
Period End
April 23, 2025
Security
RS
In the record · 2016–202610-K1110-Q338-K74

RS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 74 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’16Oct ’16
  2. Leadership change8-K · May ’22May ’22
  3. Leadership change8-K · May ’24May ’24

01—Abstract

Summary

Summary of the 8-K filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.

Reliance, Inc. (NYSE: RS) reported first quarter 2025 results for the period ended March 31, 2025, in a press release furnished under Item 2.02 as Exhibit 99.1.

Net sales were $3.48 billiona, up 9.0% year-over-year in tons sold, with a record 1.63 million tons sold (same-store tons sold up 5.6%). Gross profit margin (LIFO) was 29.7%, versus 31.0% in the prior-year quarter. Net income attributable to Reliance was $199.7 million, or diluted EPS of $3.74, compared with $5.23 a year earlier; non-GAAP diluted EPS was $3.77.

Management said results were stronger than anticipated on shipment levels and gross profit margin, though LIFO expense of $25.0 millionb was above its $15.0 million LIFO income estimate. Cash flow and balance sheet items warrant attention. Cash provided by operations was $64.5 million and free cash flow was negative $22.4 million, reflecting a seasonal working capital investment.

Total debt rose to $1.48 billionc, including $330.0 million of revolver borrowings, and net debt-to-total capital increased to 14.4% from 10.2% at year-end 2024. The company repurchased $253.2 million of common stock in the quarter and declared a quarterly dividend of $1.20 per share. For the second quarter of 2025, Reliance expects tons sold to be down 1.0% to up 1.0% sequentially, average selling price per ton up 1% to 3% sequentially, and non-GAAP diluted EPS in the range of $4.50 to $4.70, including $25.0 million of LIFO expense ($0.35 per diluted share).

02—Key points

Key Highlights

  1. Net sales of $3.48 billion in Q1 2025, versus $3.64 billion in Q1 2024; record 1.63 million tons sold, up 9.0% year-over-year and 5.6% on a same-store basis.
  2. Gross profit margin (LIFO) of 29.7%, up from 28.3% in Q4 2024 but down from 31.0% in Q1 2024; non-GAAP FIFO gross profit margin was 30.4%.
  3. Diluted EPS of $3.74 (non-GAAP $3.77), versus $5.23 in Q1 2024; net income attributable to Reliance was $199.7 million.
  4. LIFO expense of $25.0 million exceeded the company's $15.0 million LIFO income estimate, a net unfavorable $0.57 per share impact versus management's guidance assumptions.
  5. Cash from operations of $64.5 million and free cash flow of negative $22.4 million; total debt of $1.48 billion versus $1.15 billion at December 31, 2024.
  6. Repurchased $253.2 million of common stock (922,656 shares) in Q1 2025; an additional $79.9 million was repurchased through April 22, 2025, with $1.02 billion remaining under the authorization.
  7. Q2 2025 guidance: non-GAAP diluted EPS of $4.50 to $4.70, tons sold down 1.0% to up 1.0% sequentially, and average selling price up 1% to 3% sequentially.

03—Questions

Frequently Asked Questions

  1. Did Reliance beat or miss expectations in the first quarter of 2025?

    The press release states that results were stronger than anticipated, driven by better-than-expected shipment levels and gross profit margin. Tons sold rose 12.8% sequentially, exceeding management's expectation of up 6% to 8%. Non-GAAP diluted EPS of $3.77 compared with management's guidance range of $3.30 to $3.50, though the filing notes LIFO expense was higher than estimated.

  2. How did profitability change compared with the prior-year quarter?

    Pretax income fell to $262.4 million from $396.2 million, and net income attributable to Reliance declined to $199.7 million from $302.9 million. Diluted EPS was $3.74 versus $5.23. Gross profit margin (LIFO) declined to 29.7% from 31.0%, while average selling price per ton sold fell 12.2% year-over-year.

  3. How is the balance sheet and leverage position changing?

    Total debt increased to $1.48 billion at March 31, 2025, from $1.15 billion at December 31, 2024, including $330.0 million of revolver borrowings. Cash and cash equivalents were $277.8 million. Net debt-to-total capital rose to 14.4% from 10.2%, and net debt-to-EBITDA rose to 0.9x from 0.6x.

  4. What are the company's capital return plans?

    Reliance declared a quarterly cash dividend of $1.20 per share, payable June 6, 2025, to holders of record as of May 23, 2025, following a 9.1% dividend increase in February 2025. The company repurchased $253.2 million of stock in Q1 2025 and had $1.02 billion remaining under its share repurchase program as of April 22, 2025.

  5. What does management expect for the second quarter of 2025?

    Management expects tons sold to be down 1.0% to up 1.0% versus Q1 2025 and up 3% to 5% versus Q2 2024, with average selling price per ton up 1% to 3% sequentially. Non-GAAP diluted EPS is projected at $4.50 to $4.70, including $25.0 million of LIFO expense ($0.35 per diluted share).

04—Continue

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