What drove Reliance's strong third quarter 2026 earnings?

Management attributed the results to a favorable market with continued healthy demand and tight supply, which led to higher price levels for most carbon steel products. Higher shipments, improved gross profit per ton, and the U.S. border wall project contributed to a 116% year-over-year increase in non-GAAP pretax income to $544.2 million.

How did LIFO expense affect third quarter results?

LIFO expense was $2.74 per diluted share, compared with management's expectation of $1.10, an incremental $1.64 per share negative impact. The filing states this was primarily due to higher-than-anticipated carbon steel product costs, and it contributed to the gross profit margin decline to 27.9% on a LIFO basis. Non-GAAP FIFO gross profit margin was 31.6%.

What is the company's outlook for the fourth quarter of 2026?

Reliance expects non-GAAP diluted EPS of $7.40 to $7.60, inclusive of LIFO expense of $112.5 million, or $1.64 per diluted share. Excluding the border wall project, tons sold are expected to be up 4.0% to 6.0% year-over-year, and including it, up 13.5% to 15.5%. Average selling price per ton is expected to rise 1.0% to 3.0% sequentially.

How is Reliance returning capital to stockholders?

In the third quarter, the company returned approximately $109 million, including $64 million in dividends and $45 million in share repurchases at an average price of approximately $395 per share. On October 20, 2026, the Board increased the repurchase authorization to $2.5 billion with no set expiration and declared a $1.25 per share quarterly dividend payable December 4, 2026.

What is the company's balance sheet and liquidity position?

As of September 30, 2026, Reliance had $246.0 million of cash and cash equivalents and total debt of $1.6 billion, including $495 million outstanding under its $1.5 billion revolving credit facility. Net debt to EBITDA was 0.8x and total debt to EBITDA was 0.9x. Operating cash flow was $212.0 million in the quarter, despite a working capital investment driven by robust shipment volumes and higher metals prices.

RS 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 21, 2026. Cited figures are marked; the original filing is the authoritative source.

Reliance, Inc. (NYSE: RS) reported third quarter 2026 results for the quarter ended September 30, 2026, furnishing a press release as Exhibit 99.1.

Net sales were $5.21 billion^a, up 12.6% sequentially and 42.8% year-over-year, with record quarterly tons sold of 1,867.2 thousand, up 4.3% sequentially. Diluted EPS was $7.84 and non-GAAP diluted EPS was $8.02, up 120.3% year-over-year, significantly exceeding management's guidance of $6.40 to $6.60. Pretax income was $531.9 million, and non-GAAP pretax income was $544.2 million.

Management attributed results to a favorable market with healthy demand and tight supply, price increases for most carbon steel products, and contributions from the U.S. border wall project, which contributed $0.74^b per share. LIFO expense was $2.74 per diluted share, compared with management's expectation of $1.10, which weighed on GAAP gross profit margin of 27.9%. For the fourth quarter of 2026, Reliance expects non-GAAP diluted EPS of $7.40 to $7.60, including approximately $0.70 per share from the border wall project and LIFO expense of $112.5 million, or $1.64 per diluted share.

Management expects tons sold including the border wall project to rise 13.5%^c to 15.5% year-over-year, and average selling price per ton to rise 1.0% to 3.0% sequentially. The company cited ongoing trade policy uncertainty and conflicts in Iran and Ukraine as risks to supply availability and macroeconomic conditions. Balance sheet and capital returns were also highlighted.

Cash and cash equivalents were $246.0 million^d and total debt was $1.6 billion, including $495 million outstanding under its $1.5 billion revolving credit facility. Operating cash flow for the quarter was $212.0 million, and free cash flow was $133.0 million. The Board approved an increase in the share repurchase authorization to $2.5 billion with no set expiration, and declared a quarterly dividend of $1.25 per share payable December 4, 2026.

02—Key points

Key Highlights

Net sales of $5.21 billion were a record for the company, up 12.6% sequentially and 42.8% year-over-year.
Diluted EPS was $7.84 and non-GAAP diluted EPS was $8.02, up 120.3% year-over-year and above management's guidance of $6.40 to $6.60.
LIFO expense of $2.74 per diluted share was well above management's expectation of $1.10, primarily due to higher-than-anticipated carbon steel product costs.
The U.S. border wall project contributed $0.74 per diluted share in the third quarter and drove 9.4% of year-over-year tons sold growth.
Fourth quarter 2026 non-GAAP diluted EPS guidance is $7.40 to $7.60, including about $0.70 per share from the border wall project.
The Board increased the share repurchase authorization to $2.5 billion with no set expiration and declared a $1.25 per share quarterly dividend.
Free cash flow was $133.0 million in the quarter, with net debt to total capital of 15.3% and net debt to EBITDA of 0.8x.

03—Questions

Frequently Asked Questions

What drove Reliance's strong third quarter 2026 earnings?
Management attributed the results to a favorable market with continued healthy demand and tight supply, which led to higher price levels for most carbon steel products. Higher shipments, improved gross profit per ton, and the U.S. border wall project contributed to a 116% year-over-year increase in non-GAAP pretax income to $544.2 million.
How did LIFO expense affect third quarter results?
LIFO expense was $2.74 per diluted share, compared with management's expectation of $1.10, an incremental $1.64 per share negative impact. The filing states this was primarily due to higher-than-anticipated carbon steel product costs, and it contributed to the gross profit margin decline to 27.9% on a LIFO basis. Non-GAAP FIFO gross profit margin was 31.6%.
What is the company's outlook for the fourth quarter of 2026?
Reliance expects non-GAAP diluted EPS of $7.40 to $7.60, inclusive of LIFO expense of $112.5 million, or $1.64 per diluted share. Excluding the border wall project, tons sold are expected to be up 4.0% to 6.0% year-over-year, and including it, up 13.5% to 15.5%. Average selling price per ton is expected to rise 1.0% to 3.0% sequentially.
How is Reliance returning capital to stockholders?
In the third quarter, the company returned approximately $109 million, including $64 million in dividends and $45 million in share repurchases at an average price of approximately $395 per share. On October 20, 2026, the Board increased the repurchase authorization to $2.5 billion with no set expiration and declared a $1.25 per share quarterly dividend payable December 4, 2026.
What is the company's balance sheet and liquidity position?
As of September 30, 2026, Reliance had $246.0 million of cash and cash equivalents and total debt of $1.6 billion, including $495 million outstanding under its $1.5 billion revolving credit facility. Net debt to EBITDA was 0.8x and total debt to EBITDA was 0.9x. Operating cash flow was $212.0 million in the quarter, despite a working capital investment driven by robust shipment volumes and higher metals prices.

04—Continue

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