Reliance (RS) Baird 55th Annual Global Industrial Conference summary

Strategic growth and diversification

• Decentralized growth by product, end market, and geography reduces earnings volatility and balances exposure to cyclical markets.

• Product mix mirrors U.S. metal consumption, with a focus on carbon products and less exposure to highly competitive flat rolled products.

• Geographic presence is primarily U.S.-based, with targeted specialty operations in Canada, Mexico, and select international markets.

• Outside North America, focus is on high-return sectors like aerospace, semiconductor, and energy.

Operational excellence and value-added services

• Decentralized structure enables rapid, next-day delivery and high service levels, especially for small and mid-sized customers.

• Value-added processing now accounts for 50% of orders, up from 40% a decade ago, supporting higher and more stable gross margins.

• Gross profit margin target has increased to 29%-31%, driven by expanded processing capabilities and sales training.

• Smart profitable growth strategy prioritizes high-margin orders, with recent efforts to recapture profitable volume.

Market performance and industry trends

• Tons sold are up 6% year-to-date through September 2025, outperforming an industry down 3%.

• Consistent outperformance in gross profit and EBITDA compared to peers and industrial distributors.

• Countercyclical cash flows and disciplined inventory management support resilience in volatile markets.

• Ongoing investments in value-added processing equipment and selective acquisitions drive growth.