Reliance (RS) Q4 2024 earnings summary

Executive summary

• Achieved strong financial results in 2024 with annual net sales of $13.84 billion, above-industry shipment growth, and a full-year gross profit margin of 29.7%.

• Completed and integrated four acquisitions, adding up to $400 million in annualized net sales and expanding geographic and processing capabilities.

• Non-GAAP EPS for 2024 was $15.92, supported by targeted growth, pricing discipline, and value-added processing.

• Generated $1.43 billion in annual cash flow from operations, the third highest in company history.

• Repurchased a record $1.09 billion of common stock in 2024, reducing outstanding shares by 6%.

Financial highlights

• Fourth quarter non-GAAP EPS was $2.22, impacted by a $0.74 per share LIFO true-up.

• Full-year gross profit margin reached 29.7%; Q4 margin was 28.3%, down from 29.4% in Q3 due to LIFO adjustments.

• Cash flow from operations was $473.3 million in Q4 and $1.43 billion for the year.

• Annual net income attributable was $875.2 million, with diluted EPS of $15.56.

• Share repurchases totaled $1.1 billion in 2024, reducing outstanding shares by 6% year-over-year.

Outlook and guidance

• 2025 capital expenditure budget set at $325 million, with total cash outlay expected at $375-$400 million including carryover projects.

• Q1 2025 tons sold expected to rise 6%-8% sequentially and 3%-5% year-over-year; average selling price per ton expected to be flat to down 1% or up 1% sequentially.

• Q1 2025 non-GAAP EPS guidance is $3.30-$3.50.

• LIFO income for 2025 estimated at $60 million, reflecting inventory normalization.

• Outlook assumes no significant trade policy disruptions to key metal markets.