Reliance (RS) Q4 2025 earnings summary

Executive summary

• Achieved record tons sold in 2025, up 6.2% year-over-year, with U.S. market share rising to 17% from 15%.

• Outperformed industry shipment trends, gaining market share and posting net sales of $14.3 billion, up 3.3%.

• Maintained strong operational execution and expanded market share despite macroeconomic and competitive challenges.

• Increased quarterly dividend by 4% to $1.25 per share and repurchased $594.1 million in stock, reducing shares outstanding by 4%.

• Diversified business model and scale offset market-specific weaknesses, supporting stable performance.

Financial highlights

• 2025 non-GAAP gross profit margin was 28.8%, slightly below the sustainable range due to $114 million in LIFO expense.

• Q4 2025 net income attributable to shareholders was $116.5 million, up 10.6% year-over-year.

• Full-year 2025 earnings per diluted share declined 10.2% year-over-year; excluding LIFO, non-GAAP FIFO EPS rose 13.5%.

• Generated $831 million in operating cash flow in 2025.

• Returned $849 million to shareholders via dividends and share repurchases in 2025.

Outlook and guidance

• 2026 CapEx budget set at $275 million, with total expected spending of $300–$325 million including carryover.

• First quarter 2026 tons sold expected to rise 5%-7% sequentially, with average selling price per ton up 3%-5%.

• First quarter 2026 non-GAAP EPS guidance: $4.50–$4.70, up 19%-25% year-over-year, including $25 million LIFO expense.

• Gross profit margin expected to improve in 2026 as tariff impacts lessen and demand strengthens.

• Anticipates continued healthy demand in Q1 2026, with some uncertainty from trade policy.