Reliance Steel reports Q4 adjusted EPS $4.73, consensus $3.92

Reports Q4 revenue $3.34B, consensus $3.3B. “We delivered strong operational and financial performance in 2023 in a challenging environment. Strategic organic volume growth coupled with a full year gross profit margin of 30.7% and effective expense management resulted in annual earnings per diluted share of $22.64, the second highest in our history,” said Karla Lewis, President and Chief Executive Officer of Reliance. “Despite our average selling price per ton sold declining across nearly all of our major commodity products in 2023, we maintained our gross profit margin near the top of our estimated sustainable range due to our strong pricing discipline and significant capital reinvestment to increase our capacity and value added processing capabilities. I’d like to thank our dedicated team throughout our family of companies for safely executing our resilient business model and providing increasing levels of value to our customers which increased our market share and outperformed the broader service center industry.” Lewis continued, “Strong profitability generated significant cash flow from operations of $1.67 billion in 2023, also the second highest in our history, which we allocated to growth opportunities through $492.8 million in capital expenditures and acquisitions as well as returning $717.6 million to our stockholders through dividends and share repurchases. Through our ongoing acquisition strategy, we welcomed Cooksey Iron & Metal Company to our family of companies, and we look forward to welcoming American Alloy in the near future.” Lewis concluded, “I’m excited to introduce our new company identity as Reliance, Inc. Over the years, retaining ‘Steel & Aluminum’ in our corporate name has limited the perception of our company because Reliance is so much more than metal. We are a family of companies committed to providing diversified metals solutions and increasing levels of value to our customers, opportunities to our employees and returns to our stockholders. Reliance has historically made investments in our business far in excess of our peers while consistently generating industry-leading results. We have become stronger and more diversified, collaborative and focused as we further differentiate Reliance as a best in class company. We believe these developments, as well as our longstanding reputation for credibility with all of our stakeholders, have made ‘Reliance’ a name that stands alone.”