EarningsQ2 2026 Earnings Report

Reliance Steel (RS) Q2 2026 Earnings Report

0 Followers

Previous Report: Q1 2026

MX:RS Q2 2026 EPS Results

Actual EPS$114.71

Consensus EPS$99.98

Beat/MissBeat by +$14.73

One Year Ago EPS$81.04

MX:RS Q2 2026 Revenue Results

Actual Revenue$84.70B

Expected Revenue$77.94B

Beat/MissBeat by +$6.77B

YoY Revenue Growth+26.51%

Earnings Announcement Details

QuarterQ2 2026

Date07/22/2026

TimeAfter Close

Conference CallWednesday, July 22, 2026

MX:RS Upcoming Earnings

Reliance Steel's next earnings date is estimated for October 21, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:RS Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 22, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The earnings call conveyed robust operational and financial momentum: record tons sold, strong pricing, meaningful revenue and profit growth, and confident guidance. Key challenges center on elevated LIFO expense (driven by aluminum and tariffs), some supply constraints and inflationary cost pressures. Management emphasized structural advantages—domestic mill relationships, scale, and a sizable border wall contract—that have driven outperformance and provide confidence for continued growth despite the noted headwinds.

Company Guidance

Reliance guided Q3 2026 non‑GAAP diluted EPS of $6.40–$6.60 (up ~76%–81% YoY), which incorporates an estimated $75M of LIFO expense (~$1.10 per share); management raised its full‑year LIFO expense outlook to ~$300M (from $150M) after Q2 LIFO expense of $112.5M (~$1.64/share) and a LIFO reserve of ~ $700M. Management expects demand and pricing to remain healthy (subject to trade, U.S.–Iran conflict and normal seasonality); shipments excluding the U.S. border‑wall contract are modeled down ~2%–4% q/q for typical seasonality while the border‑wall work contributed ~5.1 percentage points of Q2 tons and is expected to add ~2% of volumes in Q3 (near a sustained run‑rate through mid‑2027), contributed ~$0.41/share in Q2, and was OpEx‑light (estimated ~40 bps gross‑margin headwind but ~30 bps pretax income accretion). Q2 operating metrics underlying the guide: sales +27% YoY, gross profit $1.3B (+11% q/q, +20% YoY), FIFO gross margin 30.5% (vs 30.1% Q1, 30.6% prior year), record tons sold (up 7% q/q, +10.8% YoY), non‑GAAP pretax income $429M (+40% YoY), non‑GAAP EPS $6.27 (+42% YoY), inventory turns ~5.2x (vs 4.8 in 2025; company target ~4.7), cash flow from ops ≈$162M, Q2 capex $93M with FY26 capex outlook ~ $300M (~half strategic), total debt $1.7B (net debt/EBITDA ~0.9), paid $64M dividends, and ~ $529M remaining share‑repurchase authorization.

Strong Revenue and Profit Growth

Second quarter sales increased 27% year-over-year. Non-GAAP pretax income rose 40% year-over-year to $429 million. Non-GAAP diluted EPS grew 42% year-over-year to $6.27, the highest EPS since Q2 2023.

Record Shipment Volumes

Record quarterly tons sold: up 7% sequentially and up 10.8% year-over-year, significantly above prior guidance and industry shipment trends.

Pricing Improvement

Average selling price increased 7.8% quarter-over-quarter, exceeding expectations and supporting higher gross profit dollars across carbon, aluminum, and stainless product lines.

Strong Gross Profit and Margins (FIFO Basis)

Second quarter gross profit was $1.3 billion, up 11% versus Q1 2026 and up 20% versus Q2 2025. FIFO non-GAAP gross profit margin expanded to 30.5% from 30.1% sequentially.

Operating and Balance Sheet Strength

Inventory turns improved to ~5.2x from 4.8x in 2025. Cash flow from operations improved sequentially to approximately $162 million. Net debt to EBITDA was 0.9, reflecting low leverage and substantial liquidity.

Border Wall Contract Contribution

U.S. Department of Homeland Security border wall contract contributed ~5.1 percentage points to Q2 volume, added roughly $0.41 per share to EPS, and is expected to ramp to ~2 additional percentage points of volume in Q3; phase 1 estimated at $1.4 billion through mid-2027 with optional ~$800–900 million extension.

Operational and Commercial Execution

Company cited strong execution, domestic mill partnerships, and service capabilities as drivers of outperformance and the ability to capture market share amid constrained supply and extended lead times.

Confident Forward Guidance

Q3 2026 non-GAAP diluted EPS guidance of $6.40–$6.60, implying 76%–81% year-over-year growth, including estimated third-quarter LIFO expense of ~$75 million (~$1.10 per share).

MX:RS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 21, 2026	2026 (Q3)	124.15 / -	66.592	―
Jul 22, 2026	2026 (Q2)	99.98 / 114.71	81.045	41.53% (+33.66)
Apr 22, 2026	2026 (Q1)	85.45 / 94.40	68.971	36.87% (+25.43)
Feb 18, 2026	2025 (Q4)	51.85 / 43.91	40.614	8.11% (+3.29)
Oct 22, 2025	2025 (Q3)	67.36 / 66.59	66.592	0.00% (0.00)
Jul 23, 2025	2025 (Q2)	85.60 / 81.04	85.07	-4.73% (-4.02)
Apr 23, 2025	2025 (Q1)	66.67 / 68.97	96.961	-28.87% (-27.99)
Feb 19, 2025	2024 (Q4)	50.05 / 40.61	86.533	-53.07% (-45.92)
Oct 24, 2024	2024 (Q3)	66.88 / 66.59	91.473	-27.20% (-24.88)
Jul 25, 2024	2024 (Q2)	86.61 / 85.07	118.732	-28.35% (-33.66)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed