EarningsQ3 2026 Earnings Report
MX:RS Q3 2026 EPS Results
Actual EPS$149.84
Consensus EPS$127.59
Beat/MissBeat by +$22.25
One Year Ago EPS$68.01
MX:RS Q3 2026 Revenue Results
Actual Revenue$97.40B
Expected Revenue$88.58B
Beat/MissBeat by +$8.82B
YoY Revenue Growth+42.78%
Earnings Announcement Details
QuarterQ3 2026
Date10/21/2026
TimeAfter Close
Conference CallWednesday, October 21, 2026
MX:RS Upcoming Earnings
Reliance Steel's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:RS Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Reliance reported record sales, exceptional shipment and pricing growth, a 120% year-over-year increase in non-GAAP EPS, strong demand across multiple end markets, market share gains, a robust balance sheet, and continued capital returns. The main challenges were higher LIFO expense, modest reported gross margin pressure, inflationary SG&A costs, tight supply, elevated aerospace inventories, and normal seasonal and geopolitical risks.Company Guidance
Record Quarterly Sales and Strong Earnings
Reliance delivered record quarterly net sales, its second-highest quarterly gross profit dollars, and its third-highest quarterly earnings per share. Non-GAAP diluted EPS was $8.02, up 120% year-over-year, and exceeded the guidance range of $6.40 to $6.60.
Strong Shipment and Pricing Growth
Record tons sold increased 4.3% sequentially, including a 3.7% contribution from the U.S. border wall project. Tons sold increased 15.6% year-over-year versus a 10.1% industry-wide increase. Average selling price increased 8.2% sequentially, significantly above the expected range of flat to up 2%.
Robust Gross Profit Performance
Gross profit was $1.5 billion, up 12% sequentially and 41% year-over-year. FIFO non-GAAP gross profit margin expanded to 31.6% from 30.5% in the prior quarter and 29% in the prior-year quarter.
Border Wall Project Delivered Meaningful Earnings
The U.S. Department of Homeland Security border wall contract continued to ramp and contributed $0.74 of third-quarter EPS, exceeding the approximately $0.60 expected contribution. The project added 40 basis points to pretax income margin because of its below-company-average operating cost per ton profile.
Strong Operating Leverage and Pretax Income Growth
Continued market share gains, higher shipment volumes, and increased gross profit dollars drove non-GAAP pretax income of $544 million, more than double the prior-year amount. Higher pricing and increased volumes utilizing existing infrastructure supported improved operating leverage.
Healthy Demand Across Key End Markets
Nonresidential construction represented a little more than one-third of third-quarter sales, with sustained strength in data center and related energy infrastructure projects as well as solid heavy civil and public infrastructure demand. General manufacturing represented about one-third of sales and had strong year-over-year shipment growth driven by industrial machinery, shipbuilding, military, and construction machinery.
Semiconductor and Aerospace Momentum
Semiconductor demand strengthened meaningfully, with momentum accelerating alongside increased data center activity. Aerospace represented approximately 8% of sales; commercial aerospace demand improved with progress in OEM build rates and growing backlogs, while defense and space-related activity remained strong.
Improved Automotive Demand
Automotive represented approximately 4% of third-quarter sales. Demand improved compared with the prior year, and Reliance's flexible toll processing operations adapted quickly to variable automotive market demand.
Market Share Gains and Customer Positioning
Reliance reported broad-based market share gains, particularly in carbon flat-rolled products, plate, and long products. Management attributed its positioning to product diversification, value-added processing, domestic mill relationships, reliable metal access, customer service, and disciplined pursuit of profitable business.
Strong Balance Sheet and Capital Allocation
Reliance ended the quarter with $1.6 billion of total debt and a net debt-to-EBITDA ratio of 0.8x. During the quarter, it funded $79 million of capital expenditures, paid $64 million in dividends, and repurchased $45 million of common stock at an average price of approximately $395 per share.
Expanded Share Repurchase Authorization
On October 20, the Board increased the share repurchase authorization to $2.5 billion without a set expiration date. Since 2021, Reliance has repurchased $3.4 billion of common stock at an average price of approximately $236 per share, reducing outstanding common shares by 23%.
Continued Strategic Investment
The full-year 2026 capital expenditure outlook remained approximately $300 million, with about half allocated to strategic growth investments intended to enhance processing capabilities, strengthen customer service, expand the footprint, and increase volumes in attractive markets. Reliance also continues to evaluate acquisition opportunities.
Strong Cash Flow and Working Capital Execution
Third-quarter cash flow from operations improved sequentially to $212 million despite a significant working capital build. Inventory turns increased 10% year-over-year, and management stated that inventory levels would have been more than $300 million higher without the improvement in inventory turns and working capital metrics.
Extended Border Wall Opportunity
Phase 1 of the border wall project represents $1.45 billion of fully approved funding and is expected to be substantially completed around Q2 2027 at the current run rate. Reliance has also secured bookings for over half of the estimated $800 million Phase 2, which management said could extend the project into early 2028 if the full amount is executed.
Positive Near-Term Outlook
Management expects healthy demand and tight supply across key products and end markets to continue and forecast fourth-quarter 2026 non-GAAP diluted EPS of $7.40 to $7.60. The outlook includes approximately $0.70 of EPS from border wall shipments and assumes customer optimism across infrastructure, semiconductor, general manufacturing, and aerospace.
MX:RS Earnings History
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