RS' Q4 Earnings Miss Estimates, Sales Up on Higher Price and Volume

Reliance, Inc. RS posted profits of $116.5 million or $2.22 per share for the fourth quarter of 2025, up from $105.3 million or $1.93 per share in the year-ago quarter.

Barring one-time items, the company recorded earnings of $2.40 per share. It lagged the Zacks Consensus Estimate of $2.80.

The company reported net sales of $3,498.6 million, representing a year-over-year increase of approximately 11.9%. The top line beat the Zacks Consensus Estimate of $3,382.4 million.

Reliance, Inc. Price, Consensus and EPS Surprise

Reliance, Inc. price-consensus-eps-surprise-chart | Reliance, Inc. Quote

Reliance’s Segment Update

Reliance reported a 5.8% year-over-year increase in shipments (thousand tons sold) to 1,528.7. The figure surpassed our estimate of 1,522.5. The average selling price per ton rose 5.6% year over year to $2,292. It was above our estimate of $2,271.

Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened compared with the fourth quarter of 2024. The company expects demand in this sector to remain healthy through the first quarter of 2026, supported by ongoing investment in data centers, manufacturing facilities and public infrastructure projects.

Demand within the broader manufacturing market improved year over year, driven by growth across the military, industrial machinery, consumer products, construction machinery, shipbuilding and rail sectors. Reliance expects the demand to remain healthy in the first quarter.

Aerospace demand was higher compared with the prior-year quarter. Reliance expects commercial aerospace demand to remain consistent in the first quarter due to build-rate increases, while defense and space-related activity is expected to remain strong.

Demand for automotive toll processing services remained flat year over year. Reliance expects steady performance through the first quarter, subject to continuing fluidity surrounding North American trade policy. The company’s toll processing operations remain agile and responsive to automotive market fluctuations.

In the semiconductor market, demand remained soft relative to the fourth quarter of 2024, as elevated inventory levels across the supply chain continue to weigh on activity. Reliance expects these headwinds to persist into the first quarter.

RS’ Financial Position

As of Dec. 31, 2025, Reliance held $216.6 million in cash and cash equivalents, with total outstanding debt amounting to $1.43 billion. This includes $277 million borrowings under the company’s $1.5 billion revolving credit facility.

In the fourth quarter, Reliance generated $276.1 million in operating cash flow. The company consistently produces strong cash flow across various market conditions, which it strategically reinvests through its opportunistic capital allocation initiatives.

Reliance repurchased approximately 716,000 shares of its common stock during the fourth quarter at an average price of $279.30 per share, for a total of $200.1 million.

Reliance’s Outlook 

Reliance expects demand in the first quarter to remain healthy across its diverse end markets, though ongoing domestic and international trade policy uncertainty may influence performance. The company projects tons sold to increase 5% to 7% from the prior quarter.

The average selling price per ton is anticipated to be up 3-5% sequentially. Reliance also expects its FIFO gross profit margin to modestly improve sequentially. Based on these assumptions, the company forecasts adjusted earnings per share in the range of $4.50 to $4.70 for the first quarter, which includes an estimated LIFO expense of $25 million, or 36 cents per share.

RS’ Price Performance

Reliance’s shares have gained 11.2% in the past year compared with the 44.8% growth of the industry.

RS’ Zacks Rank & Key Picks

RS currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are AngloGold Ashanti plc AU, Compania de Minas Buenaventura S.A.A. BVN and Avino Silver & Gold Mines Ltd. ASM.

AngloGold is scheduled to report fourth-quarter results on Feb. 20. The Zacks Consensus Estimate for AU’s fourth-quarter earnings is pegged at $1.90, indicating 113.48% year over year growth. AU currently flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Buenaventura is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for earnings is pegged at 59 cents per share, indicating 353.85% year over year growth. It beat the consensus estimate in three of the last four quarters, with an average surprise of 28.02%. BVN sports a Zacks Rank #1 at present.

Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, presently carrying a Zacks Rank #2 (Buy), beat the consensus estimate in the last four quarters, the average earnings surprise being 150%.

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This article originally published on Zacks Investment Research (zacks.com).

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