olivLaw · US equity research
Reliance, Inc. RS
Wholesale-Metals Service Centers & of fices · SIC 5051 · Vertical: Wholesale — durable goods (SIC 50xx)
Reliance, Inc. is the largest metals service center company in North America, distributing a broad range of metal products to customers across many industries. Its recent quarterly results show record sales and rising tons, supported by solid demand and a large infrastructure contract, which makes it relevant to the outlook for US construction and manufacturing.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Reliance, Inc. (RS) stock was 441.95 USD (−0.43% on the day), with market capitalisation 22.5 bn USD, P/E 20.6 on diluted EPS of 21.45 USD over the last 12 months, dividend yield 1.12%, beta 0.74, 52-week range 265.93–448.08 USD. Latest reported quarter (Q3 2026): revenue of 5.2 bn USD (+42.8% YoY), net income of 402.9 m USD (+112.6% YoY), diluted EPS 7.84 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 68.9
- strong (55–70)
- Bollinger (20, 2)
- 389.72 – 452.21
- in the upper half of the band · %B 0.84 · band width 14.8%
- SMA 50 / 200
- 403.92 / 370.54
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 11.86 / 9.58
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +8.3% | −1.1% | +9.4 pp | — |
| 3 months | +5.0% | −0.5% | +5.4 pp | — |
| 6 months | +17.4% | +4.4% | +13.0 pp | — |
| Year to date | +53.0% | +12.3% | +40.7 pp | — |
| 1 year | +60.2% | +13.5% | +46.7 pp | +8.6% |
| 3 years | +66.7% | +76.4% | −9.7 pp | +78.8% |
| 5 years | +170.7% | +63.7% | +107.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 3.5 bn | 3.7 bn | 3.7 bn | 3.5 bn | 4.0 bn | 4.6 bn | 5.2 bn |
| Cost of revenue | 2.2 bn | 2.5 bn | 2.6 bn | 2.6 bn | 2.5 bn | 2.9 bn | 3.3 bn | 3.8 bn |
| SG&A | 662.0 m | 690.2 m | 706.0 m | 701.3 m | 709.2 m | 734.8 m | 789.4 m | 829.7 m |
| Operating income | 141.8 m | 274.4 m | 312.2 m | 259.8 m | 166.3 m | 367.9 m | 441.6 m | 552.1 m |
| Depreciation & amortisation | 70.6 m | 68.7 m | 69.7 m | 70.5 m | 69.3 m | 69.2 m | 69.5 m | 70.1 m |
| Interest expense | 10.0 m | 11.5 m | 14.3 m | 14.4 m | 15.5 m | 15.4 m | 18.2 m | 18.4 m |
| Pre-tax income | 133.5 m | 262.4 m | 304.3 m | 247.7 m | 154.8 m | 349.5 m | 429.8 m | 531.9 m |
| Income tax | 27.5 m | 61.9 m | 70.1 m | 57.7 m | 37.9 m | 83.9 m | 106.2 m | 128.5 m |
| Net income | 105.3 m | 199.7 m | 233.7 m | 189.5 m | 116.5 m | 264.9 m | 322.9 m | 402.9 m |
| Diluted EPS | 1.93 ≈ | 3.74 | 4.42 | 3.59 | 2.22 ≈ | 5.10 | 6.29 | 7.84 |
| Operating cash flow | 473.3 m | 64.5 m | 229.0 m ≈ | 261.8 m ≈ | 276.1 m | 151.4 m | 162.2 m ≈ | 212.0 m ≈ |
| Capex | 110.9 m | 86.9 m | 87.6 m ≈ | 81.2 m ≈ | 73.2 m | 64.2 m | 93.4 m ≈ | 79.0 m ≈ |
| Share repurchases | 142.4 m | 253.2 m | 79.9 m ≈ | 60.9 m ≈ | 200.1 m | 234.2 m | 0 ≈ | 44.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 89 percentile of its own 44-quarter history (min 5.6, median 13.8, max 22.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 11.5 bn | 11.0 bn | 8.8 bn | 14.1 bn | 17.0 bn | 14.8 bn | 13.8 bn | 14.3 bn |
| Revenue YoY | +18.7% | −4.9% | −19.7% | +59.9% | +20.8% | −13.0% | −6.6% | +3.3% |
| Net income | 641.8 m | 706.1 m | 372.4 m | 1.4 bn | 1.8 bn | 1.3 bn | 875.2 m | 739.4 m |
| Net income YoY | +3.3% | +10.0% | −47.3% | +280.6% | +30.1% | −27.6% | −34.5% | −15.5% |
| Diluted EPS | 8.75 | 10.34 | 5.66 | 21.97 | 29.92 | 22.64 | 15.56 | 13.98 |
| Diluted EPS YoY | +4.9% | +18.2% | −45.3% | +288.2% | +36.2% | −24.3% | −31.3% | −10.2% |
| net % | 5.6% | 6.4% | 4.2% | 10.1% | 10.8% | 9.0% | 6.3% | 5.2% |
| Free cash flow | 424.7 m | 1.1 bn | 1.0 bn | 562.8 m | 1.8 bn | 1.2 bn | 999.2 m | 502.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 216.6 m USD
- Financial debt
- 1.4 bn USD
- Net debt
- 1.2 bn USD
- Equity
- 7.2 bn USD
- Total assets
- 10.4 bn USD
- Debt / equity
- 0.20x
- Current ratio
- 4.88x
- ROE
- 10.3%
- ROA
- 7.3%
- FCF margin
- 3.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 8.8 bn | 14.1 bn | 17.0 bn | 14.8 bn | 13.8 bn | 14.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 6.0 bn | 9.6 bn | 11.8 bn | 10.3 bn | 9.7 bn | 10.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 2.8 bn ≈ | 4.5 bn ≈ | 5.3 bn ≈ | 4.5 bn ≈ | 4.1 bn ≈ | 4.1 bn ≈ | SEC (XBRL)· 26 Feb 2026derived |
| SG&A | 1.9 bn | 2.3 bn | 2.5 bn | 2.6 bn | 2.7 bn | 2.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 565.8 m | 1.9 bn | 2.5 bn | 1.7 bn | 1.2 bn | 1.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 227.3 m | 230.2 m | 240.2 m | 245.4 m | 268.7 m | 278.2 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 793.1 m ≈ | 2.2 bn ≈ | 2.7 bn ≈ | 2.0 bn ≈ | 1.4 bn ≈ | 1.3 bn ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 62.9 m | 62.7 m | 62.3 m | 40.1 m | 40.3 m | 55.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | 478.2 m | 1.9 bn | 2.4 bn | 1.7 bn | 1.1 bn | 969.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 105.8 m | 465.7 m | 586.2 m | 400.6 m | 261.9 m | 227.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 372.4 m | 1.4 bn | 1.8 bn | 1.3 bn | 875.2 m | 739.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 5.66 | 21.97 | 29.92 | 22.64 | 15.56 | 13.98 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 65.3 m | 64.3 m | 61.5 m | 59.0 m | 56.2 m | 52.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 2.50 | 2.75 | 3.50 | 4.00 | 4.40 | 4.80 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 683.5 m | 300.5 m | 1.2 bn | 1.1 bn | 318.1 m | 216.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 926.3 m | 1.7 bn | 1.6 bn | 1.5 bn | 1.3 bn | 1.5 bn | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 1.4 bn | 2.1 bn | 2.0 bn | 2.0 bn | 2.0 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 3.1 bn | 4.2 bn | 4.9 bn | 4.8 bn | 3.9 bn | 4.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 1.8 bn | 1.8 bn | 2.0 bn | 2.2 bn | 2.5 bn | 2.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 1.9 bn | 2.1 bn | 2.1 bn | 2.1 bn | 2.2 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 947.1 m | 1.1 bn | 1.0 bn | 981.1 m | 1.0 bn | 960.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 8.1 bn | 9.5 bn | 10.3 bn | 10.5 bn | 10.0 bn | 10.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 259.3 m | 453.9 m | 412.4 m | 410.3 m | 361.9 m | 375.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | — | — | — | 300.0 k | 399.7 m | 700.0 k | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 1.6 bn | 1.6 bn | 1.1 bn | 1.1 bn | 742.8 m | 1.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 613.0 m | 1.1 bn | 1.4 bn | 843.6 m | 1.2 bn | 848.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | — | — | 3.2 bn | 2.7 bn | 2.8 bn | 3.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 5.1 bn | 6.1 bn | 7.1 bn | 7.7 bn | 7.2 bn | 7.2 bn | SEC (XBRL)· 26 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.2 bn | 799.4 m | 2.1 bn | 1.7 bn | 1.4 bn | 831.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 172.0 m | 236.6 m | 341.8 m | 468.8 m | 430.6 m | 328.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 1.0 bn ≈ | 562.8 m ≈ | 1.8 bn ≈ | 1.2 bn ≈ | 999.2 m ≈ | 502.5 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -188.4 m | -652.3 m | -348.5 m | -483.9 m | -803.7 m | -321.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -483.0 m | -528.9 m | -892.6 m | -1.3 bn | -1.4 bn | -620.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 337.3 m | 323.5 m | 630.3 m | 479.5 m | 1.1 bn | 594.1 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 43 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 22.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation53
- Returns30
- Quality33
- Balance sheet80
- Growth0
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 89.53 – 589.11 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)89.53 – 152.99 (Mid 113.97)WACC 9.0% · starting FCFF 543.0 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA412.91 – 575.71 (Mid 492.45)5 companies used · median multiple 14.7x · quartiles 12.4x – 17.0xFERG, GWW, SNX, TEL, WCC
- Peers: P/E424.68 – 589.11 (Mid 538.82)5 companies used · median multiple 25.1x · quartiles 19.8x – 27.5xFERG, GWW, SNX, TEL, WCC
- Dividend discount (DDM)outside the aggregate63.08 – 84.83 (Mid 72.35)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 43/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.2% | 20 (vs peers) | 11% |
| Net margin · Quality | 6.4% | 67 (vs peers) | 7% |
| FCF conversion · Quality | 44.4% | 21 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | -5.7% | 0 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -22.4% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 0.8x | 60 (vs peers) | 11% |
| Interest coverage · Balance sheet | 22.6x | 100 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 4.1x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 20.6x | 67 (vs peers) | 11% |
| EV/EBITDA · Valuation | 13.2x | 60 (vs peers) | 11% |
| FCF yield · Valuation | 2.2% | 27 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 2.1% | 30 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet80/100 · 3/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality33/100 · 3/3 factors with a value
- Returns· partial30/100 · 1/2 factors with a value
- Valuation53/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
RELIANCE, INC. (RS). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 14.3 bn USD in 2025; YoY growth 3.3%; net margin 6.4%; ROE 14.7%; net debt/EBITDA 0.8x.
The estimated value range is 412.91–575.71 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 492.45 USD, the price of 441.95 USD leaves a potential of 11.4% (value / price − 1) and a margin of safety of 10.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 43/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Interest coverage: 22.6x
- Current ratio: 4.1x
What contradicts it
- ROIC: 13.2%
- FCF conversion: 44.4%
- Revenue CAGR 3Y: -5.7%
- EPS CAGR 3Y: -22.4%
- FCF yield: 2.2%
Not assessed (insufficient data or a ratio without meaning): Payout ratio (FCF).
Versus the vertical median
Wholesale — durable goods (SIC 50xx) · same major group (2-digit SIC) · compared with 6 companies
Only companies with a capitalisation between 2.7 bn and 170.7 bn (within 8× of the company's); 52 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GWWW.W. Grainger, Inc. | 69.7 bn | 32.7 | 54.7% | 11.2% | +4.5% | +57% / +89% |
| TELTe Connectivity PLC | 63.8 bn | 27.5 | 18.5% | 12.6% | +8.9% | −3% / +68% |
| FERGFerguson Enterprises Inc. | 48.1 bn | 25.1 | 32.8% | 6.3% | +3.8% | −1% / +45% |
| RSReliance, Inc. | 22.5 bn | 20.6 | 14.7% | 6.4% | +3.3% | +60% / +67% |
| SNXTd Synnex Corporation | 18.4 bn | 14.0 | 14.9% | 1.8% | +6.9% | +51% / +134% |
| GPCGenuine Parts Co | 17.4 bn | 481.8 | 0.7% | 0.1% | +3.5% | −3% / −5% |
| WCCWESCO International, Inc. | 15.4 bn | 19.8 | 15.4% | 3.0% | +7.8% | +18% / +103% |
1- and 3-year price returns: for RS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 239.38 Total return -45% · Per year -45% | 425.33 Total return -3% · Per year -3% | 643.60 Total return 47% · Per year 47% |
| 3 years | 190.07 Total return -55% · Per year -23% | 383.86 Total return -10% · Per year -3% | 643.60 Total return 50% · Per year 14% |
| 5 years | 150.93 Total return -63% · Per year -18% | 346.44 Total return -17% · Per year -4% | 643.60 Total return 52% · Per year 9% |
- Exit P/E± 95.97
- Net margin± 67.18
- Annual revenue growth± 60.67
- Annual dilution± 5.64
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 21 Oct 2026; since then the company filed 10-Q (27 Oct 2026).
In brief
Reliance, Inc. is the largest metals service center company in North America, distributing a broad range of metal products to customers across many industries. Its recent quarterly results show record sales and rising tons, supported by solid demand and a large infrastructure contract, which makes it relevant to the outlook for US construction and manufacturing 13.
SWOT
Strengths
- Scale and diversity of products, customers and geographic footprint reduce dependence on any single segment or customer 1.
- Value-added processing capabilities and an owned truck fleet support quick delivery and stable customer relationships 1.
- A solid balance sheet and access to liquidity give flexibility for investment, acquisitions and share repurchases 3.
Weaknesses
- Gross margins are sensitive to LIFO costs and volatile steel prices, which can reduce reported profit when costs rise quickly 31.
- Long-term contracts are few, and the company does not generally use long-term supplier agreements or hedging arrangements against metal price moves 1.
- The border wall contract lowers gross margin and dilutes per-ton metrics, making performance more dependent on one project 3.
Opportunities
- A relatively small market share in a fragmented industry leaves room for growth through acquisitions and organic expansion 1.
- Demand from data centers, energy, aerospace and semiconductors could continue to grow and support new volumes 3.
- Investment in value-added processing could lift margins over time if the share of orders with processing keeps rising 1.
Threats
- Relaxed tariffs or trade measures could bring in cheaper imports and push domestic metal prices down 1.
- An economic slowdown or recession could reduce demand from customer industries such as construction, automotive and aerospace 1.
- Geopolitical tensions in Ukraine and Iran could disrupt supply and costs, as flagged in recent company disclosures 23.
Risks
- Volatility of metal priceshigh
Profitability depends heavily on metal prices, which are shaped by external factors such as production, tariffs and global demand, and the company generally does not use hedging arrangements 1.
- Trade policy and tariffshigh
Changes in tariffs could lower domestic prices or shift customer buying patterns, and the final effect depends on duration and form of the measures, which are hard to predict 1.
- Cyclicality of customer industriesmedium
Demand for the company's products is tied to cyclical industries, so an economic slowdown could reduce sales and cash flows directly 1.
- Supplier concentration and consolidationmedium
Consolidation among metal producers has reduced the number of available suppliers, and supply interruptions could affect the company's ability to serve customers 1.
- Competition and pricing pressuremedium
In a fragmented market, competitors could sell at reduced prices to clear inventory, which could reduce profitability and market share 1.
Investment thesis
What would need to be true (bull case)
- Tons growth in 2026, supported by solid demand and the infrastructure contract, could show that the diversification strategy and scale work even when the industry is flat 32.
- If demand from data centers, energy and aerospace strengthens, the company could benefit from a broader customer base and more stable margins 3.
- The expanded repurchase program and solid balance sheet could support shareholder returns in coming quarters if operating conditions stay favorable 3.
What would break the thesis
- Earnings per share are strongly affected by LIFO costs and volatile steel prices, so a weaker quarter could quickly show margin vulnerability 31.
- A relaxation of tariffs could reduce domestic metal prices, and recent gains might not last if imports return 1.
- The border wall contract could be a temporary contributor, and if it ends, tons could fall back to a lower level 32.
What to watch
- Fourth quarter tons guidance, especially the trend excluding the border wall contractQ4 2026
- Development of LIFO costs and FIFO gross margin as carbon steel prices moveQ4 2026
- Trade policy and tariffs on steel and aluminum, including effects of recent legal rulings2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 21 Oct 2026; since then the company filed 10-Q (27 Oct 2026).
The business
Reliance operates a network of companies providing diversified metal solutions and presents itself as the largest metals service center company in North America by revenue 1. It distributes a wide range of products, from carbon steel and aluminum to stainless steel, alloys and titanium, and serves more than 125,000 customers in construction, aerospace, energy, electronics and heavy industry 1. Its model rests on small orders, quick delivery, available inventory and value-added processing such as cutting, leveling and machining 1.
The company argues that diversification by product, end market and geography reduces the volatility of metal prices and industry conditions, and its growth strategy combines organic investment with acquisitions that broaden its footprint and processing capabilities 1. Most customers are small machine shops and fabricators, and the company runs its own truck fleet, which management says gives it an advantage in a market short of qualified drivers 1.
Recent results show sales continued to grow in 2026, with a record third quarter and a multi-year contract with the US Department of Homeland Security for the border wall that added significant volume 32. Management links these results to solid demand and tight supply, but warns that margins depend on LIFO costs and volatile carbon steel prices 3.
Market context
Trends
- Tariffs on steel and aluminummixed
Tariff measures in 2025 supported US metal prices and improved tons, but they also created margin volatility because costs were not always passed on to customers 1. If tariffs are relaxed, domestic prices could fall, which would directly affect sales and profitability 1.
- Infrastructure and data center demandtailwind
Management points to solid demand in non-residential construction, including infrastructure, along with data centers and energy projects, which have offset weakness in other construction sectors 3. If this demand holds, it could support volumes in the coming periods 3.
- Border wall contractmixed
The multi-year contract with the Department of Homeland Security began delivering steel in the second quarter of 2026 and contributed significantly to tons growth, but it carries lower gross margin and dilutes per-ton margin 23. The length of the contract remains an important variable 3.
- LIFO costs and price volatilityheadwind
Rising carbon steel and aluminum costs produced higher LIFO expense than management expected, which reduced reported profit, although FIFO margin stayed high 31. If metal prices reverse, the margin effect could be rapid 1.
Competitive position
Reliance competes with a large number of general-line distributors, processors and specialty distributors, and competition is based on price, service, quality, processing capability and product availability 1. Competitors may have stronger local brand names, and in periods of falling prices some sell at a loss to reduce high-cost inventory 1.
The company says its scale and its ability to invest in processing equipment set it apart from many industry peers that cannot expand services at the same scale 1. That advantage depends on keeping its market share in a fragmented industry where competitive pressure can rise 1.
- Ryerson HoldingRYI
North American metals distributor and processor, a plausible peer in the service center category; not named explicitly in the supplied sources, so treat with caution.
- Olympic SteelZEUS
Steel and metals distributor competing in the same service center category; not named explicitly in the supplied sources.
- Other general-line and specialty metals distributors
The sources describe a large number of competitors of varying size, including firms with strong local brands, without naming them.
- Metal mills
Primary metal producers are suppliers but also influence prices and product availability in the market.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report27 Oct 2026
- Current report21 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report28 Jul 2026
- Current report22 Jul 2026Results of operations · Financial statements and exhibits
- Current report21 May 2026Shareholder vote
- Quarterly report29 Apr 2026
- Current report22 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement02 Apr 2026
- Annual report26 Feb 2026
- Current report18 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Reliance, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Reliance, Inc. · 28 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Reliance, Inc. · 21 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.