$RS · RELIANCE, INC.
Reliance, Inc. filed its 10-Q for the quarter ended September 30, 2026, reporting net sales of $5.21B (+42.8% YoY), net income of $402.9M (vs $189.5M), and diluted EPS of $7.84 (vs $3.59). Operating income more than doubled to $552.1M with operating margin expanding to 10.6%. The quarter included a $187.5M LIFO expense versus $25.0M in Q3 2025, reflecting rising metal costs.
- Q3 diluted EPS of $7.84 vs $3.59 in Q3 2025 — a 118% increase
- Q3 net sales hit $5.21B, up 42.8% YoY driven by carbon steel ($3.12B, +53.5%)
- Q3 operating income margin expanded to 10.6% from 7.1% a year ago
- LIFO expense surged to $187.5M in Q3 vs $25.0M last year, compressing reported gross margin
- Nine-month share repurchases totaled $278.9M; shares outstanding declined to 50.94M from 51.74M at year-end 2025
Extended-hours trading shows RS at $436.14, up 0.77% from the regular close of $432.79, indicating modest positive reception to the blowout quarter. The 42.8% revenue growth and EPS more than doubling year-over-year justify the after-hours uptick, though the $187.5M LIFO charge may temper enthusiasm.
Reliance delivered one of its strongest quarters ever, with EPS more than doubling and revenue up 42.8%, signaling exceptional execution in a rising metal-price environment.
Reliance's 42.8% revenue growth dramatically outpaces typical metals service center peers, with carbon steel sales up 53.5% YoY — suggesting both strong end-market demand and effective inventory positioning during a rising-price environment. The FIFO gross margin of 31.5% (vs 28.9% last year) confirms underlying pricing power.
LIFO expense of $187.5M in Q3 (vs $25.0M prior year) signals rising steel costs that could compress margins if metal prices continue climbing. Accounts receivable nearly doubled to $2.48B from $1.54B at year-end, reflecting the revenue surge but also heightened collection risk.