Reliance Q2 Earnings Call Highlights

Reliance delivered a strong second quarter with record tons sold , a 27% year-over-year sales increase, and non-GAAP EPS of $6.27 , helped by strong pricing and improving demand across multiple end markets. The U.S. Department of Homeland Security border wall contract made a meaningful contribution, adding $0.41 per share in the quarter, and management said shipments should ramp toward a full run rate in Q3 with a potential multi-quarter tailwind.

Reliance raised its LIFO expense outlook for 2026 to $300 million from $150 million due to higher carbon and aluminum costs, but it still expects Q3 EPS of $6.40 to $6.60 and sees demand/pricing remaining healthy.

Reliance NYSE: RS reported what executives described as another strong quarter, with record tons sold, sharply higher year-over-year sales and stronger profitability supported by favorable pricing, improving demand across several end markets and initial contributions from a U.S. Department of Homeland Security border wall contract. On the company’s second-quarter 2026 earnings call, President and Chief Executive Officer Karla Lewis said Reliance achieved its “second highest quarterly revenue” and “record quarterly tons sold,” while continuing to outperform broader industry shipment trends. Lewis attributed the performance to the company’s scale, product and end-market diversification, value-added service offerings and relationships with domestic mills.

“Market conditions remained favorable, supported by improving customer activity, extended mill lead times, and strong pricing across our broad product portfolio,” Lewis said.

Executive Vice President and Chief Operating Officer Steve Koch said tons sold increased 7% from the first quarter and 10.8% from the second quarter of 2025, exceeding the company’s prior expectations for sequential growth of 1% to 3% and year-over-year growth of 4.5% to 6.5%. The sequential increase included a 5.1 percentage point contribution from the U.S. border wall contract. Carbon steel products led shipment growth, while aluminum and stainless-steel products also contributed at higher per-ton profitability levels. Reliance’s average selling price rose 7.8% from the first quarter, also exceeding the company’s forecast for a 1.5% to 3.5% increase. Koch said pricing for carbon steel and aluminum products continued to move higher amid constrained supply, extended lead times and strengthening demand.

Chief Financial Officer Arthur Ajemyan said sales increased 27% year over year. Gross profit was $1.3 billion, up 11% from the first quarter and 20% from the prior-year period. Non-GAAP pre-tax income rose 40% year over year to $429 million, and non-GAAP earnings per diluted share increased 42% to $6.27.

The DHS border wall contract was a notable contributor to the quarter. Ajemyan said the project added $0.41 per share to second-quarter earnings. While the project created a roughly 40 basis point headwind to gross profit margin, he said lower-than-average operating costs per ton more than offset that impact and added about 30 basis points to pre-tax income margin. Lewis said shipments under the contract began in April and ramped faster than expected. During the question-and-answer portion of the call, she said third-quarter shipments are expected to be higher and close to a full run rate, which she said could be sustained through following quarters, subject to metal supply and customer inventory pulls.