Reliance Q2 adjusted EPS misses estimates

Overview

• Reliance Q2 net sales rise 0.5% yr/yr to $3.66 bln

• However, adjusted EPS of $4.43 misses analysts' expectations, per LSEG data

• Company repurchased $79.9 mln of common stock in Q2

Outlook

• Reliance expects Q3 2025 tons sold to decline 1% to 3%

• Company anticipates Q3 2025 average selling price down 1% to up 1%

• Reliance sees Q3 2025 non-GAAP EPS between $3.60 and $3.80

• Company expects pressure on FIFO gross profit margin in Q3 2025

Result Drivers

• RECORD TONS SOLD - Reliance achieved record tons sold in Q2, up 4% yr/yr, reflecting market share gains

• SELLING PRICE INCREASE - Average selling price per ton sold increased 6.1% sequentially, surpassing company guidance

• GROSS PROFIT MARGIN - Non-GAAP gross profit margin of 29.9%, supported by favorable policy conditions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for Reliance Inc is $335.00, about 1.6% below its July 22 closing price of $340.20

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX39p53z