We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reliance's Earnings Miss, Revenues Surpass Estimates in Q3
Read MoreHide Full Article
Key Takeaways
{\"0\":\"Reliance reported Q3 profit of $189.5M on $3.65B in sales, with earnings slightly below estimates. \",\"1\":\"Shipments rose 6.2% year over year, while average selling prices per ton rose 1.1%. \",\"2\":\"Demand was strong in construction and manufacturing, with softness in aerospace and semiconductors. \"}
Reliance, Inc. (RS - Free Report) posted profits of $189.5 million or $3.59 per share for the third quarter of 2025, down from $199.2 million or $3.61 per share in the year-ago quarter.
Barring one-time items, the company recorded earnings of $3.64 per share. It lagged the Zacks Consensus Estimate of $3.68.
The company reported net sales of $3,651.2 million, representing a year-over-year increase of approximately 6.8%. The top line beat the Zacks Consensus Estimate of $3,529.1 million.
Reliance reported a 6.2% year-over-year increase in shipments (thousand tons sold) to 1,615.5. The figure surpassed our estimate of 1,567.3. The average selling price per ton rose 1.1% year over year to $2,271. It was below our estimate of $2,285.
Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened compared with the third quarter of 2024. The company expects demand in this sector to remain healthy through the fourth quarter of 2025, notwithstanding normal seasonal moderation, 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, shipbuilding and rail sectors. Reliance anticipates that this strength will be tempered by typical seasonal softness in the fourth quarter.
Aerospace demand was stable compared with the prior-year quarter. Reliance expects commercial aerospace demand to stay subdued in the fourth quarter due to continued excess inventory in the supply chain, while defense and space-related activity is expected to remain strong.
Demand for automotive toll processing services improved year over year. Reliance expects steady performance through the fourth quarter, subject to normal seasonality and ongoing uncertainty surrounding North American trade policy. The company’s toll processing operations remain agile and responsive to market fluctuations.
In the semiconductor market, demand remained soft relative to the third quarter of 2024, as elevated inventory levels across the supply chain continue to weigh on activity. Reliance expects these headwinds to persist into the fourth quarter.
RS’ Financial Position
As of Sept. 30, 2025, Reliance held $261.2 million in cash and cash equivalents, with total outstanding debt amounting to $1.39 billion. This includes $238 million borrowings under the company’s $1.5 billion revolving credit facility.
In the third quarter, Reliance generated $261.8 million in operating cash flow, which factored in a typical seasonal working capital investment. The company consistently produces strong cash flow across various market conditions, which it strategically reinvests through its opportunistic capital allocation initiatives.
Reliance repurchased 211,873 shares of its common stock during the third quarter at an average price of $287.71 per share, for a total of $60.9 million.
Reliance’s Outlook
Reliance expects demand in the fourth quarter to remain generally stable across its diverse end markets, though ongoing domestic and international trade policy uncertainty may influence performance. The company projects tons sold to increase 3.5% to 5.5% year over year, while declining 5% to 7% sequentially, reflecting normal seasonal trends.
The average selling price per ton is anticipated to be relatively unchanged from the third quarter of 2025. Reliance also expects its FIFO gross profit margin to be flat to slightly higher sequentially. Based on these assumptions and typical seasonality, the company forecasts adjusted earnings per share in the range of $2.65 to $2.85 for the fourth quarter of 2025, which includes an estimated LIFO expense of $25million, or 35 cents per share.
RS’ Price Performance
Reliance’s shares are down 3.5% in the past year against a 11.7% rise in the industry.
Image Source: Zacks Investment Research
RS’s Zacks Rank & Key Picks
RS currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Materion Corporation (MTRN - Free Report) , Aura Minerals, Inc. (AUGO - Free Report) and McEwen Inc. (MUX - Free Report) .
Materion is slated to report third-quarter results on Oct. 29. The Zacks Consensus Estimate for earnings is pegged at $1.32. MTRN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 6.35%. MTRN carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aura Minerals is scheduled to report third-quarter results on Nov. 4. The Zacks Consensus Estimate for AUGO’s third-quarter earnings is pegged at 97 cents. AUGO currently carries a Zacks Rank #1.
McEwen is expected to report third-quarter results on Nov. 4. The consensus estimate for MUX’s earnings is pegged at 31 cents per share. MUX, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in one of the last four quarters and missed thrice. It has a trailing four-quarter negative earnings surprise of roughly 58.6%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Reliance's Earnings Miss, Revenues Surpass Estimates in Q3
Key Takeaways
Reliance, Inc. (RS - Free Report) posted profits of $189.5 million or $3.59 per share for the third quarter of 2025, down from $199.2 million or $3.61 per share in the year-ago quarter.
Barring one-time items, the company recorded earnings of $3.64 per share. It lagged the Zacks Consensus Estimate of $3.68.
The company reported net sales of $3,651.2 million, representing a year-over-year increase of approximately 6.8%. The top line beat the Zacks Consensus Estimate of $3,529.1 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 6.2% year-over-year increase in shipments (thousand tons sold) to 1,615.5. The figure surpassed our estimate of 1,567.3. The average selling price per ton rose 1.1% year over year to $2,271. It was below our estimate of $2,285.
Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened compared with the third quarter of 2024. The company expects demand in this sector to remain healthy through the fourth quarter of 2025, notwithstanding normal seasonal moderation, 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, shipbuilding and rail sectors. Reliance anticipates that this strength will be tempered by typical seasonal softness in the fourth quarter.
Aerospace demand was stable compared with the prior-year quarter. Reliance expects commercial aerospace demand to stay subdued in the fourth quarter due to continued excess inventory in the supply chain, while defense and space-related activity is expected to remain strong.
Demand for automotive toll processing services improved year over year. Reliance expects steady performance through the fourth quarter, subject to normal seasonality and ongoing uncertainty surrounding North American trade policy. The company’s toll processing operations remain agile and responsive to market fluctuations.
In the semiconductor market, demand remained soft relative to the third quarter of 2024, as elevated inventory levels across the supply chain continue to weigh on activity. Reliance expects these headwinds to persist into the fourth quarter.
RS’ Financial Position
As of Sept. 30, 2025, Reliance held $261.2 million in cash and cash equivalents, with total outstanding debt amounting to $1.39 billion. This includes $238 million borrowings under the company’s $1.5 billion revolving credit facility.
In the third quarter, Reliance generated $261.8 million in operating cash flow, which factored in a typical seasonal working capital investment. The company consistently produces strong cash flow across various market conditions, which it strategically reinvests through its opportunistic capital allocation initiatives.
Reliance repurchased 211,873 shares of its common stock during the third quarter at an average price of $287.71 per share, for a total of $60.9 million.
Reliance’s Outlook
Reliance expects demand in the fourth quarter to remain generally stable across its diverse end markets, though ongoing domestic and international trade policy uncertainty may influence performance. The company projects tons sold to increase 3.5% to 5.5% year over year, while declining 5% to 7% sequentially, reflecting normal seasonal trends.
The average selling price per ton is anticipated to be relatively unchanged from the third quarter of 2025. Reliance also expects its FIFO gross profit margin to be flat to slightly higher sequentially. Based on these assumptions and typical seasonality, the company forecasts adjusted earnings per share in the range of $2.65 to $2.85 for the fourth quarter of 2025, which includes an estimated LIFO expense of $25million, or 35 cents per share.
RS’ Price Performance
Reliance’s shares are down 3.5% in the past year against a 11.7% rise in the industry.
Image Source: Zacks Investment Research
RS’s Zacks Rank & Key Picks
RS currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Materion Corporation (MTRN - Free Report) , Aura Minerals, Inc. (AUGO - Free Report) and McEwen Inc. (MUX - Free Report) .
Materion is slated to report third-quarter results on Oct. 29. The Zacks Consensus Estimate for earnings is pegged at $1.32. MTRN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 6.35%. MTRN carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aura Minerals is scheduled to report third-quarter results on Nov. 4. The Zacks Consensus Estimate for AUGO’s third-quarter earnings is pegged at 97 cents. AUGO currently carries a Zacks Rank #1.
McEwen is expected to report third-quarter results on Nov. 4. The consensus estimate for MUX’s earnings is pegged at 31 cents per share. MUX, carrying a Zacks Rank #2 (Buy), beat the consensus estimate in one of the last four quarters and missed thrice. It has a trailing four-quarter negative earnings surprise of roughly 58.6%, on average.