Reliance, Inc. Reports 15.5% Revenue Growth to $4.03 Billion in Q1 2026

Reliance, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net sales reaching $4.03 billion, a 15.5% rise from $3.48 billion in the same period last year. This growth was driven by a 2.7% increase in tons sold and a 12.6% increase in the average selling price per ton. The company noted strong demand across various sectors, particularly in non-residential construction, industrial machinery, and military applications. Operating income also saw a substantial increase, rising to $367.9 million from $274.4 million, reflecting improved operational efficiency and market conditions.

The company's profitability metrics showed marked improvement, with net income increasing to $265.6 million, up from $200.5 million in the prior year. Earnings per diluted share rose to $5.10, a 36.4% increase compared to $3.74 in 2025. The increase in profitability was attributed to higher sales volumes and improved gross profit per ton, despite a slight decline in gross profit margin from 29.7% to 29.1% under the LIFO accounting method. The company’s strategic focus on customer service and next-day delivery capabilities contributed to its ability to gain market share, outperforming the industry-wide decline reported by the Metals Service Center Institute.

In terms of operational developments, Reliance reported a 3% reduction in outstanding shares due to ongoing share repurchase activities, which totaled $234.2 million in the first quarter. The company also declared a quarterly dividend of $1.25 per share, marking a 4.2% increase from the previous dividend of $1.20. The total returns to shareholders, including dividends and share repurchases, amounted to $300.8 million. Reliance's cash and cash equivalents stood at $249.7 million as of March 31, 2026, with a net debt-to-total capital ratio of 16.9%, reflecting increased borrowings under its revolving credit facility.

Looking ahead, Reliance remains optimistic about its growth trajectory, citing strong underlying demand across its end markets and the potential for continued market share gains. The company plans to leverage its diversified business model and operational efficiencies to navigate potential economic challenges, including inflation and trade policy uncertainties. Reliance's management expressed confidence in its ability to maintain sufficient liquidity to support operations and strategic initiatives, including capital expenditures and potential acquisitions, while continuing to return value to shareholders.