Reliance (RS) Q4 2025 Earnings Call Transcript | The Motley Fool

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 19, 2026

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Reliance (RS) delivered a strong Q4 2025 performance, highlighted by record tons shipped and an increased U.S. market share of approximately 17%. Despite facing significant challenges such as tariff-driven cost increases, particularly in the aluminum segment, the company maintained operational efficiency and growth initiatives. The financial results showed a non-GAAP gross profit margin of 28.8%, just below its target range of 29%-31%, primarily due to a $114 million LIFO expense related to tariffs. Notably, full-year non-GAAP FIFO pretax income rose by $80 million, while earnings per diluted share (EPS) declined 10.2% year-over-year, partly impacted by the LIFO expense. The company generated robust operating cash flow of $831 million for fiscal 2025, with a strong fourth quarter contribution of $276 million. Reliance returned significant value to shareholders through dividends and share buybacks, totaling $849 million for the year. The quarterly dividend increased by 4.2% to an annualized $5 per share, while the company reduced total shares outstanding by 4%. Despite a challenging environment, Reliance maintained a strong balance sheet with net debt to EBITDA ratio below 1 and $763 million remaining under its buyback authorization. Looking ahead, management provided guidance for fiscal 2026, projecting tonnage growth of 5%-7% and average selling price increases of 3%-5%. The company expects first-quarter non-GAAP EPS in the range of $4.50-$4.70, reflecting anticipated growth of 19%-25%. However, risks remain, particularly in markets like commercial aerospace and semiconductors, where excess inventory and soft demand have pressured margins. These factors, combined with ongoing tariff-related costs, underscore the importance of Reliance's ability to navigate external headwinds while maintaining its focus on operational execution and growth investments. For investors, this earnings call highlights Reliance's resilience in a challenging market environment. While the company faces margin compression in certain segments, its strong cash generation and shareholder returns demonstrate financial strength. The projected growth

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Originally published on The Motley Fool on 2/19/2026