Q3 FY2026
Filed Oct 21, 2026Record net sales of $5.21 billion, up 13% sequentially, with record tons sold up 4.3%; EPS of $7.84 and non-GAAP EPS of $8.02.
Record quarterly net sales, record tons sold, sharply higher year-over-year pretax income and EPS, and non-GAAP diluted EPS above management’s stated prior guidance characterized the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $5.21B | 12.6% | 42.8% |
| Nine months 2026 net salesGAAP | $13.87B | – | 28.5% |
| Q3 2026 gross profitnon-GAAP | $1.45B | 11.8% | 40.9% |
| Nine months 2026 gross profitnon-GAAP | $3.93B | – | 24.5% |
| Q3 2026 gross profit marginnon-GAAP | 27.9% | (0.2) pts | (0.4) pts |
| Nine months 2026 gross profit marginnon-GAAP | 28.3% | – | (0.9) pts |
| Q3 2026 non-GAAP gross profit marginnon-GAAP | 28.0% | (0.1) pts | (0.3) pts |
| Nine months 2026 non-GAAP gross profit marginnon-GAAP | 28.4% | – | (0.9) pts |
| Q3 2026 LIFO expense (% of sales)other | 3.6% | 1.2 pts | 3.0 pts |
| Nine months 2026 LIFO expense (% of sales)other | 2.4% | – | 1.7 pts |
| Q3 2026 non-GAAP gross profit margin – FIFOnon-GAAP | 31.6% | 1.1 pts | 2.6 pts |
| Nine months 2026 non-GAAP gross profit margin – FIFOnon-GAAP | 30.8% | – | 0.8 pts |
| Q3 2026 operating incomeGAAP | $552.1M | – | – |
| Nine months 2026 operating incomeGAAP | $1.36B | – | – |
| Q3 2026 pretax incomeGAAP | $531.9M | 23.8% | 114.7% |
| Nine months 2026 pretax incomeGAAP | $1.31B | – | 61.0% |
| Q3 2026 non-GAAP pretax incomenon-GAAP | $544.2M | 26.9% | 116.5% |
| Nine months 2026 non-GAAP pretax incomenon-GAAP | $1.33B | – | 61.5% |
| Q3 2026 non-GAAP pretax income – FIFOnon-GAAP | $731.7M | 35.2% | 164.7% |
| Nine months 2026 non-GAAP pretax income – FIFOnon-GAAP | $1.66B | – | 85.6% |
| Q3 2026 pretax income marginGAAP | 10.2% | 0.9 pts | 3.4 pts |
| Nine months 2026 pretax income marginGAAP | 9.5% | – | 2.0 pts |
| Q3 2026 net income – RelianceGAAP | $402.9M | 24.8% | 112.6% |
| Nine months 2026 net income – RelianceGAAP | $990.7M | – | 59.0% |
| Q3 2026 diluted EPSGAAP | $7.84 | 24.6% | 118.4% |
| Nine months 2026 diluted EPSGAAP | $19.21 | – | 63.6% |
| Q3 2026 non-GAAP diluted EPSnon-GAAP | $8.02 | 27.9% | 120.3% |
| Nine months 2026 non-GAAP diluted EPSnon-GAAP | $19.43 | – | 64.1% |
| Q3 2026 non-GAAP diluted EPS – FIFOnon-GAAP | $10.76 | 36.0% | 169.7% |
| Nine months 2026 non-GAAP diluted EPS – FIFOnon-GAAP | $24.34 | – | 88.7% |
| Q3 2026 cash provided by operationsGAAP | $212M | 30.7% | (19.0)% |
| Nine months 2026 cash provided by operationsGAAP | $525.6M | – | (5.3)% |
| Q3 2026 free cash flownon-GAAP | $133M | 93.3% | (26.4)% |
| Nine months 2026 free cash flownon-GAAP | $289M | – | (3.5)% |
| Q3 2026 tons soldother | 1,867.2 | 4.3% | 15.6% |
| Nine months 2026 tons soldother | 5,330.0 | – | 9.7% |
| Q3 2026 average selling price per ton soldother | $2,815 | 8.2% | 24.0% |
| Nine months 2026 average selling price per ton soldother | $2,618 | – | 17.5% |
| Net debt / total capital as of September 30, 2026non-GAAP | 15.3% | – | – |
| Net debt / EBITDA as of September 30, 2026non-GAAP | 0.8x | – | – |
| Total debt / EBITDA as of September 30, 2026non-GAAP | 0.9x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Carbon steel Q3 2026 salesTons sold were 1,570.4, up 18.4% year-over-year and 6.1% sequentially; average selling price per ton sold increased 29.5% year-over-year and 12.1% sequentially. | $3.12B | 19.0% | 53.5% |
| Aluminum Q3 2026 salesTons sold were 85.5, up 6.3% year-over-year and down (0.6%) sequentially; average selling price per ton sold increased 30.4% year-over-year and 3.5% sequentially. | $861.7M | 2.8% | 38.6% |
| Stainless steel Q3 2026 salesTons sold were 81.6, up 7.5% year-over-year and 0.4% sequentially; average selling price per ton sold increased 20.6% year-over-year and 6.5% sequentially. | $634.9M | 6.7% | 29.6% |
| Alloy Q3 2026 salesTons sold were 30.2, up 1.7% year-over-year and down (17.5%) sequentially; average selling price per ton sold increased 15.0% year-over-year and 21.6% sequentially. | $186.8M | 0.3% | 17.0% |
| Copper & brass Q3 2026 salesTons sold were 5.8, up 3.6% year-over-year and unchanged sequentially; average selling price per ton sold increased 20.2% year-over-year and 4.4% sequentially. | $129.1M | 4.4% | 25.8% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 outlook
- NoteTons sold excluding the U.S. border wall project: up 4.0% to 6.0% compared to the fourth quarter of 2025 and down 5.5% to 7.5% compared to the third quarter of 2026.
- NoteTons sold including an estimated 9.5% year-over-year contribution from the U.S. border wall project: up 13.5% to 15.5% compared to the fourth quarter of 2025.
- NoteAverage selling price per ton sold: up 1.0% to 3.0% compared to the third quarter of 2026.
- NoteLIFO expense: $112.5 million, or $1.64 per diluted share.
- NoteNon-GAAP earnings per diluted share: $7.40 to $7.60.
- NoteU.S. border wall project: approximately $0.70 of earnings per share at pretax income margin levels above the Company average.
- NoteNon-GAAP earnings per diluted share: up over 200% year-over-year.
Capital returns
- Q3 2026 dividends: $63.8 million.
- Q3 2026 share repurchases: $44.7 million.
- Nine months 2026 dividends: $194.2 million, compared with $191.2 million in the nine months ended September 30, 2025.
- Nine months 2026 share repurchases: $278.9 million, compared with $394.0 million in the nine months ended September 30, 2025.
- The Company returned approximately $109 million to stockholders in Q3 2026, paying dividends of $64 million and repurchasing $45 million of shares at an average price of approximately $395 per share.
- On October 20, 2026, the Board approved an amendment increasing the share repurchase authorization to $2.5 billion without a set expiration date.
- On October 20, 2026, the Board declared a quarterly cash dividend of $1.25 per share, payable on December 4, 2026 to stockholders of record as of November 20, 2026.
- Since 2021, Reliance has repurchased $3.4 billion of common stock at an average price of approximately $236 per share, reducing issued and outstanding common shares by 23%.
What drove it
- Continued healthy demand and tight supply led to increased price levels for most carbon steel products.
- The U.S. border wall project contributed 3.7% to sequential tons-sold growth, 9.4% to year-over-year tons-sold growth, and $0.74 per share to third-quarter earnings.
- Higher shipments and improved gross profit per ton, supported by pricing discipline and continued market share gains, contributed to non-GAAP pretax income growth.
- Carbon steel sales increased 53.5% year-over-year and 19.0% sequentially.
- Demand improved year-over-year in non-residential construction, broader manufacturing, aerospace, automotive toll processing, and certain semiconductor products.
Concerns
- Gross profit margin of 27.9% decreased 20 basis points sequentially due to increased LIFO expense and product mix impact associated with the U.S. border wall project.
- LIFO expense was $187.5 million, or $2.74 per diluted share, compared with management’s expectation of $1.10 per share.
- Cash flow from operations was $212.0 million despite a significant investment in working capital driven by robust shipment volumes and higher metals prices.
- The Company cited domestic and international trade policy uncertainty and continued conflicts in Iran and Ukraine as potential supply availability and macroeconomic risks.
- The U.S. border wall project reduced third-quarter non-GAAP FIFO gross profit margin by 60 basis points year-over-year, although its below-average operating costs per ton added 40 basis points to year-over-year pretax income margin expansion.
What to watch
- Q4 2026 tons sold excluding the border wall project are expected to decline 5.5% to 7.5% sequentially, consistent with seasonal trends.
- Q4 2026 average selling price per ton sold is expected to increase 1.0% to 3.0% sequentially.
- The outlook assumes $112.5 million of LIFO expense, or $1.64 per diluted share.
- The Company expects approximately $0.70 of Q4 earnings per share from border-wall shipments.
- Management expects non-residential construction demand to remain solid, broader manufacturing demand to remain healthy, commercial aerospace demand to modestly improve, defense and space demand to remain robust, automotive toll processing to remain healthy, and semiconductor demand to continue improving.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $246.0 million, compared with $216.6 million as of December 31, 2025.
- Total debt as of September 30, 2026: $1,645.0 million; carrying amount of debt: $1,639.3 million; net debt: $1,393.3 million.
- Total Reliance stockholders’ equity as of September 30, 2026: $7,723.7 million; total capital: $9,117.0 million.
- Accounts receivable as of September 30, 2026: $2,477.2 million, compared with $1,539.9 million as of December 31, 2025.
- Inventories as of September 30, 2026: $2,482.5 million, compared with $2,187.8 million as of December 31, 2025.
- Q3 2026 capital expenditures: $79.0 million. Nine months 2026 capital expenditures: $236.6 million, compared with $255.7 million in the nine months ended September 30, 2025.
- Nine months 2026 net cash used in investing activities: $215.9 million. Nine months 2026 net cash used in financing activities: $280.7 million.
- Nine months 2026 net cash provided by operating activities reflected accounts receivable of $(938.6) million, inventories of $(293.3) million, and accounts payable and other liabilities of $409.3 million.
Analysis
Reliance reported record Q3 2026 net sales of $5,213.2 million, up 12.6% sequentially and 42.8% year-over-year. Tons sold reached 1,867.2, rising 4.3% sequentially and 15.6% year-over-year, while average selling price per ton sold increased 8.2% sequentially and 24.0% year-over-year to $2,815. Carbon steel was the largest product driver, with Q3 sales of $3,119.3 million, up 19.0% sequentially and 53.5% year-over-year.
Profitability expanded materially year-over-year. Pretax income was $531.9 million, up 114.7%, and non-GAAP pretax income was $544.2 million, up 116.5%. GAAP diluted EPS was $7.84 and non-GAAP diluted EPS was $8.02, compared with $3.59 and $3.64, respectively, in Q3 2025. Gross profit margin was 27.9%, down 20 basis points sequentially, as increased LIFO expense and the border-wall project product mix weighed on the reported margin. Non-GAAP FIFO gross profit margin nonetheless rose 110 basis points sequentially to 31.6%.
The border-wall project was a major volume and earnings contributor. It supplied 3.7% of sequential tons-sold growth and 9.4% of year-over-year tons-sold growth, and added $0.74 per share to Q3 earnings. The project also had a mixed margin effect: management said it reduced non-GAAP FIFO gross profit margin by 60 basis points year-over-year but added 40 basis points to year-over-year pretax income margin expansion because of below-average operating costs per ton. Higher-than-anticipated carbon steel costs pushed LIFO expense to $187.5 million, or $2.74 per diluted share.
Cash generation remained positive but was constrained by working capital investment. Q3 cash provided by operations was $212.0 million and free cash flow was $133.0 million, both below Q3 2025. Cash and cash equivalents were $246.0 million at September 30, 2026, while net debt was $1,393.3 million and net debt to EBITDA was 0.8x. The Company paid $63.8 million of dividends and repurchased $44.7 million of stock in Q3, then increased its repurchase authorization to $2.5 billion.
For Q4 2026, management expects healthy demand but normal seasonal volume declines. Excluding the border-wall project, tons sold are expected to be down 5.5% to 7.5% sequentially, while average selling price per ton sold is expected to rise 1.0% to 3.0%. The Company guided to non-GAAP diluted EPS of $7.40 to $7.60, inclusive of $112.5 million of LIFO expense, or $1.64 per diluted share, and approximately $0.70 per share from the border-wall project. Management identified trade policy uncertainty, supply availability, and conflicts in Iran and Ukraine as risks to the outlook.
Management, verbatim
Reliance delivered an exceptional third quarter with record quarterly net sales and our third-highest quarterly earnings per share. We capitalized on a favorable market environment, characterized by continued healthy demand and tight supply, leading to increased price levels for most carbon steel products.
Karla Lewis, President and Chief Executive Officer of Reliance
Our scale, product diversification, expansive value-added processing capabilities, and ability to source the inventory our customers need, led by the strong execution of our teams in the field, drove our exceptional results.
Karla Lewis, President and Chief Executive Officer of Reliance
Our strong balance sheet and ample liquidity continue to provide us the flexibility to concurrently invest in our businesses, pursue strategic growth opportunities, and return capital to our stockholders.
Karla Lewis, President and Chief Executive Officer of Reliance
Not in the filing
stated, not guessed- Prior-quarter operating income was not reported on the operating income row.
- Year-over-year and sequential percentage changes for operating income were not reported on the operating income row.
- GAAP effective tax rate was not reported.
- Q4 2026 revenue, gross margin, operating expenses, and tax-rate guidance were not reported.
- Prior outlook section was not provided, so no formal comparison of actual results with prior guidance is included.
- No reportable operating segment revenue was presented; product-category sales are provided instead.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.