RS NYSE Russell 1000 Earnings call
Reliance, Inc. (RS) · Q2 2026 results and valuation
Share price: $429.88 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 23 Jul 2026 and 23 Apr 2026
Net income up 21.9% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+21.9%
Net income vs Q1 2026
Outlook given
Net income 322.9M vs 264.9M
Revenue +15.0%
Against the same quarter last year (Q2 2025) it is +37.9%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Figure
Gross profit rose 11% to $1.3 billion in the second quarter, reflecting the change from the first quarter.
Valuation
Is Reliance, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −5.7% growth a year (3-year revenue growth), the model's fair value is $45.92 a share — the stock trades 836% above it. Today's price assumes 19.3% growth a year.
Current price
$429.88
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+19.3% for 10 yrs
Fair value / share
$45.92
Buy below
$34.44
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Reliance delivered another excellent quarter building on the positive momentum of the first quarter and the continued strong execution by Reliance's teams.
Source quote
“Reliance delivered another excellent quarter building on the positive momentum of the first quarter and the continued strong execution by our teams. Market conditions remained favorable, supported by improving customer activity, extended mill lead times, and strong pricing across our broad product portfolio.”
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Guidance
RS updated its third quarter 2026 non-GAAP earnings per diluted share guidance to a range of $6.40 to $6.60.
Source quote
“We anticipate third quarter 26 non-GAAP earnings per diluted share in the range of $6.40 to $6.60.”
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Guidance
Volumes are expected to hold steady, which should improve efficiency.
Source quote
“We expect to hold at those levels and the higher volumes make us probably a little more efficient.”
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Fading
The current pricing environment is resulting in higher gross profit dollars across Reliance's product portfolio and contributing to improved…
Source quote
“Overall, the current pricing environment is resulting in higher gross profit dollars across our product portfolio and contributing to improved... Despite the moderate negative impact on the gross profit margin, our aluminum gross profit dollars are up about 18% compared to the first quarter of 2025. Non-GAAP SG&A expense increased 6% compared to the first quarter of 2025, driven by higher incentive compensation from improved...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And then SG and A as a percent of sales this quarter was lower than it is been in a couple of years.”
“And, Samuel, I would add that, yes, since we are leveraging our vast existing infrastructure, that is what is truly allowing us to lower the variable cost on this project.”
“As a result of higher shipment volumes of lower priced products.”
Full figures
USD · ROIC.AI fundamentals (NYSE:RS, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 4.63B | 4.03B | +15.0% | 3.66B | +26.5% |
| Gross profit | 1.30B | — | — | ||
| Operating income | 441.6M | 367.9M | +20.0% | 312.2M | +41.4% |
| Net income | 322.9M | 264.9M | +21.9% | 234.2M | +37.9% |
| EPS | 6.33 | 5.10 | +24.0% | 4.42 | +43.1% |
| P/E today 26.6 | — | 19.8 | — | 22.7 | — |
Topics
Most discussed now
- Nonresidential construction end-market sales remained strong and Reliance began to see meaningful improvements in its sales to the general…
- Pricing for carbon steel and aluminum products continued upward amid constrained supply extended lead times and strengthening demand.
- Record tons sold increased 7% from the prior quarter, and were up 10.8% compared to the second quarter of 2025,...
- However, as Reliance is leveraging existing infrastructure, the project below-company-average operating cost per ton more than offset its…
- Per the guidance Reliance is giving that you just spoke about Yes, it expects higher shipments in Q3.
Faded since Q1 2026
- Fading Q1 was a good strong pricing environment with a lot of products having price increases, which gives it an opportunity...
- Fading Reliance will start to see the higher cost metal hit the inventory and kind of normalize a bit towards it...
- Fading Reliance expects some continued price improvement in Q2, but not to the level of Q1.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations; Director or officer change · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K