Reliance Steel & Aluminum ( (RS) ) has released its Q1 earnings. Here is a breakdown of the information Reliance Steel & Aluminum presented to its investors.
Reliance Steel & Aluminum Co., a leading global metal solutions provider, operates as the largest metals service center company in North America, offering a wide array of metal products and value-added processing services. In its first quarter of 2025, Reliance reported net sales of $3.48 billion, achieving record tons sold and a strong gross profit margin of 29.7%. The company also repurchased $253.2 million of its common stock, reflecting a strategic focus on shareholder returns.
Key financial highlights for the quarter include a 9.0% year-over-year increase in tons sold, driven by organic growth and acquisitions, and a 16.6% sequential increase in gross profit. Despite a 4.4% decrease in net sales compared to the previous year, Reliance’s non-GAAP earnings per share reached $3.77, surpassing expectations. The company benefited from strong domestic mill relationships and an uptick in metal purchases ahead of anticipated price increases.
Reliance’s financial performance was bolstered by a 12.8% increase in tons sold compared to the previous quarter, with significant contributions from carbon steel and aluminum products. The company’s strategic initiatives and pricing improvements in March contributed to an expansion in its non-GAAP FIFO gross profit margin. Despite a decrease in cash flow from operations, Reliance maintained a robust balance sheet with $277.8 million in cash and cash equivalents.
Looking ahead, Reliance anticipates stable demand across its diverse end markets, with expectations of a slight fluctuation in tons sold for the second quarter of 2025. The company projects an increase in its average selling price per ton and an expansion in its FIFO gross profit margin, supported by continued pricing improvements. Reliance remains confident in its ability to maximize earnings and deliver value to its stockholders amidst market uncertainties.