Reliance reports Q3 non-GAAP EPS $3.64, consensus $3.73

Reports Q3 revenue $3.65B, consensus $3.54B. “Our third quarter results demonstrate how Reliance’s (RS) scale, diversification, and high-performing management teams deliver strong financial performance and capture market share in a uniquely challenging market environment,” said Karla Lewis, CEO. “Our tons sold were a third quarter record and outperformed the industry by approximately nine percentage points, increasing our U.S. market share to 17.1%, up from 14.5% in 2023, due to our smart, profitable growth strategy. Driven by our high levels of customer service and broad inventory and processing capabilities, we offset declining industry shipment trends by winning new business opportunities that also better leveraged our operating expenses and meaningfully contributed to our overall profitability. Trade policy uncertainty and readily available inventory are causing buyers to be hesitant, creating an extremely competitive market. In this environment, it is more difficult to immediately increase selling prices to fully offset mill price increases. These factors have contributed to short-term gross profit margin headwinds in the past two quarters. In addition, the aerospace and semiconductor markets that we serve, which have high value specialty products that typically contribute meaningfully to our profits, continue to underperform due to excess inventories within these supply chains. We remain confident, however, that the underlying margin profile of our consolidated business remains solidly intact and we maintain our long-term annual sustainable gross profit margin range of 29% to 31%. Our scale, product and end market diversity, and exceptional customer service, including next day delivery and extensive value-added processing capabilities, were instrumental in our outperforming our competition and capturing significant market share.”