Reliance Steel & Aluminum (RS)
NYSE:RS
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Reliance Steel
(NYSE:RS)
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Rating:70Outperform
Price Target:
$360.00
▲(11.74% Upside)
Action:ReiteratedDate:02/20/26
RS scores well on financial quality—especially a conservative balance sheet—and a generally positive earnings outlook with guided improvement and continued capital returns. Offsetting this, recent profitability and cash flow have cooled versus peak-cycle levels, technical signals are mixed/neutral, and valuation (P/E ~24) looks only average given cyclicality.
Positive Factors
Scale & Market Share
Record shipments and rising U.S. market share demonstrate durable scale advantages. A 6.4M ton footprint and rising share enhance purchasing leverage, distribution efficiency and pricing resilience, which support sustained volumes and margin stability across steel cycles.
Negative Factors
Weakened Cash Generation
Material decline in operating cash flow and FCF reduces the internal funding available for capex, acquisitions and shareholder returns. Lower cash conversion and near‑unity coverage (~0.98) leave less cushion against cyclical stress and increase reliance on balance sheet flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Market Share
Record shipments and rising U.S. market share demonstrate durable scale advantages. A 6.4M ton footprint and rising share enhance purchasing leverage, distribution efficiency and pricing resilience, which support sustained volumes and margin stability across steel cycles.
Read all positive factors
Reliance Steel (RS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.67B
Dividend Yield1.63%
Average Volume (3M)335.89K
Price to Earnings (P/E)20.5
Beta (1Y)0.80
Revenue Growth-0.88%
EPS Growth-25.15%
CountryUS
Employees15,900
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)2.40
Shares Outstanding51,733,276
10 Day Avg. Volume214,879
30 Day Avg. Volume335,887
Financial Highlights & Ratios
PEG Ratio-1.98
Price to Book (P/B)2.12
Price to Sales (P/S)1.06
P/FCF Ratio30.21
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit4.77
Enterprise Value/Ebitda14.29
Forecast
1Y Price Target
$330.80Price Target Upside2.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)18.07
Revenue Forecast (FY)$15.29B
Reliance Steel Business Overview & Revenue Model
Company Description
Reliance Steel & Aluminum Co. operates as a diversified metal solutions provider and the metals service center company in the United States, Canada, and internationally. The company distributes a line of approximately 100,000 metal products, inclu...
How the Company Makes Money
Reliance Steel generates revenue primarily through the sale of metal products and related processing services. The company's revenue model is based on a combination of direct sales and value-added services, such as cutting, shearing, and welding, ...
Reliance Steel Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational execution: record shipments, market share gains, solid FIFO profitability improvement, robust cash flow generation, and a constructive near-term outlook with guidance implying year-over-year EPS growth. Principal weaknesses centered on tariff-driven aluminum cost increases and elevated LIFO expense that compressed reported margins and resulted in a year-over-year decline in GAAP diluted EPS, alongside pockets of demand weakness in commercial aerospace and semiconductors. Management characterized many headwinds as temporary or addressable in 2026 and pointed to continued financial flexibility to pursue organic investments, M&A and capital returns.Positive Updates
Record Shipment Volume and Market Share Gains
Tons shipped increased 6.2% in 2025 to a record 6.4 million tons; U.S. market share rose to ~17% from 15% in 2024 (≈ +2 percentage points); tolling tons increased 1.2% to 7.4 million.
Negative Updates
Tariff-Driven Aluminum Cost Headwinds and Large LIFO Impact
Significant tariff-related aluminum cost increases were difficult to fully pass through due to plentiful supply and soft end-market demand; full-year LIFO expense was $114 million (above the $100M estimate), driving 2025 non-GAAP gross profit margin to 28.8% (just below the stated sustainable 29%–31% annual range).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Shipment Volume and Market Share Gains
Tons shipped increased 6.2% in 2025 to a record 6.4 million tons; U.S. market share rose to ~17% from 15% in 2024 (≈ +2 percentage points); tolling tons increased 1.2% to 7.4 million.
Read all positive updates
Company Guidance
Management guided Q1 2026 tons sold up 5%–7% versus Q4 2025 (roughly flat vs Q1 2025) and average selling price per ton up 3%–5% versus Q4, expecting a modest sequential improvement in FIFO gross profit margin and Q1 non‑GAAP EPS of $4.50–$4.70 (≈19%–25% YoY), inclusive of quarterly LIFO expense of $25M (≈$0.36/share); full‑year 2026 LIFO is estimated at $100M. They set 2026 CapEx at $275M (total including carryover $300M–$325M, with ~50% toward growth), reiterated an annual gross‑profit margin target range of 29%–31% (2025 non‑GAAP margin was 28.8% with $114M LIFO expense), and highlighted strong liquidity and capital returns after generating $831M of operating cash flow in 2025 (Q4 $276M), returning $849M to shareholders in 2025, repurchasing $200M in Q4 at ≈$279/share (shares down ~4% in 2025) with ~$763M remaining buyback capacity, and carrying $1.4B total debt with net debt/EBITDA <1.0.Reliance Steel Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.29B | 13.84B | 14.81B | 17.02B | 14.09B |
| Gross Profit | 3.83B | 3.84B | 4.30B | 5.01B | 4.26B |
| EBITDA | 1.30B | 1.45B | 2.03B | 2.73B | 2.26B |
| Net Income | 739.40M | 875.20M | 1.34B | 1.84B | 1.41B |
Balance Sheet | |||||
| Total Assets | 10.37B | 10.02B | 10.48B | 10.33B | 9.54B |
| Cash, Cash Equivalents and Short-Term Investments | 216.60M | 318.10M | 1.08B | 1.17B | 300.50M |
| Total Debt | 1.99B | 1.42B | 1.38B | 1.87B | 1.87B |
| Total Liabilities | 3.19B | 2.79B | 2.75B | 3.23B | 3.44B |
| Stockholders Equity | 7.17B | 7.22B | 7.72B | 7.09B | 6.09B |
Cash Flow | |||||
| Free Cash Flow | 502.50M | 999.20M | 1.20B | 1.78B | 562.80M |
| Operating Cash Flow | 831.40M | 1.43B | 1.67B | 2.12B | 799.40M |
| Investing Cash Flow | -321.80M | -803.70M | -483.90M | -348.50M | -652.30M |
| Financing Cash Flow | -620.20M | -1.38B | -1.28B | -892.60M | -528.90M |
Reliance Steel Technical Analysis
Positive
322.18
Price Trends
317.06
Positive
305.26
Positive
297.97
Positive
Market Momentum
0.76
Negative
66.69
Neutral
89.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RS, the sentiment is Positive. The current price of 322.18 is above the 20-day moving average (MA) of 301.86, above the 50-day MA of 317.06, and above the 200-day MA of 297.97, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 89.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RS.
Reliance Steel Risk Analysis
Reliance Steel disclosed 25 risk factors in its most recent earnings report. Reliance Steel reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Reliance Steel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $16.67B | 20.53 | 10.27% | 1.63% | -0.88% | -25.15% | |
65 Neutral | $44.13B | 11.03 | 5.87% | 1.03% | -4.51% | ― | |
65 Neutral | $41.91B | 21.58 | 8.49% | 1.34% | 1.66% | -31.25% | |
65 Neutral | $8.10B | 17.63 | 3.53% | 7.02% | -16.69% | 585.38% | |
63 Neutral | $27.53B | 21.13 | 13.31% | 1.11% | -1.49% | -31.82% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | $18.73B | 37.71 | 1.19% | 3.22% | -8.97% | -67.03% |
* Basic Materials Sector Average
RS
Reliance Steel
322.18
49.18
18.01%
MT
ArcelorMittal
59.89
34.80
138.67%
NUE
Nucor
184.00
76.20
70.68%
PKX
POSCO
63.53
19.92
45.68%
STLD
Steel Dynamics
190.00
74.08
63.90%
TX
Ternium SA
41.24
17.61
74.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.