Reliance Adjusted Earnings Jump 120%, Sales Hit Record in Third Quarter
Key Facts
Reliance reported an approximately 120% year-on-year increase in adjusted earnings per share in the third quarter of 2026, as its business benefited from higher metals prices and increased sales volumes. Adjusted earnings reached $8.02 per share, according to the company's financial results statement, exceeding management's guidance range for the period. When reporting second-quarter results, management had forecast third-quarter adjusted earnings of between $6.40 and $6.60 per share. The actual result exceeded the upper end of that range, with the U.S. border wall project contributing to quarterly earnings. On a reported basis, the company posted diluted earnings per share of $7.84 for the same period. Adjusted earnings per share in the second quarter of 2026 were $6.27, according to the results statement for that period. Adjusted earnings thus also rose from the previous quarter, alongside the jump from the same period last year.
Net sales reached a record $5.21 billion in the third quarter, up nearly 13% sequentially, according to Reliance's statement. Sales were $4.63 billion in the second quarter of the year, the comparison base preceding the new record. The improvement encompassed both sales volumes and prices, with tons sold rising 4.3% from the previous quarter. At the same time, the average selling price per ton increased 8.2% sequentially, supported by carbon steel prices. Management attributed these conditions to "healthy demand and tight supply," which it said drove prices higher for most carbon steel products. Sales growth, according to these operating details, was accompanied by higher volumes and a higher average price per ton compared with the second quarter.
The company's gross profit margin was 27.9% in the third quarter, with pressure from inventory costs and the sales mix of the border wall project, according to the results statement. The project contributed $0.74 per share to quarterly earnings, according to the company. The project is tied to a contract awarded to Reliance subsidiary AMI Metals to supply steel and logistics services for the U.S. border wall. Reliance said in its contract announcement that the estimated maximum value was $2.24 billion. The contract runs from February 11, 2026, through December 31, 2028, encompassing the reported quarterly results period. The subsidiary also secured a contract to process aluminum plate for Lockheed Martin platforms, according to Reliance's announcement on government infrastructure and defense projects. That contract has an estimated maximum value of $654 million, according to the announcement issued in March 2026.
On shareholder returns, Reliance increased its share repurchase authorization to $2.5 billion in October 2026, alongside the announcement of its latest results. The company had disclosed a remaining authorization of $529.3 million at the end of June 2026. That balance appeared in its quarterly report for the period ended June 30, before the increase announced with third-quarter results. The previous balance represented the remaining authorization to purchase the company's common stock under its repurchase program, according to the disclosure. The new increase expands the amount authorized for share repurchases following record quarterly sales and higher adjusted earnings.
For the fourth quarter of 2026, Reliance management expects adjusted earnings per share of between $7.40 and $7.60, according to guidance in the results statement. Both ends of this range are below the adjusted earnings achieved in the third quarter. The range nevertheless remains above the one management had set for the third quarter when announcing second-quarter results. Management will hold its earnings conference call on Thursday, October 22, 2026, according to the company's announcement of the call date. The call is scheduled to begin at 11:00 a.m. Eastern Time to discuss third-quarter financial results.