| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 22.9x | 17.8x | Around median | |
Growth | 33 | 15.4% | 7.1% | Bottom tier | |
Quality | 50 | 10.3% | 4.5% | Around median | |
Safety | 80 | 1.2x | 2.6x | Top tier | |
Capital Return | 50 | 1.22% | 2.12% | Around median | |
Momentum | 92 | 43.0% | 2.9% | Top tier | |
Sentiment | 43 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Reliance Steel & Aluminum Co. operates through a metals processing and distribution network, selling carbon steel, aluminum, stainless steel, and specialty products, along with value-added processing services and outsourced processing of automotive products. Its model relies on purchasing metals, particularly from domestic mills, then processing and supplying them to a diverse customer base; in Q2 FY2026, non-residential construction accounted for approximately one-third of sales, general manufacturing approximately one-third, aerospace about 9%, and automotive about 4%.
In Q2 FY2026, Reliance generated the second-highest quarterly revenue in its history, with sales growing 27% year over year and tons sold rising 10.8%, while tonnage reached a quarterly record. Gross profit was 1.3 billion dollars, up 20% from Q2 FY2025 and 11% from Q1 FY2026, while the adjusted FIFO gross profit margin was 30.5% versus 30.1% and 30.6%, respectively.
Adjusted pretax income reached 429 million dollars in Q2 FY2026, an increase of 40% year over year, and adjusted diluted earnings per share rose 42% to 6.27 dollars. The border wall contract with the U.S. Department of Homeland Security contributed 0.41 dollars to earnings per share and added approximately 30 basis points to the pretax income margin, despite pressuring the gross profit margin by approximately 40 basis points; operating cash flow was approximately 162 million dollars amid an increase in working capital resulting from higher shipments and metal prices.
The average analyst price target is 382.5 dollars, within a wide range of 350 to 418 dollars, accompanied by a neutral consensus rather than a buy consensus. The average is approximately 11.7% below the 52-week range high of 433.02 dollars, while remaining approximately 47% above the range low of 260.31 dollars; this spread reflects a balance between accelerating earnings and the strength of the border wall contract on one hand, and LIFO risks, margin pressure, and the second phase of the contract being dependent on the customer's option on the other.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Sales rose 27% year over year, and tons sold increased 10.8% to a quarterly record. The average selling price also rose 7.8% from Q1 FY2026, exceeding the previous expected range of 1.5% to 3.5%. This resulted in gross profit of 1.3 billion dollars and adjusted pretax income of 429 million dollars.
The contract added 5.1 percentage points to sequential tonnage growth and 0.41 dollars to earnings per share in Q2 FY2026. The first phase is valued at 1.4 billion dollars through mid-2027, and management expects Q3 FY2026 shipments to approach the full run rate. There is a potential second phase valued at approximately 800 to 900 million dollars, but it is subject to the customer's option and is not guaranteed.
The company expects adjusted diluted earnings per share of between 6.40 and 6.60 dollars, an increase of between 76% and 81% year over year. The guidance includes LIFO expense of 75 million dollars, or approximately 1.10 dollars per share. Excluding the border wall contract, management expects shipments to decline by between 2% and 4% from the previous quarter due to seasonality and limited availability of certain supplies.
Automated analysis for informational purposes only — not investment advice.
The company raised its estimate of LIFO expense for FY2026 from 150 million dollars to 300 million dollars, of which approximately 100 million dollars is related to aluminum according to the estimate provided during the July 23, 2026 call. LIFO expense in Q2 FY2026 was 112.5 million dollars, or 1.64 dollars per share, versus a previous estimate of 37.5 million dollars. Despite pressure on accounting ratios, management said that gross profit per unit and gross profit dollars from aluminum increased significantly.
Non-residential construction represented approximately one-third of Q2 FY2026 sales, supported by data centers, energy infrastructure, public civil works, and the border wall contract. General manufacturing also accounted for approximately one-third, with growth driven by industrial machinery, shipbuilding, military activities, consumer products, and construction equipment. Aerospace represented approximately 9% and automotive approximately 4%, alongside improvement in commercial aerospace, continued strength in defense and space, and accelerating semiconductor activity.
Total debt was 1.7 billion dollars at the end of Q2 FY2026, and net debt to EBITDA was approximately 0.9 times. The company spent 93 million dollars on capital expenditures and paid 64 million dollars in dividends during that quarter, while operating cash flow was approximately 162 million dollars. The company targets capital expenditures of approximately 300 million dollars during FY2026 and has approximately 529 million dollars available under its share repurchase program.
