Reliance Q3 sales jump 43% on higher steel prices, border wall project ramp-up

Reliance

Wed 21:17

Overview
US metals service center's Q3 net sales rose 43% yr/yr, beating analyst expectations
Adjusted EPS for Q3 rose 120% yr/yr, beating analyst expectations
Company increased share repurchase authorization to $2.5 bln

Outlook
Reliance expects Q4 2026 non-GAAP EPS of $7.40 to $7.60
Company sees Q4 2026 tons sold up 13.5%-15.5% year-over-year, including border wall project
Reliance expects Q4 2026 average selling price per ton up 1%-3% sequentially

Result Drivers
CARBON STEEL PRICING - Higher-than-expected carbon steel prices drove increased average selling price per ton and contributed to record net sales
BORDER WALL PROJECT - U.S. border wall contract ramped up and delivered a meaningful contribution to Q3 earnings and tons shipped
MARKET DEMAND & SUPPLY - Healthy demand and tight supply across key end markets supported price levels and shipment volumes, per CEO Karla Lewis

Company press release: ID:nGNX4gmSfs

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$5.21 bln
$4.66 bln (9 Analysts)
Q3 Adjusted EPS
Beat
$8.02
$6.66 (10 Analysts)
Q3 EPS
 
$7.84
 
Q3 Adjusted Gross Margin
 
28.00%
 
Q3 Adjusted Pretax Profit
 
$544.20 mln
 
Q3 Free Cash Flow
 
$133 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy."
Wall Street's median 12-month price target for Reliance, Inc. is $413.50, about 0.9% below its October 20 closing price of $417.27
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
Oct 19 - Cleveland-Cliffs Q3 adj EPS beats on improved pricing, sales volumes
Oct 19 - Cleveland-Cliffs shares jump on raising 2027 outlook, first quarterly profit in 2 years
Oct 19 - Steel Dynamics' Q3 EPS misses estimates as aluminum volumes decelerate

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)