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

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:

Key Details

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

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(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.)