Reliance earnings soar in Q1'26 on robust pricing, demand

Reliance Inc.

First quarter ended March 31	2026	2025	% Change
Net sales	$4,026.0	$3,484.7	15.5%
Net earnings (loss)	$264.9	$199.7	32.6%
Per diluted share	$5.10	$3.74	36.4%

(in millions of dollars except per share)

Reliance Inc.’s earnings jumped in the first quarter on strong pricing and demand.

The Scottsdale, Ariz.-based service center group reported net income attributable to Reliance of $264.9 million in Q1’26, up 33% from $199.7 million a year earlier. Net sales rose 16% to $4.0 billion in the same comparison.

The company said record quarterly tons sold increased 2.7% year over year and 9.4% sequentially. This exceeded management’s expectation for a 5% to 7% increase.

“Strong pricing and demand momentum continued to build throughout the quarter across our diversified product and end market portfolio,” President and CEO Karla Lewis said in a statement after market close on Wednesday.

She also said, as previously announced, Reliance secured two significant government contracts in the first quarter to supply the border wall and the US military’s Joint Strike Fighter projects through its AMI Metals Inc. (AMI) subsidiary.

“We were excited to win these contracts, which collectively represent up to ~$3 billion in revenue and further reinforce Reliance’s role as a trusted partner on critical us infrastructure and defense programs,” Lewis said on an earnings call on Thursday.

Outlook

The company anticipates non‑GAAP earnings per diluted share in the range of $5.15 to $5.35 for Q2’26. This represents year‑over‑year growth of ~16-21%, and is inclusive of a LIFO expense of $37.5 million, or $0.54 per diluted share.

Lewis was also bullish in her broader outlook.

“We are encouraged by rising customer optimism and activity across our broad end market exposure,” she said.

She sees continued strong and growing momentum in the infrastructure, data center, energy, and defense sectors.

“Extending lead times at our mill suppliers also bode well for a continued strong pricing environment, where access to metal becomes a strategic advantage,” she added.

“Reliance’s unique scale and capabilities, along with our domestic mill relationships and exceptional teams, position us well to further capitalize on the opportunities ahead in 2026,” Lewis said on the call.

For Q2’26, Reliance anticipates both demand and pricing “will remain generally consistent at healthy levels across the key products and end markets it serves.”

This is despite ongoing domestic and international trade policy uncertainty and the conflict in the Middle East. These could both pose supply availability and macroeconomic risks, Reliance said.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.