Analysis
July 24, 2026
Reliance lauds US reshoring investments
Written by Kristen DiLandro
Reliance Inc said that US government industrial policies contributed to its second-quarter financial success.
The Scottsdale, Ariz.-based service center group expects its contracts with the US to continue driving high volume demand into the next quarter.
During the company’s second-quarter earnings call on Thursday, executives described strengthening demand across a wide swath of industries. From shipbuilding to aerospace, defense and space, Reliance stated it was reaping the benefits of US government investment.
In addition to the strong demand from the US Department of Homeland Security for the construction of the country’s border wall, Reliance’s President and CEO Karla Lewis said the company finds improvements from additional industries.
“We also benefited from initial contributions from the US Department of Homeland Security border wall contract… generating activity in excess of our guidance and contributing meaningfully to our second-quarter earnings,” Lewis said. She added that the company saw “meaningful improvements in our sales to the general manufacturing, aerospace, and semiconductor markets throughout the second quarter.”
Chief Operating Officer Steve Koch said shipments into general manufacturing were driven by “industrial machinery, including data center equipment as well as shipbuilding, military, consumer products, and construction machinery.”
The company underscored the role of US support by highlighting its sustained strength in non-residential construction. And it noted volume demand was supported by “data center and related energy infrastructure projects alongside solid demand in heavy civil and public infrastructure work.”
Taken together, the company’s commentary suggests the US reshoring trend has resulted in tangible demand for its steel products.
Some of Reliance’s growth, it noted, occured in industrial sectors receiving the largest public and private investments in domestic production.
The company mentioned increased demand resulting from data center development.
“Demand in the semiconductor market is showing clear improvement. We are seeing momentum accelerate, supported by increasing data center activity,” Koch said.
Lewis contended that the US’ renewed focus on domestic projects, in tandem with the data center proliferation, has created strong positive market sentiment.
“There’s a lot of consumer optimism right now,” she explained, “whether it’s on the data center, the infrastructure side, the power side, military spending. And with reshoring, there’s just a lot of positive momentum right now.”
During its second quarter, Reliance reported net income of $322.9 million, up 38% from $233.7 million a year ago. Net sales rose 27% to $3.66 billion in the same comparison.
