- Reliance’s fourth-quarter adjusted EPS forecast is set between $2.65 and $2.85, below the estimated $3.31.
- For the third quarter, adjusted EPS remained flat at $3.64 compared to last year, but below the forecasted $3.72.
- Net sales for the third quarter increased by 6.8% year-over-year to $3.65 billion, surpassing the $3.53 billion estimate.
- The company sold 1.62 million tons, a 6.2% increase from last year and above the expected 1.57 million tons.
- The average selling price per ton was $2,271, a slight rise of 1.1% from the previous year, and slightly above the $2,265 estimate.
- The adjusted FIFO gross margin improved to 29%, up from 27.9% year-over-year.
- Free cash flow took a significant hit, decreasing by 49% year-over-year to $180.6 million.
- The gross profit margin dipped to 28.3%, compared to 29.4% the previous year.
- The company has current analyst ratings of 4 buys, 5 holds, and 0 sells.
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Reliance Steel & Aluminum on Smartkarma
Reliance Steel & Aluminum has been receiving positive analyst coverage on Smartkarma, with research reports from Baptista Research showcasing a bullish sentiment. In one report titled “Reliance Inc.: Is Its Resilience Through Domestic Sourcing & Trade Policy Navigation A ‘Buy’ Signal?“, the latest financial results of the company demonstrate a mix of robust performance and challenges due to market volatility. Positives included a record performance in tons sold during the second quarter, exceeding industry averages by 7 percentage points, attributed to the company’s scale, access to domestic metals, and market position.
Another report from Baptista Research, titled “Reliance Inc.: Diversified Market Exposure to Capitalize On Emerging Trends!“, highlights the company’s first-quarter performance in 2025. Despite economic challenges, Reliance Inc. reported a strong non-GAAP earnings per share of $3.77, surpassing projections. This performance was driven by a 12.8% increase in tons sold compared to the previous quarter, supported by both organic growth and acquisitions made in 2024. The reports indicate a positive outlook for Reliance Steel & Aluminum based on its operational efficiencies and market positioning.
A look at Reliance Steel & Aluminum Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts suggest a steady long-term outlook for Reliance Steel & Aluminum, with a balanced performance across key factors. The company scores a 3 out of 5 for Value, Dividend, Growth, Resilience, and Momentum on Smartkarma Smart Scores. This indicates a moderate but consistent performance in terms of financial health, dividend payments, growth potential, ability to withstand market challenges, and overall market momentum. Reliance Steel & Aluminum‘s diversified product range includes carbon, alloy, stainless, and specialty steel, as well as aluminum, brass, and copper. With operations in the United States and Spain, the company maintains a strong presence in the distribution and processing of steel and aluminum products.
Smartkarma’s assessment of Reliance Steel & Aluminum suggests a stable outlook supported by consistent ratings across various factors. While not excelling in any particular area, the company’s overall performance is marked by resilience and steady growth potential. With a broad product portfolio and a widespread distribution network, Reliance Steel & Aluminum is positioned to capitalize on opportunities in the steel and aluminum market. The balanced scores in Value, Dividend, Growth, Resilience, and Momentum indicate a company that is well-rounded and capable of navigating market dynamics effectively, making it a reliable player in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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