Reliance Steel & Aluminum reported first‑quarter 2026 revenue of $4.03 billion, up 15.5% year‑over‑year, and non‑GAAP earnings per diluted share of $5.16, a 37% increase from the $3.77 EPS reported in Q1 2025 and a $0.53 beat over the $4.63 consensus estimate, an 11.5% upside.
Gross profit margin rose to 29.1% from 27.3% in Q4 2025, reflecting higher average selling prices and a favorable product mix. The margin slipped slightly from 29.7% in Q1 2025, indicating that tariff‑related cost pressures on aluminum partially offset pricing gains.
The company sold a record tonnage of steel and aluminum, a 9.4% sequential increase, and saw strong demand in construction, data‑center, and defense markets. New government contracts, including a Department of Homeland Security border‑wall project and a Joint Strike Fighter program, contributed to the volume lift and provided long‑term revenue visibility.
Management guided for Q2 2026 non‑GAAP EPS in the range of $5.15 to $5.35, signaling confidence in continued pricing power and volume growth. Net debt‑to‑EBITDA remained below 1.0 and the company maintained $1.5 billion of revolving credit capacity, underscoring its conservative leverage profile.
Headwinds include ongoing trade‑policy uncertainty and Middle East conflict risks, while tailwinds are rising aluminum prices and the new government contracts. Management expressed confidence that the company’s pricing strategy and scale will sustain earnings momentum in the near term.
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