This article first appeared on GuruFocus.

• Revenue: Increased 27% year-over-year.

• Gross Profit: $1.3 billion, up 11% from Q1 2026 and 20% from Q2 2025.

• Non-GAAP Gross Profit Margin: 30.5%, slightly down from 30.6% in Q2 2025.

• Non-GAAP Pretax Income: Increased 40% year-over-year to $429 million.

• Non-GAAP Earnings Per Share (EPS): $6.27, up 42% year-over-year.

• Tons Sold: Increased 7% from the prior quarter and 10.8% year-over-year.

• Average Selling Price: Increased 7.8% from Q1 2026.

• Capital Expenditures: $93 million funded during the quarter.

• Cash Flow from Operations: Approximately $162 million.

• Total Debt: $1.7 billion with a net debt-to-EBITDA ratio of 0.9.

• Inventory Turn Rate: Improved to approximately 5.2x from 4.8x in 2025.

• Accounts Receivable DSO: Approximately 42 days, consistent with the prior year.

• Dividends Paid: $64 million during the quarter.

• Share Repurchase Program: $529 million remaining available.

• Third Quarter EPS Guidance: $6.40 to $6.60, up 76% to 81% year-over-year.

• Warning! GuruFocus has detected 9 Warning Signs with RS.

• Is RS fairly valued? Test your thesis with our free DCF calculator.

Release Date: July 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Reliance Inc (NYSE:RS) achieved its second highest quarterly revenue and record quarterly tons sold, outperforming broader industry shipment trends.

• The company benefited from initial contributions from the U.S. Department of Homeland Security border wall contract, exceeding guidance and contributing significantly to earnings.

• Non-residential construction end market sales remained strong, with improvements in general manufacturing, aerospace, and semiconductor markets.

• Reliance Inc (NYSE:RS) reported a 40% year-over-year increase in non-GAAP pretax income and the highest EPS result since the second quarter of 2023.

• The company's strong domestic mill partnerships ensure reliable material availability, supporting strategic growth investments and ongoing returns to stockholders.

Negative Points

• Higher-than-anticipated carbon and aluminum product costs led to an increase in the full year LIFO expense outlook, impacting gross profit margins.

• The U.S. border wall project, while contributing to earnings, introduced a margin headwind due to higher shipment volumes of lower-priced products.

• Inflationary impacts on compensation, freight, and fuel costs, as well as higher variable warehousing and delivery costs, increased SG&A expenses.

• The company faces ongoing risks from domestic and international trade policy and geopolitical conflicts, which could impact demand and pricing.

• Supply constraints and extended lead times in certain products, such as beams and carbon plate, could limit the company's ability to meet customer demand fully.