Reliance Steel misses Q3 adjusted profit estimates due to uncertain trade policies

Overview

• Reliance Steel Q3 net sales rise 6.8% yr/yr, achieving record tons sold

• Adjusted EPS for Q3 misses analyst expectations

• Company repurchased $60.9 mln of common stock during Q3

Outlook

• Reliance expects Q4 2025 tons sold to be up 3.5% to 5.5% YoY

• Company anticipates Q4 2025 non-GAAP EPS of $2.65 to $2.85

• Reliance expects Q4 2025 average selling price per ton to be flat

Result Drivers

• RECORD TONS SOLD - Reliance achieved record tons sold in Q3, outperforming industry trends by leveraging inventory and processing capabilities

• TRADE POLICY UNCERTAINTY - Uncertainty in trade policy and readily available inventory created competitive market conditions, impacting selling prices and margins

• AEROSPACE AND SEMICONDUCTOR CHALLENGES - Excess inventories in aerospace and semiconductor markets affected profitability, though defense and space sectors remained strong

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy."

• Wall Street's median 12-month price target for Reliance Inc is $325.00, about 14.3% above its October 21 closing price of $278.65

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX3SGDNr

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)