Reliance Steel & Aluminum Co.
- Open
- 376.56
- Day high
- 379.40
- Day low
- 371.35
- Prev close
- 374.43
- Volume
- 127K
- Mkt cap
- $18.9B
- P/E (TTM)
- 24.0
- EPS (TTM)
- $15.59
- P/B
- 2.6
- P/S
- 1.3
- Yield
- 1.33%
- Per share
- $4.90
- ▼Insiders net selling -$1.3M over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions mixed (13F)
Reliance Steel & Aluminum Co. (RS) is a Basic Materials company listed on NYSE. The stock is up 16% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
Reliance Steel & Aluminum Co. (RS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $4.63 | $5.16 | +11.4% | $4.0B | +3.5% |
| Feb 18, 2026 | $2.80 | $2.40 | -14.3% | $3.5B | -8.5% |
| Oct 22, 2025 | $3.68 | $3.64 | -1.1% | $3.7B | +6.0% |
| Jul 23, 2025 | $4.68 | $4.43 | -5.3% | $3.7B | +0.0% |
| Apr 23, 2025 | $3.64 | $3.77 | +3.6% | $3.5B | +1.4% |
| Feb 19, 2025 | $2.74 | $2.22 | -19.0% | $3.1B | +2.3% |
| Oct 24, 2024 | $3.66 | $3.64 | -0.5% | $3.4B | +10.6% |
| Jul 25, 2024 | $4.73 | $4.65 | -1.7% | $3.6B | -0.0% |
| Apr 25, 2024 | $5.53 | $5.30 | -4.2% | $3.6B | -3.0% |
| Feb 15, 2024 | $3.92 | $4.73 | +20.7% | $3.3B | +1.1% |
| Oct 26, 2023 | $5.00 | $4.99 | -0.2% | $3.6B | +0.2% |
| Jul 27, 2023 | $6.55 | $6.49 | -0.9% | $3.9B | -2.5% |
RS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 22, 2026 | Sznewajs John Gdirector | Grant | 469 | — |
| May 22, 2026 | McEvoy Robert Ambrosedirector | Grant | 469 | — |
| May 22, 2026 | DELLAQUILA FRANK Jdirector | Grant | 469 | — |
| May 22, 2026 | Stotlar Douglasdirector | Grant | 469 | — |
| May 22, 2026 | Colonias Karen Winifreddirector | Grant | 469 | — |
| May 22, 2026 | Kamsickas James Kevindirector | Grant | 469 | — |
| May 22, 2026 | Seeger David Wdirector | Grant | 469 | — |
| May 22, 2026 | Baldwin Lisadirector | Grant | 469 | — |
| Apr 28, 2026 | Ajemyan Arthurofficer: SVP, CFO | Sell | 74 | $359.18 |
| Apr 28, 2026 | Ajemyan Arthurofficer: SVP, CFO | Sell | 1,604 | $358.64 |
| Apr 28, 2026 | Ajemyan Arthurofficer: SVP, CFO | Sell | 1,822 | $357.61 |
| Mar 10, 2026 | Smith William A IIofficer: SVP, General Counsel, Corp Sec | Sell | 1,707 | $302.59 |
| Mar 10, 2026 | Smith William A IIofficer: SVP, General Counsel, Corp Sec | Sell | 4,908 | $297.23 |
| Mar 6, 2026 | Lewis Karla Rdirector, officer: President, CEO | Grant | 4,539 | — |
| Mar 6, 2026 | Smith William A IIofficer: SVP, General Counsel, Corp Sec | Grant | 1,324 | — |
Source: RS SEC Form 4 filings, latest May 22, 2026. For informational purposes only — not investment advice.
See the full RS insider & 13F page →Reliance Steel & Aluminum Co. company profile
Overview
Reliance Steel & Aluminum Co. (NYSE:RS) is a diversified metals distribution and processing company founded in 1939 and headquartered in Los Angeles, California. The company went public in 1994 and has grown through both organic expansion and strategic acquisitions to become one of North America's largest metals service centers. Operating approximately 315 locations across 40 U.S. states and 13 international locations, Reliance serves as a critical intermediary between metal producers and end-users across diverse industrial sectors. The company has completed 76 acquisitions since its IPO, transforming from a regional steel distributor into a comprehensive metals solutions provider.
Business
Reliance Steel & Aluminum operates as a metals service center, which functions as a specialized distributor and processor of metal products. The company maintains an inventory of approximately 100,000 different metal products and provides value-added processing services to customers who need metals in specific shapes, sizes, and specifications for their manufacturing operations. The company's core business involves purchasing large quantities of raw metals from primary producers (steel mills, aluminum smelters, etc.) and then cutting, shaping, and processing these materials to meet the precise requirements of individual customers. This eliminates the need for small manufacturers to buy massive quantities directly from mills or invest in expensive processing equipment themselves. Reliance's product portfolio spans multiple metal categories: carbon steel (approximately 33% of sales), aluminum and stainless steel (over 30% of sales), along with brass, copper, titanium, and specialty alloys. The company serves diverse end markets with relatively balanced exposure: nonresidential construction (~33% of sales) including infrastructure and data centers, general manufacturing (~33% of sales) covering industrial machinery and military applications, aerospace (~10% of sales) for both commercial and defense sectors, and automotive toll processing (~4% of sales) where they process customer-owned materials. A key differentiator is that approximately 50% of orders involve value-added processing services, where Reliance cuts, shapes, machines, or otherwise modifies raw materials to customer specifications. This processing capability allows the company to command higher margins than simple distribution and creates stronger customer relationships through customized solutions.
Revenue model
Reliance generates revenue primarily through product sales with value-added processing services, operating on a traditional distribution model with enhanced margins. The company purchases metals from primary producers at wholesale prices and sells them to end-users at retail prices, capturing the distribution margin. Their customers are predominantly small to medium-sized manufacturers, machine shops, and fabricators who lack the scale to buy directly from mills or the equipment to perform complex processing. The business model benefits from several margin-enhancing factors. Value-added processing services command premium pricing, as customers pay for convenience and customization rather than just the raw material. The company's scale allows for favorable purchasing terms with suppliers, while their diverse product mix and geographic footprint provide stability. Over 95% of their metals are sourced domestically, reducing foreign exchange risk and benefiting from potential trade protection measures. Several factors can impact margins both positively and negatively. Rising metal prices generally benefit the company through inventory gains and higher absolute margins, while falling prices can pressure margins as they work through higher-cost inventory. Economic cycles affecting construction and manufacturing demand directly impact volumes. Interest rates influence both customer demand (particularly in construction) and the company's working capital costs, as metals distribution requires substantial inventory investment. Reshoring trends and infrastructure spending create positive demand tailwinds, while increased competition or customer consolidation could pressure pricing power. The company's financial performance shows strong cash generation characteristics, with working capital management being crucial given the inventory-intensive nature of the business. Their ability to maintain gross margins in the 29-31% range demonstrates pricing discipline and the value customers place on their processing capabilities and service levels.
Competitive moat
Reliance Steel & Aluminum possesses a moderate but sustainable competitive moat built primarily on operational scale, customer relationships, and processing capabilities. The company's extensive network of 315 locations creates significant barriers to entry, as replicating this geographic footprint would require substantial capital investment and time. This distribution network provides logistical advantages through proximity to customers, enabling faster delivery times and lower transportation costs compared to competitors or direct mill purchases. The company's processing capabilities represent a meaningful differentiator, as approximately 50% of orders involve value-added services that require specialized equipment and expertise. These capabilities create customer stickiness, as switching suppliers would require customers to find alternative processing solutions or invest in their own equipment. The diversity of the product portfolio (100,000 SKUs) makes Reliance a "one-stop shop" for many customers, increasing switching costs. However, the moat faces several limitations. The metals distribution industry is inherently commodity-like, with limited pricing power during market downturns. Large customers may choose to integrate backwards or negotiate directly with mills, bypassing distributors entirely. Digital platforms and direct-to-consumer models from metal producers could potentially disintermediate traditional service centers, though this threat remains limited for complex processing services. The company's competitive position is strongest in serving small to medium-sized customers who value service, convenience, and processing capabilities over pure price competition. Larger industrial customers represent both an opportunity and a threat, as they offer volume potential but typically have more negotiating power and alternative sourcing options. The moat is most vulnerable during economic downturns when customers may prioritize price over service, though Reliance's diversified end-market exposure provides some protection.
Risks & safety
Reliance Steel & Aluminum demonstrates a strong margin of safety with conservative financial management and solid fundamentals, though working capital intensity requires monitoring. • Liquidity and Solvency: Strong current ratio of 3.2x and quick ratio of 1.6x indicate excellent short-term liquidity. Net debt-to-EBITDA ratio below 1.0x shows minimal leverage risk. Cash and short-term investments of $278 million provide adequate cushion. • Cash Generation: Free cash flow of $999 million in FY2024 demonstrates strong cash generation capability, though Q1 2025 showed negative $22 million due to working capital build. Operating cash flow remains consistently positive at $1.4 billion annually. • Valuation Metrics: Trading at 19.2x P/E ratio and 12.3x EV/EBITDA, representing reasonable but not cheap valuations. Price-to-book ratio of 2.2x reflects market recognition of processing capabilities and network value. • Other Considerations: Inventory-intensive business model creates working capital volatility during metal price cycles. Strong balance sheet provides flexibility for acquisitions and capital investment. Consistent dividend payments and share repurchases demonstrate capital allocation discipline.
Recent development
Over the past few years, Reliance has pursued several strategic initiatives to enhance its competitive position and growth prospects. The company has significantly expanded its value-added processing capabilities, with processing now representing approximately 50% of all orders. This shift toward higher-margin services has helped maintain gross profit margins in the targeted 29-31% range despite commodity price volatility. Acquisition strategy remains central to growth, with the company completing four acquisitions in 2024 alone, adding approximately $400 million in annualized sales. These acquisitions have focused on expanding geographic reach, adding specialized processing capabilities, and entering new end markets. Notable recent acquisitions include companies serving the semiconductor industry, reflecting management's bullish long-term outlook on chip manufacturing reshoring. The company has made substantial investments in semiconductor-related capabilities, including a new Texas facility expected to become operational in late 2024/early 2025. This represents a strategic bet on the CHIPS Act and broader semiconductor manufacturing reshoring trends. Management views semiconductors as a significant long-term growth opportunity despite current market softness. Capital allocation has become increasingly shareholder-friendly, with record share repurchases of $1.1 billion in 2024 and consistent dividend increases. The company increased its quarterly dividend by 9.1% to $1.20 per share in Q1 2025, reflecting confidence in cash generation capabilities. Management maintains a balanced approach between growth investments and shareholder returns. The company also rebranded to "Reliance, Inc." in 2024 to better reflect its evolution beyond traditional steel and aluminum distribution into a broader metals solutions provider. This change signals management's vision of the company as a comprehensive industrial partner rather than a commodity distributor.
RS company profile · for informational purposes only — not investment advice.
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