Research · Sep 3, 2026
[RS] Reliance Inc. Thesis 2026: Metals Service Center Drives Aerospace Plus Industrial Cycle
Reliance Inc. (NYSE: RS; previously Reliance Steel & Aluminum Co. through October 2024) FY2025 revenue ~$13.7-14.4B (-3 to +3%) with adj. EPS ~$15.30-16.85 reflecting continued post-2024 ~5.5-5.8M tons aggregate metals shipments + selected ~$1,500-1,700/ton aggregate ASP (post-2024 carbon steel + stainless steel + aluminum + selected various metals pricing cycle stabilization) plus selected post-March 2024 ~$2.0B aggregate American Alloy Steel + selected post-2024 ~$1.0B aggregate selected various tuck-in M&A capacity + selected continued post-2024 ~$1.5-2B aggregate annual buyback program execution under continued President + CEO Karla Lewis (~3-year tenure since January 2023). One of the largest North American metals service center companies. Founded 1939 as Reliance Steel Company in Los Angeles California (~86-year heritage); selected post-1994 NYSE listing IPO; selected post-2008 Metals USA + Earle M. Jorgensen ~$2.2B aggregate; selected post-October 2024 Reliance Steel & Aluminum → Reliance Inc. rebrand; selected post-March 2024 ~$2.0B American Alloy Steel acquisition. Headquartered in Scottsdale Arizona; ~15,000+ employees globally with ~$13.7-14.4B revenue. Single primary product offering: metals service center distribution. End-market mix: aerospace + defense ~20% + non-residential construction ~15% + industrial machinery ~10% + automotive ~10% + selected various ~45%. Aggregate metals shipments + ASP cycle: ~5.5-5.8M tons aggregate metals shipments FY2025; ~$1,500-1,700/ton aggregate ASP (post-2024 stabilization). Aerospace + Industrial end-market mix: aerospace + defense ~20% (Boeing + Airbus + Lockheed Martin + Northrop Grumman); non-residential construction ~15%; industrial machinery ~10%; automotive ~10%; selected various ~45%. Selected various M&A + capital return: post-March 2024 ~$2.0B American Alloy Steel; selected post-2024 ~$1.0B selected various tuck-in M&A capacity; ~$4.40 annual dividend FY2025 (~+10% growth; ~30+ year continuous track post-1994); ~$1.0B+ aggregate FY2025 buybacks; aggregate capital return ~$1.7-2.2B; net cash position ~$0.6-0.9B; investment-grade Baa2/BBB credit rating. President + CEO Karla Lewis since January 2023 (~3-year tenure; first female Reliance CEO); CFO Steve Koch. FY2026 thesis: aggregate metals shipments + ASP stabilization + Aerospace + Industrial cycle + American Alloy Steel + selected various M&A integration + ~30+ year continuous dividend track + selected continued post-2024 capital return acceleration. Risks: metals pricing volatility, aerospace cyclical, industrial machinery + automotive cycle, M&A integration, USD/CAD + USD/MXN currency.