RS Unit Clinches Multi-Billion U.S. Infrastructure, Defense Deals
Reliance, Inc.’s RS fully-owned subsidiary, AMI Metals, has secured two significant contracts tied to the U.S. government infrastructure and defense programs, with a combined potential value of up to around $2.89 billion.
The first contract is a multi-year agreement with the U.S. Department of Homeland Security valued at up to $2.24 billion, under which AMI will provide steel and logistics support services for construction activities along the Southwest U.S. border. It includes procurement, transportation, warehousing and distribution of steel bollards and steel plates.
The contract runs from Feb. 11, 2026, through Dec. 31, 2028, with steel deliveries expected to begin in the second quarter of 2026.
AMI was also awarded a five-year indefinite-delivery/indefinite-quantity (IDIQ) contract worth up to $654 million to process aluminum plates for several Lockheed MartinLMT-- defense programs, including the F-35 Lightning II program.
This agreement covers value-added processing such as just-in-time supply, cut-to-size and cut-to-shape aluminum plate for Lockheed Martin facilities, partners and subcontractors, with the base term running from Jan. 1, 2027, through Dec. 31, 2028.
The awards strengthen Reliance’s role in the aerospace and defense supply chain and expand AMI’s backlog across steel and aluminum programs.
Shares of RSRS-- are up 10.5% over the past year compared with the industry’s 52.4% rise.
Image Source: Zacks Investment Research
RS’ Zacks Rank & Key Picks
RS currently carries a Zacks Rank of #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Impala Platinum Holdings Limited IMPUY, BHP Group Limited BHP and Denison Mine Corp. DNN. IMPUY, BHP and DNN sport a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IMPUY’s current fiscal-year earnings is pegged at $2.12 per share, indicating a 4,140% year-over-year increase. Shares of IMPUY have jumped 169.2% over the past year.
The Zacks Consensus Estimate for BHP’s current fiscal-year earnings stands at $4.93 per share, implying a 35.44% year-over-year increase. Shares of BHP have gained 50.8% over the past year.
The Zacks Consensus Estimate for DNN’s current fiscal-year loss is pegged at 15 cents per share, indicating a 114.3% year-over-year decrease. Its earnings beat the Zacks Consensus Estimates in two of the trailing four quarters, with the average earnings surprise being 13%.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BHP Group Limited Sponsored ADR (BHP): Free Stock Analysis Report
Reliance, Inc. (RS): Free Stock Analysis Report
Impala Platinum Holdings Ltd. (IMPUY): Free Stock Analysis Report
Denison Mine Corp (DNN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Comentarios
Aún no hay comentarios