Reliance’s Q1 2025: Navigating Tariffs, Domestic Sourcing, and Demand Contradictions

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Strong Financial Performance:
- Reliance Inc reported non-GAAP earnings per share of $3.77 for Q1 2025, surpassing expectations.
- The growth was driven by record tons shipped, industry outperformance, and strategic acquisitions.

Market Share and Shipments:
- Consolidated tons sold increased by 9%, with 3.5% attributed to acquisitions and 5.5% from same-store sales.
- The increase was supported by market share gains, particularly in non-residential construction and general manufacturing sectors.

Pricing and Inventory Trends:
- The average selling price per ton sold declined by 1.2% sequentially, but rose slightly in March and April.
- Pricing improvements were supported by strong demand, despite a mixed performance across different product groups.

Capital Expenditure and Cash Flow:
- Reliance spent approximately $87 million on capital expenditures in Q1, with a full-year budget of $325 million to $400 million.
- The company generated $64.5 million in cash flow from operations, supporting increased stockholder returns and dividends.

Macroeconomic Factors and Reshoring:
- Despite macroeconomic uncertainties, Reliance maintained strong shipments and market share.
- The company benefited from growing reshoring activity and positive momentum in non-residential construction, particularly in data center construction and related infrastructure.