Reliance shares fall 5.10% intraday amid Q4 2025 earnings report citing margin compression, $114M LIFO expense, and tariff-driven cost pressures.

Reliance Steel & Aluminum Co. fell 5.10% intraday amid a Q4 2025 earnings report that highlighted a 10.2% year-over-year decline in full-year earnings per diluted share, driven by a $114 million LIFO expense and margin compression in the aluminum segment due to tariffs and soft demand. Despite announcing a $110 billion AI infrastructure investment, the earnings report emphasized near-term challenges, including elevated costs, inventory pressures in aerospace and semiconductor markets, and a non-GAAP gross profit margin of 28.8%, below its 29%-31% sustainable range. The market’s negative reaction was tied to the earnings outlook rather than the AI announcement, as the latter represents long-term strategic capital allocation, while the former directly impacted near-term profitability and guidance.