Reliance Inc. (RS): 2Q26 Recap; Continued End Market Momentum with Incremental Upside from Border Wall Volumes; Neutral

Research evidence excerpt

Reliance Inc. (RS): 2Q26 Recap; Continued End Market Momentum with Incremental Upside from Border Wall Volumes; Neutral

Equity Research

24 July 2026 | 4:11PM EDT

Reliance Inc. (RS): 2Q26 Recap; Continued End Market Momentum with

Incremental Upside from Border Wall Volumes; Neutral

RS reported strong 2Q26 earnings with top and bottom-line beats on the back of Nick Cash

+1(212)357-6372 | nick.cash@gs.com

better than expected volumes and pricing as well as border wall contribution helping Goldman Sachs & Co. LLC

to offset some LIFO expense headwinds. Given management’s end market

commentary, we expect continued volume momentum as well as pricing momentum

into 3Q26. Additionally, we anticipate that while border wall volumes pressure gross

margins, the opex-light nature of the contract is accretive to EBITDA margins and

could drive incremental upside to earnings as volumes ramp. While we view these

tailwinds to be positive, we believe the equity has largely priced them in. We remain

Neutral rated and highlight further takeaways within.

2Q26 results beat. RS reported revenues of $4.63bn above GSe/FactSet consensus

of $4.24bn/$4.26bn and adj. EPS of $6.27, which came in well above the guided

range of $5.15-$5.35 and above GSe/consensus estimates of $5.47. The results were

driven by a combination of both higher than expected volumes and pricing as well as

increased contribution from border wall shipments which carried lower opex.

Volumes and pricing. Volumes shipped of 1.79mn tons were above

GSe/VisibleAlpha consensus of 1.71mn while pricing of $2,602 came in well above

GSe/consensus of $2,481/$2,492 per ton. Sequential volume increase of 7% was well

above guidance of +1%-3% driven by a 5.1% contribution from border wall

shipments, while ASPs increased 7.8% vs.