Q2’26 results beat on higher volumes and pricing; Q3’26 EPS guide above consensus

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Q2’26 results beat on higher volumes and pricing; Q3’26 EPS guide above consensus

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Reliance, Inc.

Q2’26 results beat on higher volumes and

pricing; Q3’26 EPS guide above consensus

Reiterate Rating: UNDERPERFORM | PO: 400.00 USD | Price: 386.21 USD

Raise PO on higher estimates but maintain Underperform 23 July 2026

Reliance (RS) reported Q2’26 EPS above its guide and consensus. The beat vs. BofAe Equity

was due to higher volumes and pricing, driven by increased activity under its border wall

contract, better demand, and higher carbon steel and aluminum product prices. On the

Key Changesother hand, FCF missed BofAe on larger working capital (WC) build and RS did not

repurchase any shares in Q2. For Q3’26, RS guided to seasonally lower volumes (partly (US$) Previous Current

offset by higher border wall shipments) and higher pricing QoQ. Overall, the Q3 EPS Price Obj. 380.00 400.00

guide was well above consensus. Driven by higher estimates, we raise our price objective 2026E Rev (m) 16,184.0 17,491.8

(PO) to $400 (from $380) per share, based on 12.5x 2026E EV/EBITDA, 12.0x 2027E 2027E Rev (m) 16,274.7 17,105.0

EV/EBITDA and 1.0x NAV (methodology and multiples unchanged). We reiterate our 2028E Rev (m) 16,160.7 16,589.1

Underperform rating on an anticipated correction in underlying commodity prices and a 2026E EPS 19.63 22.64

historically high valuation (11.0x 2026E/2027E EV/EBITDA vs historical average of 8.3x). 2027E EPS 22.57 23.45

2028E EPS 22.76 23.14

Q3’26 EPS guide well above consensus and BofAe

RS expects non-residential construction, commercial aerospace and semiconductor Lawson Winder, CFA >>

Research Analyst

demand to improve in Q3’26, with auto tolling volumes to be stable. The defense sector Merrill Lynch (Canada)

remains robust.