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Mar 31, 2024
Reliance Steel Q1 2024 Earnings Report
Reliance reported strong Q1 2024 results driven by its resilient business model and strategic acquisitions.
Key Takeaways
Reliance, Inc. reported net sales of $3.64 billion for Q1 2024. EPS was $5.23 and non-GAAP EPS was $5.30. The company completed three acquisitions in 2024 and saw a 10.3% increase in tons sold compared to the previous quarter.
Net sales reached $3.64 billion with a gross profit margin of 31.0%.
Earnings per share (EPS) stood at $5.23, with non-GAAP EPS at $5.30.
Tons sold increased by 10.3% compared to the fourth quarter of 2023.
Three acquisitions were completed in 2024, expanding product offerings and geographic reach.
Reliance Steel
Reliance Steel
Forward Guidance
Reliance anticipates a better than normal seasonal recovery in demand for Q2 2024. The company estimates tons sold will be up 2.5% to 4.5% compared to Q1 2024, with approximately 2% of sequential growth from recent acquisitions. Non-GAAP earnings per diluted share are expected to be in the range of $4.70 to $4.90.
Positive Outlook
- Better than normal seasonal recovery in demand expected.
- Tons sold projected to increase by 2.5% to 4.5% compared to Q1 2024.
- Approximately 2% of sequential growth expected from recent acquisitions.
- Continued strength in non-residential construction activity.
- Strong demand for automotive toll processing expected.
Challenges Ahead
- Prevailing macroeconomic uncertainty and geopolitical matters.
- Average selling price per ton sold expected to decrease by 1% to 3%.
- Short term gross profit margin pressure anticipated due to higher cost inventory.
- Semiconductor market demand remains lower than the first quarter of 2023.
- Demand across broader manufacturing sectors was down modestly compared to the first quarter of 2023.