Reliance Steel Q1 2024 Earnings Report
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.