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Jun 30, 2022

Reliance Steel Q2 2022 Earnings Report

Reliance delivered an exceptional second quarter with record-setting financial performance.

Key Takeaways

Reliance Steel & Aluminum Co. reported record-setting financial performance in Q2 2022. The company achieved all-time high quarterly net sales of $4.68 billion, a gross profit margin of 31.9%, and record quarterly earnings per share of $9.15.

Record quarterly sales of $4.68 billion.

Record quarterly gross profit of $1.50 billion driven by strong gross profit margin of 31.9%.

Record quarterly pretax income of $762.6 million and margin of 16.3%.

Record quarterly EPS of $9.15.

Total Revenue
$4.68B
Previous year: $3.42B
+36.9%
EPS
$9.15
Previous year: $5.06
+80.8%
Gross Profit
$1.5B
Previous year: $1.08B
+38.5%
Cash and Equivalents
$505M
0
Free Cash Flow
$183M
0
Total Assets
$10.4B
Previous year: $8.93B
+16.5%

Reliance Steel

Reliance Steel

Forward Guidance

Reliance estimates non-GAAP earnings per diluted share in the range of $6.00 to $6.20 for the third quarter of 2022.

Positive Outlook

  • Company expects shipment levels to be impacted by normal seasonal patterns.
  • Underlying demand trends expected to continue across the vast majority of the key end markets it serves.
  • Improving demand and pricing for higher value products sold into the aerospace, energy and semiconductor end markets.

Challenges Ahead

  • Company estimates tons sold will be down 3% to 5% in the third quarter of 2022 compared to the second quarter of 2022.
  • Reliance expects its average selling price per ton sold for the third quarter of 2022 to be down 5% to 7% compared to the second quarter of 2022 driven by declines in pricing for many of its products, notably for carbon, stainless and aluminum flat-rolled products.
  • Shipment levels to be impacted by normal seasonal patterns, which include a decline in shipping volumes due to planned customer shutdowns and vacation schedules.