Reliance Steel Q2 2024 Earnings Report
Key Takeaways
Reliance Steel reported net sales of $3.64 billion for Q2 2024, with a gross profit margin of 29.8%. EPS was $4.67, and non-GAAP EPS was $4.65. The company completed acquisitions of American Alloy Steel and Mid-West Materials in April 2024 and generated $366.3 million in cash flow from operations.
Net sales reached $3.64 billion with tons sold up 4.0% from Q1 2024.
Gross profit margin stood at 29.8%.
EPS was reported at $4.67, with non-GAAP EPS at $4.65.
Cash flow from operations amounted to $366.3 million.
Reliance Steel
Reliance Steel
Forward Guidance
Reliance anticipates underlying demand will remain relatively stable across the majority of the end markets it serves in the third quarter of 2024 subject to shipment levels to be impacted by normal seasonal patterns, which include a decline in shipping volumes due to planned customer shutdowns and vacation schedules. As a result, the Company estimates its tons sold will be down 2.5% to 4.5% in the third quarter of 2024 compared to the second quarter of 2024 and up 4.5% to 6.5% from the third quarter of 2023. Reliance expects its average selling price per ton sold for the third quarter of 2024 to be down 2% to 4% compared to the second quarter of 2024, primarily driven by lower prices for carbon steel products. Therefore, Reliance anticipates gross profit margin to remain under some pressure in the third quarter of 2024. Based on these expectations, the Company anticipates non-GAAP earnings per diluted share in the range of $3.60 to $3.80 for the third quarter of 2024.