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Dec 31, 2022
Reliance Steel Q4 2022 Earnings Report
Reliance Steel achieved record quarterly and annual cash flow from operations.
Key Takeaways
Reliance Steel & Aluminum Co. reported record financial performance in 2022, driven by solid demand and higher metals pricing. The company achieved record net sales, non-GAAP pretax income, and diluted earnings per share. Strong cash generation enabled continued execution of a disciplined capital allocation strategy.
Achieved record financial performance in 2022 with record net sales of $17.03 billion.
Generated record annual cash flow from operations of $2.12 billion.
Returned $847.4 million to stockholders through share repurchases and quarterly cash dividends.
Increased quarterly dividend by 14.3% to $1.00 per share.
Reliance Steel
Reliance Steel
Forward Guidance
Reliance expects healthy demand trends to continue into the first quarter of 2023, with tons sold up 11% to 13% compared to the fourth quarter of 2022. Non-GAAP earnings per diluted share are estimated to be in the range of $5.40 to $5.60 for the first quarter of 2023.
Positive Outlook
- Healthy demand trends are expected to continue into the first quarter of 2023.
- Tons sold are expected to be up 11% to 13% in the first quarter of 2023 compared to the fourth quarter of 2022.
- Tons sold are expected to be up 1% to 3% compared to the first quarter of 2022.
- Semiconductor market remains strong, and the Company’s long-term outlook is positive.
- Demand in commercial aerospace continued to improve during the fourth quarter with significantly higher shipments compared to the fourth quarter of 2021.
Challenges Ahead
- Prevailing macroeconomic uncertainty.
- Ongoing supply chain disruptions.
- Geopolitical matters.
- Average selling price per ton sold for the first quarter of 2023 is expected to be down 3% to 5% compared to the fourth quarter of 2022.
- Stabilizing pricing trends for many of its products compared to December levels, which represented the lowest pricing point in the fourth quarter of 2022.