RSMEDIUM SIGNALFINANCIAL10-K

Reliance Steel shows weakening cash generation and reduced capital allocation efficiency with operating cash flow declining 42% and share buybacks down 46%.

The sharp decline in operating cash flow from $1.4B to $831M suggests either deteriorating business fundamentals or cyclical headwinds in the metals distribution industry. However, the company maintained disciplined capital allocation by proportionally reducing both capex and share buybacks, indicating management is responding appropriately to changed conditions.

Comparing 2026-02-26 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

Reliance Steel experienced broad-based financial deterioration with operating cash flow declining 42% to $831M and net income falling 16% to $739M, while the company maintained lower but proportional capital allocation with share buybacks down 46% and capex down 24%. The balance sheet shows mixed signals with debt reduction of 16% and lower current liabilities, but higher total liabilities and increased accounts receivable suggesting potential collection issues. Overall, the financial picture indicates a cyclical downturn in the metals business with management taking appropriate defensive measures, though the magnitude of cash flow decline warrants monitoring.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-45.7%
$1.1B→$594.1M

Buyback activity reduced 45.7% — capital being redeployed elsewhere or cash conservation underway.

Operating Cash Flow
Cash Flow
-41.9%
$1.4B→$831.4M

Operating cash flow fell 41.9% — earnings quality concerns; investigate working capital changes and non-cash items.

Interest Expense
P&L
-35.6%
$62.3M→$40.1M

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Cash & Equivalents
Balance Sheet
-31.9%
$318.1M→$216.6M

Cash declined 31.9% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Current Liabilities
Balance Sheet
-30.1%
$1.2B→$848.1M

Current liabilities reduced — improved short-term financial position and working capital health.

Capital Expenditure
Cash Flow
-23.6%
$430.6M→$328.9M

Capex reduced 23.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Total Debt
Balance Sheet
-16.3%
$2.3B→$1.9B

Debt reduced 16.3% — deleveraging strengthens balance sheet and reduces financial risk.

Net Income
P&L
-15.5%
$875.2M→$739.4M

Net income declined 15.5% — review whether driven by operations, interest costs, or non-recurring items.

Accounts Receivable
Balance Sheet
+14.7%
$1.3B→$1.5B

Receivables grew 14.7% — monitor days sales outstanding for collection efficiency.

Total Liabilities
Balance Sheet
+14.4%
$2.8B→$3.2B

Liabilities increased 14.4% — monitor debt-to-equity ratio and interest coverage.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-27
ADDED
RELIANCE, INC._December 31, 2025 http://xbrl.sec.gov/country/2025#US 0000861884 --12-31 FY false RELIANCE, INC.
As of February 20, 2026, 51,733,277 shares of the registrant s common stock, $0.001 par value, were outstanding.
Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, actions taken by us, as well as developments beyond our control, including, but not limited to: changes in domestic and worldwide political and economic conditions; changes in U.S.
and foreign trade policies; slowing economic growth, inflation, rising unemployment or other macroeconomic factors that could materially impact us, our customers and suppliers; metals pricing; demand for our products and services; U.S.
and foreign trade policies specifically affecting metals product markets and pricing; the possibility that the expected benefits of acquisitions and capital expenditures may not materialize as expected; and the impacts of labor constraints and supply chain disruptions.
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REMOVED
RELIANCE, INC._December 31, 2024 0000861884 --12-31 2024 FY false RELIANCE, INC.
As of February 21, 2025, 52,972,079 shares of the registrant s common stock, $0.001 par value, were outstanding.
We will not distinguish between our prior and current corporate name and will refer to our current corporate name throughout this Annual Report on Form 10-K.
Unless otherwise indicated or required by the context, as used in this Annual Report on Form 10-K, the terms Company, Reliance, we, our, and us refer to Reliance, Inc.
Our forward-looking statements may include, but are not limited to, discussions of our industry and end markets, business strategies, acquisitions, and expectations concerning our future growth and profitability and our ability to generate industry leading returns for our stockholders, as well as future demand and metals pricing and our results of operations, margins, profitability, taxes, liquidity, macroeconomic conditions, including inflation, and the possibility of an economic recession or slowdown, litigation matters and capital resources.
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