Why This Matters to Distributors: Reliance’s results show how higher metals prices, infrastructure spending and specialized processing services are supporting growth. Data centers, manufacturing, and aerospace also contributed to stronger demand, although the border wall project accounted for much of the company’s shipment gains.
Reliance Inc. reported record third-quarter sales and more than doubled its profit as higher metals prices, increased customer demand and shipments for the U.S. border wall project lifted its business.
The Phoenix-based metals distributor said Oct. 21 that sales increased 42.8% to $5.21 billion in the quarter ended Sept. 30, up from $3.65 billion a year earlier. Net income attributable to Reliance rose 112.6% to $402.9 million from $189.5 million.
For the first nine months of 2026, sales climbed 28.5% to $13.87 billion from $10.80 billion. Net income attributable to Reliance increased 59% to $990.7 million from $622.9 million.
President and CEO Karla Lewis attributed the quarterly performance to healthy demand and tight supply, which pushed prices higher for most carbon steel products. She also pointed to Reliance’s ability to obtain inventory and provide processing services for customers.
“Our long-term strategy of supporting both our valued customers and key domestic mill partners positioned us particularly well to benefit from these dynamics,” Lewis said.
Reliance sold a record 1.87 million tons in the quarter, up 15.6% from a year earlier and 4.3% from the second quarter. Its average selling price reached $2,815 per ton, up 24% from a year earlier and 8.2% from the preceding quarter.
The border wall project was a major contributor. Reliance said the project added 9.4 percentage points to its year-over-year shipment growth and 3.7 percentage points to growth from the second quarter.
Excluding the project, shipments increased 0.6% from the second quarter, outperforming the company’s forecast for a seasonal decline of 2% to 4%. Lewis said the Department of Homeland Security contract, awarded earlier this year, continued to expand, and made another substantial contribution to earnings.
Demand also strengthened across several other customer markets, though conditions remained uneven. In nonresidential construction, Reliance’s largest market by tons sold, data centers and energy and public infrastructure projects helped offset weakness in other construction sectors.
The company expects construction demand to remain solid in the fourth quarter, subject to the usual seasonal slowdown and potential supply constraints. It also reported stronger manufacturing demand, supported by industrial machinery, shipbuilding, military, and construction machinery customers.
Aerospace demand improved from a year earlier. Reliance expects gradual increases in commercial aircraft production and growing order backlogs to support further improvement, while demand tied to defense and space remains strong.
The company also reported increased demand for its automotive metals processing services. Semiconductor-related demand improved as well, supported by growing data center activity, with further gains expected in the fourth quarter.
Higher carbon steel costs nevertheless created additional expenses. Reliance recorded $187.5 million in inventory accounting charges reflecting rising material costs, compared with $25 million a year earlier.
The company spent $79 million on property, plant, and equipment during the quarter, bringing nine-month spending to $236.6 million. That compared with $255.7 million in the first nine months of 2025.
Looking ahead, Reliance expects fourth-quarter tons sold to increase 13.5% to 15.5% from a year earlier, including the border wall project. Excluding that project, it forecasts growth of 4% to 6% from a year earlier but a seasonal decline of 5.5% to 7.5% from the third quarter.
Average selling prices are expected to rise another 1% to 3% from the third quarter. Reliance cautioned that trade policy uncertainty and conflicts in Iran and Ukraine could affect supply availability and broader business conditions.
Reliance operates approximately 310 locations in 41 states and 10 countries outside the United States. It distributes more than 100,000 metal products to over 125,000 customers, emphasizing small orders, quick delivery, and processing services.
In 2025, its average order was $3,120, approximately 49% of orders included processing, and about 40% were delivered within 24 hours.
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