Oct 22, 2026 earnings call — Record quarter driven by border wall contract
Non-GAAP diluted EPS of $8.02, up 120% year-over-year.
Revenue $5.2B (est $4.7B) · EPS $8.02 (est $6.83)
Key quotes
"And we have -- although still in progress, we have started to receive bookings under Phase 2, so we're at over half of the estimated $800 million Phase 2 with orders already secured for over half of that."
"Pricing for all commodities, particularly carbon steel products, increased during the quarter in a constrained supply, extended lead times, and strengthening demand."
"During the quarter, we funded $79 million of capital expenditures, paid $64 million in dividends and repurchased $45 million of our common stock at an average price of approximately $395 per share."
Analyst Q&A 6
Border wall volume and supply
Q (Katja Jancic · BMO): Analyst asked why the border wall volumes outperformed and whether volumes were pulled forward. She also asked which products are harder to get right now.
A: They said the border wall is a new project that started shipping in April and relies on suppliers to ship metal to them and subcontractors to instruct releases. The project ramped and reached a steady flow through Q3, and they think this is a good run rate. They noted some carbon products are constrained but domestic suppliers have been supplying needed items like carbon plate and hot-rolled coil.
"So we think this is a good run rate for us based upon the contract and the activity under the contract." — Karla Lewis (CEO)
Organic growth and SG&A leverage
Q (Nicklaus Cash · Goldman Sachs): Analyst asked if the current pace of organic growth should continue into 2027 and whether it is driven by tight supply. He also asked how much SG&A leverage exists excluding the border wall project.
A: They said it is difficult to look that far out but they expect demand to remain healthy; tight supply could temper organic growth though they expect to get enough supply to continue to outpace the industry. On SG&A, they said the border wall contribution to SG&A leverage is meaningful but difficult to quantify and suggested using the disclosures to estimate.
"And I mean, I think you can make some certain deductions from the disclosures that we've provided to come up with an estimate on your own, but certainly, it's a meaningful contribution." — Arthur Ajemyan (CFO)
Q4 seasonality and shipments
Q (Martin Englert · Seaport Research Partners): Analyst asked whether customers indicate a more muted seasonal decline in Q4 versus a normal year.
A: They said if metal is available and customers stay busier there is potential for a more muted seasonal decline, but customers often shut down around the holidays so uncertainty remains. Their best estimate is generally normal seasonality, and they asked to focus on year-over-year growth, noting Q4 year-over-year is about 5%-plus growth.
"But our best estimate at this time is generally normal seasonality." — Karla Lewis (CEO)
Why SG&A fell and stainless pricing
Q (Samuel McKinney · KeyBanc): Analyst asked if the low SG&A percent in Q3 was solely from the border wall lower cost to serve or from other operational benefits. He also asked about stainless price dynamics and outlook.
A: They said higher selling prices drive significant operating leverage and increasing volumes on existing infrastructure also improves SG&A as a percent of sales. For stainless, they said mix matters because semiconductor-related products have higher average selling prices, and overall stainless has not had the same price appreciation as carbon and aluminum; specialty stainless looks to have hit the bottom and customers are restocking.
"So when you look at it as a percentage of sales as a business, we get tremendous operating leverage when we sell at higher prices." — Arthur Ajemyan (CFO)
Pursuing large contracts and inventory
Q (Bennett Moore · JPMorgan): Analyst asked whether the company wants similar large projects to the border wall and if similar opportunities exist. He also asked about inventory levels and which carbon buckets might lag.
A: They said the border wall is larger than anything they've seen and there are not many similar-size projects, but they would pursue other opportunities if the project needs match their capabilities and financial profile. They feel good about current inventory levels, have focused on improving turns, and said turns are up and working capital metrics improved; they will buy conservatively, locally and regionally. On carbon, most carbon requests are moving up and they are positive on carbon products.
"It's not just about size, it's about what do they need? Can we service that well?" — Karla Lewis (CEO)
Border wall run rate, imports, share gains
Q (Lawson Winder · BofA): Analyst asked how long the Q3 border wall run rate can be sustained. He also asked whether customers will use more imported steel given supply constraints and where Reliance is winning share in 2026 and why.
A: They said Phase 1 was $1.45 billion and the initial expectation was for that to run through Q2 2027; at the current run rate they expect to fulfill Phase 1 sometime in Q2 and Phase 2 is estimated at $800 million with bookings already secured for over half. They said they prefer domestic suppliers and will keep buying locally and regionally, though some import material is used in certain markets; industry participants are cautious about a flood of imports. On share gains, they said gains were fairly broad-based, especially on the carbon side (flat-rolled, plate, long products), and they believe they are winning because of customer service and providing solutions.
"So we think this should run through 2027, depending if they execute the full amount of Phase 2, it could run into early 2028." — Karla Lewis (CEO)