Reliance Inc.

Strong Q2 performance (best-in-class execution) - Revenue grew +27% YoY on stronger-than-anticipated shipment volumes and pricing. - Non-GAAP gross profit: $1.3B, up +11% vs. Q1 2026 and +20% vs. Q2 2025. - Non-GAAP pretax income: $429M, up +40% YoY. - Non-GAAP EPS: $6.27, up +42% YoY (highest EPS result since Q2 2023). - Profitability supports the story of pricing + operating leverage, plus continued industry outperformance.

U.S. DHS border wall contract is the key driver of upside (and mix/profit effects) - Border wall shipments accounted for ~5.1% of Q2 volumes (company also cited ~5.1 percentage point contribution to the sequential ton growth). - Tons sold increased +7% sequentially and +10.8% YoY (vs. prior expectation of +1% to +3% sequentially). - Q3 volume contribution: company expects additional ~2% improvement in Q3 and indicated the contract should operate near a full shipment run rate into mid-2027, subject to metal supply and customer inventory drawdown speed. - Profit impact: border wall contributed ~41 cents per diluted share; company expects project margin/OpEx efficiency to hold as volumes scale (higher volumes can improve efficiency).

Guidance/outlook: Q3 EPS growth expected; full-year capex steady - Q3 2026 non-GAAP EPS forecast: $6.40 to $6.60, up +76% to +81% YoY. - Q3 includes estimated LIFO expense ~$75M or ~$1.10 per diluted share (so LIFO remains an important swing factor). - Longer-term demand optimism: improving infrastructure, plus semiconductor, general manufacturing, aerospace; company believes it is well-positioned through H2 2026 into next year. - Full-year 2026 capex: ~$300M, with about half allocated to strategic growth investments (processing capabilities, footprint expansion, service improvements).