Reliance, Inc. Reports Financial Triumph in 2024, Reflecting Resilient Strategies Amid Challenges
Reliance, Inc. (NYSE: RS) has showcased a notable financial performance for the year 2024, marking the third-highest annual cash flow from operations in its history at $1.43 billion. The company repurchased a record $1.09 billion of common stock, reducing its outstanding shares by 6%. Despite a decrease in average selling price per ton sold, Reliance managed to grow its annual net sales to $13.84 billion and sold 4.0% more tons than the previous year, positioning itself as a leader in its industry.
The company’s gross profit margin stood strong at 29.7%, reflecting effective management and operational discipline, while its non-GAAP EPS reached $15.92 for the year. The strong fourth-quarter results were attributed to better-than-expected shipment levels, an increase in gross profit margin, and strategic investments in acquisitions and capital expenditures. Reliance’s ability to effectively navigate through a challenging metals pricing environment also stood out, as it achieved its sales and earnings goals through its emphasis on profitable growth.
Reliance continued its path of smart expansion with the completion of four acquisitions that added $286.2 million to its net sales, expanding its geographic base and value-added processing capabilities. This growth strategy, combined with strong demand from sectors such as non-residential construction, industrial machinery, military, and aerospace, helped drive positive results across various end markets.
Despite some challenges, including a slight dip in tons sold in Q4 2024 and reduced demand in the semiconductor market, Reliance remains confident about its future. The company projects stable demand in critical sectors like commercial aerospace, military, and automotive toll processing services, setting the stage for a promising first quarter in 2025.
Key Takeaways:
• Annual Cash Flow: Reliance reported $1.43 billion in operating cash flow, marking the third-highest in company history.
• Share Repurchases: A record $1.09 billion in common stock repurchases in 2024 led to a 6% reduction in outstanding shares.
• Net Sales Growth: The company achieved $13.84 billion in net sales for the year, despite a 6.6% decrease compared to 2023.
• Gross Profit Margin: Annual gross profit margin stood at 29.7%, reflecting solid operational performance.
• Earnings Per Share (EPS): Diluted EPS for the year was $15.56, with a non-GAAP EPS of $15.92.
• Acquisitions: Reliance completed four acquisitions in 2024, expanding its reach and capabilities by adding $286.2 million in net sales.
• Dividend Increase: The quarterly dividend was increased by 9.1% to $1.20 per share, marking an annual dividend of $4.80.
• Tons Sold: Tons sold in 2024 increased by 4.0% year-over-year, with a 1.0% increase in same-store tons sold.
• Sector Performance: Strong performance was noted in non-residential construction, aerospace, military, and industrial machinery sectors.
• Macro Outlook: Reliance anticipates stable demand in key sectors like aerospace and automotive, with continued challenges in the semiconductor market.
