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Item 1 of 2 An Estee Lauder cosmetics counter is seen in Los Angeles, California, U.S., August 19, 2019. REUTERS/Lucy Nicholson/File Photo

[1/2]An Estee Lauder cosmetics counter is seen in Los Angeles, California, U.S., August 19, 2019. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesCharlotte Tilbury stake proved a stumbling block, sources sayEstée Lauder shares rise after deal collapses, Puig fallsTalks had continued for months and agreed on some issuesLONDON/NEW YORK, May 22 (Reuters) - U.S. cosmetics maker Estée Lauder (EL.N), opens new tab and Spanish perfume group Puig (PUIGb.MC), opens new tab had ​been finalising the details of a deal when talks fell apart late on Thursday, preventing a merger that would ‌have created a $40 billion luxury beauty giant.

The merged company would have put together brands such as Tom Ford, Clinique and MAC with Carolina Herrera and Charlotte Tilbury, popular with TikTok influencers and affluent millennials.

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But leaks, disagreements between the powerful controlling families, and demands, including from make-up magnate Charlotte Tilbury, led the talks ​to collapse, five people with direct knowledge of the deal told Reuters.

On Thursday evening in Barcelona, and morning in New ​York, Puig grandee Marc Puig got on the phone with Estée Lauder chairman William Lauder to assess the ⁠deteriorating situation, one of the sources said.

Shortly afterwards, advisers on both sides began exchanging messages, according to a second source with knowledge ​of the discussions. One of the messages included a skull emoji meaning the deal was dead.

Spokespeople at Puig and Estée Lauder declined to ​comment.

CHARLOTTE TILBURY'S MINORITY STAKEThe latest stumbling block had been demands linked to Charlotte Tilbury, the founder of the eponymous beauty brand majority-owned by Puig, regarding the terms of her minority stake, all five sources said.

Charlotte Tilbury's firm declined to comment.

The five sources, close to both sides of the talks, spoke on condition of ​anonymity because the process was confidential.

Three of the people said the two groups had repeatedly been about to announce a merger.

Estée Lauder ​had assembled a team of advisers who worked through last weekend on a valuation of Puig, requested by Spain's stock market regulator as part of the ‌proposed ⁠transaction, according to one of the sources.

MONTHS OF NEGOTIATIONS ACROSS CONTINENTSDiscussions between the two sides began late last year, one of the sources said.

When they became public knowledge in March, investors viewed the prospect of a deal as better for Puig than Estée Lauder. Puig's shares spiked and the U.S. company's shares fell.

The reverse happened after the talks collapsed as Estée Lauder rose around 10% on Friday, while Puig fell 13%.

Estee Lauder and Puig sharesEstée ​Lauder investors' dislike of the ​deal was another factor that ⁠hindered the talks, according to three sources.

The company's return to stronger earnings growth in its most recent quarter meanwhile increased its confidence in remaining independent, the three sources added.

The months of negotiations included meetings in ​Paris, New York and Barcelona, and achieved apparent agreement in principle on issues such as the ​governance of the ⁠new entity.

Other points discussed included a possible dual listing in New York and Madrid, retaining Barcelona as the headquarters for the combined fragrances business, and details on how to reach the synergies of the combined company, two of the people said.

Both founding families, Lauder and Puig, wanted to keep ⁠a say ​in the new group, according to two sources with knowledge.

The companies also struggled ​to resolve how to structure assets such as Charlotte Tilbury and sun care brand Isdin - two of Puig's main profit-drivers, in which the group does not hold full ownership, ​two of the sources said.

Reporting by Andres Gonzalez and Abigail Summerville; Editing by Adam Jourdan, Anousha Sakoui and Barbara Lewis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Andres Gonzalez covers M&A for Reuters, based in London. With over 12 years of experience as a correspondent in Spain, he has reported on diverse sectors, including banking, TMT, energy, infrastructure and real estate. Andres has also reported on significant breaking news events, such as the Barcelona attacks and several general elections, showcasing his versatility and ability to handle critical and time-sensitive stories Andres' journalism career began at Reuters in Spain, where he honed his expertise in financial reporting. Seeking new challenges, he ventured into the world of Public Relations, working for Banco Santander with a particular focus on Wealth Management and Investment Banking divisions. His experience in both journalism and PR has provided him with a well-rounded perspective on the financial industry.

Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University.

Estee Lauder (EL - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, EL broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

EL has rallied 13.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests EL could be on the verge of another move higher.

Looking at EL's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 10 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on EL for more gains in the near future.

On Friday, AbbVie announced a positive CHMP opinion for Maviret to treat acute hepatitis C infection.

On Thursday, GE Vernova signed an agreement to acquire Robotech Automation, a specialized robotics and automation company based near Montreal, Quebec.

Archer-Daniels-Midland reported better-than-expected first-quarter financial results on May 5 and raised its FY26 adjusted EPS guidance, with the midpoint above estimates.

Don't forget to check out our premarket coverage here

Jenny Van Leeuwen Harrington, chief executive officer of Gilman Hill Asset Management, LLC, said Millrose Properties, Inc. (NYSE:MRP) has an 11% dividend yield.

On the earnings front, Millrose Properties reported worse-than-expected first-quarter financial results on May 6.

Stephanie Link, chief investment strategist, head of investment solutions, and portfolio manager at Hightower Advisors, recommended The Estée Lauder Companies Inc. (NYSE:EL).

Estée Lauder shares jumped on Friday after the company announced it terminated discussions regarding a potential business combination with Puig.

Price Action AbbVie shares gained 0.6% to close at $215.70 on Friday. GE Vernova fell 0.5% to settle at $1,038.74 during the session. Archer-Daniels-Midland shares gained 05% to close at $77.52 on Friday. Millrose Properties shares rose 0.3% to close at $27.63. Estée Lauder shares jumped 11.9% to settle at $88.32 on Friday. Photo via Shutterstock

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Key Takeaways EL posted 2% organic sales growth and 360-bps adjusted operating margin expansion in Q3.Estee Lauder saw double-digit online sales growth from Amazon, TikTok Shop and Sephora in Q3.EL is simplifying operations and reducing non-consumer-facing costs under its Profit Recovery and Growth Plan. The Estee Lauder Companies Inc.’s (EL - Free Report) Beauty Reimagined strategy is showing early traction, with management positioning fiscal 2026 as a pivotal year for restoring growth and expanding margins. In the third quarter of fiscal 2026, Estee Lauder delivered 2% organic sales growth alongside a 360-basis-point expansion in adjusted operating margin, reflecting early success from its broad transformation efforts.

At the center of the strategy is Estee Lauder’s effort to modernize consumer reach and improve execution across channels, innovation and operations. The company has accelerated expansion on platforms like Amazon Premium Beauty, TikTok Shop and Douyin while increasing specialty-multi exposure through M·A·C’s U.S. Sephora rollout. These initiatives helped drive double-digit online organic sales growth in the fiscal third quarter.

Innovation has also become a more focused growth lever under Beauty Reimagined. Strong momentum in fragrance, which grew double digits in the quarter, was fueled by launches from Le Labo, TOM FORD, KILIAN PARIS and BALMAIN Beauty. Meanwhile, Estee Lauder’s revamped Double Wear foundation and La Mer’s eye-care innovation supported share gains in key markets such as Mainland China and the United States.

Importantly, the strategy is not solely growth-oriented. Estee Lauder is restructuring its operating model to improve efficiency and fund reinvestment in high-return areas. Through its Profit Recovery and Growth Plan, the company is reducing non-consumer-facing expenses, simplifying operations and increasing digital capabilities through partnerships with Shopify, Accenture and WPP.

Management now expects fiscal 2026 to be a pivotal year for the company, marked by the restoration of organic sales growth and its first operating-margin expansion in four years. While macroeconomic and geopolitical risks remain, Beauty Reimagined appears to be creating a more agile, digitally focused and consumer-centric operating model for Estee Lauder.

Estee Lauder’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #1 (Strong Buy) company have gained 20.1% in the past month compared with the broader Consumer Staples sector and the industry’s growth of 4.7% and 15.3%, respectively. EL has also outperformed the S&P 500 index’s growth of 5.8% during the same period.

EL Stock's Past Month Performance
Image Source: Zacks Investment Research

Is Estee Lauder a Value Play Stock?EL currently trades at a forward 12-month P/E ratio of 29.21 compared with the industry average of 23.24. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.

EL P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Other Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 8.3% and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.

The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.7%, on average.

The Zacks Consensus Estimate for Vita Coco’s 2026 sales and earnings indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.

Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken and Prepared Foods. TSN currently carries a Zacks Rank #2 (Buy). TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.

The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 4.5% and 0.5%, respectively, from the year-ago reported numbers.

The beauty industry is undergoing a shift as digital and physical retail merge into a single consumer experience. This leaves many investors wondering whether they should favor Ulta Beauty (ULTA 1.82%) or The Estée Lauder Companies (EL +1.89%).

The beauty sector remains a resilient corner of the consumer market, yet these two companies approach the opportunity from opposite ends of the supply chain. One thrives as a massive retail platform while the other operates as a global brand manufacturer. Understanding their different business models is essential for any investor weighing a position in the beauty space.

The case for Ulta BeautyUlta Beauty operates as a premier destination for beauty enthusiasts, combining luxury and mass-market products under one roof. The company maintains more than 1,500 store locations and offers everything from cosmetics and fragrance to professional salon services. By catering to diverse price points and offering a popular loyalty program, it has established itself as a leading player among U.S. retail stocks.

In FY 2025, the company reported revenue of nearly $12.4 billion, which represented a growth of approximately 9.7% over the previous year. This expansion helped generate net income of roughly $1.2 billion for the period. While the net margin decreased slightly to about 9.3% from 10.6% in the prior year, the business remained consistently profitable despite a more cautious consumer environment.

As of its January 2026 balance sheet, the debt-to-equity ratio was roughly 0.8x, a measure of total debt relative to what shareholders own in the company. The current ratio, which compares short-term assets to liabilities, stood at approximately 1.4x, indicating a healthy liquidity position. The company also generated free cash flow of nearly $1.1 billion during the fiscal year, providing capital for further store expansions and technological upgrades.

The Estée Lauder Companies is a global powerhouse that manufactures and markets prestige skin care, makeup, and fragrances. Its portfolio includes world-renowned brands sold across 150 countries, with a heavy presence in department stores and international travel retail hubs. The company relies on its high-end brand equity and long-standing history to maintain a dominant position in the global beauty market.

For the income period of FY 2025, revenue reached nearly $14.3 billion, a decline of roughly 8.5% compared to the prior year. This drop contributed to a net loss of approximately $1.1 billion, compared to a net income of $390.0 million in the previous year. The net margin for this period was roughly negative 7.9%, highlighting the significant challenges the company faced in key markets like Mainland China.

According to its June 2025 balance sheet, the company carries a debt-to-equity ratio of nearly 2.4x, which compares its total debt to its total shareholder equity. Its current ratio, indicating the ability to cover short-term obligations with current assets, is roughly 1.3x. Free cash flow for the year was approximately $670.0 million, though stock-based compensation accounted for roughly 23.9% of operating cash flow, which inflates reported cash generation because SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonUlta Beauty faces vigorous competition from mass merchandisers like Target and online marketplaces such as Amazon. The company also deals with significant vendor concentration, as products from its top 10 partners accounted for roughly 51% of net sales in FY 2025. Any disruption in supply chain infrastructure or a failure to adapt to emerging artificial intelligence technologies could further impact its competitive standing.

The Estée Lauder Companies is sensitive to the ongoing decline in foot traffic at department stores, which has increased its dependence on a shrinking number of key retailers. It competes globally against large firms like L'Oreal as well as emerging indie brands that often capture younger consumers more effectively. Furthermore, the company faces risks related to international operations and the complexities of managing data privacy within its digital infrastructure.

Valuation comparisonUlta Beauty appears to offer a more conservative valuation based on its Forward P/E and P/S ratio, while Estée Lauder carries a higher premium.

MetricUlta BeautyThe Estée Lauder CompaniesSector BenchmarkForward P/E17.6x36.7x31.2xP/S ratio1.8x2.3xSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?Ulta Beauty and Estée Lauder both operate in the beauty industry, but they offer investors very different opportunities. One operates a popular retail business while the other sells its products in other companies’ retail locations. Which stock will beautify your portfolio this year?

Ulta shops are standalone retail locations, often in strip malls, that sell a wide range of products from inexpensive mass-market brands to luxury cosmetics. It has a popular loyalty program and also sells online. By selling products at a range of price points, it remains resilient even during economic downturns because shoppers often continue buying beauty products.

Estée Lauder owns a portfolio of luxury beauty brands. But it sells in other companies’ retail locations, including department stores, which have fallen out of favor in recent years. Weaker international markets have resulted in stock price declines. Its management is making plans to restructure and improve efficiency, and if they succeed, the stock could see substantial growth.

I would choose Ulta Beauty because its retail model seems much more resilient than Estée Lauder’s. It has strong customer engagement across a wide variety of products at every price point, from a $2 lip gloss to a $200 bottle of perfume, for example. By contrast, Estée Lauder -- while very well known and respected -- depends on a narrower customer base and distribution channels. While Estée Lauder could generate higher returns if its turnaround strategy succeeds, Ulta appears to offer a better balance of stability, growth, and risk.

The Estée Lauder Companies Inc. (EL) Presents at 23rd annual dbAccess Global Consumer Conference Transcript

Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

Shareholders should contact the firm immediately as there may be limited time to enforce your rights.

, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of The Estee Lauder Companies, Inc. (NYSE: EL) breached their fiduciary duties to shareholders.

If you currently own Estee Lauder stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected]. Our firm would handle the action on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

Why Your Participation Matters:

Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.

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Attorney Advertising. Prior results do not guarantee a similar outcome.

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PETERSFIELD, England--(BUSINESS WIRE)--As The Estée Lauder Companies’ (NYSE: EL) Whitman manufacturing facility celebrates its 60th anniversary, the company today announced a strategic investment that will strengthen its UK manufacturing network, further reinforcing its long-standing commitment to British craftsmanship, innovation, and growth in prestige fragrance.

Established in 1966, Whitman is a strategic part of The Estée Lauder Companies’ global manufacturing network, producing skin care and fragrance products for brands including Jo Malone London, Estée Lauder, Clinique, and La Mer. Today, the site produces more than 90 million units annually for distribution across the UK, Europe, and other select markets worldwide.

“For sixty years, Whitman has reflected the craftsmanship, quality, and innovation that have defined The Estée Lauder Companies since my grandparents founded the business,” said William P. Lauder, Chair of the Board of Directors, The Estée Lauder Companies. “When my family established our manufacturing footprint here in 1966, we recognized the remarkable depth of British artisanal skill, and we are proud to continue investing in that legacy today.”

As The Estée Lauder Companies continues to invest in Whitman’s future, the company will integrate select luxury candle and home fragrance capabilities from long-standing partner and creator of luxury candles and scent diffusers, Contract Candles, into its UK manufacturing operations. This includes assuming the lease of one of Contract Candles’ two UK facilities, welcoming approximately 50 employees into the organization over time, and adding new research and development and quality capabilities.

Following the integration, the UK will serve as the primary manufacturing base for candles across The Estée Lauder Companies’ prestige brand portfolio worldwide, including the Jo Malone London, TOM FORD and AERIN brands. The investment enhances operational control and long-term resilience in a strategically important category while reinforcing the UK as a center of excellence for fragrance craftsmanship and manufacturing.

Speaking during Whitman’s 60th anniversary celebration, Roberto Canevari, Executive Vice President, Chief Value Chain Officer, The Estée Lauder Companies, said: “The UK plays a significant role in our global manufacturing network, and this investment in candle and home fragrance manufacturing reflects our continued commitment to British craftsmanship and innovation. Bringing these activities more closely into our manufacturing network will strengthen resilience and support our ability to continue delivering the exceptional quality and artistry that define our brands."

Home fragrance continues to represent a growth opportunity across The Estée Lauder Companies’ portfolio of fragrance brands, driven by expanding consumer interest in premium scent experiences and elevated home environments. This is particularly notable for Jo Malone London, a quintessentially British brand and the number-one luxury home fragrance brand in the UK across home scents and fragrance ancillaries. Six of the UK’s top 10 home fragrance franchises also belong to Jo Malone London.* The brand’s iconic candles are expertly crafted in the UK — reflecting a longstanding commitment to British craftsmanship and artisanal expertise.

The integration of these activities further strengthens The Estée Lauder Companies’ manufacturing ecosystem and reinforces the company’s commitment to resilient, high-quality UK manufacturing within its broader global manufacturing network.

Since fiscal 2020, The Estée Lauder Companies has invested $72 million in its Whitman facility across automation, quality systems, sustainability initiatives, and advanced manufacturing capabilities, alongside apprenticeship and STEM outreach programs in partnership with local universities.

About The Estée Lauder Companies Inc.

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers, and sellers of quality skin care, makeup, fragrance, and hair care products, and is a steward of luxury and prestige brands globally. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, the DECIEM family of brands, including The Ordinary and NIOD, and BALMAIN Beauty.

*Source: Circana, LLC, UK Prestige Beauty, Fragrance Category, Fragrance Home Scents and Fragranced Ancillaries Combined, (Excluding Non-Branded Home Scents) Parent Brand, ELC Luxury Definition 2026, Sterling Sales, April 2025 – March 2026.

ELC-C

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Tencent Music Entertainment Group Sponsored ADR (NYSE: TME - Get Free Report) was the target of unusually large options trading activity on Wednesday. Traders bought 2,335 call options on the company. This is an increase of 23% compared to the typical daily volume of 1,906 call options. Tencent Music Entertainment Group Stock Down 9.5% Shares of

Shares of Tencent Music Entertainment (TME 0.43%) fell 28.8% this week through 3:30 p.m. Friday, according to data from S&P Global Market Intelligence.

Tencent Music is sometimes regarded as the "Spotify (SPOT 1.07%) of China," since it's the leading streaming music subscription service in the country. However, Tencent Music's business is a bit different, as it also generates revenue from social music interactions, such as karaoke tipping and other interactive services.

This week, Tencent Music held its fourth-quarter earnings. While the headline numbers themselves weren't bad, some concerns emerged over certain KPIs (key performance indicators). Management also said it would no longer disclose certain KPIs going forward, fueling more investor skepticism.

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Subscriber deceleration overshadows a revenue beat In the fourth quarter, Tencent Music grew revenue 15.9% to $1.24 billion, which beat expectations, while adjusted (non-GAAP) earnings per American Depositary Share (ADS) were up a lower 8.8%, just meeting expectations.

Whenever a company grows profits at a lower rate than revenues, it could suggest that it's feeling competitive pressure. Moreover, investors appeared concerned about the slowdown in the subscription business, which grew just 13.2%, down from roughly 17% in the prior quarter. In general, investors like to see more revenue from subscriptions, which are perceived as "recurring" and higher quality, rather than advertising or other services that may be cyclical or more fleeting.

Adding to the anxiety was Tencent Music saying that it would no longer disclose quarterly online music monthly active users (MAUs), the number of paying users, or average revenue per user (ARPU). Instead, Tencent Music will only disclose total paying users at the end of each year.

As justification, management wrote:

... our business model has significantly evolved in recent years. As advertising and other IP-related offerings scale, and as we offer multi-tiered membership for online music subscriptions, the business impact of each paid membership varies. As a result, we are increasingly focused on revenue and profit as our primary performance indicators.

Investors never tend to like it when management discloses less about a business, so it's no surprise the stock sold off.

Image source: Getty Images.

Has TME gotten too cheap? After the sell-off, Tencent Music's stock trades at just 11.5 times trailing adjusted earnings per ADS.

That seems too cheap for the stock, which, even though revenue and earnings are slowing, did manage to grow adjusted earnings by close to 22% for the full year in 2025.

In short, the sell-off sparked by the removal of certain disclosures may create an opportunity for value investors to buy Tencent Music stock at a very cheap price today -- that is, for those comfortable owning Chinese stocks in their portfolio.

Tencent Music Entertainment Group NYSE: TME is China’s music streaming leader, amassing a huge market share. The entertainment company boasts approximately 528 million monthly active users (MAUs) and generated $1 billion in revenue from online music services in its latest quarter.

Tencent Music Entertainment Group Today

TME

Tencent Music Entertainment Group

$9.22 -0.05 (-0.49%)

As of 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$8.44▼

$26.70Dividend Yield2.50%

P/E Ratio11.52

Price Target$21.44

Meanwhile, the company’s top competitor, NetEase NASDAQ: NTES, brought in just $282 million in music revenue. With such a wide lead in revenue share, the “Spotify of China” is a fitting moniker for Tencent Music Entertainment.

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However, unlike Spotify Technology NYSE: SPOT, an emerging competitor is taking serious swings at TME’s dominance, frightening investors. This has been one of the key factors that have caused the stock to fall more than 60% from its 52-week high. However, given this name’s precipitous decline, there is reason to believe markets are overly pessimistic about TME’s future. At current levels, the stock may be able to stage a significant recovery.

Is Bytedance Sinking Its Teeth Into TME’s Users? In its latest quarter, TME put up solid results. Revenues rose by just under 16% year over year (YOY) to $1.24 billion, exceeding estimates near $1.23 billion. Adjusted earnings per depository share rose by 9% to 23 cents per share, in line with estimates. Despite these figures being well within expectations, shares fell 32% in the two days following the results. Investors seem to be worrying about a threat bubbling under the surface.

Bytedance is one of the largest privately owned companies in the world, recently valued at $550 billion. For reference, this figure is around $100 billion higher than the market capitalization of Costco Wholesale NASDAQ: COST. The company rose to prominence by creating TikTok.

Bytedance subsidiary Douyin (the Chinese version of TikTok) has been scaling its Soda Music platform at a breakneck clip. Its MAUs reached 120 million in September 2025, good for YOY growth of 90%. Six months later, that figure reportedly has increased to 140 million.

Especially when considering the trajectory of TME’s user base, it makes some sense why market participants are running for the hills. Although revenues rose strongly, Tencent saw a 5% YOY decrease in its MAUs in Q4 2025. This marks a continued acceleration in MAU decline, with the figure dropping by 4.3% in Q3 2025 and 3.2% in Q2 2025.

Many investors are likely worried that these users are defecting to Soda Music and that this decline will gain more momentum. As user count declines, TME’s monetizable base also falls, leading to concerns around the company’s future growth.

However, several factors suggest the reaction to these fears is overblown.

TME’S High Value Strategy Is Translating into Financial Gains Although Tencent's total MAUs are falling, the company's paying users are on the rise. Paying users increased during the quarter by 5.3% YOY to 127 million. Paying users are also increasing how much they spend. The company’s monthly average revenue per paying user increased by 7.2% YOY to approximately $1.70.

This shows that although low-value, non-paying users are falling, high-value paying users continue to increase. This dynamic is generating growth and greater profits at Tencent, despite what is happening at Soda Music. This comes as Soda specifically targets free and low-tier users, and the company has a “far inferior” content library compared to Tencent.

Rather than licensing large amounts of full-scale albums and rights, the firm leverages Douyin for much of its content. When Douyin creators release short-form videos featuring songs, users can seamlessly transition to Soda Music to listen to the whole track. In contrast, TME invests heavily in relationships with top-tier music labels and artists.

TME is offering a premium service, while Soda Music is attracting users further down the value chain. As the companies are targeting two fundamentally different types of listeners, it stands to reason that both firms can continue to grow in their niches. This is especially true for TME, considering that although total users are falling, they still far exceed paying users. At 528 million total users versus 127 million paying users, the firm still has a very large pool of more than 400 million non-paying users it can convert.

Still, there is a threat that Soda Music could look to target high-value users over time by expanding its offerings.

TME: Further Growth Could Lead to Significant Gains Overall, TME’s ability to continue growing is key when considering its valuation. Shares have fallen so far that they suggest the firm will see negative free cash flow growth over a multi-year period. Meanwhile, free cash flow has grown at a compound annual rate of around 11% over the past few years. However, growth did slow to 7.3% in 2025.

Tencent Music Entertainment Group Sponsored ADR (TME) Price Chart for Friday, June, 12, 2026

Still, markets seem to be pricing in a situation that is more bearish than the evidence suggests. With TME continuing to grow revenue and profits through high-value users, there is a significant chance that free cash flow can continue expanding as well. Should this play out, substantial long-term upside could be in store.

Notably, Wall Street analysts disagree on TME’s outlook. The MarketBeat consensus price target near $22 implies huge upside near 140%. However, targets updated after the company’s earnings report range from $12 to $23. The average of these targets is above $17, still implying more than 80% upside.

Should You Invest $1,000 in Tencent Music Entertainment Group Right Now?Before you consider Tencent Music Entertainment Group, you'll want to hear this.

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Investors in Tencent Music Entertainment Group (TME - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Apr 17, 2026 $33 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Tencent Music Entertainment shares, but what is the fundamental picture for the company? Currently, Tencent Music Entertainment is a Zacks Rank #4 (Sell) in the Media Conglomerates industry that ranks in the Top 26% of our Zacks Industry Rank. Over the last 30 days, no analysts have increased their earnings estimates for the current quarter, while two analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 23 cents per share to 21 cents in that period.

Given the way analysts feel about Tencent Music Entertainment right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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Published in consumer-discretionary

, /PRNewswire/ -- Tencent Music Entertainment Group ("TME", or the "Company") (NYSE: TME and HKEX: 1698), the leading online music and audio entertainment platform in China, today announced that it has filed its annual report on Form 20-F that includes its audited financial statements for the fiscal year ended December 31, 2025 with the Securities and Exchange Commission (the "SEC") on April 17, 2026, U. S. Eastern Time.

The annual report can be accessed on TME's investor relations website at ir.tencentmusic.com and on the SEC's website at www.sec.gov. The Company will also provide a hard copy of the annual report containing its audited consolidated financial statements, free of charge, to its shareholders and American Depositary Share holders upon request.

About Tencent Music Entertainment

Tencent Music Entertainment Group (NYSE: TME and HKEX: 1698) is the leading online music and audio entertainment platform in China, operating the country's highly popular and innovative music apps: QQ Music, Kugou Music, Kuwo Music and WeSing. TME's mission is to create endless possibilities with music and technology. TME's platform comprises online music, online audio, online karaoke, music-centric live streaming and online concert services, enabling music fans to discover, listen, sing, watch, perform and socialize around music. For more information, please visit ir.tencentmusic.com.

Investor Relations Contact
Tencent Music Entertainment Group
[email protected]
+86 (755) 8601-3388 ext. 885034

SOURCE Tencent Music Entertainment Group

Posted by Defense World Staff on Apr 27th, 2026

Shares of Tencent Music Entertainment Group Sponsored ADR (NYSE:TME – Get Free Report) have received an average recommendation of “Hold” from the fourteen brokerages that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation and six have given a buy recommendation to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $22.0250.

Several research firms recently commented on TME. Morgan Stanley reaffirmed an “equal weight” rating on shares of Tencent Music Entertainment Group in a research report on Thursday, March 19th. Zacks Research lowered shares of Tencent Music Entertainment Group from a “hold” rating to a “strong sell” rating in a research note on Friday, April 17th. Benchmark reiterated a “hold” rating on shares of Tencent Music Entertainment Group in a research note on Wednesday, March 18th. Barclays lowered their price target on shares of Tencent Music Entertainment Group from $28.00 to $20.00 and set an “overweight” rating on the stock in a research note on Thursday, March 19th. Finally, Mizuho lowered their price target on shares of Tencent Music Entertainment Group from $28.00 to $23.00 and set an “outperform” rating on the stock in a research note on Wednesday, March 18th.

View Our Latest Research Report on Tencent Music Entertainment Group

Tencent Music Entertainment Group Trading Down 0.0% TME opened at $9.34 on Monday. The stock has a market capitalization of $14.46 billion, a P/E ratio of 9.43, a P/E/G ratio of 0.61 and a beta of 0.80. Tencent Music Entertainment Group has a 12 month low of $8.78 and a 12 month high of $26.70. The firm’s fifty day simple moving average is $11.69 and its 200 day simple moving average is $16.33. The company has a current ratio of 2.22, a quick ratio of 2.22 and a debt-to-equity ratio of 0.04.

Tencent Music Entertainment Group Increases Dividend The firm also recently declared an annual dividend, which was paid on Thursday, April 23rd. Shareholders of record on Thursday, April 2nd were paid a $0.24 dividend. This represents a yield of 262.0%. The ex-dividend date was Thursday, April 2nd. This is an increase from Tencent Music Entertainment Group’s previous annual dividend of $0.18. Tencent Music Entertainment Group’s dividend payout ratio (DPR) is presently 23.23%.

Institutional Investors Weigh In On Tencent Music Entertainment Group Several hedge funds and other institutional investors have recently added to or reduced their stakes in TME. Robeco Institutional Asset Management B.V. increased its stake in shares of Tencent Music Entertainment Group by 7.3% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 5,706,740 shares of the company’s stock worth $100,039,000 after purchasing an additional 387,109 shares during the last quarter. SG Americas Securities LLC increased its stake in shares of Tencent Music Entertainment Group by 85.7% during the 4th quarter. SG Americas Securities LLC now owns 542,198 shares of the company’s stock worth $9,505,000 after purchasing an additional 250,261 shares during the last quarter. Green Court Capital Management Ltd increased its stake in shares of Tencent Music Entertainment Group by 93.1% during the 3rd quarter. Green Court Capital Management Ltd now owns 1,039,078 shares of the company’s stock worth $24,252,000 after purchasing an additional 501,078 shares during the last quarter. Campbell & CO Investment Adviser LLC acquired a new position in shares of Tencent Music Entertainment Group during the 3rd quarter worth about $4,257,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Tencent Music Entertainment Group by 414.3% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,130,608 shares of the company’s stock worth $19,820,000 after purchasing an additional 910,767 shares during the last quarter. 24.32% of the stock is currently owned by institutional investors and hedge funds.

About Tencent Music Entertainment Group (Get Free Report)

Tencent Music Entertainment Group (NYSE: TME) is a China-based digital music and audio entertainment platform that operates a portfolio of leading music streaming and social entertainment services. Its core consumer-facing products include streaming apps, online karaoke (KTV) services and live music and entertainment broadcasts. The company monetizes its content through a mix of subscriptions, digital music sales, in-app purchases, virtual gifting, advertising and licensing arrangements with rights holders.

The company traces its roots to the consolidation of Tencent’s music assets and was established in the mid-2010s to unify several prominent music properties under a single operating entity.

See Also Five stocks we like better than Tencent Music Entertainment Group

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• Tencent Music stock is trading at depressed levels. Where is TME stock headed?.

Analyst Flags Slowing Growth TrendsJiang noted on Wednesday that Tencent Music delivered largely in-line first-quarter 2026 results, with revenue rising 7% year-over-year to 7.9 billion Chinese yuan (~ $1,163,312,920).

Online music services revenue increased 12%, supported mainly by non-subscription businesses, while subscription growth slowed to 8% from 13% in the previous quarter.

She added that non-subscription music revenue climbed 23% year over year due to strong demand for live events, merchandise, and fan-focused offerings, while social entertainment revenue fell 11%.

Adjusted profit per ADS came in at 1.46 Chinese yuan (21 cents), matching consensus estimates.

Jiang Cuts Second-Quarter Revenue OutlookJiang lowered the second-quarter revenue growth forecast to 4% Y/Y from 9% previously, citing mounting industry headwinds and intensifying competition.

She also reduced her subscription growth projection to 3% from 6%, saying changing consumption trends are pressuring customer conversion and retention.

While Jiang remains positive on momentum in concerts and live events, she warned that advertising demand, fan monetization, and IP-related revenue could face near-term pressure.

Jiang added that rapid AI-driven changes in content creation and distribution, along with rising piracy risks, are creating additional uncertainty for Tencent Music's revenue outlook.

Ximalaya Deal Could Support FY26 OutlookJiang said the pending Ximalaya acquisition could help stabilize Tencent Music's 2026 outlook after receiving conditional approval from China's SAMR regulator.

She noted that the deal could add revenue and profit contributions that offset weaker organic growth trends, particularly in subscriptions and advertising.

However, Jiang said she wants clearer visibility into deal execution, financial impact and potential synergies before becoming more constructive on the stock.

TME Price Action: Tencent Music shares were down 1.38% at $8.94 at the time of publication on Wednesday. The stock is trading near its 52-week low of $8.74, according to Benzinga Pro data.

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Key Takeaways RS has completed 76 acquisitions since 1994, expanding products and value-added processing.RS repurchased $594.1M worth of shares in 2025, raised its dividend 4.2% and ended 2025 with $216.6M in cash.RS faces headwinds from soft semiconductor and aerospace demand and higher aluminum costs. Reliance, Inc. (RS - Free Report) benefits from growth led by strategic acquisitions, a diversified business and product portfolio, and strong liquidity amid headwinds from weakness in select markets and cost pressures caused by tariffs.

RS’ shares have gained 3.5% in the past year compared with the Zacks Mining – Miscellaneous industry’s 38.6% rise.

Image Source: Zacks Investment Research

Let’s find out why RS stock is worth retaining at the moment.

RS Stock Gains on Acquisitions & Strong LiquidityReliance benefits from a resilient business model serving diverse end markets, strong execution and a sustained push for growth through acquisitions. The company has long pursued an aggressive acquisition strategy as a core driver of operating performance, completing 76 deals since its 1994 IPO, expanding both its product mix and value-added processing capabilities.

The acquisitions of Rotax Metals, Admiral Metals and Nu-Tech Precision Metals align with its strategy of investing in high-quality businesses. The buyout of Southern Steel Supply also expanded the company’s reach in the Southern United States and boosted its value-added processing services.

The buyout of Cooksey Iron & Metal Co boosts Reliance's presence in the fast-growing Southeastern market. The acquisition of American Alloy has expanded Reliance's product portfolio with specialty carbon steel plates as well as new production capabilities. The integration of FerrouSouth’s tolling operations also enhanced its toll processing capabilities and expanded capacity for Feralloy’s existing operations in the Southeastern United States.

Meanwhile, demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened in the fourth quarter of 2025 compared with the prior-year quarter. The company expects demand in this sector to remain healthy through the first quarter of 2026, supported by ongoing investment in data centers, manufacturing facilities and public infrastructure projects.

The company’s strong liquidity position also allows it to drive shareholder value. Reliance repurchased approximately 716,000 shares of its common stock during the fourth quarter for $200.1 million. RS also bought back shares worth $594.1 million during 2025.

The company’s board, in February 2026, raised its quarterly dividend by 4.2% to $1.25 per share. RS ended 2025 with cash and cash equivalents of $216.6 million. It generated $831.4 million in cash flow from operations during 2025, aided by prudent working capital management and profitability. RS deployed $1.18 billion of capital toward stockholder returns and organic growth activities last year.

Demand and Cost Headwinds Ail RelianceWhile Reliance is experiencing growth across several key markets, the semiconductor segment remains a weak link. Demand stayed soft in the fourth quarter compared with the prior year, as elevated inventories across the supply chain continued to dampen activity. The company expects these headwinds to carry into the first quarter.

Demand in the commercial aerospace market also remains soft, weighed down by elevated inventory levels across the supply chain. While Reliance expects a gradual recovery in 2026 driven by higher build rates, weakness in this segment is likely to persist through the first quarter.

Reliance also faces challenges from aluminum cost inflation due to tariffs amid an elevated supply and soft demand environment. Higher-than-expected aluminum costs led to last-in, first-out (“LIFO”) expense of $114 million for 2025 compared with the company’s estimate of $100 million, weighing on margins. RS sees LIFO expense of $100 million in 2026, mainly from higher carbon and aluminum product costs.

RS’ Zacks Rank & Key PicksRS currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the Basic Materials space include DuPont de Nemours, Inc. (DD - Free Report) , Compass Minerals International, Inc. (CMP - Free Report) and Balchem Corporation (BCPC - Free Report) .

While DD and CMP sport a Zacks Rank #1 (Strong Buy) each at present, BCPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DD’s 2026 earnings is pegged at $2.28 per share, indicating an increase of 35.7% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 6.5%.

The Zacks Consensus Estimate for CMP’s current fiscal year earnings is pinned at 89 cents per share, indicating a 285.4% year-over-year increase. The Zacks Consensus Estimate for CMP’s current fiscal year earnings has been revised 27.1% upward over the past 60 days.

The Zacks Consensus Estimate for BCPC’s 2026 earnings is pinned at $5.47 per share, indicating a 6.2% year-over-year increase. The Zacks Consensus Estimate for BCPC’s 2026 earnings has been revised 1.1% upward over the past 60 days.

April 08, 2026 06:50 ET  | Source: Reliance, Inc.

PHOENIX, April 08, 2026 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE:RS) announced today that it will report first quarter 2026 financial results for the period ended March 31, 2026, on Wednesday, April 22, 2026, after the market closes. Reliance management will host a conference call on Thursday, April 23, 2026, at 11:00 a.m. Eastern Time. The call will be broadcast live over the Internet hosted on the Investors section of the Company's website at reliance.com.

Reliance, Inc. First Quarter 2026 Conference Call Details

DATE:   Thursday, April 23, 2026     TIME:   8:00 a.m. Pacific Time
10:00 a.m. Central Time
11:00 a.m. Eastern Time     DIAL-IN:   (877) 407-0792 (U.S. and Canada)
(201) 689-8263 (International)     CONFERENCE ID:   13759369     WEBCAST:   https://viavid.webcasts.com/starthere.jsp?ei=1756570&tp_key=f18bbb31dc       For those unable to participate during the live broadcast, a replay of the call will also be available beginning that same day at 2:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on May 7, 2026, by dialing (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the conference ID: 13759369. The webcast will remain posted on the Investors section of Reliance’s website at reliance.com for 90 days.

About Reliance, Inc.
Founded in 1939, Reliance, Inc. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of approximately 310 locations in 41 states and 10 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full-line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2025, Reliance’s average order size was $3,120, approximately 49% of orders included value-added processing, and approximately 40% of orders were delivered within 24 hours. Reliance’s press releases and additional information are available on the Company’s website at reliance.com.

CONTACT:
(213) 576-2428
[email protected]

or Addo Investor Relations
(310) 829-5400

Net sales of $4 billion, with record tons sold up 9.4% sequentially, exceeding expectations EPS of $5.10; non-GAAP EPS of $5.16, up 37% year-over-year also exceeding expectationsPretax income of $349.5 million, up 33% year-over-yearRepurchased $234.2 million of common stock PHOENIX, April 22, 2026 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) (‘Reliance,’ the ‘Company,’ ‘we,' ‘our,' or ‘us’) today reported its financial results for the first quarter ended March 31, 2026.

(in millions, except tons sold in thousands, per ton and per share amounts)
                         Sequential Quarter     Year-Over-Year  Q1 2026
  Q4 2025
  % Change  Q1 2025
  % Change Income Statement Data:            Net sales$4,026.0  $3,498.6  15.1%  $3,484.7  15.5% Gross profit1$1,171.9  $954.7  22.8%  $1,033.3  13.4% Gross profit margin1 29.1%   27.3%  1.8%   29.7%  (0.6%)Non-GAAP gross profit margin1,2 29.1%   27.4%  1.7%   29.7%  (0.6%)Non-GAAP gross profit margin – FIFO1,2 30.1%   28.5%  1.6%   30.4%  (0.3%)LIFO expense$37.5  $38.7    $25.0   LIFO expense as a % of net sales 0.9%   1.1%  (0.2%)  0.7%  0.2% LIFO expense per diluted share, net of tax$0.54  $0.56    $0.35   Non-GAAP pretax expense adjustments2$4.3  $12.1    $2.3   Pretax income$349.5  $154.8  125.8%  $262.4  33.2% Non-GAAP pretax income2$353.8  $166.9  112.0%  $264.7  33.7% Non-GAAP pretax income – FIFO2$391.3  $205.6  90.3%  $289.7  35.1% Pretax income margin 8.7%   4.4%  4.3%   7.5%  1.2% Non-GAAP pretax income margin2 8.8%   4.8%  4.0%   7.6%  1.2% Non-GAAP pretax income margin – FIFO2 9.7%   5.9%  3.8%   8.3%  1.4% Net income – Reliance$264.9  $116.5  127.4%  $199.7  32.6% Diluted EPS$5.10  $2.22  129.7%  $3.74  36.4% Non-GAAP diluted EPS2$5.16  $2.40  115.0%  $3.77  36.9% Non-GAAP diluted EPS – FIFO2$5.70  $2.96  92.6%  $4.12  38.3%              Balance Sheet and Cash Flow Data:            Cash provided by operations$151.4  $276.1  (45.2%) $64.5  134.7% Free cash flow2$87.2  $202.9  (57.0%) $(22.4)  Net debt-to-total capital2 16.9%   14.4%     14.4%   Net debt-to-EBITDA2 1.0x   0.9x     0.9x   Total debt-to-EBITDA2 1.2x   1.1x     1.1x                Capital Allocation Data:            Capital expenditures$64.2  $73.2    $86.9   Dividends$66.6  $63.5    $65.2   Share repurchases$234.2  $200.1    $253.2                Key Business Metrics:            Tons sold 1,672.7   1,528.7  9.4%   1,628.9  2.7% Average selling price per ton sold$2,414  $2,292  5.3%  $2,143  12.6%              Please refer to the footnotes at the end of this press release for additional information.     
Management Commentary
“Reliance is off to a strong start to 2026, capitalizing on favorable market fundamentals with first quarter volumes, pricing and earnings exceeding our expectations. Strong pricing and demand momentum continued to build throughout the quarter across our diversified product and end market portfolio,” said Karla Lewis, President and Chief Executive Officer of Reliance. “Our teams executed exceptionally well, converting increased shipments and higher prices into outsized earnings contributions, driving year-over-year growth of 37% in non-GAAP earnings per share of $5.16 on a 15% increase in sales. These results demonstrate the strength of our opportunistic and flexible operating model and continued execution of our smart, profitable growth strategy.”

“As previously announced, we also secured two significant government contracts in the first quarter to supply the border wall and Joint Strike Fighter projects through our AMI Metals, Inc. (“AMI”) subsidiary, further reinforcing Reliance’s role as a trusted partner on critical U.S. infrastructure and defense programs. These wins illustrate our ability to support large and complex projects by leveraging the scale, logistics capabilities, processing expertise, deep supply‑chain relationships and existing operating infrastructure of the Reliance Family of Companies. Our diversified platform allows us to concurrently meet the needs of large program partners as well as small-order, quick-turn customers.”

Mrs. Lewis concluded, “Our strong balance sheet and liquidity position remain key competitive advantages, affording us the flexibility to continue to concurrently invest in our business, pursue strategic acquisitions, and return capital to our stockholders while maintaining our disciplined approach to capital deployment. We are encouraged by rising customer optimism and activity across our broad end market exposure, with continued strong and growing momentum in the infrastructure, data center, energy, and defense sectors. Extending lead times at our mill suppliers also bode well for a continued strong pricing environment, where access to metal becomes a strategic advantage. Reliance’s unique scale, diverse portfolio, financial strength, domestic mill relationships and expanding services to support our customers, along with our focus on execution, position us exceptionally well to further capitalize on the opportunities ahead in 2026.”

First Quarter 2026 Financial Highlights
Earnings per share were $5.10; non‑GAAP earnings per diluted share were $5.16, above management’s guidance of $4.50 to $4.70 and up 37% year-over-year. Results included approximately $0.54 per share of LIFO expense compared to management’s expectation of $0.36 per share, representing an incremental $0.18 impact, primarily due to higher-than-anticipated carbon steel and aluminum product cost increases.

Record quarterly tons sold increased 2.7% year-over-year and 9.4% sequentially, exceeding management’s expectation for a 5% to 7% increase. Reliance’s first quarter year-over-year growth in tons sold outperformed the industry-wide decrease of 5.1% reported by the Metals Service Center Institute (“MSCI”) by nearly 8 percentage points. Reliance has now outperformed the MSCI’s quarterly year-over-year shipment results for 13 consecutive quarters.

Average selling price per ton sold increased 5.3% sequentially, also surpassing management’s expectation of a 3% to 5% increase, supported by higher carbon steel, aluminum and stainless steel pricing.

Gross profit margin of 29.1% increased 180 basis points sequentially and decreased 60 basis points from 29.7% in the prior-year quarter. Non‑GAAP FIFO gross profit margin, which excludes LIFO adjustments and represents management’s ongoing assessment of operating performance, increased sequentially to 30.1% from 28.5% in the fourth quarter of 2025 and was slightly lower than 30.4% in the prior-year quarter, which benefited from rapid and significant price increases consequent to new Section 232 tariffs. While gross profit margins for certain products such as aluminum have been impacted by elevated tariffs, Reliance is realizing higher gross profit per ton across the majority of its product categories.

Growth in shipments and gross profit dollars per ton, supported by continued market share gains, provided operating leverage and improved earnings conversion, driving pretax income of $349.5 million, an increase of 33% year-over-year.

End Market Commentary
Non-residential construction demand (including infrastructure), representing Reliance’s largest end market by tons, improved from the first quarter of 2025. The Company expects non-residential construction demand to remain healthy in the second quarter of 2026, supported by strong activity across data centers, energy infrastructure, and public infrastructure.

Demand across the broader manufacturing end market Reliance serves improved compared to the first quarter of 2025, primarily due to growth in the industrial machinery, shipbuilding, military, consumer products and construction machinery sectors. Reliance anticipates that demand for its products across the broader manufacturing sector will remain healthy in the second quarter of 2026.

Demand in aerospace improved compared to the first quarter of 2025. Reliance anticipates commercial aerospace demand to remain steady in the second quarter of 2026 with build-rate increases supporting improvement throughout the year. Demand in the defense and space related portions of Reliance’s aerospace business is expected to remain robust in the second quarter of 2026.

Demand for the toll processing services Reliance provides to the automotive market was stable compared to the first quarter of 2025. The Company expects demand for automotive toll processing to remain relatively steady at healthy levels in the second quarter of 2026. Reliance’s toll processing operations remain flexible and able to quickly adapt to the variable demands of the automotive market.

Demand for certain products Reliance sells into the semiconductor market improved compared to the first quarter of 2025. The Company anticipates stable to improving demand for its semiconductor products in the second quarter of 2026.

Balance Sheet, Cash Flow and Stockholder Returns
As of March 31, 2026, Reliance had $249.7 million of cash and cash equivalents and total debt of $1.7 billion, including $550 million outstanding under its $1.5 billion revolving credit facility. The Company generated $151.4 million of cash flow from operations in the first quarter of 2026, reflecting a typical seasonal working capital increase related to strong shipment volume and higher metals pricing.

The Company returned approximately $301 million to stockholders in the first quarter of 2026 through dividend payments of $67 million and $234 million of share repurchases, at an average price of approximately $299 per share. Reliance’s share repurchase activity reduced outstanding common shares by 3% year-over-year. Since 2021, Reliance has repurchased $3.4 billion of its common stock at an average price of approximately $234 per share, reducing outstanding common shares by 22%.

On February 17, 2026, Reliance increased its regular quarterly dividend by 4.2% to $1.25 per share of common stock (annualized rate of $5.00 per share), marking the 33rd dividend increase since the Company’s 1994 IPO. On April 17, 2026, the Board of Directors declared a quarterly cash dividend of $1.25 per share of common stock, payable on June 5, 2026 to stockholders of record as of May 22, 2026.

Recent Government Contract Awards
As previously announced in March 2026, Reliance’s wholly owned subsidiary, AMI was awarded two significant U.S. government infrastructure and defense contracts that further strengthen the Company’s position as a trusted partner on large‑scale, complex government infrastructure and defense projects.

AMI was awarded a multi-year contract by the U.S. Department of Homeland Security (“DHS”) with a total maximum estimated value of up to $2.24 billion to provide steel and steel logistics support services for the construction of the border wall along the Southwest U.S. border. Phase 1 of the project, during which Reliance estimates sales of approximately $1.4 billion, commenced in April 2026 and is expected to continue through mid-2027.AMI also won a five‑year indefinite delivery/indefinite quantity (IDIQ) contract to supply processed aluminum plate in support of the Joint Strike Fighter defense platforms, including the F‑35 Lightning II. The contract, which is effective from January 2027 through December 2028, renews AMI’s existing contract and provides for up to three one-year renewal periods. The agreement has a maximum estimated value of $654 million and includes an approximate 10% increase in average volumes from previous targets. These awards highlight Reliance’s scale, logistics capabilities, and processing expertise across both carbon steel and aluminum, and reinforce the Company’s long‑standing relationships with domestic mills and major defense customers.

Business Outlook
Reliance anticipates both demand and pricing in the second quarter of 2026 will remain generally consistent at healthy levels across the key products and end markets it serves, despite ongoing domestic and international trade policy uncertainty and the conflict in the Middle East which could pose supply availability and macroeconomic risks. With underlying assumptions for ongoing activity in the second quarter generally consistent with the prior quarter and factoring in activity under the DHS border wall contract, the Company expects tons sold to increase 1.0% to 3.0% compared to the first quarter of 2026 and to increase 4.5% to 6.5% compared to the second quarter of 2025. Additionally, Reliance expects its average selling price per ton sold to be up 1.5% to 3.5% compared to the first quarter of 2026 supported by announced mill price increases given healthy underlying demand for those products. Based on these assumptions, the Company anticipates non‑GAAP earnings per diluted share in the range of $5.15 to $5.35 for the second quarter of 2026, representing year‑over‑year growth of approximately 16% to 21% and inclusive of LIFO expense of $37.5 million, or $0.54 per diluted share.

Our second quarter 2026 guidance includes an estimated 3.0% contribution to tons sold, a 1.0% lower consolidated average selling price and approximately $0.15 to $0.20 of earnings per share related to shipments associated with the border wall contract. Although the average selling price and gross profit margins under the border wall contract are below company-wide averages, these shipments are expected to contribute at above average earnings levels through efficient execution within Reliance’s existing operating network, providing significant operating leverage and supporting improved profitability on incremental project volumes. Shipments under this contract began in April 2026 and we anticipate that volumes will increase as we move throughout the year. Many variables may impact the timing of shipments so we will provide impact and earnings contribution guidance from the border wall contract on a quarterly basis.

Conference Call Details
A conference call and simultaneous webcast to discuss Reliance’s first quarter 2026 financial results and business outlook will be held on Thursday, April 23, 2026 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. To listen to the live call by telephone, please dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time and use conference ID: 13759369. The call will also be broadcast live over the Internet hosted on the Investors section of the Company's website at investor.reliance.com.

For those unable to participate during the live broadcast, a replay of the call will also be available beginning that same day at 2:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on May 7, 2026, by dialing (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (International) and entering the conference ID: 13759369. The webcast will remain posted on the Investors section of Reliance’s website at reliance.com for 90 days.

About Reliance, Inc.
Founded in 1939, Reliance, Inc. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of approximately 310 locations in 41 states and 10 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full-line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2025, Reliance’s average order size was $3,120, approximately 49% of orders included value-added processing, and approximately 40% of orders were delivered within 24 hours. Reliance’s press releases and additional information are available on the Company’s website at reliance.com.

Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, discussions of Reliance’s: industry and end markets; business strategies; acquisitions; expectations concerning the Company’s future growth and profitability; ability to generate industry leading returns for its stockholders; future demand and metals pricing; results of operations; margins; profitability; taxes; liquidity; cash flows; capital expenditures; expectations for macroeconomic conditions, including inflation and the possibility of an economic recession or slowdown; anticipated effects from regulatory changes, including taxation, tariffs and other trade barriers; litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range,” “intend” and “continue,” the negative of these terms, and similar expressions.

These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. 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 Reliance, as well as developments beyond its control, including, but not limited to: changes in domestic and worldwide political and economic conditions; changes in U.S. and foreign trade policies and programs, including tariffs and trade policies and programs specifically affecting metals product markets and pricing; slowing economic growth, inflation, rising unemployment or other macroeconomic factors that could materially impact Reliance, its customers and suppliers; metals pricing; demand for Reliance’s products and services; the possibility that the expected benefits of government contracts, acquisitions and capital expenditures may not materialize as expected; and the impacts of labor constraints and supply chain disruptions. Deteriorations in economic conditions, including as a result of tariffs or trade barriers, economic policies, inflation, economic recession, slowing growth, outbreaks of infectious disease, or geopolitical conflicts such as in Ukraine, Iran and the Middle East, could lead to a decline in demand for the Company’s products and services and negatively impact its business, and may also impact financial markets and corporate credit markets which could adversely impact the Company’s access to financing or the terms of any financing. The Company cannot at this time predict all of the impacts of domestic and foreign tariffs and trade policies, inflation, product price fluctuations, economic recession, outbreaks of infectious disease, or geopolitical conflicts and related economic effects, but these factors, individually or in any combination, could have a material adverse effect on the Company’s business, financial position, results of operations and cash flows.

The statements contained in this press release speak only as of the date hereof, and Reliance disclaims any and all obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason, except as may be required by law. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in other documents Reliance files or furnishes with the United States Securities and Exchange Commission.

CONTACT:         
(213) 576-2428
[email protected]

or Addo Investor Relations
(310) 829-5400

(Tables to follow)

First Quarter 2026 Major Commodity Metrics
                        Tons Sold (tons in thousands; % change)  Average Selling Price per Ton Sold (% change) Q1 2026
  Q4 2025
  Sequential Quarter Change
  Q1 2025
  Year-Over-Year Change
  Sequential Quarter Change
  Year-Over-Year Change
 Carbon steel 1,383.9   1,252.9   10.5%   1,344.4   2.9%   4.5%   13.2% Aluminum 85.1   77.1   10.4%   84.1   1.2%   9.5%   23.1% Stainless steel 78.2   69.8   12.0%   76.0   2.9%   2.9%   4.1% Alloy 33.0   27.9   18.3%   31.5   4.8%   (1.8%)  8.8% Copper & brass 4.9   4.9   —   5.0   (2.0%)  8.1%   27.1%                              Sales ($'s in millions; % change)        Q1 2026
  Q4 2025
  Sequential Quarter Change
  Q1 2025
  Year-Over-Year Change
       Carbon steel$2,218.1  $1,922.3   15.4%  $1,904.2   16.5%       Aluminum$754.6  $624.5   20.8%  $605.6   24.6%       Stainless steel$539.0  $467.1   15.4%  $503.2   7.1%       Alloy$180.6  $155.5   16.1%  $158.4   14.0%       Copper & brass$101.9  $93.5   9.0%  $81.7   24.7%                              Sales by Product ($'s as a % of total sales)              Q1 2026
  Q4 2025
  Q1 2025
            Carbon steel structurals 12%   13%   12%              Carbon steel plate 11%   11%   12%              Carbon steel tubing 9%   9%   9%              Hot-rolled steel sheet & coil 9%   8%   8%              Carbon steel bar 5%   5%   5%              Galvanized steel sheet & coil 5%   5%   5%              Cold-rolled steel sheet & coil 2%   2%   2%              Carbon steel 53%   53%   53%                                    Heat-treated aluminum plate 6%   5%   5%              Aluminum bar & tube 5%   5%   5%              Common alloy aluminum sheet & coil 5%   5%   5%              Common alloy aluminum plate 1%   1%   1%              Heat-treated aluminum sheet & coil 1%   1%   1%              Aluminum 18%   17%   17%                                    Stainless steel bar & tube 6%   6%   7%              Stainless steel sheet & coil 5%   5%   5%              Stainless steel plate 2%   2%   2%              Stainless steel 13%   13%   14%                                    Alloy 4%   4%   4%                                    Copper & brass 3%   3%   2%                                    Miscellaneous* 5%   6%   6%              Toll processing & logistics 4%   4%   4%              Other 9%   10%   10%                                    Total 100%   100%   100%                                    * Includes titanium, fabricated parts, PVC pipe and scrap.          RELIANCE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except shares in thousands and per share amounts)
        Three Months Ended March 31,2026  2025 Net sales$4,026.0  $3,484.7         Costs and expenses:       Cost of sales (exclusive of depreciation and amortization shown below) 2,854.1   2,451.4 Warehouse, delivery, selling, general and administrative ("SG&A") 734.8   690.2 Depreciation and amortization 69.2   68.7   3,658.1   3,210.3         Operating income 367.9   274.4         Other (income) expense:       Interest expense 15.4   11.5 Other expense, net 3.0   0.5 Income before income taxes 349.5   262.4 Income tax provision 83.9   61.9 Net income 265.6   200.5 Less: net income – noncontrolling interests 0.7   0.8 Net income – Reliance$264.9  $199.7         Earnings per share:       Basic$5.13  $3.76 Diluted$5.10  $3.74         Weighted average shares outstanding:       Basic 51,633   53,075 Diluted 51,974   53,399         Cash dividends declared per common share$1.25  $1.20        RELIANCE, INC.UNAUDITED CONSOLIDATED BALANCE SHEETS(in millions, except shares in thousands and par value)  March 31,
  December 31,
  2026  2025*
 AssetsCurrent assets:     Cash and cash equivalents$249.7  $216.6 Accounts receivable, less allowance for credit losses of $22.8 and $22.1 1,953.5   1,539.9 Inventories 2,234.9   2,187.8 Prepaid expenses and other current assets 135.2   165.6 Income taxes receivable —   31.2 Total current assets 4,573.3   4,141.1 Property, plant and equipment, net 2,630.8   2,633.3 Operating lease right-of-use assets 331.5   315.2 Goodwill 2,175.4   2,169.9 Intangible assets, net 953.0   960.1 Cash surrender value of life insurance policies, net 41.9   48.0 Other long-term assets 103.4   105.7 Total assets$10,809.3  $10,373.3       Liabilities and EquityCurrent liabilities:     Accounts payable$552.1  $375.2 Accrued expenses 152.5   150.0 Accrued compensation and retirement benefits 171.5   198.1 Accrued insurance costs 56.4   56.4 Current maturities of long-term debt —   0.7 Current maturities of operating lease liabilities 69.2   67.7 Income taxes payable 41.1   — Total current liabilities 1,042.8   848.1 Long-term debt 1,693.5   1,420.2 Operating lease liabilities 266.3   250.9 Long-term retirement benefits 25.3   24.9 Other long-term liabilities 74.4   74.1 Deferred income taxes 574.9   575.6 Total liabilities 3,677.2   3,193.8 Commitments and contingencies     Equity:     Preferred stock, $0.001 par value: 5,000 shares authorized; none issued or outstanding —   — Common stock and additional paid-in capital, $0.001 par value and 200,000 shares authorized     Issued and outstanding shares—51,049 and 51,735 0.1   0.1 Retained earnings 7,218.5   7,257.6 Accumulated other comprehensive loss (95.7)  (87.6)Total Reliance stockholders’ equity 7,122.9   7,170.1 Noncontrolling interests 9.2   9.4 Total equity 7,132.1   7,179.5 Total liabilities and equity$10,809.3  $10,373.3       * Derived from audited financial statements.            RELIANCE, INC.UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions)      Three Months Ended March 31,2026  2025 Operating activities:     Net income$265.6  $200.5 Adjustments to reconcile net income to net cash provided by operating activities:     Depreciation and amortization 69.2   68.7 Stock-based compensation 13.3   12.2 Other 7.6   6.5 Changes in operating assets and liabilities:     Accounts receivable (416.2)  (332.1)Inventories (47.7)  (85.9)Prepaid expenses and other assets 83.1   80.8 Accounts payable and other liabilities 176.5   113.8 Net cash provided by operating activities 151.4   64.5       Investing activities:     Purchases of property, plant and equipment (64.2)  (86.9)Other (5.8)  (0.7)Net cash used in investing activities (70.0)  (87.6)      Financing activities:     Proceeds from long-term debt borrowings 925.0   788.0 Principal payments on long-term debt (652.7)  (458.0)Cash dividends and dividend equivalents (66.6)  (65.2)Share repurchases (234.2)  (253.2)Taxes paid on net-settled restricted stock units (14.7)  (11.5)Other (3.4)  (18.7)Net cash used in financing activities (46.6)  (18.6)Effect of exchange rate changes on cash and cash equivalents (1.7)  1.4 Increase (decrease) in cash and cash equivalents 33.1   (40.3)Cash and cash equivalents, beginning balance 216.6   318.1 Cash and cash equivalents, ending balance$249.7  $277.8       Supplemental cash flow information:     Interest paid$13.2  $10.0 Income taxes paid, net$12.5  $13.9                    RELIANCE, INC.NON-GAAP RECONCILIATION(in millions, except per share amounts)                   Net Income Diluted EPS March 31,
  December 31,
  March 31,
  March 31,
  December 31,
  March 31,
 Three Months Ended2026  2025  2025  2026  2025  2025 Net income – Reliance$264.9  $116.5  $199.7  $5.10  $2.22  $3.74 Impairment and restructuring charges 3.8   14.7   2.3   0.07   0.28   0.04 Non-recurring settlement charges (credits), net 0.5   (1.9)  —   0.01   (0.04)  — Gains related to sales of non-core assets —   (0.7)  —   —   (0.01)  — Income tax benefit related to above items (1.1)  (3.1)  (0.6)  (0.02)  (0.05)  (0.01)Non-GAAP net income – Reliance 268.1   125.5   201.4   5.16   2.40   3.77 LIFO expense, net of tax 28.1   29.0   18.8   0.54   0.56   0.35 Non-GAAP net income – Reliance – FIFO$296.2  $154.5  $220.2  $5.70  $2.96  $4.12                    March 31,
  December 31,
  March 31,
        Three Months Ended2026  2025  2025        Pretax income$349.5  $154.8  $262.4          Impairment and restructuring charges 3.8   14.7   2.3          Non-recurring settlement charges (credits), net 0.5   (1.9)  —          Gains related to sales of non-core assets —   (0.7)  —          Non-GAAP pretax expense adjustments 4.3   12.1   2.3          Non-GAAP pretax income 353.8   166.9   264.7          LIFO expense 37.5   38.7   25.0          Non-GAAP pretax income – FIFO$391.3  $205.6  $289.7                             March 31,
  December 31,
  March 31,
        Three Months Ended2026  2025  2025        Gross profit – LIFO$1,171.9  $954.7  $1,033.3          Restructuring charges 1.0   3.0   1.8          Non-GAAP gross profit 1,172.9   957.7   1,035.1          LIFO expense 37.5   38.7   25.0          Non-GAAP gross profit – FIFO$1,210.4  $996.4  $1,060.1                            Gross profit margin – LIFO 29.1%   27.3%   29.7%          Restructuring charges as a % of sales —   0.1%   —          Non-GAAP gross profit margin 29.1%   27.4%   29.7%          LIFO expense as a % of sales 0.9%   1.1%   0.7%          Non-GAAP gross profit margin – FIFO 30.1%   28.5%   30.4%                            Certain percentages may not calculate due to rounding.
                   March 31,
  December 31,
  March 31,
         2026  2025  2025        Total debt$1,700.0  $1,427.7  $1,481.1          Less: unamortized discounts and costs (6.5)  (6.8)  (8.1)         Carrying amount of debt 1,693.5   1,420.9   1,473.0          Less: cash and cash equivalents (249.7)  (216.6)  (277.8)         Net debt 1,443.8   1,204.3   1,195.2          Total Reliance stockholders' equity 7,122.9   7,170.1   7,101.8          Total capital$8,566.7  $8,374.4  $8,297.0                            Net debt-to-total capital 16.9%   14.4%   14.4%                             March 31,
  December 31,
  March 31,
          Twelve Months Ended2026  2025  2025          Net income$806.7  $741.6  $774.7          Depreciation and amortization 278.7   278.2   273.8          Impairment 9.9   9.9   11.7          Interest expense 59.6   55.7   42.1          Income taxes 249.6   227.6   231.4          EBITDA$1,404.5  $1,313.0  $1,333.7                            Net debt-to-EBITDA 1.0x   0.9x   0.9x          Total debt-to-EBITDA 1.2x   1.1x   1.1x                             March 31,
  December 31,
  March 31,
        Three Months Ended2026  2025  2025        Cash provided by operations$151.4  $276.1  $64.5          Less: capital expenditures (64.2)  (73.2)  (86.9)         Free cash flow$87.2  $202.9  $(22.4)         
Reliance presents certain non‑GAAP measures, including non‑GAAP gross profit, pretax income, net income and earnings per share, to provide meaningful period-to-period comparisons of its operating performance. These non‑GAAP measures reflect adjustments for certain items, including impairment and restructuring charges related to the closure or reorganization of certain locations, non‑recurring settlement charges and credits, and gains on the sale of non‑core property, plant and equipment, which can reduce the comparability of GAAP results across periods. Reliance uses first‑in, first‑out (“FIFO”) gross profit, margin, and other FIFO-based performance measures to assess its ongoing performance and provide a basis for comparison with competitors that do not use the last-in, last-out (“LIFO”) inventory accounting method. See footnote 1 for additional information regarding the Company’s gross profit and gross profit margin. In addition, Reliance presents net debt‑to‑EBITDA and total debt‑to‑EBITDA as measures of leverage used by management to monitor debt levels relative to operating performance, for which EBITDA is used as a proxy. Free cash flow is presented as a measure of cash generated by operations that may be used to repay scheduled debt maturities, fund additional growth initiatives, or be returned to stockholders.

Footnotes
1 Gross profit (calculated as net sales less cost of sales) and gross profit margin (calculated as gross profit divided by net sales) are non-GAAP financial measures as they exclude depreciation and amortization expense associated with the corresponding sales. About half of Reliance's orders are basic distribution with no processing services performed. For the remainder of its sales orders, Reliance performs “first-stage” processing, which is generally not labor intensive as it is simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, Reliance’s cost of sales is substantially comprised of the cost of the material it sells. Reliance uses gross profit and gross profit margin, as shown, as measures of operating performance. Gross profit and gross profit margin are important operating and financial measures, as their fluctuations can have a significant impact on Reliance's earnings. Gross profit and gross profit margin, as presented, are not necessarily comparable with similarly titled measures for other companies.
2 See accompanying Non-GAAP Reconciliation.

Reliance (RS - Free Report) reported $4.03 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 15.5%. EPS of $5.16 for the same period compares to $3.77 a year ago.

The reported revenue represents a surprise of +4.97% over the Zacks Consensus Estimate of $3.84 billion. With the consensus EPS estimate being $4.63, the EPS surprise was +11.45%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Reliance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average selling price per ton sold: $2,414.00 compared to the $2,386.05 average estimate based on three analysts.Shipments (Tons sold): 1.67 million compared to the 1.63 million average estimate based on three analysts.Tons Sold - Stainless steel: 78.2 thousand versus 76.88 thousand estimated by two analysts on average.Tons Sold - Aluminium: 85.1 thousand versus the two-analyst average estimate of 85.42 thousand.Tons Sold - Alloy: 33 thousand compared to the 30.97 thousand average estimate based on two analysts.Tons Sold - Carbon steel: 1.38 million compared to the 1.34 million average estimate based on two analysts.Net Sales- Carbon Steel: $2.22 billion compared to the $2.09 billion average estimate based on two analysts. The reported number represents a change of +16.5% year over year.Net Sales- Alloy: $180.6 million versus $162.37 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14% change.Net Sales- Stainless Steel: $539 million versus $533.12 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.Net Sales- Aluminium: $754.6 million versus the two-analyst average estimate of $667.76 million. The reported number represents a year-over-year change of +24.6%.View all Key Company Metrics for Reliance here>>>

Shares of Reliance have returned +11.9% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways Reliance reported Q1 EPS of $5.16, beating estimates, with net sales rising 15.5% year over year.RS saw higher shipments and a 12.6% jump in average selling price per ton, boosting results.Reliance expects steady demand across construction, manufacturing, and aerospace into Q2. Reliance, Inc. (RS - Free Report) posted profits of $264.9 million or $5.10 per share for the first quarter of 2026, up from $199.7 million or $3.74 per share in the year-ago quarter.

Barring one-time items, the company recorded earnings of $5.16 per share. It outpaced the Zacks Consensus Estimate of $4.63.

The company reported net sales of $4,026 million, representing a year-over-year increase of approximately 15.5%. The top line also beat the Zacks Consensus Estimate of $3,835.3 million.

Reliance’s Segment UpdateReliance reported a 2.7% year-over-year increase in shipments (thousand tons sold) to 1,672.7. The figure surpassed our estimate of 1,633.8. The average selling price per ton rose 12.6% year over year to $2,414. It was above our estimate of $2,362.2.

Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened compared with the first quarter of 2025. The company expects demand in this sector to remain healthy through the second quarter of 2026, supported by strong activity across data centers, energy infrastructure and public infrastructure.

Demand within the broader manufacturing market improved year over year, driven by growth across the military, industrial machinery, consumer products, construction machinery sectors and shipbuilding. Reliance expects the demand to remain healthy in the second quarter.

Aerospace demand was higher compared with the prior-year quarter. Reliance expects commercial aerospace demand to remain consistent in the second quarter due to build-rate increases, while defense and space-related activity is expected to remain strong.

Demand for automotive toll processing services remained flat year over year. Reliance expects steady performance through the second quarter. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations.

In the semiconductor market, demand improved relative to the first quarter of 2025. Reliance expects stable to improving demand conditions in the second quarter.

RS’ Financial PositionAs of March 31, 2026, Reliance held $249.7 million in cash and cash equivalents, with total outstanding debt amounting to $1.7 billion. This includes $550 million borrowings under the company’s $1.5 billion revolving credit facility.

In the first quarter, Reliance generated $151.4 million in operating cash flow. It reflects the typical increase in seasonal working capital caused by strong shipment volume and higher metals pricing.

Reliance repurchased its common stock during the first quarter, bringing down the outstanding common shares by 3% year over year, at an average price of $299 per share, for a total of $234 million.

Reliance’s Outlook Reliance expects demand in the first quarter to remain healthy across its diverse end markets, though ongoing domestic and international trade policy uncertainty and Middle East conflict could pose supply availability and macroeconomic risks, influencing performance. The company projects tons sold to increase 1% to 3% from the prior quarter and 4.5% to 6.5% from the year-ago quarter.

The average selling price per ton is anticipated to be up 1.5-3.5% sequentially. Based on these assumptions, the company forecasts adjusted earnings per share in the range of $5.15 to $5.35 for the second quarter, which includes an estimated LIFO expense of $37.5 million, or 54 cents per share.

RS’ Price PerformanceReliance’s shares have gained 21.3% in the past year compared with the 57% growth of the industry.

Image Source: Zacks Investment Research

RS’ Zacks Rank & Key PicksRS currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Aura Minerals Inc. (AUGO - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Albemarle Corporation (ALB - Free Report) .

Aura Minerals is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $1.84 per share, indicating 397.3% year-over-year growth. AUGO sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Air Products is scheduled to report second-quarter fiscal 2026 results on April 30. The Zacks Consensus Estimate for APD’s second-quarter earnings per share is pegged at $3.05, indicating 13.38% year-over-year growth. APD carries a Zacks Rank #2 (Buy) at present.

Albemarle is slated to report first-quarter 2026 results on May 6. The consensus estimate for ALB’s earnings per share is pegged at $1.07. ALB presently carries a Zacks Rank #2.

Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of SSR Mining (SSRM) and Reliance (RS). But which of these two stocks presents investors with the better value opportunity right now?

It has been about a month since the last earnings report for Reliance (RS - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Reliance due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Reliance, Inc. before we dive into how investors and analysts have reacted as of late.

Reliance’s Q1 Earnings and Sales Surpass Estimates on Higher PricesReliance posted profits of $264.9 million or $5.10 per share for the first quarter of 2026, up from $199.7 million or $3.74 per share in the year-ago quarter.

Barring one-time items, the company recorded earnings of $5.16 per share. It outpaced the Zacks Consensus Estimate of $4.63.

The company reported net sales of $4,026 million, representing a year-over-year increase of approximately 15.5%. The top line also beat the Zacks Consensus Estimate of $3,835.3 million.

Segment UpdateReliance reported a 2.7% year-over-year increase in shipments (thousand tons sold) to 1,672.7. The figure surpassed our estimate of 1,633.8. The average selling price per ton rose 12.6% year over year to $2,414. It was above our estimate of $2,362.2.

Demand for non-residential construction, including infrastructure, Reliance’s largest end market by volume, strengthened compared with the first quarter of 2025. The company expects demand in this sector to remain healthy through the second quarter of 2026, supported by strong activity across data centers, energy infrastructure and public infrastructure.

Demand within the broader manufacturing market improved year over year, driven by growth across the military, industrial machinery, consumer products, construction machinery sectors and shipbuilding. Reliance expects the demand to remain healthy in the second quarter.

Aerospace demand was higher compared with the prior-year quarter. Reliance expects commercial aerospace demand to remain consistent in the second quarter due to build-rate increases, while defense and space-related activity is expected to remain strong.

Demand for automotive toll processing services remained flat year over year. Reliance expects steady performance through the second quarter. The company’s toll processing operations remain agile and responsive to the automotive market’s demand fluctuations.

In the semiconductor market, demand improved relative to the first quarter of 2025. Reliance expects stable to improving demand conditions in the second quarter.

Financial PositionAs of March 31, 2026, Reliance held $249.7 million in cash and cash equivalents, with total outstanding debt amounting to $1.7 billion. This includes $550 million borrowings under the company’s $1.5 billion revolving credit facility.

In the first quarter, Reliance generated $151.4 million in operating cash flow. It reflects the typical increase in seasonal working capital caused by strong shipment volume and higher metals pricing.

Reliance repurchased its common stock during the first quarter, bringing down the outstanding common shares by 3% year over year, at an average price of $299 per share, for a total of $234 million.

OutlookReliance expects demand in the first quarter to remain healthy across its diverse end markets, though ongoing domestic and international trade policy uncertainty and Middle East conflict could pose supply availability and macroeconomic risks, influencing performance. The company projects tons sold to increase 1% to 3% from the prior quarter and 4.5% to 6.5% from the year-ago quarter.

The average selling price per ton is anticipated to be up 1.5-3.5% sequentially. Based on these assumptions, the company forecasts adjusted earnings per share in the range of $5.15 to $5.35 for the second quarter, which includes an estimated LIFO expense of $37.5 million, or 54 cents per share.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 7.35% due to these changes.

VGM ScoresAt this time, Reliance has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Reliance has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

June 04, 2026 16:05 ET  | Source: Reliance, Inc.

PHOENIX, June 04, 2026 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced today that Karla Lewis, President and Chief Executive Officer, and Stephen Koch, Executive Vice President and Chief Operating Officer, will participate in the Wells Fargo 16th Annual Industrials & Materials Conference on Tuesday, June 9, 2026, in Chicago, Illinois. Reliance is scheduled to present on Tuesday, June 9th at 3:45 p.m. CT.

The presentation will be webcast live over the Internet, hosted on the Investors section of the Company's website at investor.reliance.com. In addition to the live webcast, a replay will be available on the Company’s website for 90 days following the event.

About Reliance, Inc.
Founded in 1939, Reliance, Inc. (NYSE: RS) is a leading global diversified metal solutions provider and the largest metals service center company in North America. Through a network of approximately 310 locations in 41 states and 10 countries outside of the United States, Reliance provides value-added metals processing services and distributes a full-line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and value-added processing services. In 2025, Reliance’s average order size was $3,120, approximately 49% of orders included value-added processing, and approximately 40% of orders were delivered within 24 hours. Reliance’s press releases and additional information are available on the Company’s website at reliance.com.

CONTACT:
(213) 576-2428
[email protected]
or Addo Investor Relations
(310) 829-5400

Reliance, Inc. (RS) Presents at 16th Annual Wells Fargo Industrials & Materials Conference Transcript

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*Stock prices used were the afternoon prices of June 8, 2026. The video was published on June 10, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.