Financial Analysis

NOTE 2. ACQUISITIONS 2024 Acquisitions With cash on hand, we acquired (i) Cooksey Iron & Metal Company on February 1, 2024; (ii) American Alloy Steel, Inc. on April 1, 2024; (iii) Mid-West Materials, Inc. on April 1, 2024; and (iv) certain assets of the FerrouSouth division of Ferragon Corporation on August 16, 2024. Included in our net sales for 2025 and 2024 were combined net sales of $389.2 million and $286.2 million, respectively, from our 2024 acquisitions. Our 2024 acquisitions have increased our capacity and enhanced our product, customer and geographic diversification. We have not diversified outside our core business of providing metal distribution and processing solutions since inception. The aggregate allocation of the purchase prices for our 2024 acquisitions to the fair values of the assets acquired and liabilities assumed was as follows (in millions): Cash $ 5.6 Accounts receivable 44.9 Inventories 109.9 Prepaid expenses and other current assets 1.0 Property, plant and equipment 107.5 Operating lease right-of-use assets 19.2 Goodwill 59.5 Intangible assets subject to amortization 39.5 Intangible assets not subject to amortization 41.4 Total assets acquired 428.5 Deferred income taxes 6.7 Operating lease liabilities 15.1 Other current and long-term liabilities 33.4 Total liabilities assumed 55.2 Noncontrolling interest 0.3 Net assets acquired $ 373.0 Summary purchase price allocation information for all acquisitions All of the acquisitions discussed in this n …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 17. COMMITTMENTS AND CONTINGENCIES Purchase Commitments As of December 31, 2025, we had commitments to purchase minimum quantities of certain metals products, which we entered into to secure material for corresponding long-term sales commitments with our customers. The total amount of minimum commitments based on current pricing is estimated at approximately $182.2 million, with amounts in 2026, 2027 and thereafter being $165.5 million, $5.3 million and $11.4 million, respectively. Collective Bargaining Agreements As of December 31, 2025, approximately 1,800, or 11%, of our total employees were covered by 54 collective bargaining agreements at 46 of our different locations, which expire at various times over the next five years. Approximately 2% of our employees are covered by 15 different collective bargaining agreements that will expire during 2026, if not renewed. Environmental Contingencies We are subject to extensive and changing federal, state, local and foreign laws and regulations designed to protect the environment, including those relating to the use, handling, storage, discharge and disposal of hazardous substances and the remediation of environmental contamination. Our operations use minimal amounts of such substances. We believe we are in material compliance with environmental laws and regulations; however, we are from time to time involved in administrative and judicial proceedings and inquiries relating to environmental matters. Some of our owned or leased …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10. DEBT Debt consisted of the following (in millions): December 31, 2025 2024 Unsecured revolving credit facility maturing September 10, 2029 $ 277.0 $ Unsecured term loan due August 14, 2028 400.0 Senior unsecured notes, interest payable semi-annually at 1.30%, effective rate of 1.53%, repaid August 15, 2025 400.0 Senior unsecured notes, interest payable semi-annually at 2.15%, effective rate of 2.27%, maturing August 15, 2030 500.0 500.0 Senior unsecured notes, interest payable semi-annually at 6.85%, effective rate of 6.91%, maturing November 15, 2036 250.0 250.0 Other notes 0.7 1.1 Total 1,427.7 1,151.1 Less: unamortized discount and debt issuance costs (6.8) (8.6) Less: amounts due within one year (0.7) (399.7) Total long-term debt $ 1,420.2 $ 742.8 The weighted average effective interest rate on the Companys outstanding borrowings was 4.24% and 3.02% as of December 31, 2025 and 2024, respectively. Unsecured Credit Facility On September 10, 2024, we entered into a $1.5 billion unsecured five-year revolving credit facility (Credit Agreement) that amended and restated our then-existing $1.5 billion unsecured revolving credit facility. As of December 31, 2025, borrowings under the Credit Agreement were available at variable rates based on SOFR plus 1.00% or the bank prime rate and we currently pay a commitment fee at an annual rate of 0.10% on the unused portion of the revolving credit facility. The applicable margins over SOFR and prime rate borrowings, along with co …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended December 31, 2025 2024 2023 Carbon steel $ 7,903.2 $ 7,575.6 $ 8,071.8 Aluminum 2,471.5 2,294.4 2,456.4 Stainless steel 1,949.4 2,068.8 2,336.7 Alloy 641.0 637.7 704.9 Toll processing and logistics 646.9 623.7 610.6 Copper and brass 376.7 311.2 304.6 Miscellaneous and eliminations 305.6 323.6 320.9 Total $ 14,294.3 $ 13,835.0 $ 14,805.9 …

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NOTE 13. STOCK-BASED COMPENSATION PLANS We make annual grants of long-term equity incentive awards to officers and key employees under our Second Amended and Restated 2015 Incentive Award Plan in the forms of service-based restricted stock units (RSUs) and performance-based restricted stock units (PSUs) that each have approximately 3-year vesting periods. We also grant the non-management members of our Board of Directors fully vested stock awards under our Directors Equity Plan. The fair values of the RSUs, PSUs and stock awards are determined based on the closing stock price of our common stock on the grant date. As of December 31, 2025, an aggregate of 1,249 thousand shares was authorized for future grant under our various stock-based compensation plans. Awards that expire or are canceled without delivery of shares of our common stock and shares withheld related to net share settlements of vested restricted stock units generally become available for issuance under the plans. As RSUs and PSUs vest, we issue new shares of Reliance common stock. Restricted Stock Units We granted key employees equity awards consisting of RSUs and PSUs in aggregate amounts as follows (in thousands, except per unit amounts): RSUs Vesting December 1, Grant Date and RSU and PSU Fair Value PSUs Vesting RSUs PSUs Aggregate Units Per Unit December 31, 2025 100 68 168 $ 299.96 2027 2024 101 71 172 $ 289.19 2026 2023 110 84 194 $ 247.90 2025 Each RSU and PSU is subject to a service-based condition and i …

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NOTE 12. INCOME TAXES Reliance files a consolidated U.S. federal return and income tax returns in various state and foreign jurisdictions. We are no longer subject to U.S. federal tax examinations for years before 2022 and state and local tax examinations before 2021. Provision for Income Taxes The components of provision for income taxes were as follows (in millions): Year Ended December 31, 2025 2024 2023 Current: Federal $ 136.6 $ 156.2 $ 277.0 State 35.8 39.9 73.8 Foreign 18.1 29.4 33.6 190.5 225.5 384.4 Deferred: Federal 38.0 31.7 18.0 State 3.8 5.9 0.3 Foreign (4.7) (1.2) (2.1) 37.1 36.4 16.2 Total: Federal 174.6 187.9 295.0 State 39.6 45.8 74.1 Foreign 13.4 28.2 31.5 $ 227.6 $ 261.9 $ 400.6 Income before income taxes was as follows (in millions): Year Ended December 31, 2025 2024 2023 U.S. $ 906.2 $ 1,021.3 $ 1,579.4 Foreign 63.0 118.6 161.3 Income before income taxes $ 969.2 $ 1,139.9 $ 1,740.7 Effective Tax Rate We adopted accounting changes issued by the FASB, Improvements to Income Tax Disclosures, in 2025 on a prospective basis. A reconciliation of income tax at the U.S. federal statutory rate to our tax provision and effective tax rate is as follows (in millions, except percentages): Year Ended December 31, 2025 Income tax at U.S. federal statutory tax rate $ 203.5 21.0 % Domestic state and local income tax, net of federal tax effect (1) 31.3 3.2 Domestic federal reconciling items Nontaxable or nondeductible items Life insurance policies (20.3) (2.1) Other 8.0 0. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11. LEASES Our metals service center leases are comprised of processing and distribution facilities, equipment, automobiles, trucks and trailers, ground leases and other leased spaces, such as depots, sales offices, and storage. We also lease various office spaces. Our leases of facilities and other spaces expire at various times through 2045, and our ground leases expire at various times through 2068. Nearly all of our leases are operating leases; we have an insignificant amount of recognized finance right-of-use assets and obligations. The following is a summary of our lease cost (in millions): Year Ended December 31, 2025 2024 2023 Operating lease cost $ 86.3 $ 75.1 $ 68.8 Variable fees and other (1) 28.1 30.9 28.6 Total lease cost $ 114.4 $ 106.0 $ 97.4 (1) Includes variable lease payments and costs of short-term leases. Supplemental cash flow and balance sheet information is presented below (in millions): Year Ended December 31, 2025 2024 2023 Supplemental cash flow information: Cash payments for operating leases $ 113.2 $ 74.8 $ 95.2 Right-of-use assets obtained in exchange for operating lease obligations $ 112.6 $ 87.7 $ 74.7 December 31, 2025 2024 Other lease information: Weighted average remaining lease termoperating leases 6.4 years 6.3 years Weighted average discount rateoperating leases 4.9% 4.6% Maturities of operating lease liabilities as of December 31, 2025 are as follows (in millions): 2026 $ 81.4 2027 70.2 2028 59.1 2029 49.9 2030 36.6 Thereafter 78.0 T …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Impact of Recently Issued Accounting StandardsAdopted Improvements to Income Tax Disclosures In December 2024, the Financial Accounting Standards Board (FASB) issued changes to expand the disclosure requirements for income taxes. The changes require disaggregated information about our effective tax rate reconciliation and income taxes paid. We adopted the changes for the year ended December 31, 2025, on a prospective basis. See Note 12Income Taxes. Impact of Recently Issued Accounting StandardsNot Yet Adopted Disaggregation of Income Statement Expenses In November 2025, the FASB issued changes to expand the disclosure requirements for specific expense categories. The changes require disaggregated quantitative disclosure, in the notes to the financial statements, of prescribed expense categories included within relevant income statement expense captions. These changes will be effective beginning with our 2027 fiscal year and subsequent interim periods, with early adoption permitted. As the guidance only requires additional disclosure there will be no impact to our results of operations, financial condition or cash flows. …

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NOTE 5. REVENUES The following table presents our sales disaggregated by product and service (in millions): Year Ended December 31, 2025 2024 2023 Carbon steel $ 7,903.2 $ 7,575.6 $ 8,071.8 Aluminum 2,471.5 2,294.4 2,456.4 Stainless steel 1,949.4 2,068.8 2,336.7 Alloy 641.0 637.7 704.9 Toll processing and logistics 646.9 623.7 610.6 Copper and brass 376.7 311.2 304.6 Miscellaneous and eliminations 305.6 323.6 320.9 Total $ 14,294.3 $ 13,835.0 $ 14,805.9 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 19. SEGMENT INFORMATION We have one operating and reportable segment metals service centers . Reliance derives revenue primarily in the United States and manages its business activities on a consolidated basis. We are organized as a network of metals service centers under a decentralized operating structure. Reliance provides metal solutions from this network under its operating strategies that include organic growth and acquisitions that enhance the metals service center networks diversification of products, geographies and customers. The metals service centers segment primarily operates in the spot market, distributing a full line of over 100,000 metals products, about half of which include value-added processing services to meet customer specifications, from a network of approximately 310 locations. The following is a summary of our sales by product and service (gross sales as a % of total sales) for each of the three years ended December 31: 2025 2024 2023 Carbon steel 53 % 53 % 53 % Aluminum 17 16 16 Stainless steel 13 14 15 Alloy 4 5 5 Toll processing and logistics 4 4 4 Copper & brass 3 2 2 Miscellaneous 6 6 5 Total 100 % 100 % 100 % The accounting policies of the metals service center segment are the same as those described in Note 1Summary of Significant Accounting Policies. The Company's chief operating decision maker (CODM) is the chief executive officer. The CODM assesses performance for the metals service center segment using net income and makes capital …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying financial statements include the accounts of Reliance, Inc. and its subsidiaries (collectively Reliance, the Company, we, our or us). Our consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The ownership of the other interest holders of consolidated subsidiaries is reflected as noncontrolling interests. Investments in unconsolidated subsidiaries are recorded under the equity method of accounting. Business As a global diversified metal solutions provider, we operate a network of approximately 310 locations in 41 U.S. states and 10 foreign countries (Belgium, Canada, China, France, Malaysia, Mexico, Singapore, South Korea, the United Arab Emirates and the United Kingdom) as of December 31, 2025 that provides value-added metals processing services and distributes a full line of more than 100,000 metal products. Accounting Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, such as allowances for credit losses, net realizable values of inventories, fair values and/or impairment of goodwill and other indefinite-lived intangible assets and long-lived assets, the am …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 15. EQUITY Common Stock We have paid regular quarterly cash dividends on our common stock for 66 consecutive years. Our Board of Directors increased the quarterly dividend from $0.875 per share to $1.00 per share in February 2023, to $1.10 per share in February 2024, to $1.20 per share in February 2025 and to $1.25 per share in February 2026. The holders of Reliance common stock are entitled to one vote per share on each matter submitted to a vote of stockholders. Shares Outstanding Issued and outstanding common shares were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Issued and outstanding common shares, beginning balance 53,715 57,271 58,787 IssuedRSUs and PSUs net share settlements 168 305 358 IssuedDirectors Equity Plan 4 4 4 Repurchased (2,152) (3,865) (1,878) Issued and outstanding common shares, ending balance 51,735 53,715 57,271 Share Repurchases On October 22, 2024, our Board of Directors amended our share repurchase program to replenish the repurchase authorization to $1.5 billion. As of December 31, 2025, we had remaining authorization to repurchase $763.5 million of our common stock under the share repurchase program. The share repurchase program does not require the repurchase of any specific number of shares, does not have a specific expiration date and may be suspended or discontinued at any time. Repurchased and subsequently retired shares are restored to the status of authorized but unissued shares. Our share repurchase activity for …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11. COMMITMENTS AND C ONTINGENCIES Environmental Contingencies We are currently involved with an environmental remediation project related to activities at former manufacturing operations of Earle M. Jorgensen Company (EMJ), our wholly owned subsidiary, that were sold many years prior to our acquisition of EMJ in 2006. Although the potential cleanup costs could be significant, EMJ maintained insurance policies during the time it owned the manufacturing operations that have covered costs incurred to date and are expected to continue to cover the majority of the related costs. We do not expect that this obligation will have a material adverse impact on our consolidated financial position, results of operations or cash flows. Legal Matters From time to time, we are named as a defendant in legal actions. These actions generally arise in the ordinary course of business. We are not currently a party to any pending legal proceedings other than routine litigation incidental to the business. We expect that these matters will be resolved without having a material adverse impact on our consolidated financial position, results of operations or cash flows. We maintain general liability insurance against risks arising in the ordinary course of business. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 6. DEBT Debt consisted of the following (in millions): June 30, December 31, 2026 2025 Unsecured revolving credit facility maturing September 10, 2029 $ 520.0 $ 277.0 Unsecured term loan maturing August 14, 2028 400.0 400.0 Senior unsecured notes, interest payable semi-annually at 2.15%, effective rate of 2.27%, maturing August 15, 2030 500.0 500.0 Senior unsecured notes, interest payable semi-annually at 6.85%, effective rate of 6.91%, maturing November 15, 2036 250.0 250.0 Other notes 0.7 Total 1,670.0 1,427.7 Less: unamortized discount and debt issuance costs (6.1) (6.8) Less: amounts due within one year (0.7) Total long-term debt $ 1,663.9 $ 1,420.2 The weighted average effective interest rates on the Companys outstanding borrowings as of June 30, 2026 and December 31, 2025 were 4.20% and 4.24%, respectively. Unsecured Revolving Credit Facility We have a $1.5 billion unsecured five -year revolving credit facility (Credit Agreement). As of June 30, 2026, borrowings under the Credit Agreement bear interest at variable rates based on SOFR plus 1.00% or the bank prime rate, and we pay a commitment fee of 0.10% on the unused portion of the facility. Interest rates under the Credit Agreement are subject to quarterly adjustment based on our total net leverage ratio (as defined in the Credit Agreement). Weighted average interest rates on borrowings outstanding under the revolving credit facility were 4.71% and 5.29% as of June 30, 2026 and December 31, 2025, respectively. As …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our net sales disaggregated by product and service (in millions): Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Carbon steel $ 2,621.4 $ 2,044.2 $ 4,839.5 $ 3,948.4 Aluminum 837.9 619.9 1,592.5 1,225.5 Stainless steel 595.2 489.2 1,134.2 992.4 Alloy 186.2 167.5 366.8 325.9 Toll processing and logistics 183.5 164.3 355.4 324.5 Copper and brass 123.7 98.9 225.6 180.6 Miscellaneous and eliminations 82.1 75.8 142.0 147.2 Total $ 4,630.0 $ 3,659.8 $ 8,656.0 $ 7,144.5 …

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NOTE 8. INCOME TAXES Our effective income tax rates for the second quarters and six months ended June 30, 2026 were 24.7% and 24.4%, respectively, compared to 23.0% and 23.3% for the respective 2025 periods. The differences between our effective income tax rates and the U.S. federal statutory rate of 21.0% were mainly due to state income taxes partially offset by the net effects of company-owned life insurance policies. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7. LEASES Supplemental cash flow and balance sheet information is presented below (in millions): Six Months Ended June 30, 2026 2025 Cash payments for operating leases $ 58.0 $ 55.8 Right-of-use assets obtained in exchange for operating lease obligations $ 48.4 $ 64.3 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards Disaggregation of Income Statement Expenses In November 2024, the Financial Accounting Standards Board issued guidance requiring disaggregated quantitative disclosure of prescribed expense categories included within relevant income statement expense captions. These changes will be effective beginning with our 2027 fiscal year and subsequent interim periods, with early adoption permitted. As the guidance only requires additional disclosure, there will be no impact to our results of operations, financial condition or cash flows. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 2. REVENUES The following table presents our net sales disaggregated by product and service (in millions): Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Carbon steel $ 2,621.4 $ 2,044.2 $ 4,839.5 $ 3,948.4 Aluminum 837.9 619.9 1,592.5 1,225.5 Stainless steel 595.2 489.2 1,134.2 992.4 Alloy 186.2 167.5 366.8 325.9 Toll processing and logistics 183.5 164.3 355.4 324.5 Copper and brass 123.7 98.9 225.6 180.6 Miscellaneous and eliminations 82.1 75.8 142.0 147.2 Total $ 4,630.0 $ 3,659.8 $ 8,656.0 $ 7,144.5 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 12. SEGMENT INFORMATION Reliance derives revenue primarily in the United States from its metals service center businesses. Following an operational realignment completed during the first quarter of 2026, the Company manages its business through operating segments that have been aggregated into a single reportable segment metals service centers based on similar economic characteristics. The operational realignment did not result in a change to the Companys reportable segments and, accordingly, previously reported segment information has not been recast. The measure of segment assets is reported on the accompanying consolidated balance sheet as total assets. The measure of segment profit and loss is net income reported on the accompanying consolidated income statements. Information about our segment revenue, net income, significant expenses, and other quantitative information is presented below (in millions): Metals Service Centers Segment Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Net sales $ 4,630.0 $ 3,659.8 $ 8,656.0 $ 7,144.5 Less: Cost of sales (exclusive of depreciation and amortization shown below) 3,329.5 2,571.9 6,183.6 5,023.3 Compensation expense 488.6 434.6 941.3 854.7 Other segment items (1) 294.4 265.0 579.5 535.6 Depreciation and amortization expense 69.5 69.7 138.7 138.4 Interest expense 18.2 14.3 33.6 25.8 Income tax provision 106.2 70.1 190.1 132.0 Net income $ 323.6 $ 234.2 $ 589.2 $ 434.7 Other Segment Disclosures: Purcha …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Reliance, Inc. and its subsidiaries (collectively the Company, we, our, or us) and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In managements opinion, the consolidated financial statements include all material adjustments of a normal recurring nature necessary for a fair presentation of interim results. Interim results are not necessarily indicative of the results for a full year. These financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Companys Annual Report on Form 10-K for the year ended December 31, 2025. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 9. EQUITY Stock-Based Compensation Plans We grant long-term equity incentive awards annually to officers and key employees in the form of service-based restricted stock units (RSUs) and performance-based restricted stock units (PSUs). RSUs vest over an approximately three-year period ending December1 and settle into an equivalent number of shares of our common stock. PSUs vest based on continued service and the achievement of a return on assets metric over a three-year performance period ending December31 and settle into shares of our common stock on a sliding scale up to a maximum of 200% of the number of PSUs granted. The following summarizes the activity of our unvested RSUs and PSUs (in thousands, except per unit amounts): Weighted Average Grant Date RSU and PSU Fair Value Aggregate Units Per Unit Unvested as of January 1, 2026 312 $ 294.81 Granted (1) 140 340.30 Vested (1) 293.73 Cancelled or forfeited (12) 300.57 Unvested as of June 30, 2026 439 $ 309.19 Shares reserved for future issuance (all plans) 1,094 (1) Comprised of 79 RSUs and 61 PSUs granted in February 2026. The RSUs cliff vest on December 1, 2028 and the PSUs vest upon the achievement of return on asset performance above a threshold over a 3 -year performance period ending December 31, 2028 . As of June 30, 2026, there was $97.4 million of total unrecognized compensation cost related to unvested RSUs and PSUs that is expected to be recognized, net of actual forfeitures and cancellations, over a weighted …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing