How Mixed Q3 Results and Trade Policy Uncertainty Could Shape Reliance Steel (RS)'s Outlook

• Reliance recently reported third-quarter results showing a slight year-over-year profit decline that missed expectations, while revenues surpassed forecasts amid strong non-residential construction and manufacturing demand.
• The company projects stable demand in the upcoming quarter, but indicates ongoing trade policy uncertainty could impact its outlook.
• We'll explore how the mixed earnings and the company’s steady guidance amid trade policy concerns may influence Reliance’s investment narrative.

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Reliance Investment Narrative Recap

To be a Reliance shareholder, you need confidence in the long-term growth of US non-residential construction and manufacturing, and trust that the business can withstand periodic earnings volatility due to trade and market shifts. The recent third-quarter earnings miss, while not material enough to alter the core investment thesis, reinforces that the biggest short-term catalyst remains resilient demand, while exposure to ongoing trade policy uncertainty is the most pressing risk.

Among recent announcements, the October 2025 dividend declaration at US$1.20 per share signals ongoing confidence in the company’s cash flow and commitment to shareholder returns, despite quarter-to-quarter profit fluctuations. Consistent, reliable dividends serve as tangible support to the investment case even when near-term profit trends soften, suggesting a degree of stability tied to the company’s core operations.

Yet, in contrast to growing end-market demand, investors should be aware that persistent trade policy uncertainty could still...

Read the full narrative on Reliance (it's free!)

Reliance's narrative projects $15.3 billion revenue and $1.0 billion earnings by 2028. This requires 3.7% yearly revenue growth and a $262 million earnings increase from current earnings of $737.9 million.

Uncover how Reliance's forecasts yield a $322.75 fair value, a 17% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s two fair value estimates for Reliance stock span from US$175.50 to US$322.75 per share. Many individual investors are considering the tension between stable construction demand and the ongoing risk of trade policy uncertainty when forming their outlooks, so be sure to explore these varied perspectives.

Explore 2 other fair value estimates on Reliance - why the stock might be worth 36% less than the current price!

Build Your Own Reliance Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Reliance research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Reliance research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Reliance's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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