Reliance, Inc. (RS) 2026 Q2 法說會逐字稿

Greetings and welcome to the Reliance, Inc., second-quarter 2026 earnings conference call. (Operator Instructions)

各位好，歡迎參加 Reliance, Inc. 2026 年第二季財報電話會議。(接線員指示)

It's now my pleasure to turn the call over to Kim Orlando, Investor Relations. Kim, please go ahead.

現在我很榮幸將電話交給投資人關係部的 Kim Orlando。Kim，請開始。

Thank you, operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's second-quarter 2026 financial results. I am joined by Karla Lewis, President and Chief Executive Officer; Steve Koch, Executive Vice President and Chief Operating Officer; and Arthur Ajemyan, Senior Vice President and Chief Financial Officer. A recording of this call will be posted on the Investors section of our website at investor.reliance.com.

謝謝，接線員。各位早安，感謝各位參加我們的電話會議，一同討論 Reliance 2026 年第二季財務結果。與我一同出席的有：總裁暨執行長 Karla Lewis；執行副總裁暨營運長 Steve Koch；以及資深副總裁暨財務長 Arthur Ajemyan。本次電話會議的錄音將會張貼於我們網站的投資人專區：investor.reliance.com。

Please read the forward-looking statement disclosures included in our earnings release issued yesterday and note that it applies to all statements made during this teleconference. The reconciliations of the adjusted numbers are included in the non-GAAP reconciliation part of our earnings release.

請閱讀我們昨日發布之財報新聞稿中所載的前瞻性陳述揭露，並注意其適用於本次電話會議期間所作的所有陳述。調整後數字的調節表已包含在我們財報新聞稿的非 GAAP 調節部分。

I will now turn the call over to Karla Lewis, President and CEO of Reliance.

接下來我將把電話交給 Reliance 總裁暨執行長 Karla Lewis。

Good morning, everyone, and thank you for joining us to discuss our second-quarter 2026 results. Reliance delivered another excellent quarter, building on the positive momentum of the first quarter and the continued strong execution by our teams. Market conditions remain favorable, supported by improving customer activity, extended mill lead times, and strong pricing across our broad product portfolio. We achieved our second highest quarterly revenue as well as record quarterly tons sold and continued to outperform broader industry shipment trends. These results and our sustained industry outperformance reflect our scale, diversification across end markets, products, and value-add service offerings and our position as a partner of choice with domestic mills.

各位早安，感謝各位加入我們，一同討論 2026 年第二季的業績。Reliance 再次交出非常出色的一季，在第一季的正向動能之上持續推進，並仰賴團隊持續強勁的執行力。市場狀況仍然有利，受惠於客戶活動改善、鋼廠交期延長，以及我們廣泛產品組合的強勁定價。我們達成歷來第二高的單季營收，同時創下單季銷售噸數新高，並持續優於整體產業出貨趨勢。這些成果以及我們持續優於同業的表現，反映出我們的規模優勢、在終端市場與產品及加值服務上的多元化布局，以及我們作為國內鋼廠首選合作夥伴的地位。

Non-residential construction end market sales remained strong, and we began to see meaningful improvements in our sales to the general manufacturing, aerospace, and semiconductor markets throughout the second quarter. We also benefited from initial contributions from the US Department of Homeland Security border wall contract that we were awarded earlier this year, generating activity in excess of our guidance and contributing meaningfully to our second-quarter earnings. Steve and Arthur will speak about its financial impact later in the call. Elevated pricing levels, along with strong execution by our teams drove significant growth in our profitability including a 40% year-over-year increase in non-GAAP pretax income and non-GAAP earnings per share of $6.27, our highest EPS result since the second quarter of 2023.

非住宅建築終端市場銷售維持強勁，而在第二季期間，我們對一般製造、航太與半導體市場的銷售也開始出現顯著改善。我們亦受惠於今年稍早獲得的美國國土安全部邊境圍牆合約之初期貢獻，相關活動量超出我們的指引，並對第二季獲利做出重要貢獻。Steve 與 Arthur 將在稍後說明其財務影響。在高檔價格水準以及團隊強勁執行力的帶動下，我們的獲利能力顯著成長，包括非 GAAP 稅前盈餘年增 40%，以及非 GAAP 每股盈餘達 6.27 美元，為自 2023 年第二季以來的最高 EPS 表現。

Trade policy continues to limit imports and support strong domestic pricing, which is further strengthened by extended lead times. Our longstanding domestic mill partnerships help ensure reliable material availability, allowing us to better serve our customers and capture new opportunities. Our balance sheet and liquidity remain key competitive advantages, supporting strategic growth investments and ongoing returns to stockholders as well as disciplined capital deployment. For the full-year 2026, our capital expenditure outlook remains approximately $300 million with about half allocated to strategic growth investments to enhance processing capabilities, strengthen customer service, expand our footprint, and grow volumes in attractive markets.

貿易政策持續限制進口並支撐強勁的國內價格，而交期延長進一步強化此一趨勢。我們與國內鋼廠長期的合作夥伴關係，有助於確保材料供應可靠，使我們能更好地服務客戶並掌握新的機會。我們的資產負債表與流動性仍是關鍵競爭優勢，支持策略性成長投資與持續回饋股東，同時也支撐審慎的資本配置。就 2026 全年而言，我們的資本支出展望仍約為 3 億美元，其中約一半將配置於策略性成長投資，以提升加工能力、強化客戶服務、擴大據點版圖，並在具吸引力的市場中提升出貨量。

As customer optimism builds and activity continues to strengthen across infrastructure, including the border wall project, semiconductor, general manufacturing, and aerospace, Reliance remains exceptionally well positioned to capitalize on the many meaningful opportunities that we expect to continue to materialize throughout the second half of 2026 and into next year.

隨著客戶信心提升，且基礎建設（包括邊境圍牆專案）、半導體、一般製造與航太等領域的活動持續轉強，Reliance 仍處於極佳位置，可把握我們預期將在 2026 年下半年並延續至明年持續浮現的多項重要機會。

I'll now turn the call over to our COO, Steve Koch.

接下來我將把電話交給我們的營運長 Steve Koch。

Thanks, Karla, and good morning, everyone. Our second-quarter performance reflects continued strong execution across our operations and our dedication to safety and exceptional customer service. I recognize our teams across the Reliance family of companies whose relentless focus and hard work fuel our industry-leading results and reinforce the many competitive advantages that set Reliance apart.

謝謝你，Karla，各位早安。我們第二季的表現反映出營運面持續強勁的執行力，以及我們對安全與卓越客戶服務的投入。我也要肯定 Reliance 旗下各公司團隊的努力；他們不懈的專注與辛勤工作，推動我們領先同業的成果，並強化使 Reliance 脫穎而出的多項競爭優勢。

Turning to our demand and pricing trends. Record tons sold increased 7% from the prior quarter and were up 10.8% compared to the second quarter of 2025, significantly exceeding our expectations of up 1% to 3% sequentially and up 4.5% to 6.5% year-over-year. The sequential increase in our second-quarter tons sold included a 5.1 percentage point contribution from the US border wall contract. Carbon steel products continued to lead our tons sold growth. Aluminum and stainless steel products also contributed at higher per ton profitability levels.

接著談需求與定價趨勢。創紀錄的銷售噸數較前一季增加 7%，較 2025 年第二季增加 10.8%，大幅超出我們原先預期的季增 1% 至 3% 以及年增 4.5% 至 6.5%。第二季銷售噸數的季增中，有 5.1 個百分點來自美國邊境圍牆合約的貢獻。碳鋼產品仍是帶動我們銷售噸數成長的主要動能。鋁與不鏽鋼產品亦有貢獻，且每噸獲利水準更高。

Our second-quarter average selling price increased 7.8% from the first quarter of 2026, exceeding our expectation of up 1.5% to 3.5%. This includes a 1.6 percentage point offset from the US border wall project as a result of higher shipment volumes of lower-priced products. Pricing for carbon steel and aluminum products continued upward amid constrained supply, extended lead times, and strengthening demand. These market dynamics magnify the strategic benefit of our reliable access to metal from our domestic mill partners.

我們第二季平均售價較 2026 年第一季上升 7.8%，高於我們原先預期的上升 1.5% 至 3.5%。其中包含因美國邊境圍牆專案出貨量增加、且較低單價產品出貨占比提高所造成的 1.6 個百分點抵銷影響。在供給受限、交期延長與需求轉強的背景下，碳鋼與鋁產品的價格持續走升。這些市場動態進一步放大我們能可靠取得國內鋼廠合作夥伴金屬供應的策略性效益。

Turning to our end markets. Non-residential construction represented roughly 1/3 of our second-quarter sales, primarily from carbon steel tubing, plate, and structural products. Second-quarter shipments remained strong despite supply constraints driven by sustained strong activity in data center and related energy infrastructure projects alongside solid demand in heavy civil and public infrastructure work. Our participation in the US border wall project further strengthened our presence in the non-residential construction market. General manufacturing also represented about 1/3 of our second-quarter sales. Our participation in this market is highly diversified across products, industries, and geographies.

接著談終端市場。非住宅建築約占我們第二季銷售的三分之一，主要來自碳鋼管材、鋼板與結構型鋼產品。儘管供應受限，第二季出貨仍維持強勁，主要受資料中心及相關能源基礎建設專案的持續活躍所帶動，同時重型土木與公共基礎建設工程需求亦穩健。我們參與美國邊境圍牆專案，進一步強化了我們在非住宅建築市場的布局。一般製造亦約占我們第二季銷售的三分之一。我們在該市場的參與高度多元，涵蓋不同產品、產業與地理區域。

Shipments showed strong year-over-year growth driven by industrial machinery, including data center equipment as well as shipbuilding, military, consumer products, and construction machinery. Aerospace products accounted for approximately 9% of second-quarter sales. We saw early signs of improvement in commercial aerospace supported by improving backlogs as OEM build rates increased, though elevated inventories persist. Defense and space-related aerospace activity remained strong during the quarter.

在工業機械（包括資料中心設備）以及造船、軍工、消費性產品與建築機械的帶動下，出貨量呈現強勁的年增成長。航太產品約占第二季銷售的 9%。隨著 OEM 提高產量、在手訂單改善，我們看到商用航太出現初步改善跡象，但庫存水位仍偏高。國防與太空相關的航太活動在本季仍維持強勁。

Automotive, which we primarily serve through our toll processing operations, represented about 4% of second-quarter sales. As a reminder, our toll processing volumes are excluded from our tons sold. Demand improved in the second quarter as our flexible toll processing operations quickly adapted to the variable demands of the automotive market. Lastly, demand in the semiconductor market is showing clear improvement. We are seeing momentum accelerate, supported by increasing data center activity.

汽車業務（我們主要透過代工加工業務提供服務）約占第二季銷售的 4%。提醒各位，我們的代工加工量不計入銷售噸數。第二季需求有所改善，因我們具彈性的代工加工營運能迅速因應汽車市場變動的需求。最後，半導體市場需求正呈現明顯改善。在資料中心活動增加的支撐下，我們看到動能正在加速。

In summary, Reliance continues to be distinguished by our people, our strong domestic relationships and our focus on delivering unmatched customer service. In addition, the strategic investments we've made across our footprint are generating tangible returns and our disciplined commercial and operational approach continues to drive the market outperformance and profitability that further differentiate us.

總結而言，Reliance 仍以我們的人才、我們強大的國內關係，以及我們專注於提供無與倫比的客戶服務而脫穎而出。此外，我們在營運版圖各地所做的策略性投資正產生具體回報，而我們嚴謹的商業與營運方法持續推動市場表現超越同業與獲利能力，進一步凸顯我們的差異化。

I will now turn the call over to our CFO, Arthur, to review our financial results and outlook.

接下來我將把電話交給我們的財務長 Arthur，請他回顧我們的財務結果與展望。

Thanks, Steve, and thanks, everyone, for joining today's call. We delivered another strong quarter with sales increasing 27% year-over-year on stronger-than-anticipated shipments and pricing. Our second-quarter gross profit of $1.3 billion was up 11% compared to the first quarter of 2026 and up 20% compared to the second quarter of 2025. On a FIFO basis, which is how we evaluate our ongoing performance, non-GAAP gross profit margin expanded to 30.5% compared to 30.1% in the first quarter of 2026, down modestly from 30.6% in the prior-year quarter. This includes a roughly 40-basis-point margin headwind from the US border wall project.

謝謝你，Steve，也謝謝各位參加今天的電話會議。在出貨量與定價強於預期的帶動下，我們又交出一個強勁季度，銷售額年增 27%。我們第二季毛利為 13 億美元，較 2026 年第一季增加 11%，較 2025 年第二季增加 20%。以 FIFO 基礎（這也是我們評估持續經營表現的方式）計算，非 GAAP 毛利率擴大至 30.5%，高於 2026 年第一季的 30.1%，但較去年同期的 30.6% 小幅下降。其中包含美國邊境牆專案約 40 個基點的毛利率逆風。

However, as we are leveraging existing infrastructure, the project's below company average operating cost per ton more than offset its impact on gross profit margin, adding approximately 30 basis points to pretax income margin. Higher-than-anticipated carbon and aluminum product costs caused us to increase our full-year LIFO expense outlook to $300 million from our prior estimate of $150 million. As a result, we recorded second-quarter LIFO expense of $112.5 million, significantly above our estimate of $37.5 million. Accordingly, we also expect to record LIFO expense of $75 million in the third quarter of 2026. At the end of the second quarter, the LIFO reserve on our balance sheet was approximately $700 million, which remains available to support future operating results and help mitigate the impact of future metal price declines.

不過，由於我們正利用既有基礎設施，該專案低於公司平均的每噸營運成本，足以抵銷其對毛利率的影響，並使稅前利潤率增加約 30 個基點。碳鋼與鋁產品成本高於預期，促使我們將全年 LIFO 費用展望由先前估計的 1.5 億美元上調至 3 億美元。因此，我們第二季認列 LIFO 費用 1.125 億美元，顯著高於我們估計的 3,750 萬美元。因此，我們也預期在 2026 年第三季將認列 7,500 萬美元的 LIFO 費用。截至第二季末，我們資產負債表上的 LIFO 準備金約為 7 億美元，仍可用於支撐未來營運成果，並協助緩解未來金屬價格下跌的影響。

Aluminum was a notable driver of the LIFO expense increase, disproportionately affecting our LIFO gross profit margin relative to historical levels. Higher aluminum pricing resulting from Section 232 tariffs without a corresponding increase in demand also continued to constrain LIFO gross profit margins. However, we are realizing higher gross profit per ton on aluminum sales and across our entire product portfolio as a result of the current pricing environment.

鋁是推升 LIFO 費用增加的顯著驅動因素，使我們的 LIFO 毛利率相較歷史水準受到不成比例的影響。由於第 232 條關稅推升鋁價但需求未相應增加，亦持續壓抑 LIFO 毛利率。然而，在目前的定價環境下，我們在鋁產品銷售以及整體產品組合上，正實現更高的每噸毛利。

Non-GAAP SG&A expense increased 11% compared to the second quarter of 2025, driven by higher incentive compensation from improved profitability, inflationary impacts on compensation and related benefits, freight and fuel cost inflation resulting from the US-Iran conflict, and higher variable warehousing and delivery costs associated with our increased tons sold. On a per ton basis, non-GAAP SG&A expense was flat due to favorable operating leverage from higher shipment volumes, including contributions from the US border wall project. Continued market share gains, higher shipment volumes and increased gross profit dollars drove meaningful operating leverage, resulting in a 40% year-over-year increase in non-GAAP pretax income to $429 million. Our non-GAAP second-quarter earnings per diluted share grew 42% year-over-year to $6.27 with the US border wall project contributing $0.41 per share. LIFO expense of $1.64 per share for the second quarter exceeded the $0.54 estimate included in our guidance and $0.35 in the prior-year quarter.

非 GAAP 銷售、一般及行政（SG&A）費用較 2025 年第二季增加 11%，主要受以下因素帶動：獲利改善帶來較高的激勵性薪酬、通膨對薪酬及相關福利的影響、因美伊衝突導致的運費與燃料成本通膨，以及隨著銷售噸數增加而上升的可變倉儲與配送成本。以每噸計算，非 GAAP SG&A 費用持平，因出貨量提高帶來有利的營運槓桿，其中也包含美國邊境牆專案的貢獻。持續的市占率提升、更高的出貨量與毛利金額增加帶來顯著的營運槓桿，使非 GAAP 稅前收入年增 40% 至 4.29 億美元。我們第二季非 GAAP 稀釋後每股盈餘年增 42% 至 6.27 美元，其中美國邊境牆專案貢獻每股 0.41 美元。第二季每股 LIFO 費用為 1.64 美元，高於我們指引中所包含的 0.54 美元估計，也高於去年同期的 0.35 美元。

Moving on to our balance sheet and cash flow. Cash flow from operations in the second quarter improved sequentially to approximately $162 million despite a significant working capital build from increased shipments and higher metal pricing. Our inventory turn rate based on tons improved to approximately 5.2 times compared to 4.8 times in 2025. Accounts receivable DSO of approximately 42 days remained healthy and consistent with the prior year.

接著談談我們的資產負債表與現金流。儘管因出貨增加與金屬價格上升導致營運資金大幅增加，第二季營運活動現金流仍較前一季改善至約 1.62 億美元。以噸數計算的存貨周轉率改善至約 5.2 次，高於 2025 年的 4.8 次。應收帳款週轉天數（DSO）約 42 天，維持健康水準並與去年一致。

During the quarter, we funded $93 million of capital expenditures and paid $64 million in dividends. We did not repurchase any shares of our issued and outstanding common stock during the quarter and have approximately $529 million remaining available under our current share repurchase program. We remain opportunistic in our approach. Our total debt was $1.7 billion at the end of the second quarter. Our leverage position remains very strong with a net debt-to-EBITDA ratio of 0.9, providing substantial liquidity and flexibility to execute on all of our capital allocation priorities.

本季我們投入 9,300 萬美元資本支出，並支付 6,400 萬美元股利。本季我們未回購任何已發行且流通在外的普通股，在現行庫藏股回購計畫下仍有約 5.29 億美元可用額度。我們仍將以機會主義方式進行。截至第二季末，我們總負債為 17 億美元。我們的槓桿水位仍非常強健，淨負債對 EBITDA 比率為 0.9，提供充足的流動性與彈性，以執行我們所有的資本配置優先事項。

Looking ahead to the third quarter, we expect demand and pricing to remain at healthy levels with continued improvement across several of the key products and end markets we serve, subject to ongoing risks from domestic and international trade policy and the US-Iran conflict as well as subject to normal seasonality. We anticipate third-quarter 2026 non-GAAP earnings per diluted share in the range of $6.40 to $6.60, up 76% to 81% year-over-year, including an estimated $75 million of LIFO expense or about $1.10 per diluted share. Please refer to our second-quarter earnings release for further details on our Q3 outlook as well as anticipated contributions from the US border wall project.

展望第三季，我們預期需求與定價將維持在健康水準，且我們所服務的數個關鍵產品與終端市場將持續改善，但仍須留意國內與國際貿易政策、美伊衝突的持續風險，以及一般季節性因素。我們預估 2026 年第三季非 GAAP 稀釋後每股盈餘介於 6.40 至 6.60 美元，年增 76% 至 81%，其中包含估計 7,500 萬美元的 LIFO 費用，約合每股稀釋後 1.10 美元。關於我們第三季展望的更多細節，以及美國邊境牆專案的預期貢獻，請參閱我們第二季財報新聞稿。

This concludes our prepared remarks. Thank you again for your time and participation. We'll now open the call for your questions. Operator?

以上為我們預先準備的發言。再次感謝各位撥冗參與。接下來我們將開放提問。接線員？

(Operator Instructions) Lawson Winder, Bank of America.

(接線員指示) 美國銀行的 Lawson Winder。

This is Sathish on for Lawson. My first question is on the border wall contract. So the shipments accounted for like 5.1% of Q2 volumes and then you expect an additional 2% improvement in Q3. Is there potential for further upside to these volumes? Or should we assume volumes to be fairly consistent through the remainder of Phase 1 period that's through mid-2027?

我是 Sathish，代替 Lawson 發問。我的第一個問題是關於邊境牆合約。第二季出貨量約占 Q2 總量的 5.1%，而你們預期第三季還會再提升約 2%。這些出貨量是否還有進一步上行的可能？或者我們應該假設在第一階段期間（至 2027 年年中）剩餘時間，出貨量會大致維持一致？

Yeah. Sathish, the volumes, as we mentioned, were stronger than we had anticipated. We just started shipping under the contract in April, and we did see the volumes ramp. And per the guidance we're giving that you just spoke about, yes, we expect higher shipments in Q3. We believe that's close to a full shipment run rate and should be close to that going through the middle of next year.

是的。Sathish，如同我們提到的，出貨量比我們原先預期更強。我們在 4 月才開始依合約出貨，確實看到出貨量逐步拉升。依照我們剛才提到的指引，是的，我們預期第三季出貨會更高。我們認為那已接近完整的出貨運轉率，並且應該會大致維持到明年年中。

Although, of course, it's all dependent on metal supply to us and how quickly our customer pulls the inventory from us. But I think you could assume for now that the Q3 guide is -- will be sustained through the following quarters.

當然，這一切都取決於金屬供應給我們的情況，以及我們的客戶多快從我們這裡提走庫存。但我認為你目前可以先假設第三季的指引——將會在接下來的幾個季度維持。

Okay. And in your opening remarks, you talked about the ability to capitalize on many meaningful opportunities that will continue to emerge in the second half and into 2027. Can you maybe provide a bit more color on what these opportunities are? Is there a potential to add similar large government or infrastructure contracts in the near term?

好的。另外，在你們的開場致詞中，你提到能夠把握許多重要機會，這些機會將在下半年持續出現並延續到2027年。你能否再多提供一些細節，這些機會具體是什麼？短期內是否有可能新增類似的大型政府或基礎建設合約？

I mean, the border wall contract is a very significant contract. So I don't know that there will be more of that size. However, we do want to highlight that we have the capability to do those types of large contracts or large orders just with the momentum we see from our customers, whether it's on the data center, the infrastructure side, the power side, military spending. There's just a lot of customer optimism. And I think Reliance is doing a better job of having our companies cooperate with each other to be able to provide a broader package to customers and make it easier for them to come to us as a solution for their multiple product needs.

我的意思是，邊境牆合約是一份非常重大的合約。所以我不確定是否還會有更多同等規模的案子。不過，我們確實想強調，憑藉我們從客戶端看到的動能——不論是資料中心、基礎建設、電力、軍事支出——我們有能力承接那類大型合約或大型訂單。客戶的樂觀情緒非常強。我認為Reliance在促進旗下公司彼此協作方面做得更好，能夠為客戶提供更完整的方案，讓客戶更容易把我們視為解決方案，以滿足其多元產品需求。

And so we anticipate being able to support our customers when they desire it. But -- and with reshoring, there's just a lot of positive momentum right now.

因此，我們預期在客戶有需求時能夠提供支援。另外——隨著製造回流（reshoring），目前確實有很多正向動能。

Samuel McKinney, KeyBanc Capital Markets.

Samuel McKinney，KeyBanc Capital Markets。

Despite continued run-ups in carbon and nonferrous pricing over the course of the second quarter versus the end of the first quarter, I'll say, your quarter-end inventory increased less than $100 million despite the $600 million increase in revenue. Could you talk about the inventory positioning moving forward given that many of your orders are of that just-in-time variety?

儘管第二季期間碳鋼與有色金屬價格相較第一季末持續上漲，我想說，你們季末庫存增加不到1億美元，儘管營收增加了6億美元。鑑於你們許多訂單屬於即時供貨（just-in-time）型態，能否談談未來的庫存配置？

Yeah, Sam. Our inventory turn rate was a little above 5 times for the quarter, which is a little faster than typical. Our company-wide goal is 4.7 turns. But we're very comfortable with where our inventory position is. There is some limited supply, some supply constraints at some of the mills.

是的，Sam。本季我們的庫存周轉率略高於5次，稍微快於一般水準。我們全公司的目標是4.7次周轉。但我們對目前的庫存水位非常放心。部分鋼廠的供應仍有些有限，存在一些供應限制。

But with our strong relationships, we're very happy with how our mill partners are treating us, and we're able to get the inventory we need for our customers. But inventory levels are, I think, probably a little lower across the industry right now.

但憑藉我們強健的合作關係，我們對鋼廠夥伴對待我們的方式非常滿意，也能取得客戶所需的庫存。不過我認為，目前整個產業的庫存水位可能都偏低一些。

Yeah. And I also would add to that, Karla, that our strategy of buying domestically, although lead times are extended, they're still a lot shorter than imports coming in. So based on our robust inventories and our access, we feel like we're still in a really good position to capitalize on the growing demand in the marketplace.

是的。Karla，我也補充一下：我們採購以國內來源為主的策略，雖然交期拉長，但仍遠短於進口到貨的時間。因此，基於我們充足的庫存與取得貨源的能力，我們認為自己仍處於非常有利的位置，能把握市場上成長中的需求。

Okay. Appreciate that. And then SG&A as a percent of sales this quarter was lower than it's been in a couple of years. With all the storage handling you're doing for the border wall contract, I think it would be helpful for all of us if you could further discuss just the cost to service that contract versus the rest of your business. I know the storage handling obviously much cheaper.

好的。感謝說明。另外，本季SG&A占銷售額的比例低於過去幾年。考量你們為邊境牆合約進行大量倉儲與搬運作業，我想如果你們能進一步討論服務該合約的成本相較於其他業務的差異，對我們會很有幫助。我知道倉儲搬運顯然便宜得多。

Yeah. The SG&A costs and, as a percent of sales, the average sell price being significantly higher drives that down as a percentage. There are -- we're still facing inflationary factors on different elements of our SG&A expense, resulting in higher dollars, but the elevated selling prices helped to cover that. And on the border wall contract, we're not -- we are doing some value-add processing, but at -- I would say, at a lower rate based on total tonnage that we're providing than the rest of the company. So that keeps the SG&A cost lower per ton for the volume going into the border wall.

是的。SG&A成本以銷售額百分比來看，主要是因為平均售價顯著提高，使其占比下降。我們在SG&A費用的不同項目上仍面臨通膨因素，導致金額（以美元計）上升，但較高的售價有助於吸收這些成本。至於邊境牆合約，我們確實有做一些加值加工，但——我會說——以我們供應的總噸數來看，其加值加工比率低於公司其他業務。因此，投入邊境牆的這部分量，其每噸SG&A成本會較低。

And Sam, I would add that, yes, since we're leveraging our vast existing infrastructure, that's what's truly allowing us to lower the variable cost on this project. Otherwise, for anybody else to be able to take this on, they have to make significant investments in infrastructure, including facilities, equipment, et cetera. So yes, absolutely, the variable cost per ton is significantly lower than the company average and hence, the pretax margin accretion impact that we mentioned.

Sam，我再補充一下：是的，因為我們能運用既有且龐大的基礎設施，這才真正讓我們得以降低此專案的變動成本。否則，任何其他公司若要承接這個案子，都必須在基礎設施上投入大量資本，包括廠房、設備等等。所以沒錯，每噸變動成本顯著低於公司平均水準，因此也帶來我們先前提到的稅前利潤率提升（margin accretion）效果。

Timna Tanners, Wells Fargo.

Timna Tanners，Wells Fargo。

I wanted to ask a little bit about the components of the product mix you have. So what you're seeing there? Plate and beam seem particularly tight and prices have inched up further. Aluminum, at least LME has retreated. How does that play out for your products and pricing into the second half?

我想問一下你們產品組合的構成。你們目前看到的情況如何？中厚板（plate）和樑材（beam）似乎特別吃緊，價格也進一步小幅上升。鋁方面，至少LME價格已回落。這對你們下半年產品與定價會如何反映？

And then I have a follow-up, I guess, with more flat-rolled questions.

然後我還有一個追問，應該會是更多關於熱軋/冷軋等扁平材（flat-rolled）方面的問題。

Yes, beam and plate prices have seen strong increases. It's a tight market, and there's significant customer demand pulling that. So we're participating in those markets as we always do, just at higher pricing levels and I think a stronger pull on those products. And there was the aluminum price pullback but from very high levels. And I would say from that standpoint, even though prices pulled back a bit, it still elevated pricing levels, we're making very high levels of gross profit dollar margin on the aluminum products we're selling as well as beam and plate.

是的，樑材和中厚板價格確實大幅上漲。市場供給吃緊，且有顯著的客戶需求在拉動。因此我們一如既往參與這些市場，只是價格水準更高，而且我認為這些產品的拉貨力道更強。鋁價確實回落，但那是從非常高的水準回落。我會說，即便價格回檔一些，仍處於偏高水準；我們在所銷售的鋁產品以及樑材與中厚板上，仍取得非常高的毛利金額（gross profit dollar margin）。

Yes, Timna, I would add to Karla's comments, based on our market position in beams and plate and some of our service centers that have been in this business for a long time when demand -- when supply gets a little bit tight, we get what we've been getting in the past years. People don't like to use the word allocation. But when it is really tight, we get what we got in the past. And also, when we need some favors or have some jobs that come up, we do get preferential treatment. So I would say that just the long track record really helps us in a market like this.

是的，Timna，我補充Karla的評論：基於我們在樑材與中厚板的市場地位，以及我們部分服務中心在這個領域深耕多年，當需求——當供應變得有點吃緊時，我們就能拿到過去幾年一直拿到的供應量。大家不太喜歡用「配給」（allocation）這個詞。但當市場真的非常吃緊時，我們能拿到的就跟過去一樣。而且當我們需要一些協助、或臨時出現一些案子時，我們也會獲得優先待遇。所以我會說，長期的合作紀錄在這樣的市場環境下確實對我們很有幫助。

Okay. That makes sense. On the flat-rolled side, it does seem like lead times came down, came back up depending on who you're looking at. Are you seeing evidence that the mills are starting to catch up with their lead times? What are you seeing on the flat-rolled side?

好的。這很合理。在平軋產品方面，看起來交期確實有縮短、也有回升，取決於你看的是哪一家。你們有看到鋼廠開始追上交期的跡象嗎？在平軋這一塊你們看到的是什麼情況？

It seems like even if you're not importing, there's quite a bit on the water. So just a little more color, that would be great.

看起來即使你們沒有進口，海上在途的貨量也相當多。所以如果能再多補充一些細節就太好了。

We are not importing flat rolled, Timna. I would say that our average flat-rolled order is about two weeks late, but with some mills that are four to eight weeks late. We've not seen a whole lot of signs of our suppliers catching up, although they really are trying to deal with the increased demand and some production challenges.

Timna，我們沒有進口平軋產品。我會說我們的平軋平均訂單大約延遲兩週，但有些鋼廠會延遲四到八週。我們沒有看到太多供應商追上交期的跡象，儘管他們確實在努力因應需求增加以及一些生產上的挑戰。

Okay. Great. And before I let you go, if I could, don't have as much color on the other components, the stainless and alloy. What are you seeing trend-wise there in terms of pricing and activity?

好的。很好。在我讓你離線之前，如果可以的話，我對其他組件、不鏽鋼和合金這些掌握的細節沒那麼多。就價格與活動度的趨勢而言，你們那邊看到什麼變化？

So for stainless, prices have stayed pretty steady. And then some specialty stainless where there's been an inventory glut, that seems to be working itself off, and we think that the second half should show some increase in prices.

不鏽鋼方面，價格一直相當穩定。另外有些特殊不鏽鋼之前出現庫存過剩，現在看起來正在逐步去化，我們認為下半年價格應該會有一些上漲。

Nick Cash, Goldman Sachs.

高盛的 Nick Cash。

I just want to go back to the border wall real quick. I mean, you guys shipped about 85,000 tons in 2Q, and that's ramping up to, call it, maybe 120,000 tons in 3Q. In 2Q, it added 30 basis points of pretax margin. Should we expect that OpEx-light structure to hold as you scale up shipments? Or could there be any change there?

我想很快再回到邊境牆的問題。我的意思是，你們在第二季出貨大約 85,000 噸，而第三季正在拉升到，大概可以說，約 120,000 噸。第二季它為稅前利潤率增加了 30 個基點。隨著出貨規模擴大，我們是否應該預期這種偏輕的營運費用（OpEx-light）結構能維持？還是那裡可能會有任何變化？

Yeah, we expect to hold at those levels and the higher volumes make us probably a little more efficient with the tons going through, but that -- those are good assumptions for the border wall contract.

是的，我們預期會維持在那些水準，而更高的出貨量可能讓我們在處理這些噸數時更有效率一些；但就邊境牆合約而言，那些假設是合理的。

Okay. And then just one more on carbon tubing, that jumped from 9% to 12% quarter-over-quarter. Are you seeing the wall crowding out any potential commercial availability for tubing? Or how are you counteracting that?

好的。再問一個關於碳鋼管材的問題，該項從上一季的 9% 跳升到本季的 12%。你們是否看到邊境牆需求擠壓了管材在商業市場的可供量？或者你們是如何因應的？

Well, I would say the increase in our product mix for the tubing is pretty directly attributable to the tons we're shipping under the border wall contract. And I think it -- from a market standpoint, it is consuming a good amount of product, but that helps support overall carbon pricing, especially for the tubing products.

嗯，我會說我們管材產品組合的提升，幾乎可以直接歸因於我們在邊境牆合約下出貨的噸數。而且我認為——從市場角度來看，它確實消耗了相當一部分產品，但這也有助於支撐整體碳鋼價格，尤其是管材產品。

Martin Englert, Seaport Research Partners.

Seaport Research Partners 的 Martin Englert。

I wanted to come back to a question in the release here. You noted potential supply availability as a headwind in non-residential construction, I believe. I just wanted to see, could you provide some more color and then kind of what you're hearing from customers in the construction industry regarding potential project delays or cancellations due to supply and/or higher metals prices?

我想回到新聞稿裡的一個問題。你們提到在非住宅建築方面，潛在的供應可得性可能是一個逆風，我記得是這樣。我想請你們再多補充一些細節，以及你們從建築業客戶那邊聽到的情況：是否因供應和／或金屬價格較高而可能導致專案延遲或取消？

Martin, as we mentioned, our volumes shipped have been strong, but there is some -- as Steve just mentioned on an earlier question, there is allocation, so to speak, on some of those products because demand has been so strong. So that helps elevate the prices, but I don't think we've seen any significant project delays.

Martin，如我們提到的，我們的出貨量一直很強勁，但確實有一些——就像 Steve 在先前的問題提到的——某些產品存在所謂的配給／配額供應，因為需求非常強。這有助於推升價格，但我不認為我們看到任何顯著的專案延遲。

No, we haven't seen any delays as far as I know. And when we say headwinds, our customers are growing and they want us to grow alongside of them, and that's kind of our goal. But when there's such a demand, we try to make sure that they -- we give them everything that they need, but we just don't have an unlimited amount. So I think that we're keeping up with our customer demand.

就我所知，沒有看到任何延遲。而當我們說逆風時，我們的客戶在成長，他們也希望我們能與他們一起成長，這就是我們的目標。但當需求如此強勁時，我們會盡力確保——我們提供他們所需要的一切，但我們的供應量並不是無上限的。所以我認為我們正在跟上客戶的需求。

Okay. And then a broader question about the industry as there's been some consolidation, do you anticipate any increased competition from this? Or rather could it result in a situation wherein the broader distribution processing industry in the United States is more disciplined when it comes to factors like price and margin?

好的。再問一個更宏觀的產業問題：隨著產業出現一些整併，你們是否預期競爭會因此加劇？或者反過來說，是否可能使美國整體的鋼鐵流通與加工配送產業在價格與利潤率等因素上更有紀律？

Yeah. So we're hopeful that it will create a more disciplined environment with fewer competitors. We hope that they -- it takes one bidder, one competitive bidder out, hopefully, if they focus on more pricing discipline.

是的。我們希望這會在競爭者更少的情況下，帶來一個更有紀律的環境。我們希望——如果他們更專注於價格紀律，這等於少了一個投標者、少了一個競爭性投標者。

Appreciate the color and congratulations on the results and the outlook.

感謝補充的細節，也恭喜你們的業績與展望。

Bennett Moore, JPMorgan.

摩根大通的 Bennett Moore。

Congrats on the strong quarter. Excluding the DHS contract contribution, shipments were guided down 2% to 4% quarter-over-quarter. I believe this is in line with what you guided to 3Q on typical seasonality. Yet the commentary -- the market commentary has been incrementally positive, and you continue to gain share. So I guess I'm just trying to gauge what level of conservatism may be baked into that guide?

恭喜本季表現強勁。若排除 DHS 合約的貢獻，出貨量指引為季對季下滑 2% 到 4%。我相信這與你們對第三季典型季節性的指引一致。但你們的評論——市場評論——是逐步轉為更正面，而且你們持續提升市占。所以我想了解的是，這個指引裡大概包含了多少保守性？

Yeah, Bennett, you're correct. That's kind of the typical seasonality. Also, to the extent that there is somewhat limited supply availability is also another factor in that. So that's our best estimate at this time.

是的，Bennett，你說得沒錯。那就是典型的季節性。另外，在某種程度上，供應可得性略為受限也是其中一個因素。所以這是我們目前最好的估計。

Okay. And then on the LIFO expense came in a bit bigger than expected. I think you alluded that aluminum was proportionately a bigger driver there. But when you're pushing through price hikes last quarter on the steel side, that seemed to be supportive of margin expansion. So I guess I'm wondering what was the breakout on the LIFO aluminum versus carbon this past quarter?

好的。另外，LIFO 費用比預期稍大一些。我想你們提到鋁的影響占比相對更大。但當你們在上一季把鋼材端的漲價往下游傳導時，似乎有助於利潤率擴張。所以我想問的是：本季 LIFO 中鋁相對於碳鋼的拆分大概是怎樣？

And are you seeing any steel buyers less willing to accept price hikes at these levels, I guess, given expectation pricing may be peaking somewhat soon?

另外，你們是否看到在目前這些價位下，有些鋼材買方較不願意接受漲價？我想是因為市場預期價格可能很快就會在某種程度上見頂。

Yeah, Hi, Bennett. So I mean, LIFO's -- aluminum has disproportionate impact when you look at our annual estimate. It's roughly what, let's say, 17% of our sales. And it's contributing to about 1/3 of our annual estimate. So out of the $300 million, roughly $100 million as of now, at least is aluminum related. And we've not really had dynamics like this before. As you know, aluminum pricing has nearly doubled from pre -- like the pre-tariff levels and the increases are much more significant.

是的，嗨，Bennett。所以，LIFO——從我們的年度估計來看，鋁的影響是不成比例地大。鋁大約占我們銷售額的 17%，對吧。但它對我們年度估計的貢獻大約占 1/3。所以在大約 3 億美元之中，截至目前大約有 1 億美元、至少是與鋁相關。而我們以前真的沒有遇過這樣的動態。如你所知，鋁價相較於——像是關稅前的水準——幾乎翻倍，而且漲幅更為顯著。

And you just don't have the same kind of supply-demand dynamics that you have on the carbon side. Now you step back and say, what kind of effect is aluminum having on overall profitability, it's actually our gross profit per pound per ton is up significantly from a couple of years ago, right? So even with the significant and outsized amount of LIFO contribution. Now what it's doing is creating some distortion at the percentage level, right? And when you look at consolidated margins and compare aluminum impact on margins to where it is today from two years ago, before LIFO, it's roughly a 50-basis-point compression. And you layer this outsized LIFO impact, that's another roughly 50 basis points.

而且你在鋁這邊，並沒有像碳鋼那邊那樣的供需動態。現在你退一步看，鋁對整體獲利能力有什麼影響？其實我們每磅、每噸的毛利，相較於幾年前已經顯著提高，對吧？所以即便有相當可觀、且偏高的 LIFO 貢獻。它現在造成的是在百分比層面上的一些扭曲，對吧？當你看合併毛利率，並把鋁對毛利率的影響與兩年前相比，在扣除 LIFO 之前，大約是壓縮了 50 個基點。再加上這個偏高的 LIFO 影響，又大約是另外 50 個基點。

So aluminum alone is basically introducing roughly 100-basis-point margin compression noise. Now what's -- on the flip side, though one would assume that it's not contributing to the higher profitability, but it's the exact opposite, right? Our gross profit per unit and overall gross profit dollars are up significantly from a year or two years ago. So that's kind of the additional color on aluminum and impact on LIFO and margins.

所以單就鋁而言，基本上帶來了約 100 個基點的毛利率壓縮雜訊。不過反過來看，大家可能會以為它沒有對更高的獲利做出貢獻，但其實正好相反，對吧？我們的單位毛利以及整體毛利金額，相較於一年前或兩年前都大幅上升。以上就是關於鋁，以及其對 LIFO 與毛利率影響的補充說明。

I guess just on the last part of the question, though, any -- I know the market is tight for carbon, but are you seeing any evidence of pushback from buyers at these levels, at these price levels?

我想就問題最後一部分，任何——我知道碳鋼市場很緊，但在目前這些水準、這些價格水準下，你們有看到買方出現任何反彈的跡象嗎？

I mean, as long as our customers can buy the product from us and put their fair markup on it and sell it to their end markets, they're okay right now. What we are seeing is a lot of our competitors with the higher interest rates and the higher cost of carrying inventory is there's a lot of holes in inventories and our inventory levels are pretty robust. So I think that there's just great opportunity for us to capture more market share and help those customers who are having trouble getting steel out in the marketplace.

我的意思是，只要我們的客戶能從我們這裡買到產品，加上他們合理的加價，並賣到他們的終端市場，他們目前就還可以。我們看到的是，許多競爭對手在利率較高、庫存持有成本較高的情況下，庫存出現很多缺口，而我們的庫存水位相當充足。所以我認為，這對我們來說是很好的機會，可以取得更多市占，並協助那些在市場上難以把鋼材供出去的客戶。

Katja Jancic, BMO Capital Markets.

Katja Jancic，BMO 資本市場。

Maybe going back to the border wall, and I apologize if you already talked about this. But I think last quarter, you mentioned that the Phase 1 of the project is expected to add about $1.4 billion in sales through mid-'27. But in the past -- or at one point, the discussion was that the total value of the contract could be over $2 billion. So does that mean that the contract actually can extend beyond the mid '27? Or how should we think about it?

也許回到邊境牆的部分，如果你們已經談過我先致歉。但我記得上季你們提到，該專案第一期預計在 2027 年年中之前帶來約 14 億美元的銷售額。但過去——或在某個時間點，討論是合約總價值可能超過 20 億美元。所以這是否表示合約其實可能延伸到 2027 年年中之後？或者我們應該怎麼理解？

Yeah, that's correct, Katja. There's the Phase 1 with the $1.4 billion through the middle of 2027. And then there's another roughly $800 million to $900 million that is up to our customer to opt in for that. It's not guaranteed. We believe that they will probably execute that extension for Phase 2, which would extend it beyond the middle of 2027.

是的，Katja，沒錯。第一期是到 2027 年年中為止的 14 億美元。然後還有另外約 8 億到 9 億美元，是否要做由我們的客戶選擇加入。這不是保證的。我們相信他們很可能會執行第二期的延伸，這會把合約延長到 2027 年年中之後。

But also, it just depends. They can accelerate some shipments as well during the project phase. So we're just there to satisfy our customers' needs.

但同時也要看情況。他們也可能在專案期間加速部分出貨。所以我們就是在那裡滿足客戶的需求。

And then maybe on just a broader question. Are there any products within your portfolio that are currently harder to source than others or that you're having issues procuring?

另外可能就更廣泛的問題。在你們的產品組合中，是否有任何產品目前比其他產品更難採購，或是你們在採購上遇到問題？

I think at an overall level, again, because of our relationships with our domestic suppliers, we -- I wouldn't say we're having issues getting metal, but some markets certainly are tighter than others such as beams is a little tight right now.

我想就整體而言，再次強調，因為我們與國內供應商的關係，我不會說我們在取得金屬方面有問題，但有些市場確實比其他市場更緊，例如梁材（beams）目前就有點緊。

Carbon plate, heat-treat aluminum plate with aerospace and semiconductor rebounding.

碳鋼厚板、熱處理鋁板，隨著航太與半導體需求回升。

Thank you. We reached the end of our question-and-answer session. I'd like to turn the floor back over to Karla for any further or closing comments.

謝謝。我們的問答環節到此結束。我想把時間交回給 Karla，請她做進一步或結語的評論。

Thanks again to everyone for joining us today and your continued support of Reliance. And a special thanks to all of our employees throughout the Reliance family for staying safe and helping us generate such strong results. Before we conclude, I also want to mention that we'll be in New York in early September, presenting at the Jefferies Industrials Conference, and we look forward to connecting with many of you at the event. Thanks, everyone, and goodbye.

再次感謝各位今天加入我們，並持續支持 Reliance。也特別感謝 Reliance 大家庭中所有員工，保持安全並協助我們創造如此強勁的成果。在結束之前，我也想提到，我們將於 9 月上旬在紐約，於 Jefferies 工業（Industrials）研討會上進行簡報，並期待在活動中與各位中的許多人交流。謝謝大家，再見。

Thank you. That does conclude today's webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的網路直播到此結束。您現在可以中斷連線，祝您有美好的一天。感謝您今天的參與。