Reliance Steel & Aluminum Co

Greetings and welcome to the Reliance Inc. Second Quarter 2025 Earnings Hall. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Kim Orlando, with Idaho Investor Relations. Kim, please go ahead.

Thank you, Operator. Good morning, and thanks to all of you for joining our conference call to discuss Reliance's second quarter 2025 financial results. I am joined by Carla Lewis, President and Chief Executive Officer, Steve Cook, Executive Vice President and Chief Operating Officer, and Arthur Ajemian, Senior Vice President and Chief Financial Officer. A recording of this call will be posted on the investor section of our website at 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. I will now turn the call over to Carla Lewis, President and CEO of Reliance.

Good morning, everyone, and thank you all for joining us today to discuss our second quarter 2025 performance. Our solid financial results once again demonstrated the resilience of our proven business model in a volatile environment. Our operating teams continue to excel in providing value to our customers and increasing our market share while effectively managing their businesses through ongoing market uncertainty. Our record second quarter tons sold compared to last year once again significantly outperformed the industry average volume by seven percentage points, which we attribute to our unparalleled scale, access to domestic metal, and breadth of processing capabilities. Importantly, we maintained a gross profit margin within our sustainable range of 29% to 31% in line with our smart, profitable growth initiative. Our strong performance generated sequential increases in non-GAAP pre-tax income in excess of 15% and non-GAAP earnings per share of $4.43, an increase of more than 17% compared to the prior quarter. Our capital allocation framework remains unchanged and our long-term focus continues to guide both our growth and stockholder return strategies. Reliance generated $229 million of cash flow from operations in the second quarter. Our strong cash flow continues to support investments in advanced value-added processing equipment, organic growth, and the creative acquisitions that position Reliance for growth in all market environments. Our 2025 capital expenditure budget remains at $325 million with over 50% dedicated to growth projects. Our expected total cash outlay for 2025 is expected to be in the 360 to $380 million range, reflecting carryover projects from prior years that will be completed this year. Our second quarter results include benefits from our 2024 acquisitions, and we remain in a position of financial strength to execute on M&A opportunities that align with our discipline criteria. We continue to see new acquisition opportunities despite continuing macroeconomic uncertainty, and we will maintain our focus on pursuing opportunities that expand our geographic footprint and the value-added metal processing solutions we offer our customers align with our emphasis on smart, profitable growth and complement our strong gross profit margin profile. We also remain committed to returning capital to our stockholders. We returned $143 million to our stockholders in the second quarter in dividends and share repurchases, and we have repurchased over 1.2 million shares year to date at favorable prices. In summary, I'm pleased with our strong operational execution in the second quarter, particularly given the rapidly changing trade environment. Our resilience reflects both the strength of our business model and the unwavering dedication of our team, whose commitment to safely delivering industry-leading solutions continues to expand and deepen our customer relationships. While we anticipate some weakness in the third quarter, we remain confident in our ability to grow amid ongoing market uncertainty and take advantage of improved demand and pricing environments as we emerge from these highly uncertain times. And encouraging trends in our key end markets, including signs of reshoring activity, are creating additional tailwinds as we look ahead. Our longstanding practice of primarily sourcing our metal from domestic mills and operating in the United States provides a strong competitive advantage in the current trade environment. Our focus remains firmly on long-term success with a disciplined approach to value creation for all Reliance stakeholders. I'll now turn the call over to our COO, Steve Cook, who will review our demand and pricing trends.