Reliance Stock Gains 30% in 3 Months: What's Driving the Rally?

Reliance, Inc. RS shares have rallied 30.3% in the past three months. The company has also outperformed the Zacks Mining - Miscellaneous industry's 0.4% growth over the same time frame.

The rally was driven by record quarterly tons sold, strong earnings growth and continued market-share gains, with shipments outperforming industry trends.  

Image Source: Zacks Investment Research

Let's take a look at the factors that are driving RS stock.

Growth Investments Strengthen Market Position for RS

Reliance reported tons sold of 1.673 million tons in the first quarter of 2026, up 9.4% sequentially and 2.7% year over year. The company stated that it has now outperformed industry shipment trends for 13 consecutive quarters, underscoring the strength of its operating model and customer relationships. 

Reliance is benefiting from strong demand in the non-residential construction market, its largest end market by volume. Demand improved in the first quarter of 2026, driven by public infrastructure projects, heavy civil construction, data centers, energy infrastructure and manufacturing activity. 

Through its AMI Metals subsidiary, the company also secured major Department of Homeland Security border wall contracts that are expected to support revenue growth. In addition, demand for its toll processing services in the automotive sector has remained steady, supported by recent capacity investments and operational flexibility. The company is also seeing improving demand from semiconductor, defense, shipbuilding, industrial machinery and nuclear-related markets, particularly those linked to small modular reactor programs.

Reliance continues to strengthen its growth profile through acquisitions aimed at expanding its geographic reach, product offerings and value-added processing capabilities. Major acquisitions, including Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company and Merfish United, have enhanced its service center network, diversified its end markets and broadened its exposure to higher-margin products.

More recent acquisitions such as Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy further support the company's strategy of investing in high-quality businesses, expanding its processing capabilities and increasing its presence in attractive growth markets across the United States.

RS ended the first quarter of 2026 with cash and cash equivalents of $249.7 million, up from $216.6 million sequentially. The increase was supported by record shipment volumes and healthy profitability during the quarter.