RELIANCE, INC. Segments Disclosure
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 network’s 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 1—“Summary 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 allocation decisions considering net income together with the level of operating cash flow, which generally supports growth and shareholder returns. Our organic growth activities relate to capital expenditures and our inorganic growth activities are comprised of acquisitions. Our shareholder returns include share repurchases and quarterly dividends which we have paid for 66 consecutive years.
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 | ||||||||
Year Ended December 31, | 2025 | | 2024 | | 2023 | |||
Net sales | $ | 14,294.3 | $ | 13,835.0 | $ | 14,805.9 | ||
Less: | ||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 10,186.8 | 9,728.4 | 10,258.6 | |||||
Compensation expense | 1,709.5 | 1,614.8 | 1,557.8 | |||||
Other segment items(1) | 1,085.0 | 1,031.2 | 963.3 | |||||
Depreciation and amortization expense | 278.2 | 268.7 | 245.4 | |||||
Impairment | 9.9 | 11.7 | — | |||||
Interest expense | 55.7 | 40.3 | 40.1 | |||||
Income tax provision | 227.6 | 261.9 | 400.6 | |||||
Net income | $ | 741.6 | $ | 878.0 | $ | 1,340.1 | ||
Other Segment Disclosures: | ||||||||
Purchases of property, plant and equipment | $ | 328.9 | $ | 430.6 | $ | 468.8 | ||
| (1) | Other segment items mainly consist of warehousing and delivery costs, which include among others, third-party freight, gas and oil, utilities & rent, plant supplies, and repairs and maintenance. |
Net sales by major geographic area and long-lived assets, including intangible assets and financial instruments, are presented below (in millions):
United States | | Foreign Countries | | Total | ||||
Year Ended December 31, 2025: | ||||||||
Net sales | $ | 13,429.7 | $ | 864.6 | $ | 14,294.3 | ||
Long-lived assets(1) | 5,808.1 | 424.1 | 6,232.2 | |||||
Year Ended December 31, 2024: | ||||||||
Net sales | 12,933.9 | 901.1 | 13,835.0 | |||||
Long-lived assets(1) | 5,708.9 | 417.4 | 6,126.3 | |||||
Year Ended December 31, 2023: | ||||||||
Net sales | 13,786.8 | 1,019.1 | 14,805.9 | |||||
Long-lived assets(1) | 5,288.4 | 420.1 | 5,708.5 | |||||
| (1) | Long-lived assets, excluding intangible assets and financial instruments, in the U.S. were $2,741.4 million, $2,626.0 million and $2,299.5 million for the years ended December 31, 2025, 2024 and 2023, respectively; and $207.1 million, $194.1 million and $180.5 million in foreign countries for the years ended December 31, 2025, 2024 and 2023, respectively. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.