Steel Dynamics Reports Third Quarter 2026 Results

FORT WAYNE, Ind., Oct. 19, 2026 /PRNewswire/ --

Third Quarter 2026 Performance Highlights:

Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced third quarter 2026 financial results. The company reported third quarter 2026 net sales of $6.5 billion and net income of $756 million, or $5.26 per diluted share. Comparatively, the company's sequential second quarter 2026 net income was $534 million, or $3.69 per diluted share and prior year third quarter net income was $404 million, or $2.74 per diluted share.

"Throughout the third quarter 2026, steel prices continued to improve and the teams executed well across our steel platform, driving a sequential quarterly increase in consolidated operating income of $306 million, or 44 percent," said Mark D. Millett, Chairman and Chief Executive Officer. "Our steel fabrication platform also had a healthy performance as continued improving demand resulted in higher sequential shipments of 18 percent and increased earnings despite higher steel costs. Our three-year after-tax return on invested capital of 13 percent demonstrates the strength of our differentiated business model and disciplined capital allocation framework. Our disciplined approach to capital allocation continues to support investments in high-return strategic growth opportunities, meaningful shareholder returns, and financial performance that compares favorably with top-tier domestic manufacturers.

"During the third quarter, the domestic steel market remained strong, supported by steady demand, low customer inventories, and historically low import levels," said Millett. "Steel pricing strengthened, as lead times extended and spot availability tightened across flat-rolled and structural steel products. In addition, as coated flat rolled steel imports abated due to recent trade actions and demand remained strong, value-added flat-rolled steel spreads also expanded. In general, U.S. steel imports remain well below historical and prior-year levels, while improving manufacturing activity, onshoring, and continued investment in infrastructure, energy, healthcare, and computing support healthy steel consumption. Long-product steel demand remains extremely strong, particularly for structural steel and railroad rail. We believe sustained demand across our platforms, combined with favorable market conditions, positions us well moving forward.

"We continue to make meaningful progress at our aluminum operations as the team continues to commission, qualify, and ramp up our state-of-the-art aluminum flat-rolled products mill," continued Millett. "All three cold mills are now operational which provides us the ability to achieve our annual volume expectations, and the first of two Continuous Annealing and Solution Heat (CASH) lines is operating and is expected to ship finished automotive products before the end of the year. The second CASH line will be commissioned in the coming months and become operational early in the first quarter 2027. The team is successfully producing high-quality products for the industrial, beverage, and automotive markets, while continuing to expand its qualified customer base. Together with our broader investment initiatives across the company, aluminum represents an exciting avenue for continued growth and value creation."

Third Quarter 2026 Comments

Third quarter 2026 operating income for the company's steel operations was $1.0 billion, or 43 percent higher than sequential second quarter results, due to record steel shipments and metal spread expansion, as average realized steel selling prices increased and scrap raw material costs declined. The third quarter 2026 average external product selling price for the company's steel operations increased $102 sequentially to $1,400 per ton. The average ferrous scrap cost per ton melted at the company's steel mills decreased $8 per ton sequentially to $404 per ton. The energy, non-residential construction, automotive, and industrial sectors led steel demand in the quarter.

Third quarter 2026 operating income from the company's metals recycling operations was $33 million, or $15 million lower than sequential earnings, based on lower ferrous scrap pricing and metal spread contraction, combined with steady volume. Average third quarter realized ferrous scrap prices declined $15 per gross ton sequentially.

The company's steel fabrication operations generated operating income of $91 million in the third quarter 2026, higher than sequential second quarter results of $85 million, as increased shipments and improved average realized pricing more than offset higher steel raw material input costs. Customer order activity has continued to strengthen since the end of 2025, with the order backlog now 50 percent higher than a year ago and extending into the second quarter 2027. Demand was largely driven by commercial construction, manufacturing, warehouses, data centers, and healthcare. In addition, accelerating announcements of significant domestic manufacturing investments and increased reshoring activity, coupled with funding from the U.S. infrastructure program, are expected to provide meaningful support for demand across our product portfolio, including steel joists and deck products, as well as flat-rolled and long-product steel.

"Third quarter 2026 operating losses associated with the continued startup of the company's aluminum operations were $26 million, representing a 21 percent improvement compared to sequential second quarter results", said Millett. "Our Aluminum platform was EBITDA breakeven for the quarter. Aluminum flat rolled sheet product shipments were 55,000 metric tons in the third quarter 2026, and hot band production increased to 91,000 metric tons. Volumes were less than expected over a number of weeks, as yield losses increased at higher operating speeds due to quality impacts. The cause originated from the hot strip mill rolling coolant composition, which has been successfully changed, and no ongoing additional costs are expected from this matter. Since the change, the mill performance has been excellent in October. Looking ahead, we expect aluminum volumes and profitability to improve in the fourth quarter 2026 and throughout 2027, as startup costs subside, utilization and yields improve, and scrap content increases. Underlying demand for aluminum flat-rolled products across our targeted consumer sectors remains strong and is forecast to continue to grow."

Based on the company's differentiated business model and highly variable cost structure, the company generated cash flow from operations of $846 million during the quarter. The company also invested $150 million in capital investments, paid cash dividends of $76 million, and repurchased $276 million of its outstanding common stock, while maintaining liquidity of $2.4 billion as of September 30, 2026.

Year-to-Date September 30, 2026 Comparison

For the nine-months ended September 30, 2026, net income was $1.7 billion, or $11.72 per diluted share, with net sales of $17.8 billion, as compared to net income of $920 million, or $6.17 per diluted share, with net sales of $13.8 billion for the same period in 2025.

For the first nine-months of 2026 net sales increased 29 percent to $17.8 billion, and operating income increased 93 percent to $2.2 billion, when compared to the same period in 2025. Increased earnings were the result of higher realized pricing and shipments in the company's steel operations during the period. For the first nine-months of 2026 operating income from the company's steel operations was $2.3 billion, compared to $1.1 billion for the same prior year period. The average nine-months 2026 external selling price for the company's steel operations increased $216 to $1,299 per ton compared to the same prior year period, and the average ferrous scrap cost per ton melted at the company's steel mills increased to $404 per ton. For the first nine-months of 2026 operating income from the company's steel fabrication operations was $265 million, compared to $317 million in the prior year period due to higher raw material input costs. For the first nine-months of 2026 operating income from the company's metals recycling operations was $128 million, compared to $79 million in the prior year period, due to improved metal spreads and increased shipments.

The company achieved cash flow from operations of $1.4 billion in the first nine-months of 2026. The company also invested $411 million in capital investments, paid cash dividends of $225 million, and repurchased $591 million, or two percent, of its outstanding common stock.

Outlook

"Looking ahead to 2027 and beyond, we remain optimistic regarding the domestic steel and aluminum industries," stated Millett. "We expect steel and aluminum consumption to benefit from continued investment in infrastructure, manufacturing, energy, and data centers, along with improving broader economic activity. These demand drivers, combined with a supportive U.S. trade environment and reduced unfairly traded import competition, should provide a healthy backdrop for domestic steel and aluminum product producers. While additional domestic steelmaking and aluminum capacity may enter the market in the coming years, we believe improving demand and supportive trade policy will support healthy industry dynamics.

"Our growth strategy remains closely aligned with our customers' evolving needs, focused on providing differentiated products, strengthening supply chain efficiency, and advancing sustainable manufacturing solutions. Our expansion into high-recycled-content aluminum sheet products builds on the strength of our steel platform and extends our proven operating model into attractive, supply-deficit markets, including beverage can, packaging, automotive, industrial, and construction applications. As demand for domestically produced, lower-carbon materials continue to grow, we believe our performance-driven culture, low-cost operating model, and strategic investments in aluminum position us to broaden our customer relationships, diversify our earnings profile, and create compelling long-term value.

"We remain firmly committed to the health and safety of our teams, their families, and the communities we serve, while meeting the evolving needs of our customers. Our culture and performance-driven business model continue to positively differentiate our company. We remain focused on delivering superior value to our team members, customers, and shareholders," concluded Millett.

Conference Call and Webcast

Steel Dynamics, Inc. will hold a conference call to discuss third quarter 2026 operating and financial results on Tuesday, October 20, 2026, at 11:00 a.m. Eastern Daylight Time. You may access the call and find dial-in information on the Investors section of the company's website at www.steeldynamics.com. A replay of the call will be available on our website until 11:59 p.m. Eastern Daylight Time on October 27, 2026.

About Steel Dynamics, Inc.

Steel Dynamics is a leading industrial metals solutions company, with facilities located throughout the United States, and in Mexico. The company operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input. Steel Dynamics is one of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform. The company has also recently added aluminum operations, further diversifying its product offerings to supply aluminum flat rolled products with higher recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. Steel Dynamics is committed to operating with the highest integrity and to being the safest, most efficient producer of high-quality, broadly diversified, value-added metal products.

Note Regarding Financial Metrics

The company believes that after-tax return-on-invested capital (After-tax ROIC) provides an indication of the effectiveness of the company's invested capital and is calculated as follows:

After-tax

ROIC =

Net Income Attributable to Steel Dynamics, Inc.

(Quarterly Average Current Maturities of Long-term Debt + Long-term Debt + Total Equity)

Note Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that the non-GAAP financial measures EBITDA and Adjusted EBITDA provide additional meaningful information regarding the company's performance and financial strength. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the company's reported results prepared in accordance with GAAP. In addition, not all companies use identical calculations for EBITDA or Adjusted EBITDA; therefore, EBITDA and Adjusted EBITDA included in this release may not be comparable to similarly titled measures of other companies.

Forward-Looking Statements

This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals marketplaces, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) the cyclical nature of the metals industries and the industries we serve; (4) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (5) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (6) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations; (7) compliance with and changes in environmental and remediation requirements; (8) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (9) availability of an adequate source of supply of scrap for our metals recycling operations; (10) cybersecurity threats and risks to the security of our sensitive data and information technology; (11) the implementation of our growth strategy; (12) our ability to retain, develop and attract key personnel; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) difficulties in the launch or production ramp-up of new products; (16) our aluminum operations depend on a core group of significant customers; (17) governmental agencies may refuse to grant or renew some of our licenses and permits; (18) our existing debt agreements contain, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (19) the impacts of impairment charges.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings."

Steel Dynamics, Inc.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share data)

Three Months Ended

Nine Months Ended

Three Months

September 30,

Ended

2026

2025

2026

2025

June 30, 2026

Net sales

6,509,419

4,828,215

17,805,834

13,762,533

6,091,557

Costs of goods sold

5,227,132

4,070,335

14,801,350

11,899,641

5,132,583

Gross profit

1,282,287

757,880

3,004,484

1,862,892

958,974

Selling, general and administrative expenses

186,974

200,844

555,645

580,662

193,451

Profit sharing

81,250

42,389

180,762

95,790

57,314

Amortization of intangible assets

7,696

6,890

23,227

20,684

7,730

Operating income

1,006,367

507,757

2,244,850

1,165,756

700,479

Interest expense, net of capitalized interest

39,331

13,573

111,692

43,085

39,120

Other income, net

(11,548)

(19,662)

(42,103)

(59,695)

(22,105)

Income before income taxes

978,584

513,846

2,175,261

1,182,366

683,464

Income tax expense

222,896

109,920

488,683

259,570

152,679

Net income

755,688

403,926

1,686,578

922,796

530,785

Net loss (income) attributable to noncontrolling interests

312

(241)

6,945

(3,234)

3,302

Net income attributable to Steel Dynamics, Inc.

756,000

403,685

1,693,523

919,562

534,087

Basic earnings per share attributable to

Steel Dynamics, Inc. stockholders

5.29

2.75

11.77

6.19

3.71

Weighted average common shares outstanding

142,990

146,947

143,928

148,532

143,997

Diluted earnings per share attributable to

Steel Dynamics, Inc. stockholders, including the

effect of assumed conversions when dilutive

5.26

2.74

11.72

6.17

3.69

Weighted average common shares

and share equivalents outstanding

143,623

147,600

144,512

149,123

144,591

Dividends declared per share

0.53

0.50

1.59

1.50

0.53

Steel Dynamics, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands)

September 30,

December 31,

Assets

2026

2025

(unaudited)

Current assets

Cash and equivalents

928,558

769,878

Accounts receivable, net

2,446,443

1,682,660

Inventories

4,249,059

3,738,516

Other current assets

390,108

293,117

Total current assets

8,014,168

6,484,171

Property, plant and equipment, net

8,491,088

8,569,466

Intangible assets, net

303,815

331,290

Goodwill

477,471

Other assets

549,302

557,382

Total assets

17,835,844

16,419,780

Liabilities and Equity

Current liabilities

Accounts payable

1,605,228

1,231,358

Income taxes payable

64,227

67,315

Accrued expenses

857,967

788,926

Current maturities of long-term debt

20,854

34,655

Total current liabilities

2,548,276

2,122,254

Long-term debt

4,183,039

4,176,508

Deferred income taxes

1,116,084

1,004,375

Other liabilities

208,934

186,232

Total liabilities

8,056,333

7,489,369

Commitments and contingencies

Redeemable noncontrolling interests

143,259

141,226

Equity

Common stock

653

Treasury stock, at cost

(8,563,301)

(7,980,549)

Additional paid-in capital

1,243,105

1,248,634

Retained earnings

17,154,093

15,689,042

Accumulated other comprehensive income (loss)

7,878

(598)

Total Steel Dynamics, Inc. equity

9,842,428

8,957,182

Noncontrolling interests

(206,176)

(167,997)

Total equity

9,636,252

8,789,185

Total liabilities and equity

17,835,844

16,419,780

Steel Dynamics, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

Operating activities:

Net income

755,688

403,926

1,686,578

922,796

Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation and amortization

174,845

138,487

508,047

405,108

Equity-based compensation

14,435

14,238

46,048

45,341

Deferred income taxes

44,489

147,570

107,136

202,948

Other adjustments

(2,040)

(7,986)

10,098

(13,071)

Changes in certain assets and liabilities:

Accounts receivable

(3,505)

(60,985)

(763,783)

(344,762)

Inventories

(294,124)

64,501

(517,394)

(85,106)

Other assets

(65,738)

(34,551)

(68,205)

(58,877)

Accounts payable

107,023

(4,817)

371,238

238,516

Income taxes receivable/payable

35,320

(65,070)

(137)

(104,965)

Accrued expenses

79,401

127,295

42,420

(31,106)

Net cash provided by operating activities

845,794

722,608

1,422,046

1,176,822

Investing activities:

Purchases of property, plant and equipment

(149,608)

(165,692)

(411,429)

(759,529)

Purchases of short-term investments

(39,571)

Proceeds from maturities of short-term investments

39,571

186,996

Other investing activities

(1,993)

5,593

2,725

7,121

Net cash used in investing activities

(151,601)

(120,528)

(408,704)

(604,983)

Financing activities:

Issuance of current and long-term debt

671,649

407,965

1,966,209

2,298,186

Repayment of current and long-term debt

(652,573)

(408,291)

(1,981,155)

(1,743,423)

Dividends paid

(76,113)

(73,894)

(225,138)

(218,098)

Purchase of treasury stock

(275,563)

(210,388)

(590,938)

(660,574)

Other financing activities

(743)

(5,056)

(23,752)

(67,243)

Net cash used in financing activities

(333,343)

(289,664)

(854,774)

(391,152)

Increase in cash, cash equivalents, and restricted cash

360,850

312,416

158,568

180,687

Cash, cash equivalents, and restricted cash at beginning of period

572,990

463,281

775,272

595,010

Cash, cash equivalents, and restricted cash at end of period

933,840

775,697

933,840

775,697

Supplemental disclosure information:

Cash paid for interest

25,808

25,645

118,957

88,859

Cash paid for income taxes, net

143,107

22,192

378,660

150,662

Steel Dynamics, Inc.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(dollars in thousands)

Third Quarter

YTD

2026

2025

2026

2025

1Q 2026

2Q 2026

External Net Sales

Steel

4,350,372

3,538,044

11,894,625

9,880,611

3,538,743

4,005,510

Steel Fabrication

466,283

377,683

1,215,521

1,070,638

355,433

393,805

Metals Recycling

614,781

520,986

1,861,729

1,578,602

593,183

653,765

Aluminum

475,697

71,139

1,200,957

203,347

227,393

497,867

Other

602,286

320,363

1,633,002

1,029,335

490,106

540,610

Consolidated Net Sales

6,509,419

4,828,215

17,805,834

13,762,533

5,204,858

6,091,557

Operating Income (Loss)

Steel

1,032,594

497,894

2,310,076

1,110,053

556,564

720,918

Steel Fabrication

90,588

107,020

264,695

316,880

89,514

84,593

Metals Recycling

32,964

31,533

128,247

78,533

47,467

47,816

Aluminum

(26,226)

(56,510)

(124,198)

(125,872)

(64,592)

(33,380)

1,129,920

579,937

2,578,820

1,379,594

628,953

819,947

Non-cash amortization of intangible assets

(7,696)

(6,890)

(23,227)

(20,684)

(7,801)

(7,730)

Profit sharing expense

(81,250)

(42,389)

(180,762)

(95,790)

(42,198)

(57,314)

Non-segment operations

(34,607)

(22,901)

(113,503)

(97,364)

(40,950)

(37,946)

Non-cash asset impairment charges

(16,478)

Consolidated Operating Income

1,006,367

507,757

2,244,850

1,165,756

538,004

700,479

Adjusted EBITDA

Net income

755,688

403,926

1,686,578

922,796

400,105

530,785

Income taxes

222,896

109,920

488,683

259,570

113,108

152,679

Net interest expense

32,857

6,769

92,089

16,110

26,053

33,179

Depreciation

164,848

129,833

477,943

378,958

149,194

163,901

Amortization of intangible assets

7,696

6,890

23,227

20,684

7,801

7,730

EBITDA

1,183,985

657,338

2,768,520

1,598,118

696,261

888,274

Non-cash adjustments

Unrealized (gains) losses on derivatives

and currency remeasurement

(8,100)

(7,814)

(18,135)

5,142

(11,594)

1,559

Equity-based compensation

14,435

14,246

43,873

42,246

15,230

14,208

Asset impairment charges

16,478

Adjusted EBITDA

1,190,320

663,770

2,810,736

1,645,506

699,897

920,519

Other Operating Information

Steel

Average external sales price (Per ton)

1,400

1,119

1,299

1,083

1,193

1,298

Average ferrous cost (Per ton Melted)

404

381

404

391

396

412

Flat Roll shipments

Butler, Columbus, and Sinton

2,024,201

2,141,350

6,061,723

6,212,765

2,011,443

2,026,079

Steel Processing divisions *

743,254

543,700

2,147,531

1,515,429

686,440

717,837

Long Product shipments

Structural and Rail Division

527,427

490,413

1,528,720

1,396,638

490,971

510,322

Engineered Bar Products Division

221,540

177,882

628,782

560,152

194,022

213,220

Roanoke Bar Division

170,197

157,989

513,826

454,003

167,837

175,792

Steel of West Virginia

97,865

101,996

284,110

305,680

88,155

98,090

Total Shipments (Tons)

3,784,484

3,613,330

11,164,692

10,444,667

3,638,868

3,741,340

External Shipments (Tons)

3,107,330

3,162,805

9,158,826

9,123,456

2,966,124

3,085,372

Steel Mill Production (Tons)

3,088,339

3,067,792

9,101,781

9,039,321

3,039,367

2,974,075

Metals Recycling

Nonferrous shipments (000's of pounds)

201,696

242,842

610,131

721,499

197,385

211,050

Ferrous shipments (Gross tons)

1,702,125

1,590,153

4,848,468

4,639,168

1,473,457

1,672,886

External ferrous shipments (Gross tons)

566,982

538,020

1,709,255

1,640,660

553,367

588,906

Steel Fabrication

Average sales price (Per ton)

2,462

2,495

2,459

2,536

2,478

2,442

Shipments (Tons)

190,151

151,563

494,583

422,492

143,422

161,010

* Includes Heartland, The Techs, United Steel Supply, and New Process Steel (beginning December 1, 2025) operations

SOURCE Steel Dynamics, Inc.