FORT WAYNE, Ind., Oct. 19, 2026 /PRNewswire/ --
Third Quarter 2026 Performance Highlights:
- Record steel shipments of 3.8 million tons
- Net sales of $6.5 billion, operating income of $1.0 billion, and net income of $756 million
- Adjusted EBITDA of $1.2 billion and cash flow from operations of $846 million
- Liquidity of $2.4 billion
- Share repurchases of $276 million, or one percent, of the company's common stock
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
Net Income Attributable to Steel Dynamics, Inc.
ROIC =
(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, 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 477,471 477,471
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 653 653
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, 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) (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 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
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SOURCE Steel Dynamics, Inc.
