Steel Dynamics Reports Third Quarter 2026 Results
STEEL DYNAMICS INC (STLD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Press Release October 19, 2026 7575 W. Jefferson Blvd. Fort Wayne, IN 46804 Steel Dynamics Reports Third Quarter 2026 Results FORT WAYNE, INDIANA, October 19, 2026 / PRNewswire / Third Quarter 2026 Performance Highlights: § Record steel shipments of 3.8 million tons
How this was made
The 30-second read
Why it matters
Earnings beat and a $276 M share repurchase suggest strong cash generation and may trigger buying interest.
Market read
The earnings release provides fresh material for traders; the beat and buyback could drive short‑term upside.
What to watch
Aluminum startup losses and quality issues could weigh on near‑term profitability.
Steel Dynamics Reports Third Quarter 2026 Results
Record steel shipments, higher steel pricing and lower scrap costs drove $1.0 billion of operating income, $756 million of net income, $1.2 billion of adjusted EBITDA and $846 million of operating cash flow. Steel fabrication earnings also improved sequentially, while aluminum remained loss-making during its ramp.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026 (in thousands)GAAP | $6.51B | – | – |
| Costs of goods sold, three months ended September 30, 2026 (in thousands)GAAP | 5.23B | – | – |
| Gross profit, three months ended September 30, 2026 (in thousands)GAAP | 1.28B | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026 (in thousands)GAAP | 187.0M | – | – |
| Profit sharing, three months ended September 30, 2026 (in thousands)GAAP | 81.25M | – | – |
| Operating income, three months ended September 30, 2026 (in thousands)GAAP | $1.01B | $306 million, or 44 percent | – |
| Income tax expense, three months ended September 30, 2026 (in thousands)GAAP | 222.9M | – | – |
| Net income, three months ended September 30, 2026 (in thousands)GAAP | 755.7M | – | – |
| Net income attributable to Steel Dynamics, Inc., three months ended September 30, 2026 (in thousands)GAAP | $756M | – | – |
| Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, three months ended September 30, 2026GAAP | $ 5.26 | – | – |
| Adjusted EBITDA, third quarter 2026 (dollars in thousands)non-GAAP | $1.19B | – | – |
| Cash flow from operations, three months ended September 30, 2026 (in thousands)GAAP | $845.8M | – | – |
| Purchases of property, plant and equipment, three months ended September 30, 2026 (in thousands)GAAP | −149.6M | – | – |
| Net sales, nine months ended September 30, 2026 (in thousands)GAAP | $17.81B | – | 29 percent |
| Operating income, nine months ended September 30, 2026 (in thousands)GAAP | $2.24B | – | 93 percent |
| Net income attributable to Steel Dynamics, Inc., nine months ended September 30, 2026 (in thousands)GAAP | $1.69B | – | – |
| Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, nine months ended September 30, 2026GAAP | $ 11.72 | – | – |
| Adjusted EBITDA, year-to-date 2026 (dollars in thousands)non-GAAP | $2.81B | – | – |
| Cash flow from operations, nine months ended September 30, 2026 (in thousands)GAAP | $1.42B | – | – |
| Total shipments, third quarter 2026 (Tons)other | 3,784,484 | – | – |
| Steel average external sales price, third quarter 2026 (Per ton)other | $ 1,400 | $102 | – |
| Average ferrous cost, third quarter 2026 (Per ton Melted)other | $ 404 | $8 decrease | – |
| Steel fabrication shipments, third quarter 2026 (Tons)other | 190,151 | 18 percent | – |
| Aluminum flat rolled sheet product shipments, third quarter 2026 (metric tons)other | 55,000 metric tons | – | – |
| Aluminum hot band production, third quarter 2026 (metric tons)other | 91,000 metric tons | – | – |
| Three-year after-tax return on invested capitalnon-GAAP | 13 percent | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SteelRecord steel shipments and metal spread expansion, as average realized steel selling prices increased and scrap raw material costs declined. | $4.35B | – | – |
| Steel FabricationIncreased shipments and improved average realized pricing more than offset higher steel raw material input costs. | $466.3M | – | – |
| Metals RecyclingLower ferrous scrap pricing and metal spread contraction, combined with steady volume. | $614.8M | – | – |
| AluminumThe company continued to commission, qualify, and ramp its aluminum flat-rolled products mill; all three cold mills are operational. | $475.7M | – | – |
| Other | $602.3M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Paid cash dividends of $76 million during the quarter.
- Repurchased $276 million of outstanding common stock during the quarter, or one percent of the company’s common stock.
- Paid cash dividends of $225 million in the first nine-months of 2026.
- Repurchased $591 million, or two percent, of outstanding common stock in the first nine-months of 2026.
- Dividends declared per share were $ 0.53 for the three months ended September 30, 2026.
What drove it
- The domestic steel market was supported by steady demand, low customer inventories, historically low import levels, extended lead times and tighter spot availability.
- Energy, non-residential construction, automotive and industrial sectors led steel demand in the quarter.
- Steel fabrication order backlog was 50 percent higher than a year ago and extended into the second quarter 2027.
- Commercial construction, manufacturing, warehouses, data centers and healthcare drove fabrication demand.
- The company said aluminum platform EBITDA was breakeven for the quarter.
Concerns
- Aluminum operations recorded operating losses of $26 million in the third quarter 2026.
- Aluminum volumes were less than expected over a number of weeks because yield losses increased at higher operating speeds due to quality impacts.
- The aluminum issue originated from hot strip mill rolling coolant composition, although the company said the composition has been changed and no ongoing additional costs are expected.
- Metals recycling operating income was $15 million lower sequentially because of lower ferrous scrap pricing and metal spread contraction.
What to watch
- Fourth-quarter aluminum volumes and profitability as startup costs subside, utilization and yields improve, and scrap content increases.
- Commissioning of the second Continuous Annealing and Solution Heat line, expected to become operational early in the first quarter 2027.
- Steel pricing, ferrous scrap costs, import levels, lead times and spot availability.
- Conversion of the steel fabrication backlog extending into the second quarter 2027.
Balance sheet and cash flow
- Liquidity of $2.4 billion as of September 30, 2026.
- Cash and equivalents were $ 928,558 (in thousands) at September 30, 2026, compared with $ 769,878 at December 31, 2025.
- Long-term debt was $ 4,183,039 (in thousands) at September 30, 2026, compared with $ 4,176,508 at December 31, 2025.
- Current maturities of long-term debt were $ 20,854 (in thousands) at September 30, 2026.
- The company invested $150 million in capital investments during the quarter and $411 million in the first nine-months of 2026.
- Net cash provided by operating activities was $ 845,794 (in thousands) for the quarter and $ 1,422,046 for the nine months ended September 30, 2026.
Analysis
Steel Dynamics delivered a strong third quarter, with net sales of $6.5 billion, operating income of $1.0 billion and net income of $756 million, or $5.26 per diluted share. The company reported record steel shipments of 3.8 million tons. Consolidated operating income increased sequentially by $306 million, or 44 percent, while adjusted EBITDA was $1.2 billion and cash flow from operations was $846 million.
The steel platform was the primary earnings driver. Steel operating income was $1.0 billion, 43 percent higher than sequential second-quarter results, supported by record shipments and metal-spread expansion. The average external steel selling price rose $102 sequentially to $1,400 per ton, while average ferrous scrap cost declined $8 sequentially to $404 per ton. Management cited steady demand, low customer inventories, low imports, stronger lead times and tighter spot availability across flat-rolled and structural products.
Steel fabrication also improved, generating $91 million of operating income versus $85 million in the sequential second quarter. Higher shipments and average realized pricing outweighed higher steel input costs. The company said order activity has strengthened since the end of 2025, with backlog 50 percent higher than a year ago and extending into the second quarter 2027. Metals recycling was the offset within the established platforms, as operating income of $33 million was $15 million lower sequentially amid lower ferrous scrap pricing and narrower metal spreads.
Aluminum remained in its startup phase, reporting a $26 million operating loss, although the company said the platform was EBITDA breakeven. Aluminum sheet shipments were 55,000 metric tons and hot band production was 91,000 metric tons. Management identified yield losses related to hot strip mill rolling coolant composition as the cause of lower-than-expected volumes over several weeks, said the composition has been changed, and expects better volumes and profitability in the fourth quarter and throughout 2027.
Cash generation funded investment and shareholder returns while liquidity remained $2.4 billion as of September 30, 2026. During the quarter, the company invested $150 million in capital investments, paid $76 million of cash dividends and repurchased $276 million of common stock. The release provided qualitative market expectations for 2027 and beyond, but no quantitative financial guidance.
Management, verbatim
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.
Mark D. Millett, Chairman and Chief Executive Officer
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.
Mark D. Millett, Chairman and Chief Executive Officer
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.
Mark D. Millett, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative financial guidance for future revenue, margins, operating expenses, tax rate, earnings, capital expenditures or cash flow
- Prior-release outlook for comparison
- GAAP gross margin
- Free cash flow
- Income tax rate
- Quantitative year-over-year and sequential percentage changes for most reported financial statement line items and segment external net sales
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Steel Dynamics filed an SEC Form 8‑K reporting its third‑quarter 2026 financial results.
Ticker impact
Steel Dynamics disclosed Q3 2026 results with record shipments, $6.5B sales, $756M net income and a $276M share repurchase.
likely upward pressure as investors price in better-than-expected earnings and buyback activity
Revenue and earnings beat prior quarter, sizable buyback and solid cash flow signal financial strength.
Market effects
Positive for US steel and metals sector, may lift peers on demand and pricing trends.
Supports industrial activity outlook in the Midwest and broader US manufacturing.
Reinforces global steel demand narrative amid infrastructure spending.
Counterpoint
Higher steel costs could compress margins if price gains stall, making the rally vulnerable.
Key entities
- companySteel Dynamics Inc.
US steel producer reporting Q3 2026 results.
