Steel Dynamics, Inc. (STLD) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 25, 2027 — estimated from last year’s reporting date.

Consensus is $6.18 EPS for Dec 2026 across 4 estimates, ranging $5.45 to $7.11.

STLD Sep 2026

Reported Oct 19, 2026 · after the close

: 2.95%
: -0.33%

: $5.42
: $5.26
: —
: $6.51B

Reported results

: $6.51B; from $4.83B
: 19.70%; from 15.70%
: $1.01B; from $507.76M
: 15.46%; from 10.52%
: $756.00M; from $403.69M
: $5.26; from $2.74

Highlights

Earnings and growth: Q3 revenue was $6.51 billion, operating income $1.01 billion and diluted EPS $5.26. EPS missed the $5.42 consensus by 2.95%, but rose from $3.69 in Q2 and $2.74 a year ago.
Record steel shipments: Steel operations shipped a record 3.78 million tons and generated $1.03 billion of operating income, up 43% sequentially and 108% year over year; average selling prices rose $102 per ton from Q2.
Strong cash generation: Cash from operations was $846 million, and quarter-end liquidity was $2.4 billion. The company repurchased $591 million of stock in the first nine months of 2026, with $216 million remaining under its authorization.
Aluminum startup: The segment recorded a $26 million operating loss, improving 21% sequentially, after a hot-strip-mill surface-quality issue reduced production and yields. Management said the issue was resolved and expected hot-strip utilization to reach 90% by year-end.
Fabrication backlog: Steel fabrication operating income was $91 million, up from $85 million in Q2, while its order backlog was 50% higher than a year earlier and extended into Q2 2027.
Favorable steel setup: Management cited lean inventories, extended lead times and expanding value-added flat-roll spreads, which exceeded $230 per ton. It expects improved steel pricing dynamics to support Q4 and 2027 results.
CEO succession: Theresa Wagler is set to become CEO at year-end as Mark Millett retires; additional steel, fabrication, sustainability and finance leadership changes were announced.

Analysis

Steel Dynamics delivered a sharp sequential and year-over-year rebound in Q3 FY2026, led by stronger steel pricing and record shipments. Revenue of $6.51 billion rose 6.9% from Q2’s $6.09 billion and 34.8% from $4.83 billion a year ago. Operating income increased to $1.01 billion from $700.5 million sequentially and $507.8 million year over year; diluted EPS of $5.26 was up from $3.69 and $2.74, respectively, but fell 2.95% short of the $5.42 consensus. Management said results came in just below its earlier guidance range, partly due to nearly $30 million of late-quarter foreign-currency and aluminum-hedging mark-to-market adjustments.

The print was defined by steel’s record 3.78 million tons of shipments and 43% sequential operating-income growth as average selling prices rose $102 per ton. The second story was aluminum’s still-loss-making startup: a surface-quality problem at the hot-strip mill weighed on Q3 volume and yields, but was resolved in October; management expects production and profitability to improve in Q4 and through 2027. Meanwhile, fabrication’s backlog was 50% above year-ago levels, and strong operating cash flow of $846 million supported $2.4 billion of liquidity and continued buybacks. Management pointed to tight steel markets and expanding value-added spreads as supports for the near-term outlook.

Steel operations

Steel was the dominant earnings driver. Segment operating income reached $1.03 billion, up 43% from Q2 and 108% from Q3 2025, as stronger realized pricing combined with record total shipments of 3.78 million tons. The year-over-year improvement reflected a 35% expansion in metal spread: average steel selling prices increased 25%, or $282 per ton, while metallic raw-material cost per ton rose 6%, or $23. Sequentially, management cited a $102-per-ton increase in average selling prices. Domestic mills operated at an estimated 80% utilization, versus 92% at Steel Dynamics’ mills.

Demand and pricing: Management described customer inventories as lean, lead times as extended well into 2027 and flat-roll value-added spreads as above $230 per ton. Around 80% of its flat-rolled portfolio is contract-priced, typically with a two-month lag to market changes, positioning the company to capture recent pricing improvements in coming quarters.
Shipments and capacity: Total shipments reached a quarterly record, although external steel shipments were down 2% year over year. Management cited potential growth at Sinton, then running at roughly 210,000–220,000 tons per month with a goal of 250,000 or more, and 80,000–100,000 additional tons of structural capacity.

Aluminum ramp

The aluminum segment posted a $26.2 million operating loss, improved from a $56.5 million loss in Q3 2025 and 21% better sequentially. The mill shipped 55,000 metric tons of finished product. The principal setback was a surface-quality issue as the hot-strip mill ramped to higher speeds for light-gauge products; troubleshooting and a coolant change caused several weeks of lower production, weaker yields and higher costs. Management said the issue was resolved, with operations and yields improving in October and hot-strip utilization at 75% to date. It still targeted 90% utilization by year-end, while noting downstream shipments would follow the hot mill’s recovery with a lag.

Ramp milestones: All three cold mills were operating, and the first of two automotive continuous annealing and solution heat-treat lines was operational. The company had qualified 5182 and 5754 products at multiple automakers, was trialing 6000-series material and expected to ship finished automotive products before year-end. The second line was expected to be operational in Q1 2027.
Earnings potential: Management expects higher yields, greater scrap use, improved utilization and richer product mix to lift results through 2027. At nameplate capacity and its expected mix, it reiterated normalized through-cycle EBITDA potential of $650–$700 million for aluminum, plus $40–$50 million from metals recycling. It expects recycled content to increase in the first half of 2027 and said an optimized automotive product mix may take until 2028.

Fabrication and recycling

Steel fabrication: Segment operating income was $90.6 million, down 15% year over year but up from $85 million in Q2. Revenue increased 24% year over year as volume rose 25%, while average selling prices slipped 1%. Higher steel input costs—up 20% per ton year over year—compressed metal spreads 18%. The backlog was 50% above a year earlier and extended into Q2 2027; management said projects being priced for early-2027 delivery carried higher pricing, while normal Q4 seasonality could temper the near-term improvement.
Metals recycling: Operating income was $33.0 million, $33 million lower sequentially as management cited lower realized pricing. Compared with Q3 2025, however, segment operating income rose 5% as ferrous and nonferrous selling prices and spreads improved. Ferrous shipments increased 7% year over year, while nonferrous shipments declined 17%. The recycling platform is also intended to support higher recycled-aluminum content at the new mill.

Cash and capital

Liquidity and cash flow: Operating cash flow was $846 million, versus $723 million in Q3 2025. September 30 liquidity totaled $2.37 billion, comprising $929 million of cash, $255 million of other investments and $1.19 billion of revolver availability. Total debt was $4.2 billion, unchanged from year-end 2025.
Capital returns: The company repurchased $591 million of shares in the first nine months of 2026 and had $216 million remaining under its authorization at quarter-end. Its quarterly dividend was $0.53 per share, up 6% from 2025’s $0.50. Q3 capital investment was $150 million, with Q4 spending expected to be in a similar range.
Investment plans: Management said its formal process to prioritize organic growth projects over the next one to three years was underway, with more detail expected at a 2027 Capital Markets Day. It offered a preliminary 2027 capital-expenditure estimate of $600 million or more, subject to refinement.

Leadership transition

The quarter’s other major company development was the planned CEO transition. Theresa Wagler, currently executive vice president and CFO, is due to become CEO at year-end as Mark Millett retires from the role. The October 19 announcement also promoted three senior leaders effective October 1 and named three additional leadership transitions effective November 1, spanning flat-rolled steel production and commercial operations, long products, fabrication, sustainability and energy, and treasury. Management framed the changes as part of succession planning and support for the company’s growth strategy.

Steel Dynamics, Inc.

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