Steel Dynamics reports record third-quarter shipments and $756 million net income

Steel Dynamics, Inc. reported third-quarter 2026 net income of $756 million, or $5.26 per diluted share, driven by record steel shipments of 3.8 million tons. The company posted net sales of $6.5 billion and operating income of $1.0 billion for the period.

Mark D. Millett, Chairman and Chief Executive Officer, attributed the sequential increase in consolidated operating income of $306 million, or 44 percent, to improved steel prices and strong execution across the steel platform. The average external product selling price for steel operations rose $102 sequentially to $1,400 per ton, while average ferrous scrap costs declined $8 per ton to $404 per ton. Energy, non-residential construction, automotive, and industrial sectors led demand during the quarter.

The steel fabrication platform generated $91 million in operating income, up from $85 million in the prior quarter, as higher shipments and pricing offset increased raw material costs. Customer order backlog is now 50 percent higher than a year ago and extends into the second quarter of 2027. Millett noted that demand is supported by commercial construction, manufacturing, warehouses, data centers, and healthcare, alongside accelerating domestic manufacturing investments and infrastructure funding.

In its aluminum operations, Steel Dynamics recorded a $26 million operating loss in the third quarter, a 21 percent improvement from the second quarter. The platform reached EBITDA breakeven for the period. Aluminum flat-rolled sheet shipments totaled 55,000 metric tons, while hot band production increased to 91,000 metric tons. Millett stated that yield losses at higher operating speeds stemmed from a coolant composition issue in the hot strip mill, which has been corrected. The company expects aluminum volumes and profitability to improve in the fourth quarter of 2026 and throughout 2027 as startup costs subside.

Metals recycling operations generated $33 million in operating income, down $15 million from the previous quarter due to lower ferrous scrap pricing and metal spread contraction. Average realized ferrous scrap prices fell $15 per gross ton sequentially.

The company generated $846 million in cash flow from operations during the quarter. It invested $150 million in capital projects, paid $76 million in cash dividends, and repurchased $276 million of common stock. Liquidity stood at $2.4 billion as of September 30, 2026.

For the nine months ended September 30, 2026, net income was $1.7 billion, or $11.72 per diluted share, on net sales of $17.8 billion. This compares to net income of $920 million, or $6.17 per diluted share, and net sales of $13.8 billion for the same period in 2025. Operating income increased 93 percent to $2.2 billion year-to-date.