NEW YORK, July 20, 2026, 16:58 EDT
- Sales for the second quarter totaled $6.09 billion, with diluted earnings per share of $3.69.
- Steel operating income per shipped ton increased approximately 26% from the previous quarter.
- The stock finished the session at $230.49 before dropping to $225.98 in after-hours trading.
Steel Dynamics posted a roughly 26% increase in steel operating income per shipped ton compared to the previous quarter, despite shipments rising just 2.8%. After-hours trading saw shares decline.
Steel operating income increased by 29.5% to $720.9 million. Shipments grew by 2.8%, with prices and expenses making a bigger impact.
The average price of external steel climbed by $105, reaching $1,298 per ton. Scrap expenses went up by $16 to $412. The price-minus-scrap spread expanded by $89, or 11%.
| Metric | Q2 2026 | Q1 2026 | Sequential change |
|---|---|---|---|
| Net sales | $6.092 billion | $5.205 billion | up 17.0% |
| Diluted EPS | $3.69 | $2.78 | increased 32.7% |
| Steel shipments | 3.741 million tons | 3.639 million tons | up 2.8% |
| Steel operating income | $720.9 million | $556.6 million | up 29.5% |
| Steel operating income per ton | $193 | $153 | 26.0% higher |
| Aluminum operating loss | $33.4 million | $64.6 million | loss narrowed by 48.3% |
Based on segment operating income and overall shipments. These company numbers are unaudited.
Net income increased 79% compared with the previous year to $534 million. Diluted EPS was $3.69, factoring in a $16 million impairment charge.
FactSet Research Systems Inc. NYSE:FDS had forecast earnings at $3.63 per share with revenue of $5.56 billion ahead of the report. Steel Dynamics delivered results above both estimates.
U.S. markets were closed before the results were released. Shares finished at $230.49, falling 2.1%. A late quote at 16:49 EDT showed the price at $225.98, a further drop of 2.0%.
The stock rose 3.1% last week, finishing Friday at $235.51. Most of those gains were lost in Monday’s regular session decline.
Steel stocks declined ahead of the release. Nucor Corp. NYSE:NUE dropped 2.5%, and Cleveland-Cliffs Inc. NYSE:CLF decreased 3.2%. The S&P 500 edged down 0.19%.
Mark Millett, Chief Executive, stated: “Steel fundamentals continued to strengthen during the second quarter, as pricing improved, demand remained solid, and customer inventory levels declined.” PR Newswire
The backlog for steel fabrication was almost 45% higher than a year earlier. Orders reached into the first quarter of 2027.
Aluminum operations remained unprofitable, though the operating loss decreased by 48% to $33.4 million. Shipments totaled 53,000 metric tons. Executives anticipate that the third cold mill will start its commercial ramp-up in August.
Operating cash flow reached $428 million as working capital increased by $225 million. The company continued to buy back shares, spending $200 million.
Steel Dynamics is scheduled to update investors on Tuesday at 11 a.m. EDT. Cleveland-Cliffs will release its report on Thursday ahead of market open. Nucor is set to report after the closing bell next Monday.
Risks: Margin improvements may be undone if steel prices decline more quickly than scrap expenses. Initial losses in aluminum operations and requirements for working capital could further hinder cash conversion.
