Steel Dynamics' third-quarter profit jumps to $5.26 a share on record steel shipments

Steel Dynamics' profit jumped in the third quarter as record shipments met rising steel prices and lower scrap costs. The Fort Wayne, Indiana-based steelmaker said net income rose to $756 million, or $5.26 a diluted share, from $404 million, or $2.74, a year earlier.

Earnings also climbed from $534 million, or $3.69 a share, in the second quarter, according to its earnings release filed with an 8-K on Tuesday. Net sales reached $6.5 billion, up from $4.8 billion a year ago, and operating income nearly doubled to $1.0 billion from $508 million.

Steel shipments hit a record 3.8 million tons. Adjusted EBITDA was $1.2 billion, compared with $664 million a year earlier.

"Throughout the third quarter 2026, steel prices continued to improve and the teams executed well across our steel platform," Chairman and CEO Mark Millett said in the release, citing a sequential increase in consolidated operating income of $306 million, or 44%.

Steel drives the gain

Operating income from steel operations was $1.0 billion, up 43% from the second quarter, on record shipments and wider metal spreads. The average external selling price for steel rose $102 a ton from the prior quarter to $1,400, while the average ferrous scrap cost per ton melted fell $8 to $404.

The company said energy, non-residential construction, automotive and industrial customers led steel demand. Millett described the domestic market as supported by "steady demand, low customer inventories, and historically low import levels."

Steel fabrication earned $91 million, up from $85 million in the second quarter but below $107 million a year earlier. The fabrication order backlog is 50% higher than a year ago and extends into the second quarter of 2027, the company said.

Metals recycling earned $33 million, $15 million less than in the second quarter, on lower ferrous scrap prices.

Aluminum losses narrow

The company's new aluminum flat-rolled operations lost $26 million in the quarter, a 21% improvement from the second quarter, and were EBITDA breakeven, Millett said. Aluminum flat-rolled sheet shipments totaled 55,000 metric tons.

Volumes fell short of expectations for several weeks as yield losses rose at higher operating speeds, a problem the company traced to the hot strip mill's rolling coolant composition, which it said has been changed with no ongoing additional costs expected. Steel Dynamics expects aluminum volumes and profitability to improve in the fourth quarter and throughout 2027. A second CASH processing line is expected to become operational early in the first quarter of 2027.

Cash and buybacks

Cash flow from operations was $846 million. The company spent $150 million on capital investments, paid $76 million in dividends and repurchased $276 million of stock, about 1% of its shares, ending the quarter with $2.4 billion of liquidity.

For the first nine months, net income was $1.7 billion, or $11.72 a diluted share, versus $920 million, or $6.17, a year earlier.

The release did not include numerical guidance. Millett said the company remains "optimistic" about domestic steel and aluminum heading into 2027 and beyond.

By the numbers

• Diluted EPS: $5.26, vs. $2.74 a year ago and $3.69 in Q2
• Net income: $756 million, vs. $404 million
• Net sales: $6.5 billion, vs. $4.8 billion
• Record steel shipments: 3.8 million tons
• Average steel selling price: $1,400 a ton
• Share repurchases: $276 million

Sources

1. Steel Dynamics, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 press release "Steel Dynamics Reports Third Quarter 2026 Results," dated Oct. 19, 2026, filed Oct. 20, 2026, accession 0001104659-26-117217

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