Steel Dynamics Earnings of $5.26 a Share Fall Short of Earlier Guidance
Key Facts
Steel Dynamics reported net income of $756 million in the third quarter of 2026, while earnings per share fell below the range the company forecast in September. Diluted earnings per share were $5.26, according to the earnings statement, compared with earlier guidance of $5.34 to $5.38 a share for the same period. Earnings also fell short of Investing's estimate of $5.48 a share for the reported quarter, leaving the company below both its earlier forecast and the platform's estimate. The company posted net sales of $6.5 billion for the quarter, according to figures in its official earnings statement. The announcement included record steel shipments, while the aluminum business posted operating losses tied to its ongoing startup and lower-than-expected volumes.
Compared with previous periods, diluted earnings per share rose from $3.69 in the preceding quarter, according to figures Steel Dynamics included in its September guidance. Earnings per share also exceeded the $2.74 recorded in the corresponding quarter a year earlier, despite remaining below management's guidance range for the reported quarter. In its steel business, the company said shipments reached a record 3.8 million tons in the third quarter of 2026. The average external selling price for steel segment products rose to $1,400 per ton from the preceding quarter, according to the earnings statement. Meanwhile, the average cost of ferrous scrap used at its steel mills fell to $404 per melted ton, also compared with the preceding quarter.
In the aluminum business, operating losses related to the ongoing startup totaled $26 million during the quarter, according to Steel Dynamics. The company said aluminum volumes were lower than it had expected, attributing the shortfall to a quality issue encountered during operations. The company linked the issue to what it described in its statement as the "rolling coolant formulation," identifying the cause that affected volumes. It added that it had adjusted the formulation of the fluid used in rolling to address the issue that pushed volumes below expectations. The company said it had addressed the cause, while management expects aluminum volumes and profitability to improve as the business ramps up.
FNB reported net income of $152.9 million in the third quarter of 2026, according to Investing's coverage of the bank's results. The report compared that profit with $149.5 million in the corresponding quarter a year earlier, marking a year-on-year increase in net income. Adjusted earnings per share were $0.43 for the reported quarter, according to the same coverage of the bank's results. That matched analysts' estimate of $0.43 a share for the same period, according to the platform, and was higher than in the preceding quarter. On July 16, 2026, the bank reported second-quarter earnings per share of $0.42, also matching analysts' estimate of $0.42.
On liquidity and shareholder returns, Steel Dynamics said it generated $846 million in cash flow from operations in the third quarter of 2026. The company repurchased $276 million of its common shares during the same period, according to its official earnings statement. In trading following the announcement on October 19, 2026, the company's shares fell 8%, according to Investing's coverage of the initial reaction to the results. FNB shares also declined 3% in after-hours trading on the day it announced its results, according to the platform's coverage published after the announcement. The declines followed results in which Steel Dynamics' earnings per share missed its earlier guidance and FNB's adjusted earnings per share matched analysts' estimate.
Looking ahead, Steel Dynamics said its steel fabrication order backlog extends into the second quarter of 2027. That backlog applies to the steel fabrication business, according to the company's third-quarter 2026 results announcement. In aluminum, management ties its expectation of improving volumes and profitability to progress in ramping up the business, following the adjustment to the coolant formulation and resolution of the cause of the quality issue. The company will hold its earnings conference call on October 20, 2026, according to its announcement of the call and accompanying webcast. The call begins at 11:00 a.m. Eastern Daylight Time to discuss the third-quarter results the company announced.