Steel Dynamics profit reaches $756 million as earnings per share miss estimates
Key Facts
Steel Dynamics reported third-quarter results after the market close on October 19, 2026, with revenue beating estimates while earnings per share fell short. Net income totaled $756 million, according to the company's statement, in a quarter that saw record steel shipments. Diluted earnings per share were $5.26, compared with estimates of $5.48, according to figures published on Investing.com. Revenue, meanwhile, reached $6.51 billion, exceeding estimates of $6.43 billion, according to the same platform. The company reported third-quarter net sales rounded to $6.5 billion in its disclosure.
Profit rose from the second quarter, when the company reported net income of $534 million, according to its earnings disclosure for that period. Diluted earnings per share also increased from the previous quarter's $3.69, according to the company. Still, actual third-quarter earnings fell below the guidance range Steel Dynamics announced in September. At the time, the company had forecast diluted earnings of between $5.34 and $5.38 per share ahead of the final results. Adjusted earnings before interest, taxes, depreciation and amortization totaled about $1.2 billion in the third quarter, according to the earnings statement.
Steel shipments reached a record 3.8 million tons in the third quarter, according to Steel Dynamics' statement. The average external selling price for steel operations products rose by $102 from the previous quarter to $1,400 per ton. At the same time, the average ferrous scrap cost per ton melted fell by $8 quarter on quarter to $404 per ton. The company attributed improved steel production performance to record shipments, higher selling prices and lower scrap costs, alongside strong demand and low customer inventories. In its September guidance, it had identified nonresidential construction, energy, automotive and industrial markets as the sectors driving steel demand.
In steel fabrication, Steel Dynamics generated operating income of $91 million in the third quarter, according to its disclosure. That compares with operating income of $85 million in the second quarter, according to the company's previously announced results. The quarterly improvement in the segment's earnings came despite higher steel input costs in the fabrication business, according to the company's explanation of its performance. Metals recycling operations posted operating income of $33 million in the third quarter, according to the earnings statement. In describing steel market conditions, the company also cited lower imports linked to trade measures among the factors supporting activity.
In aluminum, the company recorded operating losses of $26 million in the third quarter, according to its earnings disclosure. Steel Dynamics linked those losses to the continued startup phase of its aluminum operations during the reporting period. It said the aluminum platform reached "breakeven on an earnings before interest, taxes, depreciation and amortization basis" during the same quarter. The company attributed low production yields in the business to the formulation of the coolant used in the rolling process. It added that it had successfully changed the coolant formulation as part of its efforts to address the operational problem it identified in the aluminum business.
Steel Dynamics generated operating cash flow of $846 million in the third quarter, according to figures in the company's statement. That compares with operating cash flow of $428 million in the second quarter, according to its earnings disclosure for the previous period. The company spent $276 million on share repurchases during the third quarter as cash generation from operations increased. Shares fell 7% in extended trading after the results, according to a Reuters report published on the evening of October 19, 2026. The company scheduled its earnings conference call for October 20, 2026, at 11:00 a.m. Eastern Daylight Time.