Steel Dynamics profit reaches $756 million as earnings per share miss estimates
Key Facts
Net income attributable to Steel Dynamics rose to $756 million in the third quarter of 2026, according to the company's earnings release, supported by improved steel operations. The company compared the result with earnings of $534 million in the second quarter of the same year. It had earned $404 million in the third quarter of 2025, marking an improvement both quarter on quarter and year on year. Net sales totaled $6.509419 billion during the period, according to figures in the company's announcement. Revenue exceeded analysts' estimates of $6.43 billion, according to MarketBeat's earnings table, which rounded revenue to $6.51 billion.
But the improvement in profit and the revenue beat were not accompanied by earnings per share reaching the level analysts had expected for the third quarter. Earnings per share came in at $5.26, against estimates of $5.48, according to MarketBeat's table dated October 19, 2026. In guidance published on September 17, 2026, the company had forecast diluted earnings per share of between $5.34 and $5.38. The actual result was therefore below the guidance range the company announced before releasing its quarterly results. Investing.com reported in its coverage dated October 19, 2026, that the stock fell 8% following the earnings announcement.
In steel operations, Steel Dynamics said shipments reached a record 3.8 million tons during the third quarter. The average external selling price for products from these operations rose to $1,400 per ton, according to the company's statement for the period. On production costs, the average ferrous scrap cost fell to $404 per melted ton, alongside improved selling prices. Management attributed the strength of the domestic market to "stable demand," describing the conditions surrounding the third-quarter results. It also cited low customer inventories and imports among the factors supporting the domestic market in which the company operates.
The company's consolidated operating income totaled $1.006367 billion in the third quarter, according to the earnings release, while gross profit reached $1.282287 billion. Aluminum operations, meanwhile, incurred a startup-related operating loss of $26 million during the same period. On liquidity, the company's operations generated operating cash flow of $846 million during the third quarter. Steel Dynamics repurchased $276 million of shares during the period, according to its earnings announcement. In the steel fabrication segment, the order backlog was up 50% year on year at the time of the earnings announcement.
On management, Steel Dynamics announced leadership promotions covering steel fabrication, as well as energy and flat-rolled steel commercial operations. Chad Bickford was promoted to senior vice president of steel fabrication, according to the company's statement on the changes. Jeff Hansen was also promoted to senior vice president of environmental sustainability and energy as part of the promotions announced by the company. The decisions included the promotion of William "Tommy" Scruggs to senior vice president of flat-rolled steel commercial operations and processing. These appointments come alongside the announced succession plan under which the company's chief executive role will pass to Theresa Wagler.
The next phase of the leadership transitions begins on November 1, 2026, with Daniel Keown, Yuri Krotov and Dominic Freyberger moving into their new responsibilities. Theresa Wagler will then become the company's chief executive effective January 1, 2027, according to the leadership succession announcement. Mark Millett will remain chief executive until the handover to Wagler. As she takes office, Millett will become executive chairman under the arrangements announced by the company. On the same date, Richard Poinsatte will succeed Wagler as chief financial officer, extending the succession process across executive leadership and financial management.