01—Abstract
Summary
Summary of the 10-Q filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Steel Dynamics, Inc. (SDI) reported a sharp year-over-year improvement in its second quarter ended June 30, 2026.
Net sales rose to $6.09 billiona from $4.57 billion, and operating income increased to $700.5 million from $382.9 million, an increase of 83%. Net income attributable to Steel Dynamics, Inc. was $534.1 million, or $3.69 diluted earnings per share, compared with $298.7 million, or $2.01 per diluted share, in the second quarter of 2025. For the first half of 2026, net sales were $11.30 billion and net income attributable to Steel Dynamics, Inc. was $937.5 million, or $6.47 per diluted share.
The filing attributes the gains primarily to expanded metal spreads in the steel operations, with steel segment average selling prices up 14% and shipments up 7% in the quarter. The steel operations segment generated operating income of $719.8 millionb in the quarter, up 89%, while the metals recycling segment's operating income rose 125% to $47.8 million. The steel fabrication segment's operating income declined 9%, reflecting rising steel input costs, and the aluminum operations segment posted an operating loss of $49.8 million as its flat-rolled mill continued commissioning and startup.
Management reports record quarterly steel shipments of 3.7 million tons and states that the aluminum mill shipped 53,000 metric tons of finished product in the quarter. Balance-sheet and cash-flow items were mixed. Cash and equivalents were $567.7 millionc, total liquidity was $2.01 billion, and total debt was $4.2 billion, unchanged from December 31, 2025.
Operating cash flow for the first half was $576.3 milliond, and capital expenditures were $261.8 million, down from $593.8 million a year earlier. Share repurchases totaled $315.4 million in the first half, with $488.7 million remaining under the February 2025 program. Quarterly dividends were increased 6% to $0.53 per share.
02—Key points
Key Highlights
- Second-quarter net sales of $6.09 billion, up from $4.57 billion a year earlier; first-half net sales of $11.30 billion versus $8.93 billion.
- Operating income of $700.5 million in Q2 2026 (up 83%) and $1.24 billion in the first half (up 88%), driven mainly by the steel operations segment.
- Net income attributable to Steel Dynamics, Inc. of $534.1 million ($3.69 diluted EPS) in Q2 2026, versus $298.7 million ($2.01) in Q2 2025.
- Steel operations segment operating income rose 89% to $719.8 million on a 14% increase in average selling prices and a 7% increase in shipments; the company reported record quarterly total steel shipments of 3.7 million tons.
- Aluminum operations posted an operating loss of $49.8 million in Q2 2026, including a $16 million non-cash impairment charge; the flat-rolled mill shipped 53,000 metric tons in the quarter during startup.
- Liquidity of $2.01 billion at June 30, 2026, including $1.19 billion of Revolver availability; total debt of $4.2 billion was unchanged from year-end 2025, and the interest coverage ratio was 15.63:1.00 against a 2.50:1.00 covenant minimum.
- Share repurchases of $315.4 million in the first half of 2026 and a quarterly dividend increased to $0.53 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Steel Dynamics kept $0.09.
- Revenue$6.09B100.0%
- Cost of revenue−$5.13B84.3%
- Gross profit$959.0M15.7%
- Operating costs−$258.5M4.2%
- Operating income$700.5M11.5%
- Interest, other & tax−$169.7M2.8%
- Net income$530.8M8.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 28, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $6.09B$4.57B | +33.4% |
| Cost of Revenue | $5.13B$3.95B | +30.0% |
| Gross Profit | $958.97M$618.47M | +55.1% |
| SG&A Expenses | $193.45M$198.01M | −2.3% |
| Operating Income | $700.48M$382.86M | +83.0% |
| Net Income | $530.78M$301.19M | +76.2% |
| EPS (Basic) | $3.71$2.01 | +84.6% |
| EPS (Diluted) | $3.69$2.01 | +83.6% |
| Shares Outstanding (Basic) | 144.00M148.39M | −3.0% |
| Shares Outstanding (Diluted) | 144.59M148.96M | −2.9% |
05—Questions
Frequently Asked Questions
What drove the increase in operating income this quarter?
The filing attributes the increase mainly to expanded metal spreads in the steel operations segment, where average selling prices rose more than scrap costs. Steel operating income increased 89% to $719.8 million, and metals recycling operating income increased 125% to $47.8 million.
How is the aluminum operations segment performing?
The aluminum segment remains in commissioning and startup. It recorded an operating loss of $49.8 million in Q2 2026, which includes a $16 million non-cash impairment related to relocating the planned second satellite slab center. Management expects both shipments and earnings to increase in the second half of 2026.
Is the company's debt and liquidity position sound?
Total debt was $4.2 billion, unchanged from December 31, 2025, and the total long-term debt to capitalization ratio was 31%. The company reported $2.01 billion of total liquidity, and it was in compliance with its covenants at June 30, 2026, with an interest coverage ratio of 15.63:1.00 against a 2.50:1.00 minimum.
How much capital has the company returned to shareholders?
In the first half of 2026, the company paid $149.0 million in dividends and repurchased $315.4 million of common stock. It has $488.7 million remaining under its February 2025 repurchase program, and its quarterly dividend was raised 6% to $0.53 per share.
What caused the rise in interest expense?
Net interest expense rose to $39.1 million in Q2 2026 from $17.4 million, mainly because capitalized interest fell by $18.8 million as construction of the aluminum flat-rolled mill was substantially completed in the second half of 2025. Higher outstanding long-term debt from senior unsecured notes issued in March and November 2025 also contributed.
06—Continue