01—Abstract
Summary
Summary of the 10-Q filed October 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Steel Dynamics, Inc. (STLD) reported a sharply higher third quarter of 2026, with net sales of $6.51 billiona, up from $4.83 billion in the third quarter of 2025, and operating income of $1.01 billion, compared with $507.8 million a year earlier.
Net income attributable to Steel Dynamics, Inc. was $756.0 millionb, or $5.26 per diluted share, versus $403.7 million, or $2.74 per diluted share, in the prior-year quarter. The filing attributes the improvement primarily to steel operations, where average selling prices rose 25% (about $282 per ton) while scrap costs rose less, widening metal spreads. The company also cited record quarterly total steel shipments of 3.8 million tons.
Not all segments improved. Steel fabrication operating income fell 15% to $90.6 millionc on rising steel input costs, and profit sharing expense rose to $81.3 million for the quarter. Interest expense increased to $39.3 million, reflecting lower capitalized interest as construction of the aluminum flat rolled products mill was substantially completed in 2025.
The aluminum operations segment, which is still commissioning, shipped 55,000 metric tons of finished product in the quarter and continued to post an operating loss of $26.2 milliond. Balance sheet and cash flow remained solid. Cash and equivalents were $928.6 million and total liquidity was $2.37 billion at September 30, 2026, including $1.19 billion of Revolver availability with no borrowings outstanding.
Total outstanding debt of $4.2 billion was unchanged from December 31, 2025, and the company stated it was in compliance with its financial covenants. Nine-month operating cash flow was $1.42 billion, and the company repurchased $590.9 million of stock and paid $225.1 million in dividends during the period.
02—Key points
Key Highlights
- Third-quarter net sales rose to $6.51 billion from $4.83 billion, and the nine-month total reached $17.81 billion versus $13.76 billion.
- Third-quarter operating income was $1.01 billion, up 98% from $507.8 million, driven by the steel operations segment, whose operating income rose 108% to $1.03 billion.
- Net income attributable to Steel Dynamics, Inc. was $756.0 million, or $5.26 per diluted share, for the third quarter of 2026, compared with $2.74 per diluted share a year earlier.
- Steel fabrication operating income declined 15% in the quarter as steel input costs rose, with the order backlog now 50 percent higher than a year ago.
- The aluminum operations segment shipped 55,000 metric tons of finished product in the quarter, but still recorded an operating loss of $26.2 million as startup continues.
- Liquidity totaled $2.37 billion at September 30, 2026, and total debt of $4.2 billion was unchanged from December 31, 2025.
- The quarterly dividend was raised 6% to $0.53 per share, and $590.9 million of share repurchases were made in the first nine months of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Steel Dynamics kept $0.12.
- Revenue$6.51B100.0%
- Cost of revenue−$5.23B80.3%
- Gross profit$1.28B19.7%
- Operating costs−$275.9M4.2%
- Operating income$1.01B15.5%
- Interest, other & tax−$250.7M3.9%
- Net income$755.7M11.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 23, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $6.51B$4.83B | +34.8% |
| Cost of Revenue | $5.23B$4.07B | +28.4% |
| Gross Profit | $1.28B$757.88M | +69.2% |
| SG&A Expenses | $186.97M$200.84M | −6.9% |
| Operating Income | $1.01B$507.76M | +98.2% |
| Net Income | $755.69M$403.93M | +87.1% |
| EPS (Basic) | $5.29$2.75 | +92.4% |
| EPS (Diluted) | $5.26$2.74 | +92.0% |
| Shares Outstanding (Basic) | 142.99M146.95M | −2.7% |
| Shares Outstanding (Diluted) | 143.62M147.60M | −2.7% |
05—Questions
Frequently Asked Questions
What drove the large increase in Steel Dynamics' third-quarter 2026 operating income?
The steel operations segment drove most of the increase. Average steel selling prices rose 25%, or $282 per ton, while metallic raw material costs rose 6% per ton, widening metal spreads by 35%. Steel operating income rose 108% to $1.03 billion.
Are there any segments or cost areas where results weakened?
Yes. Steel fabrication operating income fell 15% to $90.6 million because rising steel input costs compressed metal spreads by 18%. Profit sharing expense rose 92% to $81.3 million, and interest expense increased to $39.3 million because capitalized interest declined 72%.
How is the aluminum operations segment performing?
The aluminum segment is still in commissioning and startup. It shipped 55,000 metric tons of finished product in the third quarter and posted an operating loss of $26.2 million, which the company said it expects to improve in the fourth quarter of 2026 and throughout 2027 as startup costs subside.
Does the company have enough liquidity to meet its obligations?
The filing reports total liquidity of $2.37 billion at September 30, 2026, including $928.6 million of cash and $1.19 billion of undrawn Revolver availability. The company stated it was in compliance with its financial covenants and believes liquidity and operating cash flow are sufficient for the next twelve months.
How much did the company return to shareholders in 2026?
In the first nine months of 2026, the company repurchased $590.9 million of common stock and paid $225.1 million in cash dividends. $215.9 million remained available under the February 2025 repurchase program as of September 30, 2026.
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