Steel Dynamics (STLD) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly steel shipments of 3.6 million tons in Q1 2026, with strong operational execution and increased customer orders and backlogs across all segments.

• Net income was $403 million ($2.78 per diluted share), with adjusted EBITDA of $700 million and revenues of $5.2 billion, driven by higher steel prices and shipments.

• Aluminum operations ramped up, shipping 22,500 metric tons, with a $65 million operating loss due to startup issues, but rapid recovery and increased sales expected.

• Maintained a world-class safety culture, with 94% of locations operating without a lost time injury.

• Continued strategic investments in new steel and aluminum facilities, decarbonization, and innovation initiatives.

Financial highlights

• Q1 2026 operating income was $538 million, up 96% year-over-year and 73% sequentially, driven by higher steel prices and volumes.

• Steel operations generated $557 million in operating income, a 73% sequential increase; average HRC pricing rose from $850 to $975 per ton.

• Metals recycling operating income was $47 million, up 155% sequentially and 85% year-over-year, despite lower shipments due to weather.

• Steel fabrication operating income was $90 million, stable with Q4, with higher shipments offsetting increased input costs.

• Gross profit increased to $763 million from $487 million in Q1 2025.

Outlook and guidance

• Recent steel price increases and strong order backlogs expected to positively impact Q2 results, especially for flat-rolled products.

• Aluminum operations expected to be EBITDA positive for the remainder of 2026, with ramp-up to 90% capacity by year-end.

• Ongoing commissioning of aluminum mills in Mississippi and Mexico, with additional capacity coming online in Q3 2026.

• Anticipate seasonally higher scrap shipments in Q2 and Q3, supporting both steel and aluminum operations.

• Management expects strong domestic steel and aluminum demand through 2026 and beyond, supported by infrastructure funding and onshoring trends.