Published 2h ago2026-09-18 06:38:09

Steel Dynamics Issues Third-Quarter Earnings Guidance Below Street Views

Steel Dynamics (STLD) expects third-quarter earnings to rise amid higher steel shipments and strong demand, but the outlook fell short of market expectations, sending the steel producer's shares down early Friday.

The company anticipates earnings to come in between $5.34 and $5.38 per share for the third quarter, up from $3.69 in the previous three-month period and $2.74 in the prior-year quarter, it said late Thursday. The current consensus on FactSet is for EPS of $5.50.

The stock declined 1.6% in the most recent premarket activity.

The firm projects profits from its steel operations to be "significantly" higher sequentially, buoyed by "record" shipments and metal margin expansion. The average realized selling value of steel is forecast to increase while scrap costs decline. Order activity and underlying demand remain solid with favorable pricing conditions, according to the company.

In the metals recycling segment, third-quarter earnings are expected to be down from the previous quarter due to reduced metal spreads and lower shipments, Steel Dynamics said.

Modest profit improvement is anticipated in the steel fabrication business quarter over quarter amid robust shipments. The steel producer's current order backlog is almost 50% higher than the 2025 third quarter, while demand remains healthy across several markets, including data centers.

For 2027, the company sees additional steel fabrication volume growth amid continued domestic manufacturing investment and infrastructure spending, among other factors.

The company is scheduled to release its third-quarter results after the markets close on Oct. 19.

Rival Nucor (NUE) said Thursday it expects third-quarter earnings of $5.55 to $5.65 per share, below the $5.87 consensus estimate compiled by FactSet.

In July, rival steel company Cleveland-Cliffs (CLF) said it expected third-quarter adjusted earnings before interest, taxes, depreciation and amortization of about $575 million, compared with $286 million in the previous three-month period, with further improvement projected for the next quarter.

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