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Steel Dynamics Second-Quarter Results Top Street Views Amid Higher Steel Prices

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Steel Dynamics Second-Quarter Results Top Street Views Amid Higher Steel Prices

Steel Dynamics (STLD) reported better-than-expected second-quarter results amid higher steel prices, while the company sees strong steel and aluminum demand through the rest of 2026 and into 2027.

The steel producer's diluted earnings came in at $3.69 a share for the quarter ended June, up from $2.01 the year before, it said late Monday. The consensus on FactSet was for $3.63. Sales rose to $6.09 billion from $4.57 billion, topping the Street's view for $5.56 billion.

"During the second quarter 2026 steel pricing continued to improve resulting in strong performance across our steel platform, driving a sequential quarterly increase in consolidated operating income of $162 million, or 30%," Chief Executive Mark Millett said in a statement. "Our metals recycling, steel fabrication, and aluminum teams also had a solid performance."

Steel Dynamics shares rose 2.6% in the most recent premarket activity.

The average external product selling price for the company's steel operations rose to $1,298 per ton from $1,134 the year before and increased by $105 on a sequential basis. Overall shipments amounted to 3.7 million tons, compared with 3.3 million tons in the 2025 quarter.

"We remain confident that market conditions are in place to support strong domestic steel and aluminum consumption through the remainder of 2026 and into 2027," according to Millett. "Customer sentiment, order entry activity, and pricing have continued to improve across our businesses."

Operating income in the steel operations jumped 30% to $720.9 million, buoyed by shipments and metal spread expansion across the platform, as steel pricing improved more than ferrous scrap costs, the company said.

In the steel fabrication business, operating income declined to $84.6 million from $93.1 million last year. The order backlog, however, was nearly 45% higher than a year earlier.

The metals recycling division saw operating income advance to $47.8 million, up from $21.3 million, supported by higher volumes despite lower pricing. In the aluminum segment, the steel producer's operating loss narrowed to $33.4 million from $40.6 million.

"Steel fundamentals continued to strengthen during the second quarter, as pricing improved, demand remained solid, and customer inventory levels declined, remaining lower than historical norms," Millett said. "We continue to see an improved steel market environment, supported by domestic trade actions, manufacturing reshoring, infrastructure program funding, and the increasing regionalization of supply chains within the US."

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