Steel Dynamics (STLD) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly steel shipments of 3.6 million tons and strong operational performance in Q1 2026, with net income of $403 million ($2.78 per diluted share) and revenues of $5.2 billion, driven by higher steel prices and shipments.

• Maintained a differentiated, circular business model with high steel mill utilization rates, strong safety culture (94% of locations without lost time injury), and a focus on sustainability and innovation.

• Continued strategic investments in growth, including new steel and aluminum facilities, decarbonization initiatives, and biocarbon production.

• Significant progress in aluminum operations, overcoming startup issues and inventory write-downs, with shipments increasing and early product certifications achieved.

• Increased dividend by 6% and repurchased $115 million in stock, with $687 million remaining authorized.

Financial highlights

• Q1 2026 operating income was $538 million, up 73% sequentially, with adjusted EBITDA of $700 million and revenues of $5.2 billion.

• Steel operations generated $557 million in operating income; metals recycling $47 million (up 155% sequentially); steel fabrication $90 million; aluminum operations posted a $65 million loss.

• Gross profit rose to $763 million from $487 million in Q1 2025; gross margin improved to 14.7%.

• Working capital increased by $413 million as pricing and demand improved and aluminum operations ramped.

• Cash flow from operations was $148 million after a $120 million retirement profit-sharing distribution.

Outlook and guidance

• Recent steel price increases and strong order backlogs expected to positively impact Q2 and Q3 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 and additional capacity coming online in Q3.

• Anticipate seasonally higher scrap shipments and continued benefit from infrastructure funding, manufacturing onshoring, and regionalized supply chains.

• Decarbonization and renewable energy initiatives align with science-based targets and regulatory trends.