Steel Dynamics Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.84%.
Did STLD Beat Earnings? Q1 2026 Results
Steel Dynamics posted a mixed but broadly strong first quarter for 2026, with revenue of $5.20 billion clearing the $5.06 billion consensus by 2.78% and climbing 19.1% year over year, while earnings per share of $2.78 came in fractionally below the $2.79 consensus estimate by 0.19%. The headline numbers were driven by record steel shipments of 3.6 million tons and expanding metal spreads, as the average external steel selling price rose $86 per ton sequentially to $1,193 while scrap costs increased a more modest $22 per ton to $396, giving steel operations significant leverage. Net income nearly doubled year over year to $403.44 million from $217.15 million in Q1 2025, a result that has since prompted debate among analysts over whether the stock's valuation fully reflects the earnings trajectory. Looking ahead, management expects aluminum shipments and earnings to improve sharply in Q2 as the Columbus, Mississippi facility ramps further, with a steel fabrication order backlog running 38% above year-ago levels and extending into October 2026 underpinning confidence in the demand outlook.
- Record steel shipments of 3.6 million tons
- Metal spread expansion as steel pricing increased more than ferrous scrap costs
- Average external steel selling price increased $86 sequentially to $1,193 per ton
- Higher ferrous and nonferrous average selling values in metals recycling
- Customer order rebounds and increased backlogs across steel and fabrication operations
- Strong demand from energy, non-residential construction, automotive, and industrial sectors
“The teams executed well, delivering a strong first quarter 2026 performance across all of our platforms, with operating income increasing $228 million, or 73 percent. The improvement in earnings was driven by record steel shipments combined with higher steel prices. Our three-year after-tax return-on-invested capital of 13 percent is a testament to our ongoing high-return capital allocation execution. We are growing, returning capital to shareholders, and maintaining strong returns with best-in-class performance compared to domestic manufacturers.”
Steel Dynamics CEO, on the earnings call
Forward Guidance & Outlook
Management remains constructive on domestic steel and aluminum consumption through 2026 and beyond, citing improving customer optimism, order entry activity, and pricing. Steel fabrication order backlog is 38% above year-ago levels, extending through Q3 into October 2026, supported by commercial, data center, manufacturing, warehouse, and healthcare demand. Flat rolled steel pricing has rebounded from H2 2025 lows with lead times at strong levels. The company expects aluminum shipments and earnings to increase sharply in Q2 2026, with a third cold mill and second CASH line expected to commission in Q3 2026. Favorable tailwinds include domestic trade actions, manufacturing onshoring, infrastructure program funding, and increasing regionalization of U.S. supply chains. Long product steel demand is expected to remain very strong, especially for structural steel and railroad rail.
STLD YoY Financials
STLD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.