Steel Dynamics Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 21 April 2026: press release. Guidance figures: 1 raised, 2 new. The quarter’s numbers.

Read the filing

Key takeaways

• Net income rose from prior periods: Net income attributable to Steel Dynamics was $403 million, or $2.78 per diluted share, compared with $266 million or $1.82 in the fourth quarter 2025 and $217 million or $1.44 a year earlier. Source
• Operating income up 73 percent: Consolidated operating income was $538 million, up $228 million from the fourth quarter 2025 and from $275 million a year earlier. Management credited record shipments and higher steel prices. Source
• Steel operating income rose 73 percent: Steel segment operating income was $557 million, up from $322 million in the fourth quarter 2025 and $230 million a year earlier. Source
• Aluminum operating loss $65 million: Aluminum operating loss was $65 million, $17 million higher than the fourth quarter 2025, during continued construction and startup of the Columbus, Mississippi and San Luis Potosi, Mexico operations. Source
• January startup issues paused operations: Startup issues in January led to a temporary pause in operations and a write-off of some inventory. The company said operating costs rose significantly that month. Source
• Customer orders rebounded and backlog rose: Backlogs increased across steel and steel fabrication, with the order backlog over 38 percent higher than a year earlier. Source
• Working capital rose $413 million: Working capital, excluding profit-sharing and income taxes, rose $413 million as pricing and demand improved and aluminum operations continued to ramp. Source
• Aluminum expanding into adjacent markets: The company is expanding into high recycled-content aluminum for beverage can, packaging, automotive, industrial and construction markets. Source

“Our three-year after-tax return-on-invested capital of 13 percent is a testament to our ongoing high-return capital allocation execution.”

Mark D. Millett, Chairman and Chief Executive Officer

Guidance

What changed from last quarter

• New: Cash dividend raised six percent for the first quarter 2026. Source
• New guidance: Timing of third cold mill commissioning given as the third quarter 2026. Source
• New: First of two CASH lines is now operational and has produced automotive qualification material. Source
• New guidance: Second CASH line timing given as the third quarter 2026. Source
• New guidance: Aluminum shipments and earnings expected to increase sharply in the second quarter 2026. Source
• Guidance raised: Order backlog horizon extended into October 2026, from the first half 2026 stated in the prior release. Source

Results and growth drivers

• Net income rose from prior periods: Net income attributable to Steel Dynamics was $403 million, or $2.78 per diluted share, compared with $266 million or $1.82 in the fourth quarter 2025 and $217 million or $1.44 a year earlier. Source
• Operating income up 73 percent: Consolidated operating income was $538 million, up $228 million from the fourth quarter 2025 and from $275 million a year earlier. Management credited record shipments and higher steel prices. Source
• Adjusted EBITDA reached $700 million: Adjusted EBITDA was $700 million, against $505 million in the fourth quarter 2025 and $448 million a year earlier. Cash flow from operations was $148 million after the profit-sharing distribution. Source

Steel operations

• Steel operating income rose 73 percent: Steel segment operating income was $557 million, up from $322 million in the fourth quarter 2025 and $230 million a year earlier. Source
• Steel selling price and scrap cost rose: The average external steel selling price rose $86 to $1,193 per ton. The average ferrous scrap cost per ton melted rose $22 to $396. Source
• Record shipments of 3.6 million tons: Total shipments were 3,638,868 tons, of which 2,966,124 were external. Steel mill production was 3,039,367 tons. Butler, Columbus and Sinton flat roll shipments were 2,011,443 tons, down from 2,119,187 a year earlier. Source

“We remain constructive that market conditions are in place for domestic steel and aluminum consumption to be strong through 2026 and into the following years,”

Mark D. Millett, Chairman and Chief Executive Officer

Steel fabrication and metals recycling

• Metals recycling profit rose 155 percent: Metals recycling operating income was $47 million, up from $19 million in the fourth quarter 2025 and $26 million a year earlier, on higher ferrous and nonferrous selling values. Source
• Scrap flows hit by winter weather: Metals recycling shipments were marginally lower than in the fourth quarter 2025. Winter weather in January and February reduced scrap flows. Source
• Fabrication profit steady on metal spread: Steel fabrication operating income was $90 million, steady with the fourth quarter 2025. Higher shipments of 143,422 tons were offset by metal spread compression from raw material costs. Source

Aluminum ramp-up

• Aluminum operating loss $65 million: Aluminum operating loss was $65 million, $17 million higher than the fourth quarter 2025, during continued construction and startup of the Columbus, Mississippi and San Luis Potosi, Mexico operations. Source
• January startup issues paused operations: Startup issues in January led to a temporary pause in operations and a write-off of some inventory. The company said operating costs rose significantly that month. Source
• Aluminum shipments rose to 22,500 metric tons: Shipments rose from 14,600 metric tons in the fourth quarter 2025 to 22,500 in the first quarter 2026. Source
• Can sheet qualifications progressing: Finished products were produced for the industrial and beverage can sectors. Qualifications from numerous can sheet consumers were received, with more under way. Source
• First CASH line operational for automotive: Aluminum hot band was produced and qualified for automotive applications. The first of two planned CASH lines is operational and has produced qualification material. Source
• Two of three cold mills ramping: Two of the three planned cold mills are ramping operations and producing prime products. The third is scheduled to commission in the third quarter 2026. Source

“Alongside our additional investments throughout the company, aluminum provides an exciting avenue for our ongoing growth.”

Mark D. Millett, Chairman and Chief Executive Officer

Demand and order book

• Customer orders rebounded and backlog rose: Backlogs increased across steel and steel fabrication, with the order backlog over 38 percent higher than a year earlier. Source
• Energy and construction led steel demand: Energy, non-residential construction, automotive and industrial sectors led steel demand. Long product demand remained high, especially for structural steel and railroad rail. Source
• Commercial and data center demand: Improved demand was supported largely by commercial, data center, manufacturing, warehouse and healthcare sectors. Source
• Pricing rebounded and lead times extended: Flat rolled steel pricing rebounded from the lows of the second half 2025. Steel producer lead times are reported at current levels. Source
• Onshoring and infrastructure support demand: Management cited domestic trade actions, manufacturing onshoring, infrastructure funding and regionalized supply chains as supports for steel demand. Source
• Aluminum supply deficit growing: Demand for aluminum flat rolled products across consumer sectors remains high, with the supply deficit growing. Source

Costs, pricing and margins

• Profit sharing expense rose: Profit sharing expense was $42 million, up from $27 million in the fourth quarter 2025 and $23 million a year earlier. Source
• Interest expense rose to $33 million: Interest expense, net of capitalized interest, was $33 million, compared with $27 million in the fourth quarter 2025 and $12 million a year earlier. Source
• Steel metal spread widened: Metal spread widened in steel as selling prices rose more than ferrous scrap costs. Source

Cash flow and balance sheet

• Working capital rose $413 million: Working capital, excluding profit-sharing and income taxes, rose $413 million as pricing and demand improved and aluminum operations continued to ramp. Source
• Liquidity held at $2.0 billion: Cash and equivalents were $557 million at March 31, 2026, against $770 million at December 31, 2025. Source
• Long-term debt essentially unchanged: Long-term debt was $4.18 billion at March 31, 2026, compared with $4.18 billion at December 31, 2025. Source

Capital returns to shareholders

• Dividend raised six percent: The first quarter 2026 cash dividend rose six percent, with dividends declared of $0.53 per share against $0.50 in the prior quarter. Source
• Share buybacks of $115 million: The company repurchased $115 million of its common stock in the quarter, against $250 million a year earlier, and paid $72 million in dividends. Source
• Capital investment fell to $138 million: Capital investments were $138 million, against $306 million a year earlier and $188 million in the fourth quarter 2025. Source

Strategy and investment

• Aluminum expanding into adjacent markets: The company is expanding into high recycled-content aluminum for beverage can, packaging, automotive, industrial and construction markets. Source
• Lower-carbon products seen as advantage: Management said customer discussions underscore the value of lower-carbon, domestically produced steel and aluminum products. Source
• Growth aligned with customer needs: Growth strategy is aligned with customer needs, with a priority on product excellence, supply-chain efficiency and sustainability. Source
• Favorable market expected as trade shifts: Management believes a favorable market environment will follow as unfair trade practices diminish, policy clarity improves and U.S. manufacturing expands. Source

Coming up, as management said on 21 April 2026

• Aluminum shipments and earnings expected to rise: Management believes both aluminum shipments and earnings will increase sharply in the second quarter 2026. Source

Risks management discussed

• Operational: Winter weather in January and February reduced scrap flows, and metals recycling shipments were marginally lower. Source
• Operational: Startup problems in January required a temporary pause and an inventory write-off in the aluminum operations. Source
• Financial: Working capital growth absorbed cash in the quarter as pricing, demand and the aluminum ramp raised balances. Source
• External: Higher steel raw material input costs compressed metal spread in steel fabrication. Source

Earlier plans management reported on

• Not stated: Management reports continued progress commissioning the Columbus mill and the San Luis Potosi satellite center, without a stated status against plan. Source
• Not stated: Earlier view that improving market conditions would support domestic demand; the current release describes demand as strengthened.

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.