Steel Dynamics, Inc.

Second-quarter 2026 net income was $534 million, or $3.69 per diluted share, on revenues of $6.1 billion. Adjusted EBITDA was $921 million and operating income was $700 million. Steel operations generated $721 million of operating income, up 30% sequentially, as average selling prices per ton increased $105 and value-added spreads to hot band improved $70 per ton from the lows of Q4 2025. Metals recycling operating income was $48 million, fabrication operating income was $85 million, and aluminum startup-related operating losses were $33 million, plus a $16 million non-cash impairment charge. Aluminum flat-rolled sheet shipments were 53,000 metric tons, up from 22,500 metric tons in Q1, and the mill produced 84,000 metric tons in the quarter, about 50% of capability. For the second half of 2026, management expects aluminum volumes and profitability to increase sharply as the third cold mill comes online, startup costs subside, and utilization and yields improve. They also said Q2 cash flow from operations was $428 million, liquidity was $2 billion, second-half 2026 capex should be $300 million-$350 million, and the company ended June with $489 million remaining authorized for share repurchases.

Mark Millett framed the quarter as proof that Steel Dynamics' long-term strategy is working, citing diversification, value-added products, customer supply-chain integration, and operational execution. He was especially upbeat on aluminum, saying the team has outperformed expectations, the hot side is fully operational, and the third cold mill starting should allow the business to reach full capability in 2027. His tone was confident and expansionary, but he also repeatedly stressed safety, noting the fatal accident earlier in the year and calling for a zero-incident workplace.

Theresa Wagler focused on the financial impact of higher steel pricing, record shipments, and the ramp in aluminum. She noted Q2 steel operating income of $721 million, fabrication operating income of $85 million, metals recycling income of $48 million, and aluminum startup losses of $33 million, with an additional $16 million impairment tied to relocating the second recycled slab center. She said working capital rose by $225 million due mainly to higher pricing and stronger customer account values, but expects working capital to become a funding source in the second half. She also highlighted $428 million of operating cash flow, $2 billion of liquidity, $124 million of Q2 capex, and a second-half capex range of $300 million-$350 million, while reiterating capital returns through the dividend and buybacks.

Analysts focused heavily on fabrication pricing, aluminum ramp timing, and whether the company might lift its aluminum profitability target. Management said fabrication backlog growth is volume-driven, not pricing-driven, and realized pricing should improve more over the next 6-9 months and into 2027. On aluminum, they said Q2 shipments were held back by startup and packaging issues, but Q3 should be 'significantly improved' and the business should exit 2026 at at least 90% utilization. On the long-term aluminum outlook, management said the current $650 million-$700 million through-cycle EBITDA view still stands for a normalized environment, though today’s spreads suggest upside once the operation is fully dialed in.