Investing.com -- Steel Dynamics Inc (NASDAQ: STLD) reported third quarter 2026 adjusted earnings per share of $5.26, missing analyst estimates of $5.48, while revenue of $6.5 billion exceeded the consensus estimate of $6.43 billion. The stock fell 8% following the results, reflecting investor disappointment with the earnings shortfall.

Net sales increased 35% to $6.5 billion compared to $4.8 billion in the third quarter of 2025. The company achieved record steel shipments of 3.8 million tons during the quarter, with operating income of $1.0 billion representing a 44% sequential increase from the second quarter.

"Throughout the third quarter 2026, steel prices continued to improve and the teams executed well across our steel platform, driving a sequential quarterly increase in consolidated operating income of $306 million, or 44%," said Mark D. Millett, Chairman and Chief Executive Officer.

The company’s steel operations generated operating income of $1.0 billion, 43% higher than the second quarter, driven by record shipments and metal spread expansion. Average external steel selling prices increased $102 sequentially to $1,400 per ton, while average ferrous scrap costs declined $8 per ton to $404 per ton.

Steel fabrication operations posted operating income of $91 million, up from $85 million in the second quarter, as shipments increased 18% and the order backlog extended into the second quarter of 2027.

The company’s aluminum operations reported operating losses of $26 million, a 21% improvement from the prior quarter, reaching EBITDA breakeven. Aluminum shipments totaled 55,000 metric tons in the quarter.

Steel Dynamics generated cash flow from operations of $846 million and repurchased $276 million of its common stock during the quarter, while maintaining liquidity of $2.4 billion.

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