Steel Dynamics, Inc. STLD reported third-quarter 2026 earnings of $5.26 per share, up 92% from $2.74 in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of $5.42.
Net sales rose 34.8% year over year to $6.51 million, beating the Zacks Consensus Estimate of $6.11 million. Higher realized steel prices and record steel shipments aided results.
Steel Dynamics, Inc. Price, Consensus and EPS Surprise
Steel Dynamics, Inc. price-consensus-eps-surprise-chart | Steel Dynamics, Inc. Quote
STLD's Operations
Net sales from steel operations were $4.35 million in the reported quarter, up around 23% year over year. The company recorded steel shipments of 3.78 million tons, up 4.7% year over year. Shipments surpassed the consensus estimate of 3.75 million tons.
STLD's average external steel selling price increased year over year to $1,400 per ton, beating the consensus estimate of $1,376.
Net sales from metals recycling operations increased 18% year over year to $614.8 million. Ferrous shipments increased 7% year over year to 1.7 million gross tons, surpassing the consensus estimate of 1.56 million gross tons.
Net sales from steel fabrication operations increased 23.5% year over year to $466.3 million. Fabrication shipments climbed 25.5% year over year to 190,151 tons, exceeding the consensus estimate of 179,000 tons.
STLD's Financials
Steel Dynamics ended the quarter with cash and cash equivalents of $928.6 million, while long-term debt stood at $4.18 billion. Liquidity totaled approximately $2.37 billion.
Cash flow from operations increased to $845.8 million from $722.6 million a year earlier. The company invested $149.6 million in capital expenditures, paid $76.1 million in dividends and repurchased $275.6 million of common stock during the quarter.
Steel Dynamics' Outlook
Steel Dynamics remains optimistic about domestic steel and aluminum consumption through 2027 and beyond. Management expects infrastructure spending, manufacturing reshoring, energy investments and data-center construction to support demand. Reduced steel imports and favorable trade policies are also expected to benefit domestic producers. The company anticipates improved aluminum volumes and profitability in the fourth quarter of 2026 and throughout 2027.
STLD’s Price Performance
Shares of Steel Dynamics have gained 59.4% over the past year compared with the 54.4% rise in its industry.
Steel Dynamics’ Zacks Rank & Other Key Picks
STLD currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, Freeport-McMoRan Inc. FCX and Avino Silver & Gold Mines Ltd. ASM.
CRS is slated to report first-quarter fiscal 2027 results on Oct. 22. The Zacks Consensus Estimate for earnings is pegged at $2.97 per share. CRS currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
FCX is slated to report third-quarter results on Oct. 27. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share. FCX currently carries a Zacks Rank #2.
ASM is expected to report third-quarter results on Nov. 4. The Zacks Consensus Estimate for earnings pegged at 7 cents per share. It currently carries a Zacks Rank #2.
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Steel Dynamics, Inc. (STLD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).