Company Announcements
March 17, 2026
SDI lifts Q1 earnings outlook on strong steel and recycling margins
Written by Laura Miller
Steel Dynamics Inc. (SDI) expects a sharp jump in first-quarter earnings, driven by stronger steel and recycling margins, steady fabrication results, and continued progress at its aluminum mill.
The Fort Wayne, Ind.-based metals company said it expects significantly improved first-quarter 2026 earnings of $2.73 to $2.77 per diluted share, up from $1.82/share in the fourth quarter and $1.44/share a year earlier.
SDI said its steel operations will post meaningfully higher profits. Shipments are up, and metal spreads widened as selling prices rose faster than scrap costs. The segment reported solid demand in non-residential construction, energy, automotive, and industrial markets.
Metals recycling earnings will also rise, SDI said. Ferrous and nonferrous margins expanded sharply on higher selling values. Shipments are lower due to winter-related scrap flow disruptions early in the quarter, but flows have since normalized.
Steel fabrication earnings will be steady sequentially. The company said higher shipments offset margin pressure from rising steel input costs. Order activity strengthened sharply; order backlog is 35% higher than a year ago and extends well into the third quarter. Demand is led by commercial construction, data centers, warehouses, manufacturing, and healthcare. SDI expects stronger fabrication volumes through 2026, supported by US infrastructure spending and onshoring.
SDI’s aluminum division continues commissioning at the Columbus, Miss., flat-rolled mill. The team produced qualified industrial and beverage can sheet and secured multiple customer approvals. Aluminum hot band for automotive applications has also been qualified. One of two automotive finishing lines is in commissioning, along with the second of three cold mills.
SDI will report full first-quarter results after market close on April 20, with a conference call the following morning at 11 a.m. ET.
