Company Announcements
June 18, 2026
Steel mills drive SDI’s earnings guidance upward
Written by Laura Miller
Steel Dynamics Inc. (SDI) expects to post higher sequential earnings in the second quarter, with “meaningfully higher” profitability from its steel operations.
In earnings guidance released on Wednesday, SDI said it anticipates Q2’26 earnings of $3.51 to $3.55 per diluted share. This compares to Q1’26 earnings of $2.78 per diluted share, or $403.4 million, and earnings of $2.01 per diluted share in Q2’25.
Strong demand and expanding margins are driving increased profitability in SDI’s steel operations.
“Order activity remains strong, supported by underlying demand and persistently low steel inventories, which continue to support favorable pricing conditions,” the company said.
It also highlighted that “demand across key end markets remains solid,” noting strong performance in the non-residential construction, energy, automotive, and industrial sectors.
Earnings from the company’s metals recycling operations should be similar to Q1. Unrealized hedging losses on the nonferrous side are expected to offset higher shipments of ferrous and nonferrous products.
Meanwhile, SDI’s steel fabrication operations are facing higher steel input costs, which will offset stronger shipments and steady pricing. As such, the segment will see a sequential decline in profitability.
Steel fabrication backlogs, extending through the end of the year and into 2027, are almost 40% higher year over year. SDI highlighted commercial construction, data center and warehouse buildouts, manufacturing, and healthcare end markets as supporting current demand.
The company’s Aluminum Dynamics operations will see significantly improved sequential earnings, driven by higher shipments and pricing.
SDI will release its full earnings report on July 20 after the market’s close.
