We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
STLD Q3 Earnings Miss Estimates Despite Strong Steel Pricing
Read MoreHide Full Article
Key Takeaways
STLD's Q3 earnings jumped 92% to $5.26 per share, while revenues surged 34.8% to $6.51 billion.
STLD's record steel shipments of 3.78 million tons and higher realized prices fueled strong quarterly sales.
Steel Dynamics expects infrastructure, reshoring and data-center investments to support demand through 2027.
Steel Dynamics, Inc. (STLD - Free Report) 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
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.
Image Source: Zacks Investment Research
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 - Free Report) , Freeport-McMoRan Inc. (FCX - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
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.
View the Zacks #1 Rank List
Image: Bigstock
STLD Q3 Earnings Miss Estimates Despite Strong Steel Pricing
Key Takeaways
Steel Dynamics, Inc. (STLD - Free Report) 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 - Free Report) , Freeport-McMoRan Inc. (FCX - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
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.