Steel Dynamics reported third-quarter 2026 net income of $756 million, up from $534 million in the second quarter and $404 million a year earlier. Earnings per diluted share rose to $5.26 from $3.69 sequentially and $2.74 in the prior-year quarter.
Net sales reached $6.5 billion, compared with $6.2 billion in the second quarter and $4.9 billion in the third quarter of 2025. Operating income climbed to $1.0 billion, a sequential increase of $306 million, or 44%, and well above the year-earlier level.
Steel shipments hit a record 3.8 million tons in the quarter. Within the steel segment, operating income rose to $1.0 billion, driven by higher realized pricing and lower scrap costs. The average external selling price for steel increased $102 sequentially to $1,400 per ton, while the average ferrous scrap cost declined $8 to $404 per ton.
The metals recycling segment posted operating income of $33 million, down $15 million from the second quarter as ferrous scrap pricing fell and metal spreads narrowed. Average realized ferrous scrap prices dropped $15 per gross ton sequentially.
Steel fabrication operating income increased to $91 million from $85 million in the prior quarter. Shipments rose 18% sequentially, and the order backlog was reported at 50% above year-ago levels.
The aluminum business continued to narrow losses, posting an operating loss of $26 million, a 21% improvement from the second quarter. Aluminum flat-rolled sheet shipments totaled 55,000 metric tons, and hot band production reached 91,000 metric tons. The company said its aluminum platform was EBITDA breakeven for the quarter.
Cash flow from operations totaled $846 million in the quarter. Steel Dynamics invested $150 million in capital expenditures, paid $76 million in dividends, and repurchased $276 million of stock. Liquidity stood at $2.4 billion at quarter-end.
For the first nine months of 2026, net income rose to $1.7 billion from $920 million a year earlier. Net sales increased 29% to $17.8 billion, and operating income nearly doubled to $2.2 billion from $1.1 billion.
Year-to-date steel operations operating income increased to $2.3 billion from $1.1 billion. The average external selling price for steel rose $216 to $1,299 per ton. Metals recycling operating income increased to $128 million from $79 million. Steel fabrication operating income fell to $265 million from $317 million.
Cash flow from operations for the first nine months was $1.4 billion. The company invested $411 million in capital expenditures, paid $225 million in dividends, and repurchased $591 million of stock. Today the company's shares have moved 1.93% to a price of $245.17. For more information, read the company's full 8-K submission here.
