en.Wedoany.com Reported - Steel Dynamics reported its second quarter 2026 results, achieving a record 3.7 million tons of steel shipments, with net sales of $6.1 billion, operating profit of $700 million, net income of $534 million, diluted earnings per share of $3.69, and adjusted EBITDA of $921 million. Quarterly earnings per share increased from $2.78 in the first quarter and $2.01 in the same period last year, including a $16 million non-cash asset impairment charge related to relocating the planned second satellite aluminum flat-rolled ingot center from Arizona to Columbus, Mississippi.
Chairman and CEO Mark D. Millett stated that steel prices continued to improve in the second quarter, with the overall steel platform performing strongly, resulting in a sequential increase of $162 million, or 30%, in consolidated operating profit. The metals recycling, steel structure, and aluminum business teams also performed well. The company's 13% three-year after-tax return on invested capital demonstrates its consistent execution of high-return capital allocation. In the second quarter, the company generated $428 million in cash from operations, with working capital (excluding income taxes) increasing by $225 million, capital investments of $124 million, cash dividends paid of $77 million, and $200 million in repurchases of outstanding common stock.
The company's steel operations posted an operating profit of $721 million in the second quarter, up 30% sequentially, driven by higher shipments and expanded metal spreads as steel price increases outpaced scrap cost increases. Average external product selling prices for steel operations rose $105 per ton sequentially to $1,298 per ton, while average melting scrap costs increased $16 per ton sequentially to $412 per ton. Energy, non-residential construction, automotive, industrial, and agricultural sectors led steel demand in the quarter.
Metals recycling operations reported stable operating profit of $48 million in the second quarter, supported by higher shipments but offset by lower prices. Steel fabrication operations posted operating profit of $85 million in the second quarter, essentially flat compared to $90 million in the first quarter, as higher shipments and stable prices were offset by higher steel raw material input costs. Order backlog was nearly 45% higher than a year ago and extends into the first quarter of 2027, with improved demand in key end markets including commercial construction, data centers, manufacturing, warehousing, and healthcare.
Aluminum operations reported an operating loss of $33 million in the second quarter, a sequential improvement of 48% from the first quarter. This includes an additional non-cash impairment charge of $16 million related to the relocation of the satellite aluminum flat-rolled ingot center. Aluminum flat-rolled product shipments increased to 53,000 metric tons, and hot-rolled coil production increased to 84,000 metric tons. The aluminum flat-rolled mill in Columbus, Mississippi, is progressing well through commissioning and startup, delivering high-quality products to industrial, beverage, and automotive markets, and has obtained supply certification for automotive applications, with automotive sales expected to begin by the end of 2026. The third and final cold rolling mill was completed and began commissioning in July 2026, enabling full capacity of 650,000 metric tons.
For the first half of 2026, the company reported net income of $938 million, diluted earnings per share of $6.47, and net sales of $11.3 billion, compared to net income of $516 million, diluted earnings per share of $3.44, and net sales of $8.9 billion in the same period of 2025. Operating profit for the first half increased 88% year-over-year to $1.2 billion. Cash from operations in the first half was $576 million, capital investments were $262 million, cash dividends paid were $149 million, and $315 million in repurchases of outstanding common stock, with the company maintaining $2 billion in liquidity as of June 30, 2026.
In his outlook, Millett stated that market conditions will support strong domestic steel and aluminum consumption through the remainder of 2026 and into 2027, with continued improvement in customer sentiment, order activity, and pricing. The aluminum team is advancing commissioning of the aluminum flat-rolled mill and the satellite aluminum flat-rolled ingot center in San Luis Potosí, Mexico. The company believes it can create attractive long-term value through expansion into the high-recycled-content aluminum sheet products sector.
