The company’s net income showed a significant increase compared to $266 million in the fourth quarter of 2025 and $217 million in the same period last year. Operating income reached $538 million, while adjusted EBITDA stood at $700 million. Cash flow from operations amounted to $148 million, which was noted to be limited due to the company’s annual profit-sharing payments of $120 million to employees.
Steel Dynamics achieved record steel shipments of 3.6 million tons in the first quarter. The company also increased its cash dividend by 6%.
Operating income from steel operations rose by 73% quarter-on-quarter to $557 million, supported by record shipments and an expansion in metal spread. The average external product selling price increased by $86 per ton to $1,193, while the average cost of melted scrap rose by $22 per ton to $396. Demand was driven by the energy, non-residential construction, automotive, and industrial sectors. Flat steel prices recovered from the lows seen in the second half of 2025, while lead times remained strong.
In the metals recycling segment, operating income increased by 155% quarter-on-quarter to $47 million, driven by higher prices for both ferrous and non-ferrous metals. Shipments declined slightly due to winter conditions negatively affecting scrap flows.
Operating income from steel fabrication activities remained flat quarter-on-quarter at $90 million. Higher shipments were offset by increased raw material costs, which narrowed metal spreads. Customer orders have shown a notable increase since late 2025, with the order backlog rising by more than 38% year-on-year, extending into the third quarter of 2026 and into October. Demand was supported by commercial projects, data centers, manufacturing, warehousing, and healthcare sectors.
The company recorded an operating loss of $65 million in its aluminum operations in the U.S. and Mexico during the first quarter, due to construction and commissioning activities. This loss was $17 million higher compared to the previous quarter. Aluminum flat product shipments increased from 14,600 tons to 22,500 tons. Temporary shutdowns and inventory write-downs occurred due to commissioning issues in January; however, these issues have been resolved, and a notable improvement in shipments and profitability is expected in the second quarter.
Steel Dynamics invested $138 million in capital expenditures during the first quarter, paid $72 million in dividends, and repurchased $115 million worth of shares. As of March 31, 2026, total liquidity remained strong at $2.0 billion.
Mark D. Millett, Chairman and CEO of Steel Dynamics, stated that the strong performance was driven by record shipments and higher steel prices, adding that strengthening customer orders and an expanding backlog indicate improving steel demand.
Millett also emphasized that trade measures in the U.S., reshoring of manufacturing, infrastructure spending, and regionalization of supply chains are supporting the steel market. He noted that long product demand remains strong, particularly in structural steel and rail segments, and expressed confidence in benefiting from this strong demand outlook in the coming periods.
On the aluminum side, Millett stated that the commissioning of the Columbus, Mississippi facility is ongoing, with product approvals secured in beverage can and industrial segments, while qualification processes for automotive products continue. He also noted that the commissioning of the recycled aluminum slab center in San Luis Potosí, Mexico is ongoing. The third cold mill and second CASH line are expected to come online in the third quarter of 2026.
The company maintains its outlook that steel and aluminum demand in the U.S. will remain strong in 2026 and beyond, while increasing demand for low-carbon and domestically produced materials is expected to provide a long-term competitive advantage.
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