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Steel Dynamics, Inc.
NASDAQ: STLD Materials Metals 🔎 Screen
S&P 500
🏹 Trader: 📊 High Volume | BRS 61 Forming View all →
$33.8B
Market Cap
21.2
P/E
1.01
PEG
9.9%
ROCE
13.3%
ROE
0.47
D/E
8.1%
OPM
-18.7%
% from 52W High
78
α RS
🔍 STLD is showing a sector-leadership setup because Sector RRG has Materials in the Leading quadrant with the trail still strengthening, it matches 2 of 37 tracked screener presets, and RS Rating is 78. Net: Broad signal stack, not a recommendation. ? RRG Conviction RS Rating
Sources
Materials in Leading quadrant · Conviction 2/37 · RS Rating 78
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About

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.1B
Not disclosed (prior-year revenue not provided)
Operating Income
$700M
Not disclosed YoY; +30% sequentially
Operating Margin
11.5%
Not disclosed YoY
Net Income
$534M
+79% YoY
What Went Right
  • Record steel shipments of 3.7 million tons and adjusted EBITDA of $921 million
  • Aluminum flat-rolled sheet shipments jumped to 53,000 metric tons from 22,500 in Q1 2026
  • Steel fabrication backlog is up about 45% year-over-year with improved pricing discussions
What to Watch
  • A fatal incident at New Process Steel was acknowledged; management reinforced its zero-incident goal
  • Aluminum startup still generated a $33M operating loss plus a $16M impairment on the relocated slab center
  • Working capital absorbed $225M in Q2 on higher prices, and imports from Asia remain a near-term flat-rolled risk
Management Guidance
  • Second-half 2026 capital investments expected to be $300M to $350M
  • Aluminum mill expected to exit 2026 at at least 90% of monthly capacity, with full 650,000-metric-ton capability in 2027
  • Aluminum operations expected to be earnings positive in the second half of 2026
  • 2027 capex likely in the $500M-$600M range at maximum; sustaining capex is around $250M-$300M
  • No explicit total company revenue or operating income guidance was provided
Investor Lens
The thesis is stronger after this call. Steel pricing momentum, a 45% higher fabrication backlog, record shipments, and an accelerating aluminum ramp all support improved through-cycle cash generation. Management reiterated the aluminum platform's $650M-$700M EBITDA potential and expects it to turn earnings positive in H2 2026. The main vulnerabilities are import pressure and the complexity of completing the aluminum startup, but near-term execution remains constructive.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: record 3.7M-ton steel shipments and $921M EBITDA.
Revenue
Q2 2026 net sales were $6.1B; prior-year revenue was not disclosed in the call. Steel segment operating income led at $721M, up 30% sequentially, while metals recycling delivered $48M and steel fabrication $85M.
Profitability
Net income was $534M, or $3.69 per diluted share, versus $299M, or $2.01, in the prior-year quarter — up roughly 79% YoY. Adjusted EBITDA was $921M. Results included a $16M non-cash impairment charge related to relocating the planned second aluminum recycled slab center.
Margins
Operating income was $700M, implying an 11.5% operating margin; adjusted EBITDA margin was approximately 15.1%. Steel pricing rose $105 per ton sequentially while scrap costs increased only $16 per ton, driving strong margin expansion.
Balance Sheet
Q2 cash flow from operations was $428M, with working capital consuming $225M due to higher product prices. Period-end liquidity was $2.0B, comprising $800M of cash and investments plus a fully available $1.2B revolver. Q2 capex was $124M, and $350M of stock was repurchased in H1 with $489M remaining under authorization.
Key Risks
Management highlighted a fatal incident and the need for a continued zero-incident safety culture. Aluminum ramp-up remains a cost and execution risk as the third cold mill and second CASH line start up, and there is potential for fabrication margins to compress given 10-12 weeks of steel inventory in a rising price environment. Rising steel imports from certain Asian countries were also flagged as a potential near-term disruptor.
Outlook
Management expects steel demand and pricing momentum to continue, with strong fabrication volumes and improved backlog pricing supporting H2 2026 and 2027. Aluminum shipments and profitability should improve sharply in H2 2026, exiting the year at at least 90% of monthly capacity and turning earnings positive.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-21
Record Q2 results featured $534M net income, $921M adjusted EBITDA, and record steel shipments. Aluminum ramp-up is accelerating, with profitability and utilization expected to rise sharply in H2 2026. Strong demand, robust backlogs, and disciplined capital allocation support a positive outlook.
Q1 2026 Q1 2026 2026-04-21
Q1 2026 saw record steel shipments, strong financial results, and rapid progress in aluminum operations despite early startup challenges. Steel and recycling segments outperformed, while aluminum is expected to be EBITDA positive for the rest of the year.
Q4 2025 Q4 2025 2026-01-26
Record steel shipments and strong cash flow marked 2025, with aluminum operations ramping up ahead of schedule and positive EBITDA achieved. Capital allocation remains disciplined, with robust liquidity, ongoing share repurchases, and a focus on high-return growth.
Q3 2025 Q3 2025 2025-10-21
Record Q3 results featured $4.8B revenue, $664M adjusted EBITDA, and strong cash flow. Aluminum and biocarbon initiatives advanced, with aluminum operations targeting EBITDA break-even in Q4. Steel and recycling segments posted higher sequential earnings, and trade actions plus lean inventories support a positive 2026 outlook.
Q2 2025 Q2 2025 2025-07-22
Second quarter net income was $299 million and adjusted EBITDA reached $533 million, with strong sequential improvement in steel operations and the first commercial aluminum shipments. Sinton mill overcame supply issues and is set for further gains, while biocarbon and sustainability initiatives advance.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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No Investment Recommendation:
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Information Sources:
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