Steel Dynamics Projects Q1 Growth on Rising Steel Margins

SEATTLE (Scrap Monster): Steel Dynamics, Inc. has issued strong earnings guidance for the first quarter of 2026, forecasting diluted earnings per share between $2.73 and $2.77, a sharp increase from $1.82 in the previous quarter and $1.44 a year earlier.

The company expects its steel operations to deliver significantly improved profitability, supported by higher shipments and expanding metal margins as selling prices outpace scrap input costs. Demand remains robust across key sectors, including construction, energy, automotive, and industrial manufacturing.

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Metals recycling operations are also projected to post higher earnings, driven by improved margins for both ferrous and nonferrous materials. Although shipments were temporarily affected by winter disruptions earlier in the quarter, scrap flows have since stabilized.

Steel fabrication earnings are expected to remain steady, with stronger shipment volumes offsetting cost pressures. Order activity has surged, with backlog levels up more than 35% year-on-year and extending into the third quarter of 2026.

Meanwhile, the company continues ramping up its aluminum operations in Mississippi, while maintaining shareholder returns through stock buybacks and planning to resume normal repurchase activity in the second quarter.