STLD earnings analysis
What we found in STLD's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Steel Dynamics delivered a strong Q2: $6.092 billion of revenue, $700.5 million of operating income, and $3.69 diluted EPS, with revenue up 17% sequentially and 33% YoY. Steel and recycling spread expansion drove the improvement, while fabrication margins weakened and aluminum remained in startup-loss mode at a $49.9 million operating loss. First-half operating cash flow of $576.3 million exceeded $261.8 million of capex, and $2.006 billion of liquidity supports ongoing commissioning, capital spending, dividends, and repurchases.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS accelerated sharply
- Q2 revenue was $6.092 billion, up 17% sequentially from $5.2 billion in Q1 2026 and 33% from $4.565 billion in Q2 2025. Diluted EPS of $3.69 rose 33% from $2.78 sequentially and 84% from $2.01 a year earlier.
- Operating margin expanded
- Operating income reached $700.5 million, up 30% sequentially from approximately $538.0 million in Q1 and 83% YoY from $382.9 million. Operating margin expanded to 11.5% from 10.3% in Q1 and 8.4% in Q2 2025.
- Steel spreads and volumes drove profits
- Steel operating income rose 89% YoY to $719.8 million as average selling prices increased $162 per ton, or 14%, while shipments increased 7%. Record total steel shipments were 3.7 million tons and steel metal spread expanded 22%.
- Recycling profitability more than doubled
- Metals recycling operating income increased 125% YoY to $47.8 million, supported by a 20% ferrous spread increase and a 52% nonferrous spread increase. Segment sales rose 9% to $1.265 billion.
- Cash conversion improved as capex declined
- First-half operating cash flow increased to $576.3 million from $454.2 million, while capital investment fell to $261.8 million from $593.8 million. This implies $314.5 million of first-half cash flow after capex, versus negative $139.6 million a year earlier.
- Liquidity remains substantial
- Liquidity totaled $2.006 billion at June 30, including $567.7 million of cash, $252.6 million of investments, and $1.186 billion of revolver availability. Total debt was unchanged from year-end at $4.2 billion, while debt-to-capitalization improved to 31% from 32%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Aluminum startup losses and impairment persist
- Aluminum remained loss-making, with a $49.9 million Q2 operating loss versus a $40.6 million loss in Q2 2025. Results included a $16 million non-cash impairment for relocation of the planned second satellite slab center, despite 53,000 metric tons of finished-product shipments.
- Fabrication margin compressed
- Fabrication operating income declined 9% to $84.6 million despite a 16% sales increase to $393.9 million. Average steel input cost per ton increased 8%, driving an 11% contraction in metal spread.
- Working-capital investment increased
- Working capital increased $631.8 million, or 14%, to $5.0 billion in the first half, including a $760.3 million accounts-receivable increase and a $217.1 million inventory increase. This working-capital build can reduce near-term cash conversion if steel pricing or volumes reverse.
- Interest burden increased
- Net interest expense increased 125% YoY to $39.1 million in Q2, as capitalized interest fell $18.8 million, or 68%, after aluminum-mill construction was substantially completed. Total outstanding debt was $4.2 billion at June 30.
- No material risk-factor updates
- Item 1A states that no material changes occurred to the risk factors disclosed in the 2025 Form 10-K. The filing nevertheless identifies commodity-price volatility, global steel overcapacity/imports, energy costs, and new-facility ramp-up as forward-looking risks.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.69
- Operating margin
- 11.5%
- Segment
- Steel Operations: revenue $4.138 billion, +22% YoY; operating income $719.8 million, +89% YoY.
- Segment
- Metals Recycling: revenue $1.265 billion, +9% YoY; operating income $47.8 million, +125% YoY.
- Segment
- Steel Fabrication: revenue $393.9 million, +16% YoY; operating income $84.6 million, -9% YoY.
- Segment
- Aluminum Operations: revenue $518.9 million, +455% YoY; operating loss $49.9 million versus a $40.6 million loss.
- Segment
- Other: revenue $540.9 million, +50% YoY; operating loss $97.5 million versus a $65.7 million loss.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS guidance. Management expects aluminum shipments and earnings to increase in the second half of 2026; fabrication backlog is nearly 45% above a year ago and extends into Q1 2027. Management also anticipates remaining in compliance with its credit-facility covenants during the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · April 27, 2026
- Steel Dynamics reported strong Q1 2026 operating and sales performance with net sales of $5,204,858 (in thousands), up 19% year-over-year, driven by record steel shipments of 3.6 million tons and higher selling prices.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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