Aluminium losses narrow 48% as Steel Dynamics Q2 revenue jumps 33%

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Steel Dynamics posted stronger second-quarter results for 2026, supported by higher steel prices, record shipment volumes and continued progress at its new aluminium flat-rolled business.

The company reported revenue of USD 6.1 billion, up 33 per cent from the second quarter of 2025 and 17 per cent higher than the previous quarter. Net income climbed 79 per cent year on year to USD 534 million, while adjusted EBITDA reached USD 921 million.

Diluted earnings per share came in at USD 3.69, slightly below analysts' expectations of USD 3.76, although revenue exceeded market forecasts by around 9.5 per cent.

Aluminium business moves closer to profitability

Steel Dynamics' aluminium division continued to gain momentum as production ramped up at its Columbus, Mississippi, flat-rolled mill.

Operating losses narrowed to USD 33 million during the quarter from USD 65 million in the first quarter, representing a 48 per cent improvement.

Aluminium shipments more than doubled to 53,000 metric tonnes, compared with 22,500 metric tonnes in the previous quarter, while production increased to 84,000 metric tonnes, equivalent to roughly 50 per cent of the mill's designed capacity.

The facility has an annual production capacity of 650,000 tonnes and is expected to produce 45 per cent can sheet, 35 per cent automotive sheet and 20 per cent common alloy products.

Steel Dynamics said it has now secured automotive product qualifications and expects commercial automotive shipments to begin before the end of 2026.

Management expects the aluminium business to become earnings positive during the second half of the year, with production expected to reach at least 90 per cent of capacity by year-end before achieving full operating capability in 2027.

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The company has invested approximately USD 2.5 billion in the aluminium rolling mill, alongside USD 400 million for two recycled aluminium slab centres. Once fully operational, the aluminium business is expected to contribute between USD 650 million and USD 700 million in annual EBITDA.

Record steel shipments support earnings

Steel operations remained the company's largest earnings contributor.

Operating income from the steel segment rose to USD 721 million, up 30 per cent from the previous quarter and 89 per cent higher than a year earlier.

Steel shipments reached a record 3.7 million tonnes, while the average external selling price increased to USD 1,298 per tonne, up 9 per cent sequentially and 14 per cent year on year.

The company operated its steel mills at 81 per cent utilisation during the quarter and maintained an annual steel shipping capacity of approximately 16 million tonnes.

Strong balance sheet supports growth

Steel Dynamics generated USD 428 million in operating cash flow during the quarter and repurchased USD 200 million of shares.

Over the past five years, the company has generated USD 13.2 billion in operating cash flow, returning USD 7.6 billion to shareholders through dividends and share buybacks while investing USD 6.6 billion in growth projects.

As of 30 June 2026, total liquidity stood at approximately USD 2 billion, including USD 820 million in cash and investments and USD 1.2 billion in available credit facilities.

Sustainability initiatives advance

Steel Dynamics highlighted progress on its decarbonisation strategy, noting that its electric arc furnace operations generated 0.81 tonnes of CO2 equivalent per tonne of hot-rolled steel in 2025-63 per cent below the global average.

The company has set science-based emissions reduction targets of 0.80 tonnes CO2e per tonne by 2030 and 0.12 tonnes by 2050.

It also achieved its 2025 renewable electricity target, with renewable sources accounting for 11 per cent of power consumption across its steel mills, exceeding the company's 10 per cent goal.

Outlook

Steel Dynamics expects business conditions to strengthen further during the second half of 2026.

Management said recent increases in steel prices are expected to support third-quarter earnings, while widening margins for value-added steel products and continued progress in aluminium production should further improve profitability.

The company also expects pricing improvements in its steel fabrication business to flow through its order book over the next six to nine months, with many projects scheduled for late 2026 and into 2027.

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