Steel Dynamics reported strong Q2 FY2026 results with record steel shipments and improved pricing. Management is bullish on H2 2026 driven by steel price pass-through, a 45% surge in fabrication backlog, and rapid ramp of the new aluminum mill. Key alpha signals include a casthouse relocation, improving value-added spreads, and pig iron import policy changes. Record quarterly steel shipments of 3.7 million tons and adjusted EBITDA of $921 million.
Steel Dynamics reported strong Q2 FY2026 results with record steel shipments and improved pricing. Management is bullish on H2 2026 driven by steel price pass-through, a 45% surge in fabrication backlog, and rapid ramp of the new aluminum mill. Key alpha signals include a casthouse relocation, improving value-added spreads, and pig iron import policy changes. Record quarterly steel shipments of 3.7 million tons and adjusted EBITDA of $921 million.
Management expressed confidence driven by record steel shipments, strong demand across markets, and progress in aluminum ramp, despite a fatal accident and trade policy concerns.
Record quarterly steel shipments of 3.7 million tons. Management expressed confidence driven by record steel shipments, strong demand across markets, and progress in aluminum ramp, despite a fatal accident and trade policy concerns.
Guidance tone
Guidance tone
Record quarterly steel shipments of 3.7 million tons. Management expressed confidence driven by record steel shipments, strong demand across markets, and progress in aluminum ramp, despite a fatal accident and trade policy concerns.
Management provided second half 2026 capex guidance of $300-350 million, and indicated 2027 capex likely $500-600 million, with capital funding substantially complete for recent growth projects and focus shifting to operational optimization.
Management expressed confidence driven by record steel shipments, strong demand across markets, and progress in aluminum ramp, despite a fatal accident and trade policy concerns.
“We took the $16 million right down for the Benson costs. And the CapEx at Columbus is going to rise, I think, in the order of $10 to $20 million.”
“Value-added spreads to hot band have also improved $70 per ton from the lows experienced in the fourth quarter of 2025. approximately 80% or more of our flat-rolled steel business is linked to lagging price contracts.”
“The Section 301 recommendations now exclude pig iron shipments from Brazil into the United States... It does help in relation to the pricing of scrap, particularly the prime quality scraps.”
The Section 301 investigation against Brazil for pig iron imports has been resolved to allow imports, potentially easing prime scrap demand and influencing spreads for domestic mini-mills.