Steel Dynamics Projects 50% EPS Growth on Pricing Power

Steel Dynamics Projects Q1 EPS to Rise 50% to $2.75

On March 17, Steel Dynamics announced first-quarter 2026 earnings guidance of $2.73 to $2.77 per diluted share, a nearly 52% increase at the midpoint from the $1.82 earned in the fourth quarter of 2025. This performance also represents a significant acceleration from the $1.44 per share reported in the prior-year first quarter. The company attributes the robust profitability to meaningful metal margin expansion, where increases in average steel selling prices successfully outpaced rising scrap raw material costs.

The strong financial outlook is underpinned by healthy demand from the non-residential construction, energy, automotive, and industrial sectors. Reinforcing its financial position, the company repurchased an estimated $66 million of its common stock during the quarter. While the pace of buybacks was temporarily moderated to fund a $126 million profit-sharing payment and working capital for its new aluminum operations, management plans to resume a normalized repurchase cadence in the second quarter of 2026.

Fabrication Backlog Climbs 35% as Aluminum Diversification Gains Traction

The company's steel fabrication operations are expected to report earnings steady with the prior quarter, but forward-looking indicators point to significant momentum. The customer order backlog has grown over 35% compared to a year ago, with orders now extending well into the third quarter of 2026. This surge in activity is supported by demand from commercial construction projects, including data centers and warehouses, along with manufacturing and healthcare facilities.

Steel Dynamics is also making critical progress on its strategic diversification into aluminum. The new flat-rolled aluminum mill in Columbus, Mississippi, is successfully commissioning and has already achieved key milestones. The facility has produced finished products and received qualifications from customers in both the beverage can and automotive sectors. This expansion allows the company to enter new markets and supply products with higher recycled content, further strengthening its circular manufacturing model.