Steel Dynamics stock falls on weaker third quarter guidance

Steel Dynamics Inc (NASDAQ:STLD) shares experienced a 3.4% decline in after-hours trading on Thursday, following the company's announcement of third quarter 2026 earnings guidance that fell short of Wall Street's expectations. Analysts had anticipated earnings of $5.60 per diluted share, but Steel Dynamics projected a narrower range of $5.34 to $5.38 per share.

This guidance marked an upward revision from the previous second quarter's $3.69 per diluted share earnings and the third quarter of the prior year's $2.74 per diluted share earnings.

Despite the lower guidance, Steel Dynamics expressed optimism about its steel operations. The company projected higher profitability from these operations compared to the second quarter, citing metal margin expansion and record shipments as key factors. The expected average realized steel selling values were anticipated to rise, accompanied by lower scrap costs.

Conversely, the metals recycling operations were expected to generate lower earnings than the second quarter due to reduced metal spreads and modestly decreased shipments. However, Steel Dynamics' fabrication operations were projected to show modest improvement, fueled by stronger shipments that outweighed metal spread compression.

The company's current backlog of orders was nearly 50% higher than the same period in the previous year, extending through the first quarter of 2027. Additionally, Steel Dynamics' aluminum operations were projected to improve significantly compared to the second quarter, driven by heightened shipments. The company's Columbus, Mississippi aluminum flat rolled products mill was undergoing commissioning, with all three cold mills now operational and in full operation.

During the third quarter of 2026, Steel Dynamics repurchased $261 million of its common stock, representing just under 1% of its total shares. The company intends to disclose its full third quarter earnings after the market closes on October 19, 2026. This report was produced with the assistance of artificial intelligence and subsequently reviewed by an editor for content accuracy.