Steel Dynamics (NASDAQ:STLD) provided a bullish outlook for the first quarter of 2026, signaling a significant acceleration in profitability compared to both the previous quarter and the prior year.
The Fort Wayne, Indiana-based company expects first-quarter earnings to fall within the range of $2.73 to $2.77 per diluted share.
This guidance represents a substantial jump from the $1.82 per share reported in the fourth quarter of 2025 and nearly doubles the $1.44 per share earned in the first quarter of 2025.
The anticipated earnings surge is driven by expanding metal spreads across the company’s steel and recycling operations.
Management noted that realized steel prices have outpaced the cost of raw materials, particularly scrap metal, leading to healthier margins.
Additionally, the company is seeing increased contributions from its nascent aluminum business.
The ramp-up of its new aluminum flat-rolled mill is supporting higher shipment volumes, even as the company navigates the higher working capital requirements typically associated with scaling a new industrial line.
Despite the strong operational performance, Steel Dynamics reported a temporary slowdown in its share repurchase activity during the first quarter.
The company repurchased approximately $66 million of its common stock, a more conservative figure than in recent periods.
This deceleration was attributed to a $126 million cash outlay for company-wide profit-sharing payments and elevated working capital needs.