Steel Dynamics' Q3 EPS misses estimates as aluminum volumes decelerate

By Reuters News


Overview

  • US industrial metals producer's Q3 revenue beat analyst expectations, adjusted EPS missed

  • Company repurchased $276 mln of its common stock in Q3

  • Aluminum volumes are lower than expected for several weeks as yield losses rise at higher operating speeds, which the company traces to hot strip mill rolling coolant


Outlook

  • Company expects aluminum volumes and profitability to improve in Q4 2026 and through 2027

  • Company reports steel fabrication order backlog 50% higher year-over-year, extending into Q2 2027

  • Steel Dynamics expects demand for steel and aluminum to benefit from infrastructure and manufacturing investment


Result Drivers

  • STEEL SHIPMENTS AND PRICING - Co said record steel shipments and higher selling prices, along with lower scrap costs, drove operating income growth

  • TIGHTER MARKET CONDITIONS - Co said extended lead times and lower imports tightened spot availability, supporting higher steel prices

  • FABRICATION DEMAND - Co said improved demand for steel fabrication led to higher shipments and earnings


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$6.51 bln

$6.43 bln (9 Analysts)

Q3 EPS

Miss

$5.26

$5.41 (10 Analysts)

Q3 Net Income

$755.69 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the iron & steel peer group is "buy"

  • Wall Street's median 12-month price target for Steel Dynamics Inc is $270.00, about 12.2% above its October 16 closing price of $240.54

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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