Steel Dynamics Inc.

Strong Q2 “core” steel performance; tailwind from pricing lag + value-added spreads - Record steel shipments: 3.7 million tons. - Adjusted EBITDA: $921M; net income: $534M ($3.69/share); revenues: $6.1B. - Steel operating income: $721M, +30% sequential, driven by higher realized steel pricing and improved value-added spreads to hot band (+$70/ton vs late 4Q’25 lows). - Management emphasized that ~80%+ of flat-rolled pricing is contract-linked with ~2-month lag, so recent price increases and improved spreads should help Q3 results. - No major negative takeaway in steel—utilization and spreads appear supportive.

Steel fabrication: demand strength + improving order/pricing, but realized pricing timing still matters - Fabrication operating income: $85M (roughly in line with Q1; offsetting effects: higher volume/steady pricing vs higher steel input costs). - Order activity strong: steel fabrication backlog +45% YoY. - Pricing: management cautioned that backlog pricing improvements won’t fully show up immediately—some projects are in later 2026 / 2027, so Q3 realized pricing may not jump as much as backlog pricing. - Expect pricing improvement over the next ~6–9 months, with volume supporting margins.

Metals recycling: steady earnings; scrap flows strong, ferrous spreads lower - Metals recycling operating income: $48M (in line sequentially). - Benefit from increased scrap availability/shipments (seasonally strong). - Challenge/offset: lower ferrous metal spreads. - Guidance tone: scrap pricing expected to stay relatively steady in coming months; also leaning into better scrap separation tech to increase recycled content and mitigate supply issues.