Steel Dynamics Inc.

Q3 performance was strong (but slightly short of guidance) - Net income $756M / $5.26 diluted EPS; adjusted EBITDA $1.2B; revenues $6.5B. - Record steel shipments: 3.8M tons and steel operating income ~ $1.0B, up 43% sequentially, helped by + $102/ton realized pricing. - Cash flow from operations: $846M; liquidity $2.4B. - *Negative/why short guidance:* missed earlier guidance range due to late Sept FX + aluminum hedging mark-to-market (unrealized adjustment just under $30M).

Steel outlook: demand strong, margins likely supported into Q4/2027 - Steel utilization: domestic industry ~80%, SDI mills ~92%; management credits value-added mix and supply-chain solutions supporting utilization through cycles. - Flat-rolled environment favorable: lean inventories, elevated lead times, value-add spreads > $230/ton (hot-rolled coil vs value-added products). - Expectation: with much of portfolio ~80% contract-linked pricing lagging ~2 months, the improved pricing/spreads should benefit Q4 and 2027. - *Market structure drivers (opportunity):* tight supply conditions (extended mill lead times), low inventories, restrained imports, and planned Q4 outages reducing tons available.

Aluminum ramp: key challenge in Q3 hot-strip mill, now resolved; improved volumes/profitability expected - Aluminum segment operating losses $26M, 21% better sequentially, but shipments/performance below expectations due to a surface quality issue during ramp. - Root cause/action: needed a coolant change in the hot-strip mill; troubleshooting + coolant change led to several weeks of lower production and yields. - *Resolution/progress:* issue “fully resolved”; October operations improved, hot strip running ~75% so far, with goal to reach ~90% by year-end. - *Forecast:* aluminum volumes/cost structure/profitability should sharply improve in Q4 and continue improving through 2027 as ramp costs subside and yields/scrap content rise.