Steel Dynamics' Q3 EPS misses estimates as aluminum volumes decelerate

Steel Dynamics

Mon 21:39

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: ID:nPn9JW4N6a

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.)