Steel Dynamics Shares Fall 5.8% Premarket as Q3 Earnings Miss Estimates

Steel Dynamics Inc (NASDAQ:STLD) shares declined 5.8% to $231 in premarket trading on Tuesday after the US steel producer reported third-quarter 2026 adjusted earnings below analyst expectations and its previously issued guidance range.

The Fort Wayne, Indiana-based company reported adjusted earnings of $5.26 per share, compared with analyst estimates of approximately $5.48. The result was also below Steel Dynamics’ September guidance range of $5.34 to $5.38 per share.

Third-quarter revenue reached $6.51 billion, exceeding the market consensus of approximately $6.43 billion. Net sales increased 35% year over year, while steel shipments reached a record 3.8 million tons.

Despite the increase in sales and shipment volumes, lower steel selling prices and narrower metal spreads affected profitability during the quarter.

The company’s aluminum operations recorded an operating loss of $26 million, representing an improvement from the previous quarter. However, aluminum shipments remained below internal targets as the business encountered yield and quality challenges during higher-speed production runs.

Chief Executive Officer Mark D. Millett said the aluminum business reached EBITDA breakeven during the quarter, although the segment continued to report an operating loss.

Steel Dynamics also reported a sequential decline in operating income from its metals recycling operations, reflecting lower ferrous scrap prices and narrower metal spreads.

Ahead of the earnings announcement, Barclays increased its price target for Steel Dynamics to $285 from $272 while maintaining an Overweight rating on the shares.

The company’s results were released against a mixed backdrop for US equities, with the S&P 500 trading broadly flat, the Dow Jones Industrial Average marginally higher and the Nasdaq slightly lower.

Elsewhere in the steel sector, Cleveland-Cliffs and Nucor had recorded share-price declines earlier in the week amid uncertainty surrounding US trade policy and the outlook for steel tariffs.

Following the earnings release, Steel Dynamics shares fell to $231 in premarket trading, compared with a 52-week high of $288.74.

The third-quarter results showed higher revenue and record steel shipments alongside adjusted earnings below both market expectations and company guidance. The aluminum division remained loss-making on an operating basis, while the metals recycling business reported lower sequential operating income.

Steel Dynamics stock price