Steel Dynamics, Inc. (STLD) posted a second consecutive sequential rise in operating income, up $162 million, or 30 percent, to $700 million in the three months ended June 30, 2026, after a $228 million, or 73 percent, sequential increase in the first quarter.

The industrial metals company said steel pricing continued to improve, demand remained solid, and customer inventories stayed below historical norms. Chairman and Chief Executive Officer Mark D. Millett said the steel platform’s sequential gain was driven by record shipments and metal spread expansion as steel prices rose more than ferrous scrap costs.

Net income attributable to Steel Dynamics was $534 million, or $3.69 a share, versus $403 million, or $2.78 a share, in the first quarter. Results included a $16 million non-cash impairment tied to relocating the planned second satellite aluminum recycled slab center from Arizona to Columbus, Mississippi. Net sales were $6.1 billion.

Steel operations generated $721 million of operating income. The average external selling price increased $105 sequentially to $1,298 a ton, after an $86 sequential increase in the first quarter. Average ferrous scrap cost rose $16 sequentially to $412 a ton. Total steel shipments reached a record 3.7 million tons, up from a record 3.6 million tons in the first quarter. Energy, non-residential construction, automotive, industrial, and agricultural sectors led demand.

Metals recycling operating income remained steady at $48 million, supported by higher volumes as pricing decreased. Scrap flows improved seasonally as domestic mills increased utilization.

Steel fabrication operating income was $85 million, in line with first-quarter results of $90 million, as higher shipments and steady pricing were offset by higher steel raw-material input costs. The fabrication order backlog was nearly 45 percent higher than a year ago and extended into the first quarter of 2027.

Aluminum operations posted a $33 million operating loss, a 48 percent improvement from the sequential first-quarter loss. Flat-rolled sheet shipments were 53,000 metric tons and hot-band production was 84,000 metric tons. The company expects volumes and profitability from aluminum to increase sharply in the second half of 2026 and for full-year 2027 as startup costs subside, utilization and yields improve, and scrap content increases.

Cash flow from operations was $428 million. Working capital excluding income taxes increased $225 million as product pricing and demand improved and aluminum continued to ramp. The company repurchased $200 million of common stock, paid $77 million in cash dividends, and invested $124 million in capital projects, maintaining liquidity of $2.0 billion as of June 30, 2026.

Millett said the third cold mill at Columbus began commissioning in July, which will allow full 650,000-metric-ton capacity, and the company recently received qualifications to supply automotive products, with expectations for automotive sales to commence before the end of 2026. Two of three cold mills are operational; the third is expected to transition to commercial operations in August. The first of two CASH lines is operating and shipping material for customer qualification; the second is expected to begin material qualifications in the fourth quarter of 2026.

The company remains confident that market conditions are in place to support strong domestic steel and aluminum consumption through the remainder of 2026 and into 2027, citing improved customer sentiment, order entry, and pricing.