Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Steel Dynamics (STLD) delivered a strong Q1 2026 with revenue surging 19.1% YoY to $5.20B and net income nearly doubling to $403M, driven by significantly improved margins across the business.
Revenue
$5.2B
+19.13% YoY
EPS (Diluted)
$2.78
+93.06% YoY
Gross Margin
14.7%
+3.5 pts YoY
Operating Income
$538M
+95.54% YoY
Source: SEC XBRL
Steel Dynamics (STLD) reported Q1 FY2026 revenue of $5.2B, up 19.1% year over year. Operating margin was 10.3%, up 4.0 points from 6.3% a year earlier. Operating cash flow was $148.32M, down 2.8% year over year. STLD's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.81 | 3.71 | Beat +2.7% |
| Mar 2026This filing | 2.78 | 2.84 | Miss -2.1% |
| Dec 2025 | 1.82 | 1.72 | Beat +5.5% |
| Sep 2025 | 2.74 | 2.69 | Beat +1.8% |
Reported EPS of $2.78 versus the $2.84 analyst consensus — a -2.1% miss for Mar 2026.
Compiled by AI from this SEC filing
Revenue increased 19.1% YoY to $5.20B in Q1 2026 from $4.37B in Q1 2025, reflecting stronger steel demand and improved pricing dynamics across STLD's diversified operations.
Source: 10-Q Income Statement (XBRL Data)
Gross margin expanded approximately 353 basis points YoY to 14.66% from 11.14%, while operating margin nearly doubled to 10.34% from 6.30%, indicating significant operating leverage and cost discipline.
Source: 10-Q Income Statement & Key Ratios (XBRL Data)
SG&A expenses declined 3.6% YoY to $175.2M from $181.8M, demonstrating management's focus on cost control even as revenue grew substantially, contributing to the strong operating income expansion.
Source: 10-Q Income Statement (XBRL Data)
Operating income surged 95.5% YoY to $538.0M from $275.1M, and net income rose 85.8% to $403.4M, reflecting the combined benefit of higher revenues and improved cost structure.
Source: 10-Q Income Statement (XBRL Data)
STLD repurchased $115.1M in shares during Q1 2026, down from $250.1M in Q1 2025, while long-term debt remained flat at $4.20B, suggesting a more measured capital return pace while maintaining a stable leverage profile.
Source: 10-Q Cash Flow Statement & Balance Sheet (XBRL Data)
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Cash and equivalents fell 53.1% YoY to $556.5M from $1.19B, a sharp reduction that could limit financial flexibility for opportunistic investments or to weather a demand downturn. The financing cash outflow of -$222.8M compared to an inflow of $623.3M in the prior year period highlights a meaningful shift in capital activity.
Source: 10-Q Balance Sheet & Cash Flow Statement (XBRL Data)
STLD's revenue and margins are highly sensitive to steel price fluctuations. The 19.1% revenue jump and near-doubling of operating income in Q1 2026 reflect favorable pricing conditions that may not persist, and a reversal could compress margins rapidly given the capital-intensive nature of steel production.
Source: 10-Q Income Statement (XBRL Data)
D&A expense increased 19.1% YoY to $159.3M, consistent with ongoing capital investment. While operating cash flow was relatively stable at $148.3M, the elevated D&A suggests significant ongoing capex requirements that could pressure free cash flow if earnings soften.
Source: 10-Q Cash Flow Statement (XBRL Data)
Despite strong net income growth, ROE stands at only 4.40% and ROA at 2.41% for the quarter, suggesting that on an annualized basis returns on capital remain moderate relative to the asset base of $16.72B, which may reflect the capital-intensive nature of the business and recent expansion investments.
Source: 10-Q Key Ratios & Balance Sheet (XBRL Data)
Long-term debt remains at $4.20B with a debt-to-equity ratio of 0.83x. While manageable given current earnings levels, any deterioration in steel market conditions could pressure interest coverage ratios and limit financial flexibility.
Source: 10-Q Balance Sheet & Key Ratios (XBRL Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.20 $B | 4.37 $B | +19.13% |
Cost of Revenue $B | 4.44 $B | 3.88 $B | +14.40% |
Gross Profit $M | 763.22 $M | 486.54 $M | +56.87% |
Operating Income $M | 538.00 $M | 275.14 $M | +95.54% |
Net Income $M | 403.44 $M | 217.15 $M | +85.79% |
EPS (Basic) $ | 2.79 $ | 1.45 $ | +92.41% |
EPS (Diluted) $ | 2.78 $ | 1.44 $ | +93.06% |
SG&A Expense $M | 175.22 $M | 181.81 $M | -3.62% |
Answers draw on this SEC filing and the data on this page
STLD delivered sharply higher Q2 FY2026 profitability as revenue rose 33.4% to $6.1B and operating income rose 83.0% to $700.5M, driven principally by stronger steel pricing, shipment growth, and wider steel and recycling metal spreads. Source: 10-Q Item 2 MD&A, pp.15-18.
Steel Dynamics (STLD) reported FY2025 revenue of $18.2B (+3.6% YoY), but profitability declined sharply with net income falling 22.9% to $1.19B as rising costs compressed gross margin by ~280 basis points to 13.2%.
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