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Steel Dynamics, one of the largest producers of low-carbon, recycled steel, continued to benefit from strong demand and surging steel prices during the second quarter. It also navigated losses from its aluminum operations.

The Fort Wayne, Indiana-based company reported record-high steel shipments of 3.7 million tons in the quarter, driven by steady demand from the energy, construction, automotive, industrial and agriculture sectors. Net sales increased 33% to $6.1 billion compared to last year.

Quarterly net income nearly doubled to $534.1 million over last year. This was bolstered by higher steel selling prices, which increased $105 per ton from the first quarter. At the same time, the aluminum segment saw a $33 million loss related to operational startup costs.

Steel Dynamics has seen its earnings surge after the Trump administration enacted a series of steel import tariffs as supplies remain tight, which has had an outsized impact on prices.

Both Steel Dynamics and Charlotte-based Nucor have issued guidance ahead of their first and second quarter earnings this year, signaling continued steel price hikes that have surpassed raw material costs. This activity has led to expanded margins and profitability for their steel segments.

They use electric arc furnace technology to convert scrap metals into recycled steel, differentiating them from Cleveland-Cliffs and U.S. Steel, which use smelters and coal-blasting techniques to produce primary steel.

"We continue to see an improved steel market environment, supported by domestic trade actions, manufacturing reshoring, infrastructure program funding, and the increasing regionalization of supply chains within the United States," Mark Millett, Steel Dynamics chairman and CEO, said in a statement.

Over the first six months of the year, steel selling prices have increased to $1,247 per ton, up $183 from the same period last year, according to Steel Dynamics' report.The input cost of ferrous scraps melted at the company's facilities has increased $7 per ton over the period to $404 per ton.

As margins expanded and demand remained steady, operating income from Steel Dynamics' steel segment doubled to $1.3 billion over the past six months compared to $612 million a year ago.

In the second quarter alone, the segment's operating income was $721 million, or 30% higher compared to the first quarter. The company's operating income for steel fabrication and metals was in line with the previous quarter. At the same time, the aluminum segment posted a $33.4 million loss — an improvement from a $64.6 million loss in the first quarter.

Steel Dynamics has poured money into ramping up its aluminum operations this year. Two of its three cold mills are now operational, and the third is currently being commissioned with plans to start commercial production in August, Millett said. Additionally, the first of two heat treatment process lines that make finished aluminum products for the automotive industry is operating and shipping material for customer qualification, he added.

The company also posted an additional noncash impairment charge of $16 million in the second quarter related to the relocation of a satellite aluminum recycled slab center that was planned for Arizona to Columbus, Mississippi.

"We remain confident that market conditions are in place to support strong domestic steel and aluminum consumption through the remainder of 2026 and into 2027," Millett said in a statement. "Customer sentiment, order entry activity, and pricing have continued to improve across our businesses."

Steel Dynamics has manufacturing facilities located across the U.S and Mexico, according to its website. The company did not release guidance for the rest of the year.

Competitor Nucor is scheduled to release its second quarter earnings Monday, July 27, after the markets close.

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