Steel Dynamics Boosts Buybacks With $3.0B Program as Steel Gains Offset Aluminum Loss
Steel Dynamics authorized an additional $3.0 billion share repurchase program. The move follows strong third-quarter profits driven by record steel shipments, while its new aluminum unit progresses toward profitability.
Steel Dynamics, Inc. announced an additional $3.0 billion share repurchase program on Nov. 9, effective immediately. The new authorization comes on top of an earlier $1.5 billion program, which had $216 million remaining as of Sept. 30, 2026. The steelmaker also maintained a quarterly dividend of $0.53 per common share.
The major capital return plan builds on substantial stock gains over the past year. Shares of Steel Dynamics have advanced 57% over the past year, trailing peer Nucor Corporation's 81.6% rise but outpacing Cleveland-Cliffs Inc.'s 28.9% gain. Higher steel prices have created a favorable landscape across the domestic industry, with benchmark hot-rolled coil prices climbing above $1,400 per short ton amid price increases, tightening supply, and reduced import competition.
The buyback expansion follows a profitable third quarter for the electric-arc-furnace producer. Steel Dynamics delivered third-quarter net income of $756 million, or $5.26 per diluted share, on revenue of $6.5 billion. Operating income for the period topped $1 billion, and adjusted EBITDA reached approximately $1.2 billion. Operations generated $846 million in operating cash flow, helped by record steel shipments of 3.8 million tons and a 92% mill utilization rate that surpassed the broader domestic industry's estimated 80%.
Strong steel operations carried overall company results as its venture into aluminum flat-rolling worked through startup hurdles. The company logged a $26 million third-quarter operating loss in aluminum following a hot-strip-mill surface-quality problem. Management stated that the issue has been resolved and that utilization is improving, with finished automotive aluminum shipments projected before the end of the year.
Looking forward, management has reaffirmed its long-term ambition of delivering $650 million to $700 million in aluminum EBITDA, alongside $40 million to $50 million from recycling operations. Beyond capital returns and plant expansions, the company is preparing for an upcoming executive transition. Chief Financial Officer Theresa Wagler is scheduled to assume the chief executive role at year-end when retiring Chief Executive Officer Mark Millett steps down.