Steel Dynamics's 10-Q: revenue up 26.0% over twelve months

Steel Dynamics filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $22.22 billion, which rose 26.0% on the year before. That growth rate was up 6.2 percentage points on the rate a quarter earlier.

What stands out

Reported profit and cash are moving at different speeds. Net income rose 73.9% over the year while free cash flow rose 252.0%.

The trailing operating margin was 11.5%, up 3.5 percentage points from a year earlier. The trailing gross margin was 15.9%. The trailing net margin was 8.8%. Net income over the twelve months was $1.96 billion, which rose 73.9% on the year before.

Cash flow

Cash generation outpaced capital spending. Operating cash flow over the twelve months was $1.69 billion, up 11.2% on the year before. Capital spending was $599.9 million, or 2.7% of revenue. Free cash flow, operating cash flow less capital spending, was $1.09 billion, up 252.0% on the year before. Free cash flow was 4.9% of revenue (the free-cash-flow margin), up 3.2 percentage points from a year earlier. The average diluted share count fell 3.4% over the year.

In context

Today’s free-cash-flow margin of 4.9% is higher than 50% of the company’s own past quarterly readings, which have ranged from −2.4% to 16.0%. Today’s operating margin of 11.5% is higher than 71% of the company’s own past quarterly readings, which have ranged from −1.0% to 26.4%. Today’s twelve-month revenue growth rate of 26.0% is higher than 84% of the company’s own past quarterly readings, which have ranged from −18.8% to 93.3%.

What it means for value

Our model shows high sensitivity to growth assumptions. In our model, growth 5 percentage points lower would lower the value by 25.3%, and 5 percentage points higher would raise it by 32.3%. A free-cash-flow margin 1 percentage point lower would lower it by 19.6%.

What to watch

The next filing will show whether the recent acceleration in revenue growth continues. It will also reveal if the expansion in operating and free-cash-flow margins persists. Investors will see if the reduction in the average diluted share count remains consistent.