STEEL DYNAMICS INC

Previous wording

This report contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations; (8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) our ability to retain, develop and attract key personnel; (14) litigation and legal compliance; (15) unexpected equipment downtime or shutdowns; (16) governmental agencies may refuse to grant or renew some of our licenses and permits; (17) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (18) the impacts of impairment charges.

Current wording

This report contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) the cyclical nature of the metals industries and the industries we serve; (4) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (5) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (6) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations; (7) compliance with and changes in environmental and remediation requirements; (8) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (9) availability of an adequate source of supply of scrap for our metals recycling operations; (10) cybersecurity threats and risks to the security of our sensitive data and information technology; (11) the implementation of our growth strategy; (12) our ability to retain, develop and attract key personnel; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) difficulties in the launch or production ramp-up of new products; (16) our aluminum operations depend on a core group of significant customers; (17) governmental agencies may refuse to grant or renew some of our licenses and permits; (18) our existing debt agreements contain, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (19) the impacts of impairment charges.

Previous wording

We are one of the largest domestic steel producers and metals recyclers in the United States, based on estimated steelmaking and steel coating capacity of approximately 16 million tons and actual metals recycling volumes, with one of the most diversified product and end market portfolios in the domestic steel industry, combined with meaningful downstream steel fabrication operations. We are currently continuing with commissioning and startup of our aluminum operations to further diversify our end markets with plans to supply aluminum flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. Our primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.

Current wording

We are a leading industrial metals solutions company, with facilities located throughout the United States and Mexico. We operate a circular manufacturing model, producing high-quality, lower-carbon-emission products with recycled scrap as the primary input. We have also recently added aluminum operations, further diversifying our product offerings to supply aluminum flat rolled products with higher recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. Our primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.

Previous wording

Net Sales. Net sales from our operations are a factor of volumes shipped, product mix, and related pricing. We charge premium prices for certain grades of steel, product dimensions, certain smaller volumes, and for value-added processing or coating of our steel products. Except for the steel fabrication operations, we recognize revenues from sales and the allowance for estimated returns and claims from these sales at the point in time control of the product transfers to the customer, upon shipment or delivery. Our steel fabrication operations recognize revenues over time based on completed fabricated tons to date as a percentage of total tons required for each contract.

Current wording

Net Sales. Net sales from our operations are a factor of volumes shipped, product mix, and related pricing. We charge premium prices for certain grades of steel and aluminum, product dimensions, certain smaller volumes, and for value-added processing or coating of our steel products. Except for the steel fabrication operations, we recognize revenues from sales and the allowance for estimated returns and claims from these sales at the point in time control of the product transfers to the customer, upon shipment or delivery. Our steel fabrication operations recognize revenues over time based on completed fabricated tons to date as a percentage of total tons required for each contract.

Previous wording

Other (Income) Expense, net. Other income consists of interest income earned on our temporary cash deposits, short-term and other investments, and any other non-operating income activity, including income from investments in unconsolidated affiliates accounted for under the equity method. Other expense consists of any non-operating costs, such as certain acquisition and financing expenses.

Current wording

Other Income, net. Other income consists of interest income earned on our temporary cash deposits, short-term and other investments, and any other non-operating income activity, including income from investments in unconsolidated affiliates accounted for under the equity method. Other expense consists of any non-operating costs, such as certain acquisition and financing expenses.

Previous wording

Consolidated operating income increased $112.3 million, or 28%, to $507.8 million for the third quarter of 2025, compared to the third quarter of 2024 as steel and metals recycling operations metal spreads expanded. Third quarter 2025 net income attributable to Steel Dynamics, Inc. increased $85.9 million, or 27%, to $403.7 million, compared to the third quarter of 2024, consistent with increased operating income.

Current wording

Consolidated operating income increased $262.9 million, or 96%, to $538.0 million for the first quarter of 2026, compared to the first quarter of 2025 as steel and metals recycling operations metal spreads expanded. First quarter 2026 net income attributable to Steel Dynamics, Inc. increased $186.3 million, or 86%, to $403.4 million, compared to the first quarter of 2025, consistent with increased operating income.

Previous wording

Steel operations include our EAF steel mills, including Butler Flat Roll Division, Columbus Flat Roll Division, Southwest-Sinton Flat Roll Division, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, and Steel of West Virginia; steel coating and processing operations at The Techs, Heartland Flat Roll Division, United Steel Supply, and Vulcan Threaded Products, Inc.; warehouse operations in Mexico; and a 75% controlling equity interest in SDI Biocarbon Solutions, LLC. Steel operations accounted for 73% and 67% of our consolidated net sales during the three-month periods ending September 30, 2025, and 2024, respectively, and 72% and 69% during the nine-month periods ended September 30, 2025 and 2024, respectively.

Current wording

Steel operations include our electric arc furnace (EAF) steel mills, including Butler Flat Roll Division, Columbus Flat Roll Division, Southwest-Sinton Flat Roll Division, Structural and Rail Division, Engineered Bar Products Division, and Roanoke Bar Division; steel coating and processing operations at Steel of West Virginia, The Techs, Heartland Flat Roll Division, United Steel Supply, New Process Steel, L.P. (“NPS”), and Vulcan Threaded Products, Inc.; warehouse operations in Mexico; and a 75% controlling equity interest in SDI Biocarbon Solutions, LLC. Steel operations accounted for 68% and 70% of our consolidated net sales during the three-month periods ending March 31, 2026, and 2025, respectively.

Previous wording

During the third quarter of 2025, our steel operations achieved record shipments of 3.6 million tons (3.3 million excluding intra-segment) as imports declined from the elevated levels seen earlier in the year. We continue to observe some hesitancy from customers due to trade uncertainties, despite several encouraging demand drivers—such as manufacturing onshoring, infrastructure program funding, lower interest rates, and the increasing regionalization of supply chains in the US. Third quarter 2025 total steel segment average selling prices increased 6%, or $61 per ton, compared to the third quarter of 2024, while segment shipments increased 14%. Net sales for the steel operations in the third quarter of 2025 increased 21% compared to the same period in 2024, due to the increased segment shipments, coupled with increased average selling prices. Net sales for the steel operations increased 4% in the first nine months of 2025 when compared to the same period in 2024, primarily due to increased segment shipments offsetting decreased average selling prices, particularly in the first quarter of 2025.

Current wording

During the first quarter of 2026, our steel operations achieved record shipments of 3.6 million tons (3.1 million excluding intra-segment). Underlying steel demand strengthened during the first quarter of 2026, resulting in increased shipments compared to the first quarter of 2025 and particularly the sequential fourth quarter of 2025. Steel prices continued to improve, and lead times extended. We are seeing an improved steel market environment, supported by domestic trade actions, manufacturing onshoring, and infrastructure program funding. Long product steel demand remains very strong, especially for structural steel and railroad rail. First quarter 2026 total steel segment average selling prices increased 19%, or $193 per ton, compared to the first quarter of 2025, while segment shipments decreased 3% as we have continued to maximize our circular manufacturing model by increasing intra-company shipments. Net sales for the steel operations in the first quarter of 2026 increased 16% compared to the same period in 2025, due to the increased average selling prices.

Previous wording

Metallic raw materials used in our electric arc furnaces represent our single most significant steel manufacturing cost, generally comprising approximately 55% to 65% of our steel mill operations’ manufacturing costs. Our metallic raw material cost per net ton consumed in our steel mills increased $14 per ton, or 4%, in the third quarter of 2025, compared to the same period in 2024, consistent with overall increased domestic ferrous scrap pricing noted below in the Metals Recycling Operations segment discussion. In the first nine months of 2025, our metallic raw material cost per ton was flat compared to the same period in 2024.

Current wording

Metallic raw materials used in our electric arc furnaces represent our single most significant steel manufacturing cost, generally comprising approximately 55% to 65% of our steel mill operations’ manufacturing costs. Our metallic raw material cost per net ton consumed in our steel mills increased $10 per ton, or 3%, in the first quarter of 2026, compared to the same period in 2025, consistent with overall increased domestic ferrous scrap pricing noted below in the Metals Recycling Operations segment discussion.

Previous wording

In the third quarter of 2025, as a result of average selling prices rising more than scrap costs, metal spread (which we define as the difference between average steel mill selling prices and the cost of ferrous scrap consumed in our steel mills) increased 7% compared to the third quarter of 2024. As a result of this metal spread expansion, operating income for the steel operations increased 65%, to $496.8 million, in the third quarter of 2025, compared to the same period in 2024. First nine months 2025 operating income decreased 22%, to $1.1 billion, compared to the first nine months of 2024 due primarily to a 7% decrease in metal spread, as average selling prices decreased more than scrap costs despite higher shipment volume.

Current wording

In the first quarter of 2026, as a result of average selling prices rising more than scrap costs, metal spread (which we define as the difference between average steel mill selling prices and the cost of ferrous scrap consumed in our steel mills) increased 30% compared to the first quarter of 2025. As a result of this metal spread expansion, operating income for the steel operations increased 143%, to $555.5 million, in the first quarter of 2026, compared to the same period in 2025.

Previous wording

Metals recycling operations include our OmniSource ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services throughout the United States and in Central and Northern Mexico. Our steel mills utilize a large portion of the ferrous scrap sold by our metals recycling operations as raw material in our steelmaking operations, and the remainder is sold to other consumers, such as other steel manufacturers and foundries. In the third quarters of 2025 and 2024, 66% and 63%, respectively, of metals recycling operations ferrous scrap was sold to our own steel mills, while our steel mill utilization was 88% and 80% in the third quarters of 2025 and 2024, respectively. Metals recycling operations accounted for 11% and 12% of our consolidated net sales during the three-month periods ending September 30, 2025, and 2024, respectively, and 12% and 11% during the nine-month periods ending September 30, 2025, and 2024, respectively.

Current wording

Metals recycling operations include our Omni ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services primarily located throughout the United States, and in Central and Northern Mexico. Our steel mills utilize a large portion of the ferrous scrap sold by our metals recycling operations as raw material in our steelmaking operations, and the remainder is sold to other consumers, such as other steel manufacturers and foundries. In the first quarters of 2026 and 2025, 62% of metals recycling operations ferrous scrap was sold to our own steel mills, while our steel mill utilization was 89% in the first quarters of 2026 and 2025. Metals recycling operations accounted for 11% and 12% of our consolidated net sales during the three-month periods ending March 31, 2026, and 2025, respectively.

Previous wording

During the third quarter of 2025, our metals recycling operations benefitted from increased domestic steel mill utilization, resulting in near record quarterly ferrous shipments. Ferrous scrap shipments increased 9% compared to the same period in 2024 while nonferrous shipments increased 1%. Ferrous scrap average selling prices increased 6% during the third quarter of 2025 compared to the same period in 2024, while nonferrous scrap prices increased 3%, resulting in an overall 10% increase in segment net sales. Ferrous metal spreads (which we define as the difference between average selling prices and the cost of purchased scrap) increased 3% during the third quarter of 2025 compared to the same period in 2024, and nonferrous metal spreads increased 74%, particularly due to copper. As a result of the increased metals spreads, particularly within nonferrous, metals recycling operations operating income increased 414% to $31.5 million in the third quarter of 2025 compared to the third quarter of 2024.

Current wording

During the first quarter of 2026, metals recycling operations net sales increased $52.9 million, or 5%, compared to the first quarter of 2025, as selling prices improved for both ferrous and nonferrous scrap. Ferrous scrap shipments increased 1% compared to the same period in 2025 while nonferrous shipments decreased 15%. Ferrous scrap average selling prices increased 5% during the first quarter of 2026 compared to the same period in 2025, while nonferrous scrap prices increased 20%. Ferrous metal spreads (which we define as the difference between average selling prices and the cost of purchased scrap) increased 12% during the first quarter of 2026 compared to the same period in 2025, and nonferrous metal spreads increased 81%, particularly due to increased copper prices. As a result of the increased metals spreads, particularly within nonferrous, metals recycling operations operating income increased 85% to $47.5 million in the first quarter of 2026 compared to the first quarter of 2025.

Previous wording

Steel fabrication operations include our New Millennium Building Systems’ joist and deck plants located throughout the United States, and in Northern Mexico. Revenues from these plants are generated from the fabrication of girders, steel joists and steel deck used within the non-residential construction industry. Steel fabrication operations accounted for 8% of our consolidated net sales during the three-month and nine-month periods ending September 30, 2025, and 10% during the three-month and nine-month periods ending September 30, 2024.

Current wording

Steel fabrication operations include our New Millennium Building Systems joist and deck plants located throughout the United States, and in Northern Mexico. Revenues from these plants are generated from the fabrication of steel joists, joist girders, and steel deck systems used within the non-residential construction industry. Steel fabrication operations accounted for 7% and 8% of our consolidated net sales during the three-month periods ending March 31, 2026, and 2025, respectively.

Previous wording

The purchase of various steel products is the largest single cost of production for our steel fabrication operations, historically representing approximately two-thirds of the total cost of manufacturing. The average cost per ton of steel consumed decreased 4% in the third quarter of 2025 compared to the same period in 2024. Metal spread (which we define as the difference between average selling prices and the cost of purchased steel) contracted 17% in the third quarter of 2025 compared to the same period in 2024. Metal spread compression coupled with decreased volume resulted in operating income decreasing 35% to $107.0 million in the third quarter 2025, compared to $165.6 million in the same period in 2024. For the first nine months of 2025, operating income decreased 40% to $316.9 million compared to the first nine months of 2024, as a result of an 18% decrease in metal spread, coupled with decreased volumes.

Current wording

The purchase of various steel products is the largest single cost of production for our steel fabrication operations, historically representing approximately two-thirds of the total cost of manufacturing. The average cost per ton of steel consumed increased 10% in the first quarter of 2026 compared to the same period in 2025. Metal spread (which we define as the difference between average selling prices and the cost of purchased steel) contracted 14% in the first quarter of 2026 compared to the same period in 2025. Metal spread compression resulted in operating income decreasing 23% to $89.5 million in the first quarter 2026, compared to $116.7 million in the same period in 2025.

Previous wording

Third Quarter Consolidated Results 2025 vs. 2024

Current wording

First Quarter Consolidated Results 2026 vs. 2025

Previous wording

Profit sharing expense during the third quarter of 2025 of $42.4 million increased 23% from $34.4 million during the same period in 2024, consistent with increased pretax earnings. This increase in profit sharing expense was the primary driver of increased operating loss for our other operations of 20% in the third quarter of 2025 compared to the same period in 2024. Profit sharing expense for eligible employees is 8% of consolidated pretax income excluding noncontrolling interests and other items.

Current wording

Profit sharing expense during the first quarter of 2026 of $42.2 million increased 86% from $22.7 million during the same period in 2025, consistent with increased pretax earnings. This increase in profit sharing expense was the primary driver of the increased operating loss for our other operations of 24% in the first quarter of 2026 compared to the same period in 2025. Profit sharing expense for eligible employees is 8% of consolidated pretax income excluding noncontrolling interests and other items.

Previous wording

Interest Expense, net of Capitalized Interest. During the third quarter of 2025, net interest expense of $13.6 million decreased 20% from $17.1 million during the third quarter of 2024. This decrease is primarily a result of higher capitalized interest during the third quarter of 2025 compared to the same period in 2024 due to ongoing construction and expansion projects, primarily within our aluminum operations.

Current wording

Interest Expense, net of Capitalized Interest. During the first quarter of 2026, net interest expense of $33.2 million increased 174% from $12.1 million during the first quarter of 2025. This increase is primarily a result of higher outstanding long-term debt balances during the first quarter of 2026 compared to the first quarter of 2025 due to our issuance of senior unsecured notes in March and November 2025.

Previous wording

Other (Income) Expense, net. Net other income was $19.7 million in the third quarter of 2025, compared to $29.7 million in the third quarter of 2024, a decrease of $10.0 million due primarily to decreased interest income due to lower invested cash balances during 2025.

Current wording

Other Income, net. Net other income was $8.5 million in the first quarter of 2026, compared to $17.6 million in the first quarter of 2025, a decrease of $9.2 million due primarily to decreased interest income from lower invested cash balances during 2026 and decreased income from equity method investments, primarily due to the acquisition of NPS in the fourth quarter of 2025.

Previous wording

Income Tax Expense. Third quarter 2025 income tax expense of $109.9 million, at an effective income tax rate of 21.4%, increased 26% compared to $87.1 million, also at an effective income tax rate of 21.4%, during the third quarter of 2024, consistent with increased pretax earnings.

Current wording

Income Tax Expense. First quarter 2026 income tax expense of $113.1 million, at an effective income tax rate of 22.0%, increased 80% compared to $63.0 million, at an effective income tax rate of 22.4%, during the first quarter of 2025, consistent with increased pretax earnings.

Previous wording

Capital Resources and Long-term Debt. Our business is capital intensive and requires substantial expenditures for, among other things, the purchase and maintenance of equipment used in our operations, and to remain in compliance with environmental laws. Our short-term and long-term liquidity needs arise primarily from working capital requirements, capital expenditures, including expansion projects, principal and interest payments related to our outstanding indebtedness, dividends to our shareholders, potential stock repurchases and acquisitions or investments. We have met and intend to continue to meet these liquidity requirements primarily with available cash and cash provided by operations, long-term borrowings, and we also have availability under our unsecured Revolver. Our liquidity at September 30, 2025, is as follows (in thousands):

Current wording

Capital Resources and Long-term Debt. Our business is capital intensive and requires substantial expenditures for, among other things, the purchase and maintenance of equipment used in our operations. Our short-term and long-term liquidity needs arise primarily from working capital requirements, capital expenditures, including expansion projects, principal and interest payments related to our outstanding indebtedness, dividends to our shareholders, potential stock repurchases and acquisitions or investments. We have met and intend to continue to meet these liquidity requirements primarily with available cash and cash provided by operations, long-term borrowings, and we also have availability under our unsecured Revolver. Our liquidity at March 31, 2026, is as follows (in thousands):

Previous wording

Our total outstanding debt of $3.8 billion increased $551.4 million compared to December 31, 2024, due to our issuance of senior unsecured notes in March 2025 as described in Note 3, the proceeds of which may be used for general corporate purposes, which included the repayment at maturity of our $400.0 million 2.400% notes due June 2025, and may include working capital, capital expenditures, advances for or investments in our subsidiaries, acquisitions, redemption and repayment of other outstanding indebtedness, and purchases of our common stock. Our total long-term debt to capitalization ratio (representing our long-term debt, including current maturities, divided by the sum of our long-term debt, redeemable noncontrolling interests, and our total stockholders’ equity) was 29.7% and 26.5% at September 30, 2025, and December 31, 2024, respectively.

Current wording

Our total outstanding debt of $4.2 billion was unchanged from December 31, 2025. Our total long-term debt to capitalization ratio (representing our long-term debt, including current maturities, divided by the sum of our long-term debt, redeemable noncontrolling interests, and our total stockholders’ equity) was 31.5% and 32.1% at March 31, 2026, and December 31, 2025, respectively.

Previous wording

transactions as defined in the Facility) by our LTM gross interest expense, less amortization of financing fees. In addition, a debt to capitalization ratio of not more than 0.60:1.00 must be maintained. At September 30, 2025, our interest coverage ratio and debt to capitalization ratio were 13.50:1.00 and 0.30:1.00, respectively. We were in compliance with these covenants at September 30, 2025, and we anticipate we will continue to be in compliance during the next twelve months.

Current wording

The financial covenants under our Facility state that we must maintain an interest coverage ratio of not less than 2.50:1.00. Our interest coverage ratio is calculated by dividing our last-twelve-months (LTM) consolidated EBITDA as defined in the Facility (earnings before interest, taxes, depreciation, amortization, and certain other non-cash transactions as defined in the Facility) by our LTM gross interest expense, less amortization of financing fees. In addition, a debt to capitalization ratio of not more than 0.60:1.00 must be maintained. At March 31, 2026, our interest coverage ratio and debt to capitalization ratio were 13.72:1.00 and 0.32:1.00, respectively. We were in compliance with these covenants at March 31, 2026, and we anticipate we will continue to be in compliance during the next twelve months.

Previous wording

Working Capital (representing excess of current assets over current liabilities). We generated cash flow from operations of $1.2 billion in the first nine months of 2025 compared to $1.5 billion in the same 2024 period. Working capital increased $841.9 million, or 26%, during the first nine months of 2025 to $4.1 billion at September 30, 2025, due primarily to the issuance of our $600.0 million 5.250% notes due in May 2035 and $400.0 million 5.750% notes due in May 2055, offset by the repayment of our $400.0 million of 2.400% senior notes in June 2025, as well as a $344.8 million dollar increase in accounts receivable consistent with increased steel prices and sales volumes in the third quarter of 2025 compared to the fourth quarter of 2024.

Current wording

Working Capital (representing excess of current assets over current liabilities). We generated cash flow from operations of $148.3 million in the first quarter of 2026 compared to $152.6 million in the same 2025 period. Working capital increased $262.5 million, or 6%, during the first quarter of 2026 to $4.6 billion at March 31, 2026. The increase in working capital included a $373.8 million increase in accounts receivable consistent with increased sales prices and volumes, a $169.6 million increase in inventories consistent with the startup of our recycled aluminum flat rolled products mill, and a $163.0 million decrease in accrued expenses primarily related to the $120.1 million payment of our annual companywide profit sharing funding, partially offset by a $148.1 million increase in accounts payable consistent with increased scrap prices for our metals recycling operations.

Previous wording

Capital Investments. During the first nine months of 2025, we invested $759.5 million in property, plant and equipment, primarily within our aluminum operations and steel operations segments, compared with $1.4 billion invested during the same period in 2024. We are nearing completion of construction of our recycled aluminum flat rolled products mill with two new supporting satellite recycled aluminum slab centers, which are being funded by available cash and cash flow from operations. Related expenditures began in the third quarter of 2022 and have continued through 2025. Our liquidity of $2.2 billion and anticipated future operating cash flow generation is sufficient to provide for our planned 2025 capital requirements.

Current wording

Capital Investments. During the first quarter of 2026, we invested $138.0 million in property, plant and equipment, primarily within our aluminum operations and steel operations segments, compared with $305.5 million invested during the same period in 2025. We are nearing completion of commissioning and startup of our recycled aluminum flat rolled products mill and one of the two supporting satellite recycled aluminum slab centers, which are being funded by available cash and cash flow from operations. Our liquidity of $2.0 billion and anticipated future operating cash flow generation is sufficient to provide for our planned 2026 capital requirements.

Previous wording

Cash Dividends. As a reflection of continued confidence in our current and future cash flow generation capability and financial position, we increased our quarterly cash dividend by 9% to $0.50 per share in the first quarter of 2025 (from $0.46 per share for each quarter in 2024), resulting in declared cash dividends of $221.7 million during the first nine months of 2025, compared to $214.6 million during the same period in 2024. We paid cash dividends of $218.1 million and $212.2 million during the first nine months of 2025 and 2024, respectively. Our board of directors, along with executive management, approves the payment of dividends on a quarterly basis. The determination to pay cash dividends in the future is at the discretion of our board of directors, after taking into account various factors, including our financial condition, results of operations, outstanding indebtedness, current and anticipated cash needs and growth plans.

Current wording

Cash Dividends. As a reflection of continued confidence in our current and future cash flow generation capability and financial position, we increased our quarterly cash dividend by 6% to $0.53 per share in the first quarter of 2026 (from $0.50 per share for each quarter in 2025), resulting in declared cash dividends of $76.6 million during the first quarter of 2026, compared to $74.7 million during the same period in 2025. We paid cash dividends of $72.5 million and $69.5 million during the first quarters of 2026 and 2025, respectively. Our board of directors approves the payment of dividends on a quarterly basis. The determination to pay cash dividends in the future is at the discretion of our board of directors, after taking into account various factors provided by executive management, including our financial condition, results of operations, outstanding indebtedness, current and anticipated cash needs and growth plans.

Previous wording

Other. Our board of directors has authorized share repurchase programs during prior years and the current year, the most recent of which occurred in February 2025 for a program of up to $1.5 billion of the company’s common stock. Under the share repurchase programs, purchases take place as and when we determine in open market or private transactions made based upon the market price of our common stock, the nature of other investment opportunities or growth projects, our cash flows from operations, and general economic conditions. The share repurchase programs do not require us to acquire any specific number of shares, and may be modified, suspended, extended, or terminated by us at any time. The share repurchase programs do not have an expiration date. There were $660.6 million and $917.0 million of share repurchases during the first nine months of 2025 and 2024, respectively. As of September 30, 2025, we had $1.0 billion remaining available to purchase under the February 2025 share repurchase program.

Current wording

Other. Our board of directors has authorized share repurchase programs during prior years, the most recent of which occurred in February 2025 for a program of up to $1.5 billion of the company’s common stock. Under the share repurchase programs, purchases take place as and when we determine in open market or private transactions made based upon the market price of our common stock, the nature of other investment opportunities or growth projects, our cash flows from operations, and general economic conditions. The share repurchase programs do not require us to acquire any specific number of shares, and may be modified, suspended, extended, or terminated by us at any time. The share repurchase programs do not have an expiration date. There were $115.1 million and $250.1 million of share repurchases during the first quarters of 2026 and 2025, respectively. As of March 31, 2026, we had $687.0 million remaining available to purchase under the February 2025 share repurchase program.