STEEL DYNAMICS INC

Previous wording

In the second quarter of 2026, we achieved record quarterly total steel shipments of 3.7 million tons. Underlying domestic steel demand strengthened during the quarter, as customer orders and backlogs increased, also benefitting our metals recycling operations segment, which achieved notable improvement in operating income in the second quarter of 2026 compared to the second quarter of 2025. Our steel fabrication operations also experienced increased customer orders and backlogs, with sales volumes increasing in the second quarter of 2026 compared to the second quarter of 2025. Finally, our aluminum operations segment continues to make strong progress on the commissioning and startup of our aluminum flat-rolled sheet products mill, already providing high-quality products for the industrial, beverage and automotive markets.

Current wording

In the third quarter of 2026, we achieved record quarterly total steel shipments of 3.8 million tons. Underlying domestic steel demand remained strong, benefiting both our steel operations and metals recycling operations. Our steel fabrication operations also experienced continued strong customer orders and backlogs, with sales volumes increasing meaningfully in the third quarter of 2026 compared to the third quarter of 2025. Finally, our aluminum operations segment continues to make strong progress on the commissioning and startup of our aluminum flat-rolled sheet products mill, already providing high-quality products for the industrial, beverage and automotive markets.

Previous wording

Consolidated operating income increased $317.6 million, or 83%, to $700.5 million for the second quarter of 2026, compared to the second quarter of 2025, as steel and metals recycling operations metal spreads expanded. Second quarter 2026 net income attributable to Steel Dynamics, Inc. increased $235.4 million, or 79%, to $534.1 million, compared to the second quarter of 2025, consistent with increased operating income.

Current wording

Consolidated operating income increased $498.6 million, or 98%, to $1.0 billion for the third quarter of 2026, compared to the third quarter of 2025, as steel and metals recycling operations metal spreads expanded. Third quarter 2026 net income attributable to Steel Dynamics, Inc. increased $352.3 million, or 87%, to $756.0 million, compared to the third quarter of 2025, consistent with increased operating income.

Previous wording

Consolidated operating income increased $580.5 million, or 88%, to $1.2 billion for the first half of 2026, compared to the first half of 2025. First half 2026 net income attributable to Steel Dynamics, Inc. increased $421.6 million, or 82%, to $937.5 million, compared to the first half of 2025, consistent with increased operating income.

Current wording

Consolidated operating income increased $1.1 billion, or 93%, to $2.2 billion for the first nine months of 2026, compared to the first nine months of 2025. First nine months 2026 net income attributable to Steel Dynamics, Inc. increased $774.0 million, or 84%, to $1.7 billion, compared to the first nine months of 2025, consistent with increased operating income.

Previous 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., and Vulcan Threaded Products, Inc.; warehouse operations in Mexico; and SDI Biocarbon Solutions, LLC (100% owned as of June 19, 2026). Steel operations accounted for 66% and 72% of our consolidated net sales during the three-month periods ending June 30, 2026 and 2025, respectively, and 67% and 71% during the six-month periods ended June 30, 2026 and 2025, 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., and Vulcan Threaded Products, Inc.; warehouse operations in Mexico; and SDI Biocarbon Solutions, LLC (100% owned as of June 19, 2026). Steel operations accounted for 67% and 73% of our consolidated net sales during the three-month periods ending September 30, 2026 and 2025, respectively, and 67% and 72% during the nine-month periods ended September 30, 2026 and 2025, respectively.

Previous wording

During the second quarter of 2026, our steel operations achieved record quarterly total shipments of 3.7 million tons (3.2 million excluding intra-segment). Steel fundamentals continued to strengthen during the second quarter, as pricing improved, demand remained solid, and customer inventory levels declined, remaining lower than historical norms. Steel backlogs and lead times have also extended. Additionally, flat-rolled steel spreads expanded in the quarter. 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. Long-product steel demand remains very strong, especially for structural steel and railroad rail. Second quarter 2026 total steel segment average selling prices increased 14%, or $162 per ton, compared to the second quarter of 2025, while segment shipments increased 7%. Net sales for the steel operations in the second quarter of 2026 increased 22% compared to the same period in 2025, due to the increased average selling prices and volumes. Net sales for the steel operations increased 19% in the first half of 2026 when compared to the same period in 2025.

Current wording

During the third quarter of 2026, our steel operations achieved record quarterly total shipments of 3.8 million tons (3.2 million excluding intra-segment). During the third quarter of 2026, the domestic steel market remained strong, supported by steady demand, low customer inventories, and historically low import levels. Steel pricing strengthened, as lead times extended and spot availability tightened across flat-rolled and structural steel products. In addition, as coated flat rolled steel imports abated due to recent trade actions and demand remained strong, value-added flat-rolled steel spreads also expanded. In general, U.S. steel imports remain well below historical and prior-year levels, while improving manufacturing activity, onshoring, and continued investment in infrastructure, energy, healthcare, and computing support healthy steel consumption. Long-product steel demand remains extremely strong, particularly for structural steel and railroad rail. We believe sustained demand across our platforms, combined with favorable market conditions, positions us well moving forward. Third quarter 2026 total steel segment average selling prices increased 25%, or $282 per ton, compared to the third quarter of 2025, while segment shipments decreased 1%. Net sales for the steel operations in the third quarter of 2026 increased 24% compared to the same period in 2025, due to the increased average selling prices. Net sales for the steel operations increased 21% in the first nine months of 2026 when compared to the same period in 2025.

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 $5 per ton, or 1%, in the second 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. In the first half of 2026, our metallic raw material cost per ton increased $7 per ton, or 2%, compared to the same period in 2025.

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 $23 per ton, or 6%, in the third 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. In the first nine months of 2026, our metallic raw material cost per ton increased $13 per ton, or 3%, compared to the same period in 2025.

Previous wording

In the second 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 22% compared to the second quarter of 2025. As a result of this metal spread expansion, operating income for the steel operations increased 89%, to $719.8 million, in the second quarter of 2026, compared to the same period in 2025. First half 2026 operating income increased 109%, to $1.3 billion, compared to the first half of 2025 due primarily to a 26% increase in metal spread, as average selling prices increased more than scrap costs.

Current wording

In the third 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 35% compared to the third quarter of 2025. As a result of this metal spread expansion, operating income for the steel operations increased 108%, to $1.0 billion, in the third quarter of 2026, compared to the same period in 2025. First nine months 2026 operating income increased 108%, to $2.3 billion, compared to the first nine months of 2025 due primarily to a 29% increase in metal spread, as average selling prices increased more than scrap costs.

Previous 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 second quarters of 2026 and 2025, 65% and 66%, respectively, of metals recycling operations ferrous scrap was sold to our own steel mills, while our steel mill utilization was 90% and 85% in the second quarters of 2026 and 2025, respectively. Metals recycling operations accounted for 11% of our consolidated net sales during the three and six-month periods ending June 30, 2026 and 12% during the three and six-month periods ending June 30, 2025.

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 addition, our aluminum rolling mill is utilizing an increasing volume of nonferrous aluminum scrap in its operations. In the third quarters of 2026 and 2025, 67% and 66%, respectively, of metals recycling operations ferrous scrap was sold to our own steel mills, while our steel mill utilization was 92% and 88% in the third quarters of 2026 and 2025, respectively. Metals recycling operations accounted for 9% and 11% of our consolidated net sales during the three-month periods ending September 30, 2026, and 2025, respectively, and 11% and 12% during the nine-month periods ending September 30, 2026, and 2025, respectively.

Previous wording

During the second quarter of 2026, metals recycling operations net sales increased $102.9 million, or 9%, compared to the second quarter of 2025, as selling prices improved for both ferrous and nonferrous scrap. Scrap flows improved in the second quarter of 2026 as domestic steel mills increased utilization. Ferrous scrap shipments increased 5% compared to the same period in 2025 while nonferrous shipments decreased 14%. Ferrous scrap average selling prices increased 8% during the second quarter of 2026 compared to the same period in 2025, while nonferrous scrap prices increased 19%. Ferrous metal spreads (which we define as the difference between average selling prices and the cost of purchased scrap) increased 20% during the second quarter of 2026 compared to the same period in 2025, and nonferrous metal spreads increased 52%, particularly due to increased copper prices. As a result of the increased metals spreads, particularly within nonferrous, metals recycling operations operating income increased 125% to $47.8 million in the second quarter of 2026 compared to the second quarter of 2025.

Current wording

During the third quarter of 2026, metals recycling operations net sales increased $121.6 million, or 11%, compared to the third quarter of 2025, as selling prices improved for both ferrous and nonferrous scrap. Scrap flows improved in the third quarter of 2026 as domestic steel mills utilization remained strong. Ferrous scrap shipments increased 7% compared to the same period in 2025 while nonferrous shipments decreased 17%. Ferrous scrap average selling prices increased 6% during the third quarter of 2026 compared to the same period in 2025, while nonferrous scrap prices increased 27%. Ferrous metal spreads (which we define as the difference between average selling prices and the cost of purchased scrap) increased 1% during the third quarter of 2026 compared to the same period in 2025, and nonferrous metal spreads increased 48%, particularly due to increased copper prices. As a result of the increased metals spreads, particularly within nonferrous, metals recycling operations operating income increased 5% to $33.0 million in the third quarter of 2026 compared to the third quarter of 2025.

Previous wording

Net sales for our metals recycling operations in the first half of 2026 increased 7% compared to the same period in 2025, driven by increased ferrous volumes as well as increased selling prices for both ferrous and nonferrous scrap. Ferrous scrap average selling prices increased 7% during the first half of 2026 compared to the same period in 2025, while nonferrous average selling prices increased 20%. Ferrous shipments increased 3% and nonferrous shipments decreased 15% in the first half of 2026 compared to the first half of 2025. Ferrous metal spreads increased 16%, while nonferrous metal spreads increased 66% in the first half of 2026 compared to the first half of 2025. As a result of the combination of these volume and metal spread changes, metals recycling operations operating income in the first half of 2026 of $95.3 million increased 103% from the first half of 2025.

Current wording

Net sales for our metals recycling operations in the first nine months of 2026 increased 8% compared to the same period in 2025, driven by increased ferrous volumes as well as increased selling prices for both ferrous and nonferrous scrap. Ferrous scrap average selling prices increased 7% during the first nine months of 2026 compared to the same period in 2025, while nonferrous average selling prices increased 22%. Ferrous shipments increased 5% and nonferrous shipments decreased 15% in the first nine months of 2026 compared to the first nine months of 2025. Ferrous metal spreads increased 10%, while nonferrous metal spreads increased 59% in the first nine months of 2026 compared to the first nine months of 2025. As a result of the combination of these volume and metal spread changes, metals recycling operations operating income in the first nine months of 2026 of $128.2 million increased 63% from the same period in 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 steel joists, joist girders, and steel deck systems used within the non-residential construction industry. Steel fabrication operations accounted for 6% and 7% of our consolidated net sales during the three-month periods ending June 30, 2026, and 2025, and 7% and 8% during the six-month periods ending June 30, 2026, and 2025, respectively.

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% of our consolidated net sales during the three and nine-month periods ending September 30, 2026, and 8% during the three and nine-month periods ending September 30, 2025.

Previous wording

Net sales for our steel fabrication operations increased 16% during the second quarter of 2026 compared to the same period in 2025, as volumes increased 19%, while average selling prices decreased $75 per ton, or 3%, from the second quarter of 2025. Customer order activity has continued to strengthen since the end of 2025, with the order backlog now nearly 45 percent higher than a year ago and extending into the first quarter 2027. Demand improved across several key end markets, including commercial construction, data centers, manufacturing, warehousing, and healthcare.

Current wording

Net sales for our steel fabrication operations increased 24% during the third quarter of 2026 compared to the same period in 2025, as volumes increased 25%, while average selling prices decreased $33 per ton, or 1%, from the third quarter of 2025. Customer order activity has continued to strengthen since the end of 2025, with the order backlog now 50 percent higher than a year ago and extending into the second quarter 2027. Demand has been largely driven by commercial construction, manufacturing, warehouses, data centers, and healthcare. In addition, accelerating announcements of significant domestic manufacturing investments and increased reshoring activity, coupled with funding from the U.S. infrastructure program, are expected to provide meaningful support for demand across our product portfolio, including steel joists and deck products.

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 increased 8% in the second 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 11% in the second quarter of 2026 compared to the same period in 2025 due to rising steel input costs. Metal spread compression resulted in operating income decreasing 9% to $84.6 million in the second quarter 2026, compared to $93.1 million in the same period in 2025. For the first half of 2026, operating income decreased 17% to $174.1 million compared to the first half of 2025, as a result of a 13% decrease in metal spread, primarily attributable to rising steel input costs.

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 20% in the third 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 18% in the third quarter of 2026 compared to the same period in 2025 due to rising steel input costs. Metal spread compression resulted in operating income decreasing 15% to $90.6 million in the third quarter 2026, compared to $107.0 million in the same period in 2025. For the first nine months of 2026, operating income decreased 16% to $264.7 million compared to the first nine months of 2025, as a result of a 15% decrease in metal spread, primarily attributable to rising steel input costs.

Previous wording

Aluminum operations include a 650,000-metric-ton recycled aluminum flat rolled products mill located in Columbus, Mississippi; two 150,000-metric-ton satellite recycled aluminum slab centers, one in Central Mexico and one planned for construction in Columbus, Mississippi; and an ancillary recycled aluminum deox-rod facility. The recycled aluminum flat rolled products mill produces flat rolled aluminum products from aluminum scrap and is a complementary extension of the company’s metals recycling platform. Our product offerings are supported by various value-added finishing lines that are in production or currently being commissioned, including two CASH (Continuous Annealing Solutions Heat Treating) lines, a can end and tab coating line, and downstream processing and packaging lines. Aluminum operations accounted for 8% and 1% of our consolidated net sales during the three-month periods ending June 30, 2026 and 2025, respectively, and 6% and 1% during the six-month periods ended June 30, 2026 and 2025, respectively.

Current wording

Aluminum operations include a 650,000-metric-ton recycled aluminum flat rolled products mill located in Columbus, Mississippi; two 150,000-metric-ton satellite recycled aluminum slab centers, one in Central Mexico and one under construction in Columbus, Mississippi; and an ancillary recycled aluminum deox-rod facility. The recycled aluminum flat rolled products mill produces flat rolled aluminum products from aluminum scrap and is a complementary extension of the company’s metals recycling platform. Our product offerings are supported by various value-added finishing lines that are in production or currently being commissioned, including two CASH (Continuous Annealing Solutions Heat Treating) lines, a can end and tab coating line, and downstream processing and packaging lines. Aluminum operations accounted for 7% of our consolidated net sales during the three and nine-month periods ending September 30, 2026 and 2% during the three and nine-month periods ending September 30, 2025.

Previous wording

During the second quarter of 2026, the results of aluminum operations consisted of the continued commissioning, and startup of our recycled aluminum flat rolled products mill, associated satellite recycled aluminum slab centers, and our ancillary recycled aluminum deox-rod facility. The flat rolled products mill shipped 53,000 metric tons of finished product during the second quarter of 2026, an increase of 135% from the sequential first quarter of 2026. We expect both shipments and earnings to increase in the second half of 2026. Net sales for the aluminum operations increased 455% during the second quarter of 2026 compared to the same period in 2025 prior to the startup of our aluminum flat rolled mill, while operating income was impacted by a non-cash impairment charge of $16 million in the second quarter of 2026, recorded in selling, general, and administrative expenses, related to the relocation of the planned second satellite aluminum recycled slab center.

Current wording

During the third quarter of 2026, the results of aluminum operations consisted of the continued commissioning and startup of our recycled aluminum flat rolled products mill, and associated satellite recycled aluminum slab centers, and our ancillary recycled aluminum deox-rod facility. The flat rolled products mill shipped 55,000 metric tons of finished product during the third quarter of 2026. Net sales for the aluminum operations increased 373% during the third quarter of 2026 compared to the same period in 2025, while operating losses improved 54%. For the first nine months of 2026, net sales increased 320% compared to the same period in 2025. We expect aluminum volumes and profitability to improve in the fourth quarter 2026 and throughout 2027, as startup costs subside, utilization and yields improve, and scrap content increases. Underlying demand for aluminum flat rolled products across our targeted consumer sectors remains strong and is forecast to continue to grow.

Previous wording

Second Quarter Consolidated Results 2026 vs. 2025

Current wording

Third Quarter Consolidated Results 2026 vs. 2025

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses of $193.5 million during the second quarter of 2026 decreased 2% from $198.0 million during the second quarter of 2025. Selling, general and administrative expenses represented 3.4% and 4.3% of net sales during the second quarters of 2026 and 2025, respectively.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses of $187.0 million during the third quarter of 2026 decreased 7% from $200.8 million during the third quarter of 2025. Selling, general and administrative expenses represented 2.9% and 4.2% of net sales during the third quarters of 2026 and 2025, respectively.

Previous wording

Profit sharing expense during the second quarter of 2026 of $57.3 million increased 87% from $30.7 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 49% in the second 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.

Current wording

Profit sharing expense during the third quarter of 2026 of $81.3 million increased 92% from $42.4 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 63% in the third 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 second quarter of 2026, net interest expense of $39.1 million increased 125% from $17.4 million during the second quarter of 2025. This increase is primarily a result of an $18.8 million, or 68%, decrease in capitalized interest during the second quarter of 2026 compared to the second quarter of 2025 as construction of the aluminum flat rolled products mill was substantially completed in the second half of 2025.

Current wording

Interest Expense, net of Capitalized Interest. During the third quarter of 2026, net interest expense of $39.3 million increased 190% from $13.6 million during the third quarter of 2025. This increase is primarily a result of a $21.4 million, or 72%, decrease in capitalized interest during the third quarter of 2026 compared to the third quarter of 2025 as construction of the aluminum flat rolled products mill was substantially completed in the second half of 2025.

Previous wording

Income Tax Expense. Second quarter 2026 income tax expense of $152.7 million, at an effective income tax rate of 22.3%, increased 76% compared to $86.7 million, at an effective income tax rate of 22.3%, during the second quarter of 2025, consistent with increased pretax earnings.

Current wording

Income Tax Expense. Third quarter 2026 income tax expense of $222.9 million, at an effective income tax rate of 22.8%, increased 103% compared to $109.9 million, at an effective income tax rate of 21.4%, during the third quarter of 2025, consistent with increased pretax earnings.

Previous wording

First Six Months Consolidated Results 2026 vs. 2025

Current wording

First Nine Months Consolidated Results 2026 vs. 2025

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses of $368.7 million during the first half of 2026 decreased 3% from $379.8 million during the first half of 2025. Selling, general and administrative expenses represented 3.3% and 4.3% of net sales during the first half of 2026 and 2025, respectively.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses of $555.6 million during the first nine months of 2026 decreased 4% from $580.7 million during the first nine months of 2025. Selling, general and administrative expenses represented 3.1% and 4.2% of net sales during the first nine months of 2026 and 2025, respectively.

Previous wording

Profit sharing expense during the first half of 2026 of $99.5 million increased 86% from $53.4 million during the same period in 2025, consistent with increased pretax earnings. This increase in profit sharing expense was the primary driver of increased operating loss for our other operations of 36% in the first half of 2026 compared to the same period in 2025.

Current wording

Profit sharing expense during the first nine months of 2026 of $180.8 million increased 89% from $95.8 million during the same period in 2025, consistent with increased pretax earnings. This increase in profit sharing expense was the primary driver of increased operating loss for our other operations of 46% in the first nine months of 2026 compared to the same period in 2025.

Previous wording

Interest Expense, net of Capitalized Interest. During the first half of 2026, interest expense of $72.4 million increased 145% from $29.5 million during the first half of 2025. This increase is primarily a result of a $26.5 million, or 53%, decrease in capitalized interest during the first half of 2026 compared to the same period in 2025 as construction of the aluminum flat rolled products mill was substantially completed in the second half of 2025. The increase is also attributable to higher outstanding long-term debt balances during the first half of 2026 compared to the first half of 2025 due to our issuance of senior unsecured notes in March and November 2025.

Current wording

Interest Expense, net of Capitalized Interest. During the first nine months of 2026, interest expense of $111.7 million increased 159% from $43.1 million during the first nine months of 2025. This increase is primarily a result of a $47.9 million, or 60%, decrease in capitalized interest during the first nine months of 2026 compared to the same period in 2025 as construction of the aluminum flat rolled products mill was substantially completed in the second half of 2025. The increase is also attributable to higher outstanding long-term debt balances during the first nine months of 2026 compared to the first nine months 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 $30.6 million in the first half of 2026, compared to $40.0 million in the first half of 2025, a decrease of $9.5 million due primarily to the impact of decreased interest income due to a lower rate of return on invested cash balances in the first half of 2026 compared to the same period in 2025.

Current wording

Other Income, net. Net other income was $42.1 million in the first nine months of 2026, compared to $59.7 million in the first nine months of 2025, a decrease of $17.6 million due primarily to the impact of decreased interest income due to lower returns on invested cash balances in the first nine months of 2026 compared to the same period in 2025, as well as decreased income from investments in unconsolidated affiliates.

Previous wording

Income Tax Expense. First half 2026 income tax expense of $265.8 million, at an effective income tax rate of 22.2%, increased 78% compared to $149.7 million, at an effective income tax rate of 22.4%, during the first half of 2025, consistent with increased pretax earnings.

Current wording

Income Tax Expense. First nine months 2026 income tax expense of $488.7 million, at an effective income tax rate of 22.5%, increased 88% compared to $259.6 million, at an effective income tax rate of 22.0%, during the first nine months of 2025, consistent with increased pretax earnings.

Previous 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% and 32% at June 30, 2026, and December 31, 2025, 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 30% and 32% at September 30, 2026, and December 31, 2025, respectively.

Previous wording

Our unsecured credit agreement has a senior unsecured revolving credit facility (Facility), which provides a $1.2 billion Revolver and matures in July 2028. Subject to certain conditions, we have the ability to increase the Facility size by $500.0 million. The unsecured Revolver is available to fund working capital, capital expenditures, and other general corporate purposes. The Facility contains financial covenants and other covenants pertaining to our ability to incur indebtedness and permit liens on certain assets. Our ability to borrow funds within the terms of the unsecured Revolver is dependent upon our continued compliance with the financial and other covenants. At June 30, 2026, we had $1.2

Current wording

Our unsecured credit agreement has a senior unsecured revolving credit facility (Facility), which provides a $1.2 billion Revolver and matures in July 2028. Subject to certain conditions, we have the ability to increase the Facility size by $500.0 million. The unsecured Revolver is available to fund working capital, capital expenditures, and other general corporate purposes. The Facility contains financial covenants and other covenants pertaining to our ability to incur indebtedness and permit liens on certain assets. Our ability to borrow funds within the terms of the unsecured Revolver

Previous wording

billion of availability on the Revolver, $14.4 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding.

Current wording

is dependent upon our continued compliance with the financial and other covenants. At September 30, 2026, we had $1.2 billion of availability on the Revolver, $14.3 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding.

Previous 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 June 30, 2026, our interest coverage ratio and debt to capitalization ratio were 15.63:1.00 and 0.31:1.00, respectively. We were in compliance with these covenants at June 30, 2026, 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 September 30, 2026, our interest coverage ratio and debt to capitalization ratio were 18.09:1.00 and 0.30:1.00, respectively. We were in compliance with these covenants at September 30, 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 $576.3 million in the first half of 2026 compared to $454.2 million in the same 2025 period. Working capital increased $631.8 million, or 14%, during the first half of 2026 to $5.0 billion at June 30, 2026. The increase in working capital included a $760.3 million increase in accounts receivable consistent with increased sales prices and volumes, a $217.1 million increase in inventories consistent with the startup of our recycled aluminum flat rolled products mill, partially offset by a $252.2 million increase in accounts payable consistent with increased scrap prices for our metals recycling operations and increased scrap volumes on hand within our aluminum operations.

Current wording

Working Capital (representing excess of current assets over current liabilities). We generated cash flow from operations of $1.4 billion in the first nine months of 2026 compared to $1.2 billion in the same 2025 period. Working capital increased $1.1 billion, or 25%, during the first nine months of 2026 to $5.5 billion at September 30, 2026. The increase in working capital included a $763.8 million increase in accounts receivable consistent with increased sales prices and volumes, a $510.5 million increase in inventories consistent with the startup of our recycled aluminum flat rolled products mill, partially offset by a $373.9 million increase in accounts payable consistent with increased scrap prices for our metals recycling operations and increased scrap volumes on hand within our aluminum operations.

Previous wording

Capital Investments. During the first half of 2026, we invested $261.8 million in property, plant and equipment, primarily within our aluminum operations and steel operations segments, compared with $593.8 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.

Current wording

Capital Investments. During the first nine months of 2026, we invested $411.4 million in property, plant and equipment, primarily within our aluminum operations and steel operations segments, compared with $759.5 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 second supporting satellite aluminum recycled slab center is currently under construction. Our liquidity of $2.4 billion and anticipated future operating cash flow generation is sufficient to provide for our planned capital requirements during the next twelve months.

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 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 $152.7 million during the first half of 2026, compared to $148.6 million during the same period in 2025. We paid cash dividends of $149.0 million and $144.2 million during the first half 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.

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 $228.2 million during the first nine months of 2026, compared to $221.7 million during the same period in 2025. We paid cash dividends of $225.1 million and $218.1 million during the first nine months 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, 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 $315.4 million and $450.2 million of share repurchases during the first half of 2026 and 2025, respectively. As of June 30, 2026, we had $488.7 million 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 $590.9 million and $660.6 million of share repurchases during the first nine months of 2026 and 2025, respectively. As of September 30, 2026, we had $215.9 million remaining available to purchase under the February 2025 share repurchase program.