STLD

Forward-Looking Statements 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. More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors for the year ended December 31, 2025, in our quarterly reports on Form 10-Q, or in other reports which we from time to time file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under “Investors – SEC Filings.” Description of the Business 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. 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. 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. Operating Statement Classifications 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. 14 Table of Contents Costs of Goods Sold. Our costs of goods sold represent all direct and indirect costs associated with the manufacture of our products. The principal elements of these costs are scrap and scrap substitutes (which represent the most significant single component of our consolidated costs of goods sold), steel substrate, direct and indirect labor and related benefits, alloys, zinc, transportation and freight, repairs and maintenance, utilities such as electricity and natural gas, and depreciation. Selling, General and Administrative Expenses. Selling, general and administrative expenses consist of all costs associated with our sales, finance and accounting, and administrative departments, including, among other items, labor and related benefits, and professional services. Companywide profit sharing and amortization of intangible assets are each separately presented in the statements of income. Interest Expense, net of Capitalized Interest. Interest expense consists of interest associated with our senior credit facilities and other debt, net of interest costs that are required to be capitalized during the construction period of certain capital investment projects. 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. ​ Results Overview 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. 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. 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. ​ 15 Table of Contents Segment Operating Results 2026 vs. 2025 (dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2026 ​ % Change ​ ​ 2025 ​ 2026 ​ % Change ​ 2025 Net sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Steel Operations Segment $ 4,138,096 ​ 22% ​ $ 3,384,129 ​ $ 7,794,860 ​ 19% ​ $ 6,538,559 Metals Recycling Operations Segment ​ 1,265,014 ​ 9% ​ ​ 1,162,153 ​ ​ 2,390,446 ​ 7% ​ ​ 2,234,660 Steel Fabrication Operations Segment ​ 393,861 ​ 16% ​ ​ 340,672 ​ ​ 749,315 ​ 8% ​ ​ 693,135 Aluminum Operations Segment ​ 518,917 ​ 455% ​ ​ 93,567 ​ ​ 761,016 ​ 292% ​ ​ 194,214 Other ​ 540,881 ​ 50% ​ ​ 361,436 ​ ​ 1,031,479 ​ 45% ​ ​ 709,837 ​ ​ 6,856,769 ​ ​ ​ ​ 5,341,957 ​ ​ 12,727,116 ​ ​ ​ ​ 10,370,405 Intra-company ​ (765,212) ​ ​ ​ ​ (776,834) ​ ​ (1,430,701) ​ ​ ​ ​ (1,436,087) ​ $ 6,091,557 ​ 33% ​ $ 4,565,123 ​ $ 11,296,415 ​ 26% ​ $ 8,934,318 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Steel Operations Segment $ 719,842 ​ 89% ​ $ 381,094 ​ $ 1,275,332 ​ 109% ​ $ 609,956 Metals Recycling Operations Segment ​ 47,816 ​ 125% ​ ​ 21,290 ​ ​ 95,283 ​ 103% ​ ​ 47,000 Steel Fabrication Operations Segment ​ 84,593 ​ (9)% ​ ​ 93,114 ​ ​ 174,107 ​ (17)% ​ ​ 209,860 Aluminum Operations Segment ​ (49,858) ​ (23)% ​ ​ (40,627) ​ ​ (114,450) ​ (65)% ​ ​ (69,362) Other ​ (97,545) ​ (49)% ​ ​ (65,659) ​ ​ (180,018) ​ (36)% ​ ​ (132,092) ​ ​ 704,848 ​ ​ ​ ​ 389,212 ​ ​ 1,250,254 ​ ​ ​ ​ 665,362 Intra-company ​ (4,369) ​ ​ ​ ​ (6,357) ​ ​ (11,771) ​ ​ ​ ​ (7,363) ​ $ 700,479 ​ 83% ​ $ 382,855 ​ $ 1,238,483 ​ 88% ​ $ 657,999 ​ Steel Operations Segment 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. Steel Operations Segment Shipments (tons): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2026 ​ % Change ​ 2025 ​ 2026 ​ % Change ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total shipments 3,741,340 ​ 12% ​ 3,349,798 ​ 7,380,208 ​ 8% ​ 6,831,337 Intra-segment shipments (550,172) ​ ​ ​ (368,349) ​ (1,118,503) ​ ​ ​ (689,828) Steel Operations Segment shipments 3,191,168 ​ 7% ​ 2,981,449 ​ 6,261,705 ​ 2% ​ 6,141,509 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ External shipments 3,085,372 ​ 7% ​ 2,888,916 ​ 6,051,496 ​ 2% ​ 5,960,651 ​ 16 Table of Contents Steel Operations Segment Results 2026 vs. 2025 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. 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. 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. ​ 17 Table of Contents Metals Recycling Operations Segment 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. Metals Recycling Operations Segment Shipments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ 2026 ​ % Change ​ 2025 ​ 2026 ​ % Change ​ 2025 Ferrous metal (gross tons) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 1,672,886 ​ 5% ​ 1,596,583 ​ 3,146,343 ​ 3% ​ 3,049,015 Inter-company (1,083,980) ​ ​ ​ (1,051,561) ​ (2,004,070) ​ ​ ​ (1,946,375) External shipments 588,906 ​ 8% ​ 545,022 ​ 1,142,273 ​ 4% ​ 1,102,640 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonferrous metals (thousands of pounds) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total 211,050 ​ (14)% ​ 245,577 ​ 408,435 ​ (15)% ​ 478,657 Inter-company (33,994) ​ ​ ​ (51,574) ​ (61,966) ​ ​ ​ (88,981) External shipments 177,056 ​ (9)% ​ 194,003 ​ 346,469 ​ (11)% ​ 389,676 ​ Metals Recycling Operations Segment Results 2026 vs. 2025 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. 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. 18 Table of Contents Net sales for our metals recycling operations in the first nine months of 2025 increased 6% compared to the same period in 2024, driven by increased ferrous volumes and increased selling prices for both ferrous and nonferrous metals. Ferrous scrap average selling prices increased 2% during the first nine months of 2025 compared to the same period in 2024, while nonferrous average selling prices increased 7%. Ferrous shipments increased 5% and nonferrous shipments decreased 2% in the first nine months of 2025 compared to the first nine months of 2024. Ferrous metal spreads were flat, while nonferrous metal spreads increased 32% in the first nine months of 2025 compared to the first nine months of 2024. As a result of the combination of these volume and metal spread changes, metals recycling operations operating income in the first nine months of 2025 of $78.5 million increased 88% from the first nine months of 2024.Net sales for our metals recycling operations in the first nine months of 2025 increased 6% compared to the same period in 2024, driven by increased ferrous volumes and increased selling prices for both ferrous and nonferrous metals. Ferrous scrap average selling prices increased 2% during the first nine months of 2025 compared to the same period in 2024, while nonferrous average selling prices increased 7%. Ferrous shipments increased 5% and nonferrous shipments decreased 2% in the first nine months of 2025 compared to the first nine months of 2024. Ferrous metal spreads were flat, while nonferrous metal spreads increased 32% in the first nine months of 2025 compared to the first nine months of 2024. As a result of the combination of these volume and metal spread changes, metals recycling operations operating income in the first nine months of 2025 of $78.5 million increased 88% from the first nine months of 2024. Steel Fabrication Operations Segment 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. Steel Fabrication Operations Segment Results 2026 vs. 2025 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. 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. 19 Table of Contents Aluminum Operations Segment 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. ​ Aluminum Operations Segment Results 2026 vs. 2025 ​ 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. ​ Other Consolidated Results Second Quarter Consolidated Results 2026 vs. 2025 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. 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. 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. Other Income, net. Net other income was $22.1 million in the second quarter of 2026, consistent with $22.4 million in the second quarter of 2025. 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. 20 Table of Contents First Six Months Consolidated Results 2026 vs. 2025 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. 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. 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. 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. 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. Liquidity and Capital Resources 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 June 30, 2026, is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and equivalents ​ $ 567,708 ​ ​ ​ ​ ​ ​ Other investments ​ ​ 252,558 ​ ​ ​ ​ ​ ​ Revolver availability ​ ​ 1,185,641 ​ ​ ​ ​ ​ ​ Total liquidity ​ $ 2,005,907 ​ ​ ​ ​ 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. 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 21 Table of Contents 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. 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. 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. 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. 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. 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. Our ability to meet our debt service obligations and reduce our total debt will depend upon our future performance which, in turn, will depend upon general economic, financial, and business conditions, along with competition, legislation and regulatory factors that are largely beyond our control. In addition, we cannot assure that our operating results, cash flows, access to credit markets and capital resources will be sufficient for repayment of our indebtedness in the future. We believe that based upon current levels of operations and anticipated growth, cash flows from operations, together with other available sources of funds, including borrowings under our Facility, if necessary, will be adequate for the next twelve months for making required payments of principal and interest on our indebtedness, funding working capital requirements, and funding anticipated capital expenditures. 22 Table of Contents