B of A Securities analyst Lawson Winder has maintained a Neutral rating on Steel Dynamics (NASDAQ: STLD). The firm lowered the price target to $280, down from the previous $285.

The adjustment reflects a revised outlook on the stock's valuation. Steel Dynamics operates in the steel manufacturing sector.

Rating and Price Target Details

The following table outlines the revised rating and price target:

Steel Dynamics, Inc. expects earnings for the second quarter of 2026 to land between $3.51 and $3.55 per diluted share, signaling a significant rise in profitability. The forecast indicates growth compared to the sequential first quarter 2026 earnings of $2.78 per diluted share and a substantial increase from the prior year second quarter earnings of $2.01 per diluted share. Estimated second quarter earnings have been reduced by $16 million due to asset write-downs related to the decision to relocate the company's planned second satellite aluminum recycled slab center from Arizona to Columbus, Mississippi.

Operational Performance

Second quarter 2026 profitability from the company's steel operations is expected to be meaningfully higher than first quarter results, driven by strong demand and metal margin expansion. Average realized selling values increased more than scrap raw material costs, while order activity remains strong due to persistently low steel inventories. Demand across key end markets remains solid, with non-residential construction, energy, automotive, and industrial sectors leading performance.

Earnings from the metals recycling operations are expected to be similar to sequential first quarter results, as increased ferrous and non-ferrous shipments are expected to be offset by expected nonferrous unrealized hedging losses. Steel fabrication operations earnings are expected to be incrementally below sequential first quarter results, as the benefit from stronger shipments is offset by higher steel raw material input costs. The order backlog is nearly 40% higher than a year ago and extends through the end of the year and into 2027.

Aluminum Operations and Capital Allocation

Second quarter 2026 earnings from the aluminum operations are expected to improve significantly compared to first quarter sequential results, based on increased shipments and higher realized pricing. The aluminum team continues to make strong progress on the commissioning and startup of the aluminum flat rolled products mill in Columbus, Mississippi. Two of the three cold mills are now operational, and the third cold mill is expected to begin qualifying material in July. The first of two Continuous Annealing and Solution Heat (CASH) lines is operating and shipping material for customer qualification, while the second CASH line is expected to begin material qualifications in the fourth quarter 2026.

The company has repurchased $170 million, or one half of one percent, of its common stock so far during the second quarter 2026. Steel Dynamics plans to release its second quarter 2026 earnings after the market closes on July 20, 2026, and will hold a conference call the next day at 11:00 a.m. Eastern Daylight Time.