Item 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Item 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Steel Operations Segment

Aluminum Operations Segment

Metals Recycling Operations Segment

Steel Fabrication Operations Segment

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


		Page

Management’s Report on Internal Control Over Financial Reporting		51

Reports of Independent Registered Public Accounting Firm (PCAOB ID 42)		52

Consolidated Balance Sheets as of December 31, 2025 and 2024		56

Consolidated Statements of Income for each of the three years in the period ended December 31, 2025		57

Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2025		58

Consolidated Statements of Equity for each of the three years in the period ended December 31, 2025		59

Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2025		60

Notes to Consolidated Financial Statements		61

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Steel Dynamics, Inc. is responsible for the preparation and integrity of the company’s consolidated financial statements and for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a – 15(f) of the Exchange Act, for the company (including its consolidated subsidiaries). We maintain accounting and internal control systems which are intended to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, transactions are executed in accordance with management’s authorization, and accounting records are reliable for preparing financial statements in accordance with accounting principles generally accepted in the United States. We are dedicated to ensuring that we maintain the high standards of financial accounting and reporting that we have established. Our culture demands integrity and an unyielding commitment to strong internal control practices and policies.

Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles; and provide reasonable assurance that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not always prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.

We completed the acquisition of the remaining 55% interest in New Process Steel, L.P. (NPS) on December 1, 2025. In conducting our evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2025, we have elected to exclude NPS from our evaluation in the year of acquisition as permitted by the Securities and Exchange Commission. NPS constituted approximately 3% and 5% of the company’s total and net assets, respectively, as of December 31, 2025, and 0.4% of the company’s net sales for the year then ended.

Under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting. The framework on which such evaluation was based upon is contained in the report entitled “Internal Control—Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the “COSO criteria”). Based on that evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2025, the end of the period covered by this report.


/s/ Mark D. Millett		/s/ Theresa E. Wagler
Chief Executive Officer		Executive Vice President and Chief Financial Officer
(Principal Executive Officer)		(Principal Financial Officer)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of Steel Dynamics, Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Steel Dynamics, Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Steel Dynamics, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

As indicated in the accompanying Management's Report on Internal Control Over Financial Reporting, management's assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of New Process Steel, L.P., which is included in the 2025 consolidated financial statements of the Company and constituted 3% and 5% of total and net assets, respectively, as of December 31, 2025, and 0.4% of net sales, for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of New Process Steel, L.P.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 27, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Indianapolis, Indiana

February 27, 2026

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of Steel Dynamics, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Steel Dynamics, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 27, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the account or disclosure to which it relates.


	Valuation of Goodwill
Description of__the Matter	At December 31, 2025, the Company’s goodwill was approximately $477 million. As discussed in Note 1 of the consolidated financial statements, the Company performs an impairment test for goodwill at least annually or when indicators of impairment exist. The Company performed a qualitative assessment as of October 1, 2025, to assess if it is more likely than not that the fair value of a reporting unit exceeds its carrying amount.
	Auditing management’s annual goodwill impairment test was complex and judgmental as management considers the impact of several factors on the Company overall and each reporting unit individually including assessing the qualitative factors to be considered in the qualitative goodwill impairment assessment, changes in the carrying amount of the reporting unit, macroeconomic conditions (including changes in interest and discount rates), industry and market conditions, recent and projected financial performance, the Company’s competitive position and other factors. Significant judgment is involved in evaluating the totality of all factors to determine whether it is more likely than not that the fair value of the reporting unit exceeds its carrying value.
How We__Addressed the__Matter in Our__Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment testing process, including controls over management’s review of the qualitative factors described above.
	To test management’s conclusion that it is more likely than not that the fair values of the Company’s reporting units exceed their carrying amounts, we performed audit procedures that included, among others, assessing the reasonableness of the qualitative factors considered within the analyses, testing the evaluation of the qualitative factors and the underlying data used by the Company in its analyses. We evaluated management’s assessment of the qualitative factors for each reporting unit by comparing to current industry and economic trends, current and historical results and key business drivers for each reporting unit, comparing the Company’s share price trends to historical amounts, and other relevant factors, including considering consistency with evidence obtained in other parts of the audit and evaluating whether any contrary evidence exists.
	Valuation of Acquired Customer Relationships Intangible Asset
Description of__the Matter	As described in Note 2 to the consolidated financial statements, on December 1, 2025, the Company completed the acquisition of the remaining 55% interest in New Process Steel, L.P. for a purchase price of $229 million. The Company measured the assets and liabilities assumed at fair value, which resulted in the recognition of a customer relationships intangible asset of $96 million.
	Auditing the valuation of the acquired customer relationships intangible asset required auditor judgment due to the nature and extent of audit effort in evaluating certain assumptions required to estimate the fair value using a multi-period excess earnings method, which is a specific discounted cash flow method. In particular, the fair value measurement of customer relationships utilized management’s forecasts of revenue growth rates and projected margins to estimate the discounted cash flows.
How We__Addressed the__Matter in Our__Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process to estimate the fair value of the acquired customer relationships intangible asset, including controls over management’s review of the significant assumption described above.
	To test the fair value estimate of the customer relationships intangible asset, we performed audit procedures which included, among others, testing the significant assumptions described above, testing the completeness and accuracy of the underlying data, and evaluating the valuation methodology with the assistance of our valuation specialists. We compared the significant assumptions to current industry and economic trends and historical results of the acquired business. We performed sensitivity analyses to evaluate the impact of changes in the significant assumptions to the fair value of the customer relationships intangible asset.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 1999.

Indianapolis, Indiana

February 27, 2026

STEEL DYNAMICS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	December 31,
Assets	2025		2024
Current assets
Cash and equivalents	$	769,878	$	589,464
Short-term investments		-		147,811
Accounts receivable, net of allowances for credit losses of $5,419 and $7,728
as of December 31, 2025 and 2024, respectively		1,680,249		1,362,969
Accounts receivable-related parties		2,411		54,230
Inventories		3,738,516		3,113,733
Other current assets		293,117		163,131
Total current assets		6,484,171		5,431,338

Property, plant and equipment, net		8,569,466		8,117,988
Intangible assets, net		331,290		227,234
Goodwill		477,471		477,471
Other assets		557,382		681,202
Total assets	$	16,419,780	$	14,935,233
Liabilities and Equity
Current liabilities
Accounts payable	$	1,223,776	$	972,645
Accounts payable-related parties		7,582		7,267
Income taxes payable		67,315		3,783
Accrued payroll and benefits		361,494		373,216
Accrued expenses		427,432		366,682
Current maturities of long-term debt		34,655		426,990
Total current liabilities		2,122,254		2,150,583

Long-term debt		4,176,508		2,804,017
Deferred income taxes		1,004,375		902,186
Other liabilities		186,232		133,201
Total liabilities		7,489,369		5,989,987

Commitments and contingencies

Redeemable noncontrolling interests		141,226		171,212

Equity
Common stock voting, $.0025 par value; 900,000,000 shares authorized;
268,644,427 and 268,377,165 shares issued; and 144,940,102 and 151,117,153
shares outstanding, as of December 31, 2025 and 2024, respectively		653		652
Treasury stock, at cost; 123,704,325 and 117,260,012 shares,
as of December 31, 2025 and 2024, respectively		(7,980,549)		(7,094,266)
Additional paid-in capital		1,248,634		1,229,819
Retained earnings		15,689,042		14,798,082
Accumulated other comprehensive loss		(598)		-
Total Steel Dynamics, Inc. equity		8,957,182		8,934,287
Noncontrolling interests		(167,997)		(160,253)
Total equity		8,789,185		8,774,034
Total liabilities and equity	$	16,419,780	$	14,935,233

See notes to consolidated financial statements.

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)



	Years Ended December 31,
	2025		2024		2023

Net sales
Unrelated parties	$	17,554,583	$	16,819,648	$	18,115,312
Related parties		621,998		720,742		680,004
Total net sales		18,176,581		17,540,390		18,795,316

Costs of goods sold		15,784,398		14,737,804		14,749,433
Gross profit		2,392,183		2,802,586		4,045,883

Selling, general and administrative expenses		765,308		664,119		588,621
Profit sharing		122,986		164,904		272,033
Amortization of intangible assets		27,903		30,526		34,048
Operating income		1,475,986		1,943,037		3,151,181

Interest expense, net of capitalized interest		70,043		56,347		76,484
Other (income) expense, net		(87,028)		(96,191)		(144,246)
Income before income taxes		1,492,971		1,982,881		3,218,943

Income tax expense		305,660		432,925		751,611
Net income		1,187,311		1,549,956		2,467,332

Net income attributable to noncontrolling interests		(1,716)		(12,822)		(16,450)
Net income attributable to Steel Dynamics, Inc.	$	1,185,595	$	1,537,134	$	2,450,882



Basic earnings per share attributable to Steel Dynamics,
Inc. stockholders	$	8.02	$	9.89	$	14.72

Weighted average common shares outstanding		147,806		155,420		166,552

Diluted earnings per share attributable to Steel Dynamics, Inc.
stockholders, including the effect of assumed conversions
when dilutive	$	7.99	$	9.84	$	14.64

Weighted average common shares and share equivalents outstanding		148,404		156,136		167,431

Dividends declared per share	$	2.00	$	1.84	$	1.70

See notes to consolidated financial statements.

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)



	Years Ended December 31,
	2025		2024		2023

Net income	$	1,187,311	$	1,549,956	$	2,467,332
Other comprehensive loss - net unrealized loss on cash flow
hedging derivatives, net of income tax benefits of $192, $135, $149,
for 2025, 2024 and 2023, respectively		(598)		(421)		(468)
Comprehensive income		1,186,713		1,549,535		2,466,864

Comprehensive income attributable to noncontrolling interests		(1,716)		(12,822)		(16,450)
Comprehensive income attributable to Steel Dynamics, Inc.	$	1,184,997	$	1,536,713	$	2,450,414

See notes to consolidated financial statements.

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands)



													Accumulated
									Additional				Other						Redeemable
	Shares				Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Common		Treasury		Stock		Stock		Capital		Earnings		Income (Loss)		Interests		Equity		Interests
Balances at January 1, 2023		172,936		94,826	$	650	$	(4,459,513)	$	1,212,566	$	11,375,765	$	889	$	(216,055)	$	7,914,302	$	181,503
Dividends declared		-		-		-		-		-		(280,501)		-		-		(280,501)		-
Noncontrolling investors, net		-		-		-		-		-		-		-		1,254		1,254		(10,291)
Share repurchases		(13,394)		13,394		-		(1,452,203)		-		-		-		-		(1,452,203)		-
Equity-based compensation		476		(125)		1		14,110		5,044		(556)		-		-		18,599		-
Net income		-		-		-		-		-		2,450,882		-		16,450		2,467,332		-
Other comprehensive loss, net of tax		-		-		-		-		-		-		(468)		-		(468)		-
Balances at December 31, 2023		160,018		108,095	$	651	$	(5,897,606)	$	1,217,610	$	13,545,590	$	421	$	(198,351)	$	8,668,315	$	171,212
Dividends declared		-		-		-		-		-		(284,122)		-		-		(284,122)		-
Noncontrolling investors, net		-		-		-		-		1,350		-		-		25,276		26,626		-
Share repurchases		(9,432)		9,432		-		(1,212,164)		-		-		-		-		(1,212,164)		-
Equity-based compensation		531		(267)		1		15,504		10,859		(520)		-		-		25,844		-
Net income		-		-		-		-		-		1,537,134		-		12,822		1,549,956		-
Other comprehensive loss, net of tax		-		-		-		-		-		-		(421)		-		(421)		-
Balances at December 31, 2024		151,117		117,260	$	652	$	(7,094,266)	$	1,229,819	$	14,798,082	$	-	$	(160,253)	$	8,774,034	$	171,212
Dividends declared		-		-		-		-		-		(294,132)		-		-		(294,132)		-
Noncontrolling investors, net		-		-		-		-		-		-		-		(9,460)		(9,460)		(29,986)
Share repurchases		(6,680)		6,680		-		(900,870)		-		-		-		-		(900,870)		-
Equity-based compensation		503		(236)		1		14,587		18,815		(503)		-		-		32,900		-
Net income		-		-		-		-		-		1,185,595		-		1,716		1,187,311		-
Other comprehensive loss, net of tax		-		-		-		-		-		-		(598)		-		(598)		-
Balances at December 31, 2025		144,940		123,704	$	653	$	(7,980,549)	$	1,248,634	$	15,689,042	$	(598)	$	(167,997)	$	8,789,185	$	141,226

See notes to consolidated financial statements.

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	Years Ended December 31,
	2025		2024		2023

Operating activities:
Net income	$	1,187,311	$	1,549,956	$	2,467,332

Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization		551,390		478,907		437,804
Equity-based compensation		68,983		66,589		61,744
Deferred income taxes		94,397		(42,583)		55,665
Other adjustments		(10,208)		(5,507)		(19,716)
Changes in certain assets and liabilities:
Accounts receivable		(157,456)		191,108		446,765
Inventories		(423,435)		(221,036)		232,282
Other assets		(77,276)		(13,718)		(23,777)
Accounts payable		206,843		(67,361)		(30,148)
Income taxes receivable/payable		52,179		10,183		56,756
Accrued expenses		(43,194)		(102,035)		(164,779)
Net cash provided by operating activities		1,449,534		1,844,503		3,519,928

Investing activities:
Purchases of property, plant and equipment		(948,025)		(1,868,006)		(1,657,905)
Purchases of short-term investments		(39,571)		(739,340)		(1,145,493)
Proceeds from maturities of short-term investments		186,996		1,312,294		1,054,742
Business combinations, net of cash acquired		(175,774)		-		-
Other investing activities		1,417		(8,308)		(221,593)
Net cash used in investing activities		(974,957)		(1,303,360)		(1,970,249)

Financing activities:
Issuance of current and long-term debt		3,553,683		2,482,919		1,365,664
Repayment of current and long-term debt		(2,567,864)		(2,324,058)		(1,367,553)
Dividends paid		(291,176)		(282,616)		(271,317)
Purchases of treasury stock		(900,870)		(1,212,164)		(1,452,203)
Other financing activities		(88,088)		(16,678)		(51,725)
Net cash used in financing activities		(294,315)		(1,352,597)		(1,777,134)

Increase (decrease) in cash and equivalents, and restricted cash		180,262		(811,454)		(227,455)
Cash and equivalents, and restricted cash at beginning of period		595,010		1,406,464		1,633,919

Cash and equivalents, and restricted cash at end of period	$	775,272	$	595,010	$	1,406,464

Supplemental disclosure information:
Cash paid for interest	$	156,749	$	100,978	$	103,165

See notes to consolidated financial statements.

Note 1. Description of the Business and Summary of Significant Accounting Policies

Description of the Business

Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a leading industrial metals solutions company, with facilities located throughout the United States and Mexico. SDI is one of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform. The company also has aluminum operations, further diversifying its product offerings to supply aluminum flat rolled products with higher recycled content to the countercyclical, sustainable beverage can industry, as well as the automotive and industrial sectors. The company has four reporting segments: steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Approximately 4% of the company’s workforce in four locations is represented by collective bargaining agreements, and agreements affecting 0.1% of the company’s employees at one location expires during 2026.

Steel Operations Segment

Steel operations include the company’s 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, Roanoke Bar Division, and Steel of West Virginia; steel coating and processing operations at The Techs, Heartland Flat Roll Division, United Steel Supply, New Process Steel, L.P. (“NPS”) (acquired December 1, 2025), and Vulcan Threaded Products, Inc.; and warehouse operations in Mexico; and a 75% controlling equity interest in SDI Biocarbon Solutions, LLC.

Metals Recycling Operations Segment

Metals recycling operations include the company’s Omni ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services primarily located throughout the United States and in Central and Northern Mexico.

Steel Fabrication Operations Segment

Steel fabrication operations include the company’s 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.

Aluminum Operations Segment

Aluminum operations include a 650,000-metric-ton recycled aluminum flat rolled products mill in Columbus, Mississippi; two 150,000-metric-ton satellite recycled aluminum slab centers, one in Central Mexico and one under construction in the Southwest U.S.; and an ancillary recycled aluminum deox-rod facility. The flat rolled products mill is a joint venture, of which SDI has a 94.4% controlling equity interest, with Unity Aluminum, Inc. The aluminum flat rolled products mill began operations in the second half of 2025.

Other

Other operations consist of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of a joint venture and the company’s idled Minnesota ironmaking operations. Redeemable noncontrolling interests related to Mesabi Nugget (owned 86% by SDI) are $111.2 million at December 31, 2025 and 2024. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments, and certain profit sharing expenses.

Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued)

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned or controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling and redeemable noncontrolling interests represent the noncontrolling owners' proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries.

Use of Estimates

These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; allowances for credit losses for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions.

Revenue from Contracts with Customers

In the steel, metals recycling, and aluminum operations segments, revenue is recognized at the point in time the performance obligation is satisfied, and control of the product is transferred to the customer upon shipment or delivery, at the amount of consideration the company expects to receive, including any variable consideration. The variable consideration included in the company’s steel and aluminum operations segment contracts, which is not constrained, includes estimated product returns and customer claims based on historical experience, and may include volume rebates which are recorded on an expected value basis. Revenue recognized is limited to the amount the company expects to receive. The company does not exercise significant judgments in determining the timing of satisfaction of performance obligations or the transaction price. Shipment of products to customers is considered a fulfillment activity with amounts billed to customers included in the amount of consideration for the products and costs associated with such activities included in cost of goods sold.

The company’s steel fabrication operations segment recognizes revenue over time at the amount of consideration the company expects to receive. Revenue is measured on an output method representing completed fabricated tons to date as a percentage of total tons required for each contract. Revenue from fabrication of tons remaining on partially fabricated customer contracts as of a reporting date, and future revenue from yet to be fabricated customer contracts, has not been disclosed under the practical expedient in Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (ASC 606), paragraph ASC 606-10-50-14 related to customer contracts with expected duration of one year or less. The company does not exercise significant judgments in determining the timing of satisfaction of performance obligations or the transaction price. Shipment of products to customers, which occurs after control over the product has transferred to the customer and revenue is recognized, is considered a fulfillment activity with amounts billed to customers included in the amount of consideration for the products and costs associated with such activities included in cost of goods sold.

Payments from customers are generally due within 30 days of invoicing, which generally occurs upon shipment of the products. Shipment for the steel fabrication operations segment generally occurs within 30 days of satisfaction of the performance obligation and revenue recognition. The company does not have financing components. Payments from customers have historically been within these terms, however, payments for non-U.S. sales may extend longer.

Refer to Note 12. Segment Information for disaggregated revenue by segment to external, external non-United States, and other segment customers.

Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued)

Credit Losses

The company is exposed to credit risk in the event of nonpayment of accounts receivable by customers. The company mitigates its exposure to credit risk, which it generally extends on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. The allowance for credit losses for accounts receivable is based on the company’s reasonable estimate of known credit risks and historical experience, adjusted for current and anticipated economic and other pertinent factors affecting the company’s customers, that may differ from historical experience. Customer accounts receivable are written off when all collection efforts have been exhausted and the amounts are deemed uncollectible.

At December 31, 2025 and 2024, the company reported $1,682.7 million and $1,417.2 million, respectively, of accounts receivable, net of allowances for credit losses of $5.4 million and $7.7 million, respectively. Changes in the allowance were not significant for the years ended December 31, 2025, 2024, or 2023.

Cash and Equivalents, and Restricted Cash

Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.4 million at December 31, 2025, $5.5 million at December 31, 2024, $5.6 million at December 31, 2023, and $5.5 million at December 31, 2022, which is recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets.

Short-Term Investments

Short-term investments include investments with maturity dates of longer than three months but less than one year when purchased. The company’s short-term investments are classified as trading securities. There were no short-term investments held as of December 31, 2025. Short-term investments held as of December 31, 2024 consisted of commercial paper ($19.7 million), US Treasuries ($113.1 million), and certificates of deposit ($15.0 million). Interest income from invested cash and short-term investments was $36.8 million, $90.1 million, and $111.9 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is recorded in other (income) expense, net as earned.

Inventories

Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials (including scrap, purchased steel substrate and aluminum slabs) and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following at December 31 (in thousands):


	2025		2024
Raw materials	$	1,741,873	$	1,323,920
Supplies		815,895		805,035
Work in progress		414,492		269,031
Finished goods		766,256		715,747
Total inventories	$	3,738,516	$	3,113,733

Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued)

Property, Plant and Equipment

Property, plant and equipment are stated at cost which includes capitalized interest on construction in progress amounts, and is reduced by proceeds received from certain state and local government grants and other capital cost reimbursements, except for assets acquired in acquisitions which are valued at fair value at the purchase date. The company assigns each fixed asset a useful life ranging from 3 to 15 years for plant, machinery and equipment, and 5 to 40 years for buildings and improvements. Repairs and maintenance are expensed as incurred. Depreciation is provided utilizing the straight-line depreciation methodology, or the units-of-production depreciation methodology for certain production-related steel and aluminum operations segment assets, based on units produced, subject to minimum and maximum levels. Depreciation expense was $515.0 million, $441.2 million, and $397.0 million for the years ended December 31, 2025, 2024, and 2023, respectively.

The company’s property, plant and equipment consisted of the following at December 31 (in thousands):


	2025		2024
Land and improvements	$	849,391	$	801,210
Buildings and improvements		1,907,029		1,487,742
Plant, machinery and equipment		9,193,744		7,666,513
Construction in progress		1,667,367		2,767,013
		13,617,531		12,722,478
Less accumulated depreciation		5,048,065		4,604,490
Property, plant and equipment, net	$	8,569,466	$	8,117,988

Intangible Assets

The company’s intangible assets consisted of the following at December 31 (in thousands):


						Weighted
						Average
					Useful	Amortization
	2025		2024		Life	Period
Customer, vendor and scrap generator relationships	$	539,505	$	444,812	8 to 25 years	23 years
Trade names		183,579		147,950	15 to 25 years	21 years
		723,084		592,762		22 years
Less accumulated amortization		391,794		365,528
	$	331,290	$	227,234

The company utilizes an accelerated amortization methodology for customer, vendor and scrap generator relationships in order to follow the pattern in which the economic benefits of the amounts are anticipated to be consumed. Trade names are amortized using a straight-line methodology. Amortization of intangible assets was $27.9 million, $30.5 million, and $34.0 million for the years ended December 31, 2025, 2024, and 2023, respectively.

Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued)

Estimated amortization expense related to amortizable intangibles for the years ending December 31 is as follows (in thousands):



2026	$	30,840
2027		28,441
2028		27,231
2029		24,861
2030		23,168
Thereafter		196,749
Total	$	331,290

Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets

The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. The impairment loss is measured by comparing the fair value of the assets to its carrying amount. The company considers various factors and determines whether an impairment test is necessary, including by way of examples, a significant and prolonged deterioration in operating results and/or projected cash flows, significant changes in the extent or manner in which an asset is used, technological advances with respect to assets which would potentially render them obsolete, the company’s strategy and capital planning, and the economic environment in markets to be served.

Goodwill

The company’s goodwill consisted of the following at December 31, 2025 and 2024 (in thousands):

Impairment of Goodwill

At least once annually (as of October 1), or when indicators of impairment exist, the company performs a goodwill impairment analysis. Goodwill is allocated to various reporting units, which are generally one level below the company’s operating segments. If the fair value exceeds the carrying value of the reporting unit, there is no impairment. If the carrying amount exceeds the fair value, the company recognizes an impairment loss in the amount by which the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The company has the option to consider qualitative factors to assess if it is more likely than not that the fair value of a reporting unit exceeds its carrying value. If elected to bypass the qualitative assessment or if indications of a potential impairment exist, the company performs a quantitative test.

Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued)

When conducting a qualitative assessment, the company considers the impact of several factors on the company overall and each reporting unit individually including the timing and results of prior quantitative tests performed, changes in the carrying amount of the reporting unit, macroeconomic conditions (including changes in interest and

discount rates), industry and market conditions, recent and projected financial performance, the company’s competitive position and other factors. When conducting a quantitative test, the fair value of the reporting unit is determined by

using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and for some years by using a market approach based upon an analysis of valuation metrics of comparable peer companies, using Level 3 fair value inputs as provided for under ASC 820, Fair Value Measurement.

No impairment was identified during the company’s 2025, 2024 or 2023 annual goodwill impairment analysis. During 2025 and 2024, the company performed a qualitative assessment and performed a quantitative test in 2023.

Equity-Based Compensation

The company has several stock-based employee compensation plans which are more fully described in Note 6. Equity-Based Incentive Plans. Compensation expense for restricted stock units, deferred stock units, restricted stock, stock appreciation awards, and performance awards is recorded over the vesting periods using the fair value as determined by the closing market value of the company’s common stock on the day prior to grant date, and with respect to performance awards, an estimate of probability of award achievement during the performance period. The company recognizes forfeitures as they occur. Compensation expense for these stock-based employee compensation plans was $66.8 million, $65.6 million, and $60.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.

Income Taxes

The company accounts for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted rates expected to be in effect during the year in which the basis differences reverse.

Earnings Per Share

Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, restricted stock, and performance awards, and are excluded from the computation in periods in which they have an anti-dilutive effect. There were 62,000 anti-dilutive common share equivalents for the three-month period ended March 31, 2025 excluded from common share equivalents for the year ended December 31, 2025. There were 269,000 anti-dilutive common share equivalents as of and for the year ended December 31, 2024.

Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued)

The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data):


	2025						2024
	Net Income		Shares		Per Share		Net Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic earnings per share	$	1,185,595		147,806	$	8.02	$	1,537,134		155,420	$	9.89
Dilutive common share equivalents		-		598				-		716
Diluted earnings per share	$	1,185,595		148,404	$	7.99	$	1,537,134		156,136	$	9.84


	2023
	Net Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
Basic earnings per share	$	2,450,882		166,552	$	14.72
Dilutive common share equivalents		-		879
Diluted earnings per share	$	2,450,882		167,431	$	14.64

Concentration of Credit Risk

Financial instruments that potentially subject the company to significant concentrations of credit risk principally consist of temporary cash investments and accounts receivable. When advantageous, the company places its temporary cash with high credit quality financial institutions and companies and limits the amount of credit exposure from any one entity. The company is exposed to credit risk in the event of nonpayment by customers. The company mitigates its exposure to credit risk, which it generally extends initially on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable.

Derivative Financial Instruments

The company routinely enters into exchange traded futures to manage price risk associated with nonferrous metal inventory, as well as purchases and sales of nonferrous (primarily aluminum and copper) and ferrous metals, to reduce exposure to commodity related price fluctuations. These exchange traded futures contracts meet the definition of derivative financial instruments. The company does not enter into these derivative financial instruments for speculative purposes. The company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as cash flow hedges must be adjusted to fair value through earnings. For the effective fair value hedges, the hedged item is recognized on the balance sheet at fair value. Changes in the fair value of the hedged balance sheet item are recognized as an offset against the change in fair value of the derivative in cost of goods sold and included in cash flows from operations. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings for fair value hedges. Changes in the fair value of cash flow hedges are recognized in other comprehensive income, until the hedged item is recognized in earnings.

Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued)

The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. The fair value of the company’s derivative instruments and required margin deposit totaled $56.2 million and $26.0 million at December 31, 2025 and 2024, respectively, including required margin deposits of $112.2 million and $12.7 million at December 31, 2025 and 2024, respectively, which are reflected in other current assets in the consolidated balance sheets. The fair value of the derivative instruments is disclosed in Note 7. Fair Value Measurements. Total gains and losses related to derivatives in fair value hedging relationships, as well as those not designated as hedging instruments, are recognized in costs of goods sold. The company recognized losses of $76.7 million and gains of $11.4 million and $10.0 million for the years ended December 31, 2025, 2024, and 2023, respectively. Derivatives accounted for as cash flow hedges, for which gains and losses are recognized in other comprehensive income, along with net amounts reclassified from accumulated other comprehensive income, were insignificant for the years ended December 31, 2025, 2024, and 2023.

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures to require entities to disclose specific categories in the rate reconciliation, the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and income tax expense or benefit from continuing operations (separated by federal, state and foreign). The company adopted ASU 2023-09 during the year ended December 31, 2025. See Note 4. Income Taxes.

Recently Issued Not Yet Adopted Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entitles to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.

Note 2. Business Combinations

United Steel Supply

As of December 31, 2024, the company had a 90% controlling interest in United Steel Supply, LLC. On April 1, 2025, a noncontrolling member of USS exercised its option to require SDI to purchase its 5% equity interest, increasing SDI’s ownership to 95%. The remaining noncontrolling member has the option to require SDI to purchase, and SDI has the option to acquire, the outstanding 5% equity interest of USS. Redeemable noncontrolling interests related to USS are $30.0 million and $60.0 million at December 31, 2025, and 2024, respectively.

New Process Steel, L.P.

On December 1, 2025, the company acquired the remaining 55% equity interest in New Process Steel, L.P., increasing its ownership from 45% to 100% and obtaining control. NPS is a metals solutions and distribution supply-chain management company headquartered in Houston, Texas, with a focus toward growing its value-added manufacturing applications. The acquisition of NPS expands the company’s exposure to value-added manufacturing opportunities. Prior to the 2025 acquisition date, the company accounted for its 45% minority equity interest in NPS as an equity-method investment. Upon the acquisition of the remaining interest, the previously held equity interest was remeasured to an acquisition-date fair value of $220.4 million, based on the purchase price of the remaining 55% interest. The company recognized a gain of $6.5 million as a result of remeasuring its prior equity interest in NPS before the business combination, included in other (income) expense, net in the consolidated statements of income for the year ended December 31, 2025.

Note 2. Business Combinations (Continued)

The total purchase consideration consisted of the fair value of the previously held equity interest and the consideration transferred to acquire the remaining ownership interest. Operating results of NPS from and after December 1, 2025, have been included in the company’s consolidated financial statements within the steel operations segment. The acquisition-date fair value of the consideration transferred totaled $449.3 million, which consisted of the following (in thousands):


Cash paid for remaining 55% interest	$	228,935
Fair value of previously held equity interest		220,366
Total consideration	$	449,301

The aggregate purchase price was preliminarily allocated to the identified assets acquired and liabilities assumed of NPS at December 1, 2025, based on their estimated acquisition date fair values (in thousands):


Cash	$	53,161
Accounts receivable		106,021
Inventory		205,955
Property, plant & equipment		45,752
Other assets		59,030
Identifiable intangible assets		131,960
Total identifiable assets acquired		601,879
Accounts payable		63,963
Other liabilities		88,615
Total liabilities assumed		152,578
Total consideration	$	449,301

The company is in the process of obtaining third-party valuations of property, plant, and equipment and certain intangible assets. Accordingly, the provisional amounts included above are subject to change during the measurement period. The identifiable intangible assets acquired include customer relationships of $96.3 million and trade names of $35.6 million. The company estimated the provisional amount for the trade name based on a relief from royalty method under the income approach and estimated the provisional amount for the customer relationships based on a multi-period excess earnings method, which is a specific discounted cash flow method under the income approach. The company utilizes an accelerated amortization methodology to follow the pattern in which the economic benefits of the customer relationship intangible asset are anticipated to be consumed over its 25 year assigned life. The company amortized the intangible asset related to the trade name using a straight-line methodology over its 25 year assigned life.

New Process Steel Unaudited Pro Forma Results

NPS’s operating results have been reflected in the company’s financial statements since the effective date of the acquisition, December 1, 2025. The following unaudited pro forma information is presented below as if the NPS acquisition was completed as of January 1, 2024 (in thousands):


	Years Ended December 31,
		2025		2024
Net sales	$	18,647,759	$	18,067,014
Net income attributable to Steel Dynamics, Inc.		1,189,831		1,542,398

The information presented is for informational purposes only and is not necessarily indicative of the actual results that would have occurred had the acquisition been consummated at the beginning of the respective period, nor are they necessarily indicative of future operating results of the combined companies under the ownership and management of the company. The amounts have been calculated after applying the company’s accounting policies and adjusting the results of NPS to reflect the additional depreciation and amortization that would have been charged assuming the fair

value adjustments to property, plant, and equipment and intangible assets had been applied on January 1, 2024, together with the consequential tax effects.

Note 3. Long-Term Debt

The company’s borrowings consisted of the following at December 31 (in thousands):


	2025		2024
2.400% senior notes due 2025		-		400,000
5.000% senior notes due 2026		-		400,000
1.650% senior notes due 2027		350,000		350,000
4.000% senior notes due 2028		650,000		-
3.450% senior notes due 2030		600,000		600,000
3.250% senior notes due 2031		500,000		500,000
5.375% senior notes due 2034		600,000		600,000
5.250% senior notes due 2035		750,000		-
3.250% senior notes due 2050		400,000		400,000
5.750% senior notes due 2055		400,000		-
Other obligations		36,610		28,803
Total debt		4,286,610		3,278,803
Less debt issuance costs and original issue discounts		75,447		47,796
Total amounts outstanding		4,211,163		3,231,007
Less current maturities		34,655		426,990
Long-term debt	$	4,176,508	$	2,804,017

Financing Activity

In March 2025, the company issued $600.0 million of 5.250% notes due 2035 and $400.0 million of 5.750% notes due 2055. Proceeds from these notes were used for repayment of the company’s $400.0 million of 2.400% notes due 2025 and for other general corporate purposes.

In November 2025, the company issued $650.0 million of 4.000% notes due 2028 and an additional $150.0 million of 5.250% notes due 2035. Proceeds from these notes were used to redeem the company’s $400.0 million of 5.000% notes due 2026 and for other general corporate purposes.

Senior Credit Facility, due 2028

On July 19, 2023, the company entered into an unsecured credit agreement comprised of a senior unsecured credit facility (Facility), which provides a $1.2 billion unsecured Revolver, maturing July 2028. Subject to certain conditions, the company has the opportunity to increase the Facility size by $500.0 million. The unsecured Facility is available to fund working capital, capital expenditures, and other general corporate purposes. The Facility contains financial covenants and other covenants pertaining to the company’s ability to incur indebtedness and permit liens on certain assets. The company’s ability to borrow funds within the terms of the unsecured Facility is dependent upon its continued compliance with financial and other covenants. At December 31, 2025, the company had $1.2 billion of availability on the Facility, $9.2 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding.

The Facility pricing grid is adjusted quarterly and is based on either the company’s leverage of net debt (as defined in the Facility) to last-twelve-months (LTM) consolidated EBITDA as defined in the Facility (earnings before interest, taxes, depreciation, amortization, and certain other non-cash items as allowed in the Facility), or the company’s credit ratings. The minimum pricing is adjusted Secured Overnight Financing Rate (SOFR) plus 1.000% and the maximum pricing is adjusted SOFR plus 1.75%. In addition, the company is subject to an unused commitment fee of between 0.11% and 0.275% (based on either the leverage of net debt to LTM consolidated EBITDA, or the company’s credit ratings) which is applied to the unused portion of the Facility.

Note 3. Long-Term Debt (Continued)

The financial covenants under the Facility state that the company must maintain an interest coverage ratio of not less than 2.50:1.00. The company’s interest coverage ratio is calculated by dividing its LTM consolidated EBITDA by its 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 December 31, 2025, the company’s interest coverage ratio and debt to capitalization ratio were 13.33:1.00 and 0.32:1.00, respectively. The company was, therefore, in compliance with these covenants at December 31, 2025, and anticipates remaining in compliance during the next twelve months.

Senior Unsecured Notes

The company has eight different tranches of senior unsecured notes (Notes) outstanding. These Notes are in equal right of payment with all existing and future senior unsecured indebtedness and are senior in right of payment to all subordinated indebtedness. These Notes contain provisions that allow the company to redeem the Notes on or after the dates and at redemption prices (expressed as a percentage of principal amount) listed below.

The company’s $350.0 million of 1.650% senior notes due 2027 mature on October 15, 2027, with interest payable semi-annually. Early redemption is permitted any time prior to August 15, 2027, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.20%; and as of August 15, 2027, at 100.000%.

The company’s $650.0 million of 4.000% senior notes due 2028 mature on December 15, 2028, with interest payable semi-annually. Early redemption is permitted any time prior to November 15, 2028, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.10%; and as of November 15, 2028, at 100.000%.

The company’s $600.0 million of 3.450% senior notes due 2030 mature on April 15, 2030, with interest payable semi-annually. Early redemption is permitted any time prior to January 15, 2030, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.25%; and as of January 15, 2030, at 100.000%.

The company’s $500.0 million of 3.250% senior notes due 2031 mature on January 15, 2031, with interest payable semi-annually. Early redemption is permitted any time prior to October 15, 2030, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.40%; and as of October 15, 2030, at 100.000%.

The company’s $600.0 million of 5.375% senior notes due 2034 mature on August 15, 2034, with interest payable semi-annually. Early redemption is permitted any time prior to May 15, 2034, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.20%; and as of May 15, 2034, at 100.000%.

The company’s $750.0 million of 5.250% senior notes due 2035 mature on May 15, 2035, with interest payable semi-annually. Early redemption is permitted any time prior to February 15, 2035, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.20%; and as of February 15, 2035, at 100.000%.

The company’s $400.0 million of 3.250% senior notes due 2050 mature on October 15, 2050, with interest payable semi-annually. Early redemption is permitted any time prior to April 15, 2050, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.30%; and as of April 15, 2050, at 100.000%.

Note 3. Long-Term Debt (Continued)

The company’s $400.0 million of 5.750% senior notes due 2055 mature on May 15, 2055, with interest payable semi-annually. Early redemption is permitted any time prior to November 15, 2054, at the greater of par or a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.25%; and as of November 15, 2054, at 100.000%.

Other Obligations

Secured Loans. Two of the company’s controlled subsidiaries have entered into financing agreements for certain equipment which bear a weighted average interest rate of 5.15%, with monthly principal and interest payments required through 2033. The outstanding principal balance of these agreements was $3.4 million and $2.4 million at December 31, 2025, and 2024, respectively.

One of the company’s controlled subsidiaries has a secured credit agreement, which matures in March 2026, and provides a revolving variable rate credit facility of up to $30.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory. Interest, which was 5.12% at December 31, 2025, is payable monthly. There were no amounts due under the credit facility at December 31, 2025 or 2024.

Another of the company’s controlled subsidiaries has a secured credit agreement, which matures in June 2028, and provides a revolving variable rate credit facility of up to $125.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory. Interest, which was 5.47% at December 31, 2025, is payable monthly. Amounts due under the credit facility were $33.2 million and $26.4 million at December 31, 2025, and 2024, respectively.

Outstanding Debt Maturities

Maturities of outstanding debt as of December 31, 2025, are as follows (in thousands):


2026	$	34,655
2027		351,099
2028		650,416
2029		198
2030		600,095
Thereafter		2,650,147
	$	4,286,610

The company capitalizes interest on all qualifying construction in progress assets. For the years ended December 31, 2025, 2024, and 2023, total interest costs incurred were $170.6 million, $123.1 million, and $109.5 million, respectively, of which $100.6 million, $66.8 million, and $33.0 million, respectively, were capitalized.

Note 4. Income Taxes

Components of earnings before income taxes and noncontrolling interests for the years ended December 31 are as follows (in thousands):


	2025		2024		2023
United States income	$	1,489,479	$	1,992,814	$	3,198,048
Foreign income (loss)		3,492		(9,933)		20,895
Total income before income taxes	$	1,492,971	$	1,982,881	$	3,218,943

The company files a consolidated federal income tax return. The provision for income tax expense for the years ended December 31 is as follows (in thousands):



	2025		2024		2023
Current income tax expense
Federal	$	172,988	$	409,586	$	600,499
State		32,559		57,942		91,965
Foreign		4,850		7,980		3,482
Total current		210,397		475,508		695,946
Deferred income tax expense (benefit)
Federal		96,693		(26,311)		38,172
State		7,322		(12,476)		15,355
Foreign		(8,752)		(3,796)		2,138
Total deferred		95,263		(42,583)		55,665
Total income tax expense	$	305,660	$	432,925	$	751,611

A reconciliation of the statutory rates to the actual effective tax rates for the years ended December 31 are as follows (in thousands, except percentages):


	2025				2024				2023
U.S. Federal Statutory Tax Rate	$	313,524	21.0	%	$	416,405	21.0	%	$	675,978	21.0	%
State and local income taxes, net of federal income tax effect(a)		31,505	2.1			35,918	1.8			84,784	2.6
Foreign tax effects		(4,635)	(0.3)			6,270	0.3			1,232	0.1
Effect of cross-border tax laws		(2,388)	(0.2)			(5,411)	(0.3)			(2,445)	(0.1)
Tax credits - federal research & development		(35,050)	(2.3)			(18,036)	(0.9)			(11,329)	(0.4)
Nontaxable or nondeductible items		2,240	0.2			(1,557)	(0.1)			(784)	-
Changes in unrecognized tax expense (benefits)		464	-			(664)	-			4,175	0.1
Effective tax rate	$	305,660	20.5	%	$	432,925	21.8	%	$	751,611	23.3	%

(a) State taxes in Indiana, Illinois, Mississippi, and Pennsylvania for 2025, Indiana, Michigan, and California for 2024, and Indiana, Illinois, Mississippi, Pennsylvania, and Michigan for 2023 made up the majority (greater than 50%) of the tax effect in this category.

Note 4. Income Taxes (Continued)

Cash taxes paid, net of refunds, by jurisdiction for the years ended December 31 are as follows (in thousands):


	2025		2024		2023

U.S. Federal	$	116,060	$	399,306	$	560,000
U.S. State and Local
Indiana		-		25,863		13,897
Other States (combined)(b)		27,531		36,672		64,630
Foreign - Mexico		8,409		1,922		4,140
Total income taxes paid, net	$	152,000	$	463,763	$	642,667

(b) All other U.S. state/local jurisdictions individually represented less than 5% and are aggregated into "Other States"

Significant components of the company’s deferred tax assets and liabilities at December 31 are as follows (in thousands):


	2025		2024
Deferred tax assets
Accrued expenses and allowances	$	55,029	$	41,031
Inventories		76,218		6,892
Net operating loss carryforwards		61,893		24,381
Amortizable assets		-		39,657
Other		20,500		5,916
		213,640		117,877
Less: valuation allowance		(1,360)		(1,150)
Total net deferred tax assets		212,280		116,727

Deferred tax liabilities
Property, plant and equipment		(1,194,237)		(1,014,515)
Amortizable assets		(4,187)		-
Other		(11,305)		(4,398)
Total deferred tax liabilities		(1,209,729)		(1,018,913)
Net deferred tax liability	$	(997,449)	$	(902,186)

Certain wholly-owned and controlled subsidiaries of the company file separate federal and state income tax returns. These subsidiaries generated state net operating loss carryforwards, which will expire in the years 2034 through 2045 if not utilized. Annually, the company evaluates the realizability of the net deferred tax assets for this controlled subsidiary. In completing this evaluation, the company considers all available positive and negative evidence in order to determine whether, based on the weight of the evidence, a valuation allowance for its deferred tax assets is necessary. Such evidence includes current operating results, historical results, future reversals of existing taxable temporary differences and expectations for future taxable income (exclusive of the reversal of temporary differences and carryforwards), as well as the implementation of feasible and prudent tax planning strategies. Based on the evidence, the company maintained a valuation allowance of $1,360,000 and $1,150,000 as of December 31, 2025, and 2024, respectively, with respect to certain state tax credits of the controlled subsidiary.

Note 4. Income Taxes (Continued)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):



	2025		2024		2023
Balance at January 1	$	29,687	$	31,258	$	28,646
Increases related to current year tax positions		7,245		5,115		1,500
Increases related to prior year tax positions		2,764		263		1,798
Decreases related to prior year tax positions		(399)		(504)		-
Decreases related to lapse of applicable statute of limitations		(8,614)		(6,445)		(686)
Balance at December 31	$	30,683	$	29,687	$	31,258

Included in the balance of unrecognized tax benefits at December 31, 2025 and 2024 are potential benefits of $27.2 million and $26.4 million, respectively, that, if recognized, would affect the effective tax rate. The company recognizes interest and penalties related to its tax contingencies on a net-of-tax basis in income tax expense. During the year ended December 31, 2025, the company recognized income from the decrease of interest expense and penalties of $340,000, net of tax. During the years ended December 31, 2024 and 2023, the company recognized expense from the increase of interest expense and penalties of $710,000 and $1,560,000, respectively, net of tax. In addition to the unrecognized tax benefits in the table above, the company had $3.7 million and $4.2 million accrued for the payment of interest and penalties at December 31, 2025 and 2024, respectively.

The company files income tax returns in the U.S. federal jurisdiction as well as income tax returns in various state jurisdictions. The tax years 2022 through 2025 remain open to examination by the Internal Revenue Service and various state and local jurisdictions.

Note 5. Shareholders’ Equity

Cash Dividends

The company declared cash dividends of $294.1 million, or $2.00 per common share, during 2025; $284.1 million, or $1.84 per common share, during 2024; and $280.5 million, or $1.70 per common share, during 2023. The company paid cash dividends of $291.2 million, $282.6 million, and $271.3 million during 2025, 2024, and 2023, respectively.

Treasury Stock

In November 2022, the board of directors authorized a share repurchase program of up to $1.5 billion of the company’s common stock. This program was exhausted in November 2023. In November 2023, the board of directors authorized an additional share repurchase program of up to $1.5 billion of the company’s common stock. This program was exhausted in March 2025. In February 2025, the board of directors authorized an additional share repurchase program of up to $1.5 billion of the company’s common stock. Under the share repurchase programs, purchases take place as and when the company determines in open market or private transactions made based upon the market price of the company’s common stock, the nature of other investment opportunities or growth projects, the company’s cash flows from operations, and general economic conditions. The share repurchase programs do not require the company to acquire any specific number of shares, and may be modified, suspended, extended, or terminated by the company at any time. The share repurchase programs do not have an expiration date. The company repurchased 6.7 million shares for $900.9 million during 2025, 9.4 million shares for $1.2 billion during 2024, and 13.4 million shares for $1.5 billion during 2023 under the share repurchase programs. At December 31, 2025, the company had remaining authorization to repurchase $801.0 million of additional shares under the February 2025 share repurchase program.

Note 6. Equity-Based Incentive Plans

2023 Equity Incentive Plan

In May 2023, the company’s shareholders approved the 2023 Equity Incentive Plan (2023 Plan), which superseded the prior Amended and Restated 2015 Equity Incentive Plan. The 2023 Plan is designed to attract, motivate, and retain qualified persons that are able to make important contributions to the company’s success. To accomplish these objectives, the 2023 Plan provides for awards of equity-based incentives through granting of restricted stock units (RSUs), deferred stock units (DSUs), stock appreciation rights (SARs), performance awards, such as the long-term incentive compensation program (LTIP), restricted stock awards (of which none have been granted), stock options (of which none have been granted), and unrestricted stock awards (of which none have been granted). Under the 2023 Plan, 9.0 million shares of common stock were reserved for grant through December 31, 2033. The 2023 Plan uses a fungible share concept under which any awards that are not a full-value award, such as stock options and stock-settled SARs, will be counted against the share reserve as one share for each share of common stock, and awards that are full-value awards, such as RSUs, DSUs, restricted and unrestricted stock awards, and performance awards, will be counted against the share reserve as 2.09 shares for each share of common stock. The SARs the company has granted to date (of which none are outstanding at December 31, 2025) can only be settled in cash, and thus, do not count against the share reserve. At December 31, 2025, there were 5.1 million shares still available for issuance.

Substantially all of the company’s full-time, non-union, U.S. team members receive RSUs, which are granted annually in November at no cost to employees and vest 100% over the shorter of two years from grant date or upon the recipient reaching retirement eligible age (59½ years). During 2025, 2024, and 2023, certain key senior leadership of the company received RSUs in February which vest over a period of 2 to 4 years. The RSUs are converted to stock and issued to employees upon vesting. The company satisfies RSUs with newly issued shares, and satisfies restricted and unrestricted stock awards, DSUs, and performance awards with treasury shares. In addition to the RSUs and LTIP awards granted during the three-year period ended December 31, 2025, presented below, the company awarded 14,000, 13,000 and 18,000 DSUs in 2025, 2024 and 2023, respectively.

Restricted Stock Units

A summary of the company’s RSU activity and outstanding RSUs as of December 31, 2025, are presented below (dollars in thousands except grant date fair value):


		Weighted		Aggregate
	Number	Average Grant		Intrinsic		Unrecognized
	of RSUs	Date Fair Value		Value		Compensation
Outstanding RSUs as of January 1, 2023	973,551	$	71.80	$	94,765	$	44,394
Granted	433,810		108.95
Vested	(517,041)		64.03
Forfeited	(40,829)		78.70
As of December 31, 2023	849,491	$	99.13	$	101,480	$	43,073
Granted	374,370		137.14
Vested	(394,675)		94.28
Forfeited	(39,874)		104.21
As of December 31, 2024	789,312	$	115.47	$	90,037	$	54,964
Granted	368,224		146.64
Vested	(421,026)		106.60
Forfeited	(35,826)		126.06
As of December 31, 2025 (nonvested)	700,684	$	136.50	$	118,731	$	56,586

Note 6. Equity-Based Incentive Plans (Continued)

The weighted average remaining life before vesting of the outstanding RSUs as of December 31, 2025, is 1.3 years. The fair value of RSUs vesting during 2025, 2024, and 2023 was $60.7 million, $56.2 million, and $58.3 million, respectively, and were net-share settled such that the company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes and remitted the cash to the appropriate taxing authorities. The total shares withheld in 2025, 2024, and 2023 were approximately 253,000, 287,000, and 342,000 shares, respectively, and were based on the value of the RSUs on their vesting dates as determined by the company’s closing stock price.

Long-Term Incentive Compensation Program (LTIP)

The company maintains an LTIP performance-based program directed toward key senior leadership of the company, as determined at the discretion of the Compensation Committee of the Board of Directors. Awards are in shares of the company’s common stock using the closing stock price on the first day of the performance period to convert each key senior executive’s predetermined multiple of annual base salary. The performance period is generally three years; however, transition awards can be issued with a shorter performance period. Performance is measured in terms of equal portions of four growth and profitability measures, as compared to the same measures, similarly treated, of a pre-established group of steel sector competitors. Awards earned can range from zero to 100% of the shares awarded, and award shares vest immediately once earned on the basis of performance.

The Compensation Committee granted the following three-year performance period awards and transition awards, which have been earned and have or will be issued as follows:


	Maximum
	Shares That	Award
	Could Be Issued	Earned	Award Issued/Issuable

2022 LTIP Award:
Three-year performance period award	249,759	249,759	249,759	March 2025

2023 LTIP Award:
Three-year performance period award	193,946	164,857	164,857	March 2026
Two-year performance period transition award	5,517	4,690	4,690	March 2025
One-year performance period transition award	3,678	2,759	2,759	March 2024

2024 LTIP Award:
Three-year performance period award	166,791	*	*

2025 LTIP Award:
Three-year performance period award	182,819	*	*

*	Not yet earned as performance period not complete.

2018 Executive Incentive Compensation Plan (2018 Executive Plan)

The 2018 Executive Plan provides for eligibility of certain senior leadership of the company to receive cash and stock bonuses based on predetermined formulas. The company’s shareholders approved the 2018 Executive Plan in May 2018 and 2.0 million shares of company stock were reserved for grant through February 28, 2028. At times a portion of the bonus may be distributed in shares of the company’s stock, of which one-third of the shares vest immediately and the remaining shares vest in equal annual installments over an additional two-year service-based vesting period requirement. At December 31, 2025, 2024, and 2023, 1.3 million shares under the 2018 Executive Plan remained available for grant. Pursuant to the 2018 Executive Plan, 15,000, 17,000, and 29,000 shares were awarded with a market value of $2.7 million, $2.2 million, and $3.5 million for the 2025, 2024, and 2023 award years, respectively.

Note 7. Fair Value Measurements

Accounting standards provide a comprehensive framework for measuring fair value, sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:

	●	Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets;

	●	Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and

	●	Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of December 31 (in thousands):



			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
December 31, 2025
Commodity futures – financial assets	$	8,925	$	-	$	8,925	$	-
Commodity futures – financial liabilities		64,896		-		64,896		-

December 31, 2024
Short-term investments	$	147,811	$	-	$	147,811	$	-
Commodity futures – financial assets		19,323		-		19,323		-
Commodity futures – financial liabilities		6,272		-		6,272		-

The carrying amounts of financial instruments including cash equivalents approximate fair value (Level 1). The fair values of short-term investments commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available (Level 2). The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $4.1 billion and $3.0 billion at December 31, 2025, and 2024, respectively (with a corresponding carrying amount in the consolidated balance sheet of $4.2 billion and $3.2 billion at December 31, 2025, and 2024, respectively).

Note 8. Commitments and Contingencies

The company has entered into certain commitments with suppliers which are of a customary nature. Commitments have been entered into relating to future expected requirements for commodities such as electricity, water, natural gas and its transportation services, fuel, air products, zinc, and electrodes. Certain commitments contain provisions which require that the company “take or pay” for specified quantities at fixed prices without regard to actual usage for periods of generally up to 5 years for physical commodity requirements and commodity transportation requirements, with some extending beyond, and for up to 14 years for air products and 26 years for water products. The company utilized such “take or pay” requirements during the past three years under these contracts. The company believes that production requirements will be such that consumption of the products or services purchased under these commitments will occur in the normal production process.

Note 8. Commitments and Contingencies (Continued)

The company’s commitments for these agreements with “take or pay” or other similar commitment provisions for the years ending December 31 are as follows (in thousands):


2026	$	331,503
2027		49,643
2028		38,291
2029		19,973
2030		18,853
Thereafter		160,882
	$	619,145

At December 31, 2025, the company has outstanding commitments of $335.5 million related to ongoing construction of property, plant, and equipment, primarily related to the completion of the aluminum flat rolled products mill, as well as other steel operations expansion projects in 2026. The company’s commitments for operating leases are discussed in Note 11. Leases.

The company is involved in various litigation matters, including administrative and regulatory proceedings, that arise in the ordinary course of business, none of which are expected to have a material impact on the company’s financial condition, results of operations, or liquidity.

Note 9. Transactions with Affiliated Companies

The company purchases and sells recycled and scrap metal, steel, and purchases transportation services with other smaller affiliated companies, including equity method investments. These transactions for the years ended December 31, are as follows (in thousands):


	2025		2024		2023
Sales	$	621,998	$	720,742	$	680,004
Accounts receivable		2,411		54,230		73,245
Purchases		163,318		188,906		167,798
Accounts payable		7,582		7,267		9,685

Note 10. Retirement Plans

The company sponsors several 401(k) retirement savings and profit sharing plans (Plans) for eligible employees, which are considered “qualified plans” for federal income tax purposes. The company’s total expense for the Plans was $147.0 million, $209.0 million, and $312.4 million for the years ended December 31, 2025, 2024, and 2023, respectively. Profit sharing expense for eligible employees is 8% of consolidated pretax income excluding noncontrolling interests and other items. The resulting profit sharing expense under the Plans was $120.0 million, $165.2 million, and $264.6 million for the years ended December 31, 2025, 2024, and 2023, respectively; of which up to $96.0 million, $132.2 million, and $211.6 million, respectively, was directed by the company’s board of directors to be contributed to the Plans (subject to total Plan contribution limitations), with the remaining amounts each year paid directly in cash to the Plans’ participants.

Note 11. Leases

The company has operating leases relating principally to transportation and other equipment, and some real estate. The company determines if an arrangement contains a lease at inception, which generally occurs when the arrangement identifies a specific asset that the company has the right to direct the use of and obtain substantially all of the economic benefit from use of the identified asset. Certain of the lease agreements contain rent escalation clauses (including fixed and index-based escalations), and options to extend or terminate the lease. For purposes of calculating operating lease obligations, the company’s lease terms include options to extend the lease when it is reasonably certain that the company will exercise such option. The company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is the rate of interest the company could borrow on a collateralized basis over a similar term with similar payments. Operating lease expense is recognized on a straight-line basis over the lease term.

Operating lease right-of-use assets and lease obligations included in the consolidated balance sheets at

December 31, are as follows (in thousands):


		2025		2024
Right-of-use assets under operating leases:
Other assets - noncurrent	$	170,183	$	113,500
Lease obligations under operating leases:
Accrued liabilities	$	24,159	$	19,915
Other liabilities - noncurrent		147,495		94,417
	$	171,654	$	114,332

The weighted average remaining lease term for our operating leases is nine years as of December 31, 2025 and 2024. The weighted-average discount rate is 5.00% and 4.46% as of December 31, 2025 and 2024, respectively. Future operating lease liabilities as of December 31, 2025, for the next five years and thereafter are as follows (in thousands):


2026	$	31,365
2027		28,882
2028		25,981
2029		22,469
2030		19,621
Thereafter		83,312
Total undiscounted cash flows		211,630
Less imputed interest		(39,976)
Lease obligations under operating leases	$	171,654

Operating lease expense included in the consolidated statements of income was $27.9 million, $27.4 million, and $27.9 million for the years ended December 31, 2025, 2024, and 2023, respectively. Cash paid related to operating lease obligations was $23.2 million for the years ended December 31, 2025 and 2024, respectively, and $22.8 million for the year ended December 31, 2023. Variable lease costs were not material for the years ended December 31, 2025, 2024, and 2023. Short-term lease expense included in the consolidated statements of income was $61.9 million, $51.3 million, and $40.4 million for the years ended December 31, 2025, 2024, and 2023, respectively. Right-of-use assets obtained in exchange for new operating lease liabilities for the years ended December 31, 2025, 2024, and 2023 were $77.5 million, (including $44.0 million related to New Process Steel additions), $12.8 million, and $38.8 million, respectively.

Note 12. Segment Information

The company’s chief operating decision maker (CODM), who is the Chief Executive Officer, analyzes the results of the business through the following reportable segments: steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. The segment operations are more fully described in Note 1. Description of the Business and Summary of Significant Accounting Policies to the consolidated financial statements.

The CODM assesses segment performance and allocates resources primarily based on operating income. The CODM uses operating income to allocate operating and capital resources and assesses performance of each segment by comparing actual operating income results to historical and previously forecasted financial information. The accounting policies of the reportable segments are consistent with those described in Note 1 to the consolidated financial statements. Intra-segment sales and any related profits are eliminated in consolidation.

The company’s segment results, including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands):


			Metals		Steel
For the year ended	Steel		Recycling		Fabrication		Aluminum
December 31, 2025	Operations		Operations		Operations		Operations		Other (a)			Eliminations		Consolidated

Net sales - disaggregated revenue
External	$	12,492,494	$	1,430,347	$	1,416,560	$	360,550	$	1,322,330		$	-	$	17,022,281
External Non-United States		529,484		611,294		1,329		544		11,649			-		1,154,300
Intersegment		390,795		2,304,433		776		112,787		1,475			(2,810,266)		-
Net sales		13,412,773		4,346,074		1,418,665		473,881		1,335,454			(2,810,266)		18,176,581
Less:
Cost of goods sold		11,740,371		4,142,083		906,556		497,604		1,305,229			(2,807,445)		15,784,398
Other segment items (b)		244,858		106,815		104,684		149,247		312,076			(1,483)		916,197
Operating income (loss)		1,427,544		97,176		407,425		(172,970)		(281,851)			(1,338)		1,475,986
Interest expense, net of capitalized interest															70,043
Other (income) expense, net															(87,028)
Income before income taxes														$	1,492,971

Depreciation and amortization	$	400,394	$	64,255	$	13,150	$	19,442	$	54,549		$	(400)	$	551,390
Capital expenditures		317,547		111,964		15,098		593,452		29,341			(119,377)		948,025
Total Assets		9,233,768		1,463,184		666,983		3,905,799		4,584,424	(c)		(3,434,378)		16,419,780

Note 12. Segment Information (Continued)


			Metals		Steel
For the year ended	Steel		Recycling		Fabrication		Aluminum
December 31, 2024	Operations		Operations		Operations		Operations		Other (a)			Eliminations		Consolidated

Net sales - disaggregated revenue
External	$	11,311,552	$	1,311,124	$	1,761,771	$	256,051	$	1,435,062		$	-	$	16,075,560
External Non-United States		749,932		694,010		1,731		2,496		16,661			-		1,464,830
Intersegment		465,582		2,131,779		8,293		60,142		-			(2,665,796)		-
Net sales		12,527,066		4,136,913		1,771,795		318,689		1,451,723			(2,665,796)		17,540,390
Less:
Cost of goods sold		10,736,557		3,946,457		1,006,211		298,572		1,420,978			(2,670,971)		14,737,804
Other segment items (b)		208,135		113,649		98,600		92,448		348,153			(1,436)		859,549
Operating income (loss)		1,582,374		76,807		666,984		(72,331)		(317,408)			6,611		1,943,037
Interest expense, net of capitalized interest															56,347
Other (income) expense, net															(96,191)
Income before income taxes														$	1,982,881

Depreciation and amortization	$	351,558	$	56,148	$	11,071	$	6,786	$	53,344		$	-	$	478,907
Capital expenditures		461,524		83,020		29,374		1,309,027		55,183			(70,122)		1,868,006
Total Assets		8,776,445		1,301,234		665,867		2,802,647		3,319,917	(c)		(1,930,877)		14,935,233


			Metals		Steel
For the year ended	Steel		Recycling		Fabrication		Aluminum
December 31, 2023	Operations		Operations		Operations		Operations		Other (a)		Eliminations		Consolidated

Net sales - disaggregated revenue
External	$	11,603,139	$	1,162,246	$	2,798,262	$	239,095	$	1,164,942	$	-	$	16,967,684
External Non-United States		1,037,412		774,211		672		9,105		6,232		-		1,827,632
Intersegment		427,071		2,222,131		7,843		37,707		727		(2,695,479)		-
Net sales		13,067,622		4,158,588		2,806,777		285,907		1,171,901		(2,695,479)		18,795,316
Less:
Cost of goods sold		10,977,249		3,971,743		1,115,515		237,759		1,147,441		(2,700,274)		14,749,433
Other segment items (b)		208,773		139,110		98,001		31,002		419,037		(1,221)		894,702
Operating income (loss)		1,881,600		47,735		1,593,261		17,146		(394,577)		6,016		3,151,181
Interest expense, net of capitalized interest														76,484
Other (income) expense, net														(144,246)
Income before income taxes													$	3,218,943

Depreciation and amortization	$	331,225	$	65,803	$	9,787	$	4,917	$	26,072	$	-	$	437,804
Capital expenditures		453,955		185,903		22,044		967,739		28,264		-		1,657,905

(a) Amounts included in Other are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of a joint venture and the idled Minnesota ironmaking operations. Also included are certain unallocated corporate accounts, such as the company's senior unsecured credit facility, senior notes, certain other investments, amortization of intangible assets and certain profit sharing expenses.

(b) Other segment items for each reportable operating segment include selling, general, and administrative expenses including payroll & benefit expenses and professional service expenses. Other segment items within Other include selling, general, and administrative expenses such as payroll & benefit expenses, companywide equity-based compensation expenses, and professional service expenses, as well as company-wide profit sharing expense and amortization of intangible assets.

(c) Asset amounts included in Other consist of assets held by subsidiary operations that are below the quantitative thresholds required for reportable segments and the company's corporate assets. Corporate assets primarily consist of cash, short-term and other investments, and intra-company debt.

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