Estimated second quarter earnings have been reduced by $16 million, as a result of asset write-downs related to the decision to relocate the company's planned second satellite aluminum recycled slab center from Arizona to Columbus, Mississippi, as differences with Arizona state officials risked the construction and operations of the facility.
Second quarter 2026 profitability from the company's steel operations is expected to be meaningfully higher than first quarter results, driven by strong demand and metal margin expansion across the platform, as average realized selling values increased more than scrap raw material costs. Order activity remains strong, supported by underlying demand and persistently low steel inventories, which continue to support favorable pricing conditions. Demand across key end markets remains solid, with non-residential construction, energy, automotive, and industrial sectors leading performance.
Second quarter 2026 earnings from the company's metals recycling operations are expected to be similar to sequential first quarter results, as increased ferrous and non-ferrous shipments are expected to be offset by expected nonferrous unrealized hedging losses.
Second quarter 2026 earnings from the company's steel fabrication operations are expected to be incrementally below sequential first quarter results, as the benefit from stronger shipments combined with steady pricing is offset by higher steel raw material input costs. Customer order activity has remained strong, continuing the momentum beginning at the end of 2025. The order backlog is now nearly 40% higher than a year ago and extends through the end of the year and into 2027. Current demand is being supported by commercial construction, data center and warehouse buildouts, manufacturing, and healthcare end markets. The company expects further volume improvement throughout the year and into 2027, supported by domestic manufacturing investment, U.S. infrastructure investment, other stimulus programs, and ongoing onshoring ...
