Financial Analysis

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 companys 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 th …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 3. Long-Term Debt The companys 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 companys $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 companys $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 fa …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 6. Equity-Based Incentive Plans 2023 Equity Incentive Plan In May 2023, the companys 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 companys 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 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 1Unadjusted quoted prices for identical assets and liabilities in active markets; Level 2Quoted 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 3Valuations 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 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"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 item …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

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.

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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 companys 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 companys 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. …

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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 …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 12. Segment Information The companys 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 companys 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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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 companys 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 companys 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 companys 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 companys common stock, the nature of other investment opportunities or growth projects, the companys 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 repurch …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 7. Commitments and Contingencies 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 companys financial condition, results of operations, or liquidity . …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 6. Fair Value Measurements Accounting standards provide a comprehensive framework for measuring fair value, set 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 1Unadjusted quoted prices for identical assets and liabilities in active markets; Level 2Quoted 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 3Valuations 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 sheets and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of June 30, 2026 and December 31, 2025 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) June 30, 2026 Commodity futures financial assets $ 130,910 $ - $ 130,910 $ - Commodity futures financial liabilities 67,063 - 67,063 - December 31, 2025 Commodity futures fina …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 entities 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.

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Note 8. Segment Information The companys 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 companys 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 three-month period ended Steel Recycling Fabrication Aluminum June 30, 2026 Operations Operations Operations Operations Other (a) Eliminations Consolidated Net sales - disaggregated revenue External $ 3,744,196 $ 445,811 $ 393,629 $ 497,733 $ 537,532 $ - $ 5,618,901 External Non-United State …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 5. Changes in Equity The following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc., and equity and redeemable amounts attributable to noncontrolling interests for each of the three and six-month periods ended June 30, 2026 and 2025 (in thousands). Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Income (Loss) Interests Equity Interests Balances at December 31, 2025 $ 653 $ (7,980,549) $ 1,248,634 $ 15,689,042 $ (598) $ (167,997) $ 8,789,185 $ 141,226 Dividends declared - - - (76,555) - - (76,555) - Noncontrolling investors, net - - - - - (1,354) (1,354) - Share repurchases - (115,087) - - - - (115,087) - Equity-based compensation - 6,937 (10,695) (100) - - (3,858) - Net income (loss) - - - 403,436 - (3,331) 400,105 - Other comprehensive loss, net of tax - - - - (260) - (260) - Balances at March 31, 2026 653 (8,088,699) 1,237,939 16,015,823 (858) (172,682) 8,992,176 141,226 Dividends declared - - - (76,113) - - (76,113) - Noncontrolling investors, net - - (20,806) - - (23,736) (44,542) 2,033 Share repurchases - (200,288) - - - - (200,288) - Equity-based compensation - 1,229 12,601 (106) - - 13,724 - Net income (loss) - - - 534,087 - (3,302) 530,785 - Other comprehensive income, net of tax - - - - 4,070 - 4,070 - Balances at June 3 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing