Steel mills are expected to generate "significantly" higher profits, with selling prices rising faster than scrap metal costs during the quarter. The company described order activity as strong, inventories as low, and demand as steady in the non-residential construction, energy, automotive, and industrial markets.
The metal processing segment is expected to remain roughly unchanged from the first quarter. Higher shipments of ferrous and non-ferrous metals are expected, but these gains are expected to be offset by losses from hedging of non-ferrous metals.
Profit from steel production is expected to fall slightly below the level of the first quarter. Shipments are growing and prices remain stable, but higher steel production costs are squeezing the segment. Despite short-term pressures, the company's backlog of manufacturing orders is now almost 40 percent larger than a year ago and extends into 2027, supported by commercial construction, data centers, warehouses, manufacturing, and healthcare projects.
Earnings for the second quarter are scheduled to be released after the markets close on July 20, 2026.
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