Steel Dynamics, Inc. stock research
FY2026 Q1
Steel Dynamics (STLD) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased while cost of revenue also rose, but the proportion of cost relative to revenue declined, resulting in a higher gross profit and an expanded gross margin. Compared with the prior quarter and the same quarter a year earlier, both gross profit and gross margin improved.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased while cost of revenue also rose, but the proportion of cost relative to revenue declined, resulting in a higher gross profit and an expanded gross margin. Compared with the prior quarter and the same quarter a year earlier, both gross profit and gross margin improved.
- The strongest observable driver of the margin improvement is the difference in growth rates between revenue and cost of revenue: revenue increased at a faster pace than cost of revenue, which allowed gross margin to rise.
- Gross margin is higher than the immediately preceding quarter and higher than the same quarter one year earlier, reflecting a consistent upward trend in profitability relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.7%
Gross profit
$763.2M
Revenue
$5.2B
Cost of revenue
$4.4B
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+3.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $4.6B | $618.5M | $3.9B | 13.5% |
| Sep 30, 2025 | $4.8B | $757.9M | $4.1B | 15.7% |
| Dec 31, 2025 | $4.4B | $529.3M | $3.9B | 12.0% |
| Mar 31, 2026 | $5.2B | $763.2M | $4.4B | 14.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.7 pts
Year-over-year change
Mar 31, 2025
+3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement is the difference in growth rates between revenue and cost of revenue: revenue increased at a faster pace than cost of revenue, which allowed gross margin to rise.
Gross margin is higher than the immediately preceding quarter and higher than the same quarter one year earlier, reflecting a consistent upward trend in profitability relative to revenue.
The filing discusses the company's capital-intensive nature and liquidity position; monitoring whether revenue growth can continue to outpace cost of revenue growth will be important for sustaining margin performance.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Steel Dynamics, Inc. (STLD) | 14.7% |