The Short Answer
Steel Dynamics (STLD) is generally halal on the examined activity and known asset-based financial screens. Steel, aluminum, metals recycling and steel fabrication are ordinary industrial activities. The filing does not, however, provide a universal prohibited-revenue numerator or an interest-only breakdown of its combined other-income line, so this is a methodology-dependent result rather than an unsupported claim of universal certification.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
4,200.793 / 16,720.219
556.527 / 16,720.219
2,612.961 / 16,720.219
- Financial
- Incomplete
- Overall
- Incomplete
Debt is 25.12%, liquidity is 3.33% and receivables plus cash are 15.63%, below the examined known financial limits. The filing does not provide a reproducible interest-only numerator for the income test or a universal prohibited-revenue numerator.
- Financial
- Pass
- Overall
- Incomplete
Debt, liquidity and receivables-plus-cash pass the examined total-assets limits, but the filing does not disclose a universal prohibited-revenue or interest-only numerator. This is a calculation against the named method, not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Debt is 25.12% and identifiable cash is 3.33% of total assets; the core industrial activity is generally permissible, but screened business revenue is not separately allocated. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Steel Dynamics manufactures steel and aluminum products, processes ferrous and nonferrous scrap, and fabricates steel joists and deck products. These industrial manufacturing, recycling and construction-material activities are generally permissible at the activity level.
Limitation: The filing reports product and segment sales but does not allocate a universal prohibited-revenue numerator by customer, end use, contract or derivative activity, so no unsupported haram-revenue percentage is estimated.
Purification
The filing combines interest income with equity-method and other non-operating income, so no scholar-approved fixed purification rate is calculated from the $8.5 million net other-income line.
Inputs, assumptions and primary sources
- Assets use Steel Dynamics' consolidated total assets of $16,720.219 million at March 31, 2026.
- Interest-bearing debt uses current maturities of $22.124 million plus long-term debt of $4,178.669 million. Other liabilities, redeemable noncontrolling interests and derivative exposures are not silently added as conventional debt.
- Cash uses $556.527 million of cash and equivalents. The filing defines cash equivalents as highly liquid investments with maturities of three months or less; no separately identifiable interest-bearing securities balance is entered to avoid double counting.
- Accounts receivable uses $2,050.980 million of net trade receivables plus $5.454 million of related-party receivables, consistent with the filing's approximately $2,056.4 million total.
- Quarterly revenue uses $4,369.195 million of consolidated net sales for the three months ended March 31, 2026.
- Other income is reported net at $8.5 million and includes interest income, equity-method investment income and other non-operating activity; the filing does not provide a reproducible interest-only numerator, so non-compliant income is unavailable rather than estimated.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
This is a reproducible ZakatInvest calculation from Steel Dynamics' March 31, 2026 Form 10-Q. It is not an index-membership claim or a fatwa. Market-cap denominator methods are not estimated without a licensed historical market-cap series, and the qualitative analysis remains separate from the numerical result.
Sharia Screening Methodology
Islamic equity screens commonly examine:
- Business activity: whether the core activity and material revenue streams are permissible
- Debt and liquidity: interest-bearing liabilities and cash or interest-bearing securities relative to assets or market value
- Receivables: receivables plus cash relative to assets, with thresholds varying by methodology
- Non-compliant income: separately disclosed interest or other prohibited income, where the filing permits a reproducible numerator
Steel Dynamics' Business Activity
Steel Dynamics reports steel operations, metals recycling and steel fabrication, and has added aluminum flat-rolled operations. The company describes a circular manufacturing model using recycled scrap as a primary input. Manufacturing steel and aluminum, processing ferrous and nonferrous scrap, and fabricating joists and deck products are generally permissible industrial activities.
The filing reports product and segment sales but does not allocate a universal prohibited-revenue numerator by customer, end use, contract or derivative activity. Automotive, energy, construction, beverage-can, infrastructure and data-center demand therefore remain qualitative context rather than unsupported haram-revenue percentages.
Qualitative Concerns
1. Cyclical leverage and commodity prices
Steel and scrap prices, imports, energy costs and cyclical demand can change earnings, cash and the relevant ratios between filings. The current debt/assets calculation passes, but it should be refreshed after material price, acquisition or capital-structure changes.
2. Commodity derivative hedging
Steel Dynamics uses commodity and energy hedging instruments, including exposures related to scrap, natural gas and other inputs. Derivative treatment can differ by scholar or methodology; the public filing does not support converting those instruments into a prohibited-revenue estimate.
3. Aluminum-mill ramp and capital deployment
The Columbus, Mississippi aluminum flat-rolled mill is ramping production and has required substantial capital deployment. Startup issues, impairment risk, project timing and financing needs can affect future screens even though aluminum manufacturing itself is generally permissible.
4. Combined other-income line
The Q1 filing reports $8.5 million of net other income, but says the line includes interest income, equity-method investment income and other non-operating activity. Because the interest-only portion is not separately reproducible, no fixed purification percentage is asserted.
Current Financial Ratios (March 31, 2026)
- Interest-bearing debt / assets: 25.12% — below the examined 33% limits ✅
- Cash + interest-bearing securities / assets: 3.33% — below the examined liquidity limits ✅
- Receivables + cash / assets: 15.63% — below the examined receivables limits ✅
- Interest income / revenue: Not separately calculated; other income combines interest, equity-method and other activity
- Prohibited-revenue numerator: Not disclosed; business-activity screen remains incomplete
How to Read the Result
STLD is methodology-dependent but financially passing in this review. The current asset-based financial ratios pass the examined limits and the core industrial activity is generally permissible, while the missing revenue and interest-only allocations prevent a stronger universal conclusion.
- FTSE Yasaar asset-based financial screen — Known ratios pass at 25.12% debt/assets; interest-only income test is incomplete ⚠️
- MSCI Islamic total-assets financial screen — Passes at 25.12% debt/assets ✅
- Malaysia SAC asset-based financial screen — Passes at 25.12% debt/assets ✅
Bottom Line
Steel Dynamics (STLD) is currently generally permissible with an incomplete business-activity and purification allocation. Its steel, aluminum, recycling and fabrication businesses are generally permissible, and the latest asset-based financial ratios pass. Investors should still review commodity derivatives, the aluminum ramp, cyclical leverage and the combined other-income line with their preferred Sharia adviser.
STLD's current asset-based ratios pass, while the filing leaves business-revenue and interest-only allocation questions for scholar-specific review.
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