Steel Dynamics Provides Second Quarter 2025 Earnings Guidance

Rhea-AI Summary

Steel Dynamics (NASDAQ: STLD) has provided Q2 2025 earnings guidance of $2.00-$2.04 per diluted share, showing improvement from Q1 2025's $1.44 but lower than Q2 2024's $2.72. Steel operations expect stronger profitability due to expanded metal spreads, with long product shipments improving while flat rolled volumes slightly decreased. The company faced a $32 million pretax earnings reduction from a noncash write-off. Metals recycling operations remain steady, while steel fabrication earnings are expected to decrease. The company's aluminum operations are progressing with successful commissioning in Mississippi and Mexico, with shipments expected mid-2025. Steel Dynamics has repurchased $179 million of common stock in Q2, representing 1% of shares. Strong demand continues from energy, construction, automotive, and industrial sectors, with infrastructure programs expected to positively impact future demand.

Positive

• Q2 2025 EPS guidance of $2.00-$2.04 shows 39% improvement from Q1 2025's $1.44
• Metal spreads expanded across the platform with increased steel pricing
• Long product steel shipments improved in Q2
• Strong demand from energy, non-residential construction, automotive, and industrial sectors
• Order backlog improved, extending through 2025 with attractive pricing
• Company repurchased $179 million of common stock in Q2 2025
• Successful commissioning of aluminum operations in Mississippi and Mexico

Negative

• Q2 2025 EPS guidance shows 26% decline from Q2 2024's $2.72
• $32 million pretax earnings reduction due to noncash write-off of consumable assets
• Flat rolled volumes contracted due to inventory overhang from imports
• Steel fabrication earnings expected to be lower due to metal spread compression
• Lower realized pricing in metals recycling operations

Insights

Financial Analyst

Steel Dynamics projects strong Q2 earnings improvement, with metal spread expansion despite mixed segment performance and a $32M non-cash asset write-off.

Steel Dynamics' Q2 2025 earnings guidance of $2.00-$2.04 per share represents a significant 39% sequential increase from Q1's $1.44, though it falls 25% below the prior year's $2.72. This improvement stems primarily from expanded metal spreads in steel operations, where higher realized steel prices outpaced increasing scrap costs.

Performance across segments shows notable variation. Long product shipments increased while flat-rolled volumes contracted slightly due to coated flat-rolled steel import pressure. The $32 million non-cash write-off of consumable assets negatively impacted steel segment earnings. Metals recycling maintained steady earnings with volume gains offsetting price declines. The fabrication segment shows sequential weakness from margin compression as input costs rose while sales prices declined.

Demand indicators remain mixed but generally positive. Energy, non-residential construction, automotive, and industrial sectors continue driving steel demand, while fabrication orders are strengthening - particularly from commercial, data center, manufacturing, warehouse, and healthcare sectors. The backlog now extends through 2025 with favorable pricing.

Strategic initiatives are progressing as planned. The aluminum operations commissioning continues on schedule in Mississippi and Mexico, with material shipments expected mid-2025. Meanwhile, the company has allocated $179 million toward share repurchases in Q2, reducing outstanding shares by 1% - demonstrating management's confidence in future performance and commitment to shareholder returns.

FORT WAYNE, Ind., June 18, 2025 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided second quarter 2025 earnings guidance in the range of $2.00 to $2.04 per diluted share. Comparatively, the company's sequential first quarter 2025 earnings were $1.44 per diluted share and prior year second quarter earnings were $2.72 per diluted share.

Second quarter 2025 profitability from the company's steel operations is expected to be significantly stronger than sequential first quarter results, as metal spreads expanded across the platform with average realized steel pricing increasing more than scrap raw material costs. Long product steel shipments improved sequentially in the quarter, with flat rolled volumes contracting modestly due primarily to the inventory overhang from coated flat rolled steel imports. The energy, non-residential construction, automotive, and industrial sectors continue to lead demand. Steel segment pretax earnings were reduced in the second quarter 2025 by approximately $32 million due to a noncash write-off of consumable assets.

Second quarter 2025 earnings from the company's metals recycling operations are expected to be steady sequentially, based on stronger shipments offsetting lower realized pricing.  

Second quarter 2025 earnings from the company's steel fabrication operations are expected to be lower than sequential first quarter results, based on steady shipments combined with metal spread compression as steel raw material costs increased and the average realized sales price modestly declined. The pace of order activity increased in the quarter, and the order backlog improved, extending through 2025, with attractive related pricing levels. Demand was supported largely by the commercial, data center, manufacturing, warehouse, and healthcare sectors. Further, the accelerated announcements for meaningful domestic manufacturing investment and onshoring, coupled with the U.S. infrastructure program are expected to positively impact demand for not only steel joist and deck products, but also for flat rolled and long product steel. 

The aluminum team is continuing with successful commissioning of the company's Columbus, Mississippi aluminum flat rolled products mill and San Luis Potosi satellite recycled slab center. The team successfully cast its first aluminum ingot at its Mississippi operations in January and at its Mexico location in March of this year. The company continues to expect to begin shipping material mid-2025.

As of June 11, 2025, the company had repurchased $179 million, or one percent, of its common stock during the second quarter.

The company plans to release its second quarter 2025 earnings after the markets close on Monday, July 21, 2025, and will hold a conference call the following day at 11:00 a.m. Eastern Daylight Time to review the company's results. 

About Steel Dynamics, Inc.

Steel Dynamics is a leading industrial metals solutions company, with facilities located throughout the United States, and in Mexico. The company operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input. Steel Dynamics is one of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform. The company is also currently investing in aluminum operations to further diversify its product offerings, with plans to supply aluminum flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors.  Steel Dynamics is committed to operating with the highest integrity and to being the safest, most efficient producer of high-quality, broadly diversified, value-added metal products.

Forward-Looking Statements

This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations; (8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) our ability to retain, develop and attract key personnel; (14) litigation and legal compliance; (15) unexpected equipment downtime or shutdowns; (16) governmental agencies may refuse to grant or renew some of our licenses and permits; (17) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (18) the impacts of impairment charges.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings."

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SOURCE Steel Dynamics, Inc.

FAQ

What is Steel Dynamics (STLD) Q2 2025 earnings guidance?

Steel Dynamics expects Q2 2025 earnings between $2.00 to $2.04 per diluted share, up from $1.44 in Q1 2025 but down from $2.72 in Q2 2024.

How much stock did STLD repurchase in Q2 2025?

Steel Dynamics repurchased $179 million worth of common stock during Q2 2025, representing approximately 1% of its shares.

What sectors are driving demand for Steel Dynamics products in 2025?

The energy, non-residential construction, automotive, and industrial sectors are leading demand, with additional support from data center, manufacturing, warehouse, and healthcare sectors.

When will Steel Dynamics begin shipping from its new aluminum operations?

Steel Dynamics expects to begin shipping aluminum material from its new operations by mid-2025.

What caused the $32 million reduction in Steel Dynamics' Q2 2025 pretax earnings?

The reduction was due to a noncash write-off of consumable assets in the steel segment.

How is Steel Dynamics' steel fabrication business performing in Q2 2025?

Steel fabrication earnings are expected to be lower than Q1 due to metal spread compression, though order activity increased and the backlog improved through 2025.