#USA #Fort Wayne #Steel Dynamics #Q1 2025 #Earnings Forecast

Steel Dynamics Forecasts Strong Earnings for Q1 2025

Steel Dynamics, Inc., one of North America's leading steel producers, recently shared its earnings guidance for the first quarter of 2025, projecting earnings per diluted share to range between $1.36 and $1.40. This projection reflects a steady performance compared to the fourth quarter of 2024, which reported earnings at $1.36 per diluted share, but a notable decline from the first quarter of the previous year when earnings were at $3.67 per diluted share.

The company anticipates that its profitability from steel operations will be bolstered by increased shipments, expected to outweigh the effects of some compression in metal margins. This expectation comes as the market witnesses contractual steel pricing lagging behind recent spot price improvements, a trend estimated to be rectified in the upcoming months.

Particularly notable is the demand driven by sectors like energy, automotive, non-residential construction, and industrial markets, which are predicted to show increased activity. The company's Sinton Texas Flat Roll Division is reported to be operating at over 90% production levels in the initial quarter, emphasizing its efforts to enhance product quality and cost efficiency. This positions Steel Dynamics on a promising path toward profitability as they look forward to Q2 2025.

In terms of metals recycling operations, the company expects earnings to surpass the fourth quarter results based on improved pricing and steady volumes for both ferrous and nonferrous materials. However, the steel fabrication operations might face challenges, with earnings forecasted to be lower than previous quarters due to seasonally lower shipments and a slight decline in pricing, under five percent.

Despite these challenges, the company has reported an uptick in order activity along with an improved order backlog, which extends well into the third quarter of 2025. This positive trend is supported by sectors such as commercial, healthcare, manufacturing, and warehouse services. Furthermore, recent commitments to domestic manufacturing investments and infrastructure initiatives in the U.S. are set to positively affect demand, not only for steel joist and deck products but also for longer steel products as well.

In a significant development, Steel Dynamics' aluminum team is making headway with the Columbus, Mississippi aluminum mill, having successfully cast its first aluminum ingot in January and completed various stages of the startup process. Their progress towards establishing this facility is evident, with the expectation to commence shipping materials by mid-2025.

In an expression of confidence in its financial prospects, Steel Dynamics’ board of directors has approved a 9% increase in dividends, raising the payment to $0.50 per common share. Additionally, the board has authorized an extra $1.5 billion for share repurchases, following the exhaustion of an earlier repurchase program. As of mid-March 2025, the company reported having repurchased $191 million of its common stock during Q1 of the year.

Steel Dynamics is poised to reveal more detailed earnings results on April 22, 2025, after market hours, followed by a conference call scheduled on April 23 at 11:00 a.m. EDT, where they will discuss their performance in detail.

About Steel Dynamics, Inc.

Steel Dynamics stands as one of the largest domestic producers and recyclers of steel in North America, operating multiple facilities across the U.S. and Mexico. The company is involved in producing an array of steel products, from cold and hot rolled sheet steel to structural steel and various steel components. Moreover, they are engaged in the production of liquid pig iron and processing ferrous and nonferrous scrap materials.

Conclusion

This proactive approach reflects Steel Dynamics' commitment to navigating market dynamics effectively while maintaining shareholder value through strategic financial maneuvers and robust operational practices.