#United States #Fort Wayne #Steel Dynamics #Earnings Guidance #Aluminum Operations

Steel Dynamics Projects Stronger Q2 2025 Earnings

Steel Dynamics, Inc. (NASDAQ: STLD) has recently provided an earnings guidance for the second quarter of 2025, projecting earnings in the range of $2.00 to $2.04 per diluted share. This forecast shows a notable improvement compared to the previously reported earnings of $1.44 per diluted share for the first quarter of 2025, though it is below the second quarter of the last year which stood at $2.72.

The anticipated profitability for Q2 2025 is bolstered by a combination of increased steel pricing and improved metal spreads across its operations. The steel segment is particularly expected to perform better than the previous quarter. Factors contributing to this positive outlook include stronger long product shipments and improvements in sectors such as energy, non-residential construction, and automotive.

However, it should be noted that the steel segment did incur a non-cash write-off of consumable assets amounting to around $32 million, which has slightly tempered its earnings. Despite this, the overall demand across various sectors, including commercial and healthcare, remains strong and is expected to further enhance performance.

In terms of operations, Steel Dynamics sees steady earnings from its metals recycling initiatives, with stronger shipments compensating for a decrease in realized pricing. Conversely, earnings from the company’s steel fabrication activities are likely to dip compared to the previous quarter, as the average realized sales price has slightly declined amidst rising raw material costs. Nevertheless, the company has reported an increase in order activity and a growing backlog, which is promising for the remainder of 2025.

Moreover, Steel Dynamics is continuing its expansion into aluminum operations with the commissioning of its new aluminum flat rolled products mill in Columbus, Mississippi, and a satellite recycled slab center in San Luis Potosi, Mexico. The first aluminum ingot was successfully cast in Mississippi in January, followed by the casting at the Mexican facility in March. The company is aiming to start shipping products by mid-2025, thereby diversifying its product offerings.

As of June 11, 2025, Steel Dynamics has repurchased $179 million worth of its common stock during the second quarter, representing approximately one percent of its shares.

Investors can expect more detailed financial insights when Steel Dynamics releases its Q2 2025 earnings after the market closes on July 21, 2025, followed by a conference call on July 22 at 11:00 AM Eastern Daylight Time.

About Steel Dynamics, Inc.

Steel Dynamics is among the leading industrial metals solutions providers in North America, operating from various facilities across the United States and Mexico. The company employs a circular manufacturing model, focusing on producing high-quality, lower-carbon-emission products predominantly from recycled scrap materials. As a major domestic steel producer, it is also committed to enhancing its aluminum sector aimed at meeting the demands of sustainable industries, including the beverage can and automotive sectors. Steel Dynamics emphasizes integrity and efficiency, striving to produce a wide array of value-added metal products that comply with the highest standards of safety and sustainability.

Looking Ahead

While Steel Dynamics remains optimistic regarding its performance in Q2 2025, it warns that forward-looking statements are subject to risks and uncertainties. These may include fluctuations related to global steelmaking, scrap prices, and ongoing economic conditions. However, the company’s strategic focus on investment and innovation places it in a robust position to navigate these challenges and capitalize on growth opportunities in the evolving market landscape.