June 18, 2025 – Steel Dynamics, Inc. (NASDAQ: STLD) has announced its earnings guidance for the second quarter of 2025, projecting earnings in the range of $2.00 to $2.04 per diluted share. This forecast represents a notable increase from the first quarter of 2025, where the company reported earnings of $1.44 per diluted share, but a decline compared to the same period last year, when earnings were $2.72 per diluted share.

1. Steel Operations Propel Profitability

Steel Dynamics is optimistic about its steel operations in the upcoming quarter, expecting significantly improved profitability compared to the previous quarter. The company has benefitted from expanded metal spreads, with average realized steel pricing rising above scrap raw material costs. While long product steel shipments have improved sequentially, flat rolled volumes have seen a modest contraction, primarily due to an inventory overhang stemming from coated flat rolled steel imports.

Demand for steel remains robust across several sectors, including energy, non-residential construction, automotive, and industrial. However, it's important to note that the steel segment's pretax earnings were impacted by a noncash write-off of consumable assets, totaling approximately $32 million for the second quarter.

2. Steady Performance in Metals Recycling

The company's metals recycling operations are projected to maintain steady earnings sequentially. This stability is attributed to stronger shipment volumes that offset a decline in realized pricing. As the market for recycled metals remains competitive, Steel Dynamics continues to adapt its strategies to sustain profitability in this segment.

3. Challenges in Steel Fabrication

Earnings from Steel Dynamics' steel fabrication operations are anticipated to be lower than the first quarter of 2025, primarily due to steady shipment levels and a compression in metal spreads. The rise in steel raw material costs has played a significant role in this compression, coupled with a modest decline in average realized sales prices. Despite these challenges, the pace of order activity has increased, and the order backlog has improved, extending through 2025 with attractive pricing levels.

Demand is being driven largely by the commercial, data center, manufacturing, warehouse, and healthcare sectors. Furthermore, ongoing announcements of substantial domestic manufacturing investments and initiatives to onshore production, alongside the U.S. infrastructure program, are expected to positively influence demand for both steel joist and deck products as well as flat rolled and long product steel.

4. Advancements in Aluminum Operations

In a significant development, Steel Dynamics is making strides with its aluminum operations. The company has successfully commissioned its aluminum flat rolled products mill in Columbus, Mississippi, and its satellite recycled slab center in San Luis Potosi, Mexico. With the casting of its first aluminum ingot at both locations earlier this year, Steel Dynamics is gearing up for shipments expected to commence in mid-2025.

5. Share Repurchase Activity

As of June 11, 2025, Steel Dynamics has repurchased $179 million, or 1% of its common stock, during the second quarter. This move reflects the company’s commitment to enhancing shareholder value amid fluctuating market conditions.

6. Upcoming Earnings Release

Steel Dynamics plans to release its second quarter 2025 earnings after market close on Monday, July 21, 2025. A conference call will follow on July 22, at 11:00 a.m. Eastern Daylight Time, where company executives will discuss the results in detail.

As Steel Dynamics continues to navigate the complexities of the steel and metals recycling markets, its proactive strategies and commitment to operational excellence position the company well for future growth in a dynamic industry landscape.

Original press release