Oil prices rebound sharply on smaller-than-feared OPEC+ output hike
Investing.com - BMO Capital has reiterated an Outperform rating and $150.00 price target on Steel Dynamics (NASDAQ:STLD), a $19.37 billion steel producer that maintains strong financial health according to InvestingPro metrics.
Steel Dynamics expects third-quarter 2025 earnings per share of $2.60-$2.64, which is 2-3% above BMO Capital and consensus estimates of $2.55 and $2.58, respectively.
According to BMO Capital, the earnings beat can primarily be attributed to better-than-expected results in the company’s recycling segment.
The firm notes that Steel Dynamics’ aluminum rolling mill commissioning is reportedly performing well, which could be a positive factor for future performance.
BMO Capital believes that further improvement at the Sinton facility, product mix enhancements, and lower aluminum start-up costs should offset lower sheet realized prices, though the firm acknowledges that further deterioration in prices remains a risk.
In other recent news, Steel Dynamics announced a positive earnings forecast for the third quarter of 2025, projecting earnings of $2.60 to $2.64 per diluted share. This marks an improvement from both the previous quarter’s $2.01 and the year-ago period’s $2.05 per share. The company attributes this anticipated growth to robust shipments and favorable metal spreads, with demand driven by sectors such as non-residential construction and automotive. In a strategic move, Steel Dynamics has also entered into an agreement to acquire the remaining 55% equity interest in New Process Steel, a significant customer in its flat roll steel operations. Additionally, the company declared a $0.50 per share dividend for the third quarter, payable to shareholders of record as of September 30, 2025. Wells Fargo initiated coverage on Steel Dynamics with an Overweight rating, citing the conclusion of a substantial investment cycle as a positive factor. This comes after the company reported second-quarter earnings that missed analysts’ forecasts, with an EPS of $2.01 and revenue of $4.6 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.