EU and US could reach trade deal this weekend - Reuters
FORT WAYNE, Ind. - Steel Dynamics, Inc. (NASDAQ:STLD), a steel producer rated "GOOD" by InvestingPro’s comprehensive health assessment, announced Wednesday its second quarter 2025 earnings guidance in the range of $2.00 to $2.04 per diluted share, significantly higher than first quarter results of $1.44 per share but below the $2.72 per share reported in the same period last year. The company maintains strong financials with a current ratio of 2.74x and has consistently delivered shareholder value through 22 consecutive years of dividend payments.
The steel producer expects stronger profitability from its steel operations compared to the first quarter, citing expanded metal spreads as average realized steel pricing increased more than scrap raw material costs. Long product steel shipments improved while flat rolled volumes contracted modestly due to inventory overhang from imports. Despite current market challenges, InvestingPro analysis shows the company maintains robust revenue of $17.2 billion over the last twelve months, with analysts projecting 6% revenue growth for fiscal year 2025.
The company noted its second quarter steel segment pretax earnings were reduced by approximately $32 million due to a noncash write-off of consumable assets.
Metals recycling operations are expected to deliver steady earnings sequentially, with stronger shipments offsetting lower realized pricing. Steel fabrication earnings are projected to decline from the first quarter due to metal spread compression as raw material costs increased while average sales prices modestly declined.
Steel Dynamics reported that order activity increased during the quarter, with the backlog extending through 2025. Demand was supported primarily by commercial, data center, manufacturing, warehouse, and healthcare sectors.
The company continues commissioning its Columbus, Mississippi aluminum flat rolled products mill and San Luis Potosi satellite recycled slab center, with first aluminum ingots cast at both locations earlier this year. Product shipments are expected to begin mid-2025.
As of June 11, Steel Dynamics had repurchased $179 million, or one percent, of its common stock during the second quarter.
The company plans to release its complete second quarter 2025 earnings after markets close on Monday, July 21, according to the press release statement.
In other recent news, Steel Dynamics Inc. reported robust financial results for the first quarter of 2025, exceeding Wall Street expectations with earnings per share of $1.44, surpassing the forecast of $1.41. The company also reported revenue of $4.37 billion, which was higher than the anticipated $4.16 billion. In addition to financial performance, S&P Global Ratings revised its outlook for Steel Dynamics from stable to positive, citing steady financials and reduced project risks. This revision reflects the company’s strong management and governance, as well as its successful completion of a $2.7 billion aluminum rolling mill project.
Steel Dynamics is also undergoing a leadership transition, with Glenn Pushis retiring and Miguel Alvarez taking over the aluminum operations. The company’s shareholders recently elected nine directors and ratified Ernst & Young LLP as auditors for the fiscal year ending December 31, 2025. Furthermore, the board of directors declared a quarterly cash dividend of $0.50 per common share for the second quarter of 2025.
The company’s strategic growth initiatives continue with the development of its aluminum operations, expected to generate positive EBITDA in the second half of 2025. Steel Dynamics is also expanding its capacity in Sinton, Texas, with its electric arc furnace facility expected to reach 90% utilization by 2025. Overall, these developments indicate a strong operational and financial trajectory for Steel Dynamics, supported by strategic investments and leadership changes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.