Steel Dynamics forecasts Q3 earnings growth across all segments

FORT WAYNE, Ind. - Steel Dynamics, Inc. (NASDAQ:STLD), a $19.4 billion market cap steel producer with a "Good" InvestingPro Financial Health score, announced Monday its third-quarter 2025 earnings guidance of $2.60 to $2.64 per diluted share, representing an improvement from both the second quarter’s $2.01 and the year-ago period’s $2.05 per share.

The steel producer expects stronger profitability from its steel operations compared to the previous quarter, citing robust shipments and wider metal spreads as scrap raw material costs are projected to decline more than average realized steel pricing. Despite relatively low gross profit margins of 12.6%, demand continues to be driven by the non-residential construction, automotive, energy, and industrial sectors.

The company’s metals recycling operations are anticipated to deliver significantly stronger earnings than in the second quarter, based on steady shipments and improved ferrous metal spreads.

Steel fabrication operations are also expected to outperform second-quarter results due to increased volume and stable metal spreads. The company reported a strong order backlog with healthy pricing, supported primarily by demand from commercial, data center, manufacturing, warehouse, and healthcare sectors.

Steel Dynamics continues commissioning its Columbus, Mississippi aluminum flat rolled products mill and San Luis Potosi satellite recycled slab center. The company noted that cast houses and hot strip mill are performing above expectations for this stage of startup.

As of September 11, the company had repurchased $185 million, or one percent, of its common stock during the third quarter.

Steel Dynamics plans to release its full third-quarter 2025 earnings after market close on October 20, according to the press release statement.

In other recent news, Steel Dynamics, Inc. reported financial results for the second quarter of 2025 that did not meet analysts’ expectations. The company announced an earnings per share of $2.01, falling short of the projected $2.26. Revenue also missed the mark, coming in at $4.6 billion against the anticipated $4.73 billion. Additionally, Steel Dynamics declared a cash dividend of $0.50 per common share for the third quarter, with the payment expected in early October 2025. The company also revealed plans to acquire the remaining 55% stake in New Process Steel, a significant customer and partner with facilities in the U.S. and Mexico. In terms of stock analysis, Wells Fargo initiated coverage on Steel Dynamics with an Overweight rating, citing the conclusion of a substantial investment cycle as a positive factor. These developments reflect significant activities for Steel Dynamics, impacting both its operational and financial landscape.

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