Financial Performance - Steel Dynamics, Inc. reported first quarter 2025 net sales of $4.4 billion, with net income of $217 million or $1.44 per diluted share, compared to $207 million or $1.36 per diluted share in the previous quarter and $584 million or $3.67 per diluted share in the same quarter last year [1][20]. - The company's operating income for the steel operations was $230 million, a 39% increase from the previous quarter, driven by record shipments [4][25]. - Adjusted EBITDA for the first quarter 2025 was $448 million, reflecting a decrease from $878 million in the prior year [25]. Operational Highlights - Steel shipments reached a record of 3.5 million tons in the first quarter 2025, with strong demand from the energy, non-residential construction, automotive, and industrial sectors [11][4]. - The average external product selling price for steel operations decreased by $13 sequentially to $998 per ton, while the average ferrous scrap cost per ton melted increased by $16 to $386 [4][25]. - The company's Sinton Texas Flat Roll Division operated at an 86% capacity rate, often exceeding 90% [4]. Strategic Initiatives - The company is focusing on value-added flat rolled steel and aluminum expansion initiatives, which are expected to drive continued growth [3][10]. - Steel Dynamics is investing in aluminum operations to diversify its product offerings, with plans to supply aluminum flat rolled products with high recycled content [16][13]. - The company issued $1.0 billion in unsecured notes to support general corporate purposes, including potential repayment of existing debt [7]. Market Outlook - The company anticipates solid domestic steel consumption through 2025, supported by improved order entry activity and firming steel pricing [9]. - Recent trade actions are expected to reduce unfairly traded imports, positively impacting the company as the largest non-automotive flat rolled steel coater in the U.S. [9]. - The ongoing onshoring of manufacturing and public-private funding for fixed asset investments are expected to enhance demand for steel products [6][9].

Industry Overview - The Zacks Steel Producers industry is positioned to benefit from rising steel prices, supported by a resilient non-residential construction market and strong automotive demand [1][2] - The industry serves various end-use sectors, including automotive, construction, and industrial machinery, with steel being a critical component [3] Current Market Dynamics - U.S. steel prices have increased due to tightened supply from tariffs on imports and higher demand, with benchmark hot-rolled coil prices rising from around $700 per short ton to above $900 per short ton [4] - The automotive market is expected to rebound, driven by the adoption of electric vehicles and government incentives, while non-residential construction remains strong due to infrastructure projects [5] Challenges - A slowdown in China's economy has negatively impacted steel demand, particularly in the real estate sector, which accounts for approximately 40% of China's steel consumption [6] Industry Performance - The Zacks Steel Producers industry has underperformed compared to the S&P 500 and the broader Zacks Basic Materials sector, with a decline of 45.5% over the past year [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 8.04X, below the S&P 500's 15.56X and the sector's 11.52X, indicating potential undervaluation [13] Key Players - **Nucor Corporation**: Expected to benefit from the non-residential construction market and automotive sector, with a focus on production capacity and shareholder returns [18][19] - **Steel Dynamics, Inc.**: Experiencing strong order activity and expanding capacity through new projects, including a state-of-the-art electric arc furnace [20][21] - **United States Steel Corporation**: Focused on operational efficiency and expanding its mini mill segment, with positive customer feedback on new product quality [24][26]

The upcoming report from Steel Dynamics (STLD) is expected to reveal quarterly earnings of $1.39 per share, indicating a decline of 62.1% compared to the year-ago period. Analysts forecast revenues of $4.15 billion, representing a decrease of 11.6% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a com ...

Steel Dynamics, Inc. (STLD) is set to release first-quarter 2025 results after the closing bell on April 22.Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 3.6%, on average. The company posted an earnings surprise of around 5.4% in the last reported quarter. Its first-quarter results are likely to have been supported by higher profitability in steel operations.Shares of STLD have gained 3.7% year to dat ...

Core Viewpoint - Steel Dynamics, Inc. plans to release its First Quarter 2025 financial results on April 22, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be announced after market close on April 22, 2025 [1] - A teleconference to discuss the results is scheduled for April 23, 2025, at 11:00 a.m. Eastern Daylight Time [1] - Key executives participating in the call include Mark D. Millett (Chairman and CEO), Theresa E. Wagler (Executive Vice President and CFO), and Barry Schneider (President and COO) [1] Group 2: Teleconference Participation - Participants can join the teleconference by dialing +1.973.528.0011 at least ten minutes before the start time [2] - The teleconference will also be available in listen-only mode on the company's website [2] - An audio replay of the teleconference will be accessible by dialing +1.919.882.2331 and entering conference ID number 52251, with the replay available until April 30, 2025 [2]

Company Performance - Steel Dynamics (STLD) ended the latest trading session at $111.04, reflecting a +1.68% adjustment from the previous day's close, outperforming the S&P 500's daily loss of 0.23% [1] - The stock has experienced a decline of 12.65% over the past month, which is worse than the Basic Materials sector's loss of 8.32% and the S&P 500's loss of 12.13% [1] Upcoming Earnings - The company's earnings report is scheduled for April 22, 2025, with an anticipated EPS of $1.43, representing a 61.04% decrease compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $4.15 billion, down 11.6% from the previous year [2] Full-Year Estimates - Zacks Consensus Estimates project full-year earnings of $9.50 per share and revenue of $17.88 billion, indicating year-over-year changes of -3.46% for earnings and +1.91% for revenue [3] Analyst Projections - Recent shifts in analyst projections for Steel Dynamics are important as they reflect changes in near-term business trends, with positive changes indicating a favorable outlook on the company's health and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Steel Dynamics at 3 (Hold) [6] - The Forward P/E ratio for Steel Dynamics is 11.49, which is a premium compared to the industry's Forward P/E of 10.9, while the PEG ratio stands at 0.8, compared to the industry's average PEG ratio of 0.97 [7] Industry Overview - The Steel - Producers industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [8]

Core Viewpoint - The current downturn in the steel industry presents a buying opportunity for companies in cyclical industries, but investors should focus on the strongest competitors, specifically Nucor and Steel Dynamics, rather than United States Steel [1]. Group 1: United States Steel - United States Steel has a historic reputation but is currently struggling, described as a "shell" of its former self, which has attracted acquisition interest from Nippon Steel [2]. - The company relies heavily on blast furnaces, an older and costly steelmaking technology, which is less efficient during periods of low demand and pricing [4]. - U.S. Steel is projected to lose at least $0.49 per share in Q1 2025, indicating significant financial challenges ahead [4][5]. - The business model of U.S. Steel is particularly vulnerable during the current industry downturn, making it a risky investment compared to its competitors [8]. Group 2: Competitors - Nucor and Steel Dynamics - Nucor and Steel Dynamics utilize electric arc mini-mills, which are more flexible and can adjust production based on demand, allowing them to maintain better profit margins [6]. - Despite the industry downturn, Nucor expects earnings between $0.45 and $0.55 per share, while Steel Dynamics projects earnings of $1.36 to $1.40 per share, indicating they will remain profitable [7]. - Both companies have seen significant stock price declines, with Nucor down 40% and Steel Dynamics down 20% from their 52-week highs, making them more attractively priced for potential investors [9].

Shares of Steel Dynamics, Inc. (NASDAQ: STLD ) plunged 9% on Thursday as investors reacted to President Trump’s reciprocal tariff announcement, and shares are now moving back toward a 52-week low. As a domestic steel producer, STLD does not haveOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let ...

Industry Overview - U.S. steel prices have surged over 25% this year, primarily due to a 25% tariff on all steel imports imposed by the Trump administration, which has restricted supply and allowed domestic mills to raise prices [1][3] - The tariffs have created a supply crunch in the domestic market, leading to increased demand for U.S. steel as foreign steel becomes more expensive [3] - Infrastructure spending and strong demand from the construction and automotive sectors have further supported the price rally, with hot-rolled coil (HRC) prices rising past $900 per short ton [4] Company Highlights Nucor Corporation (NUE) - Nucor has a diverse product portfolio and a strong presence in the construction and automotive sectors, maintaining profitability through operational efficiency and cost management [7] - The company is committed to boosting production capacity, which is expected to drive profitable growth and enhance its position as a low-cost producer [8] - Nucor's earnings have beaten the Zacks Consensus Estimate in three of the last four quarters, with a trailing four-quarter earnings surprise of approximately 27.2% [9] Steel Dynamics, Inc. (STLD) - Steel Dynamics is experiencing strong customer order activity for flat-rolled steel and is executing projects to increase capacity and profitability [10] - The company has consistently outperformed the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of about 3.6% [11] United States Steel Corporation (X) - U.S. Steel is focused on operational efficiency and cost management, particularly in its North American Flat-Rolled segment, and is executing its "Best for All" strategy [12] - The company has received positive customer feedback on the quality of products from its Big River 2 mill, which is expected to enhance its earnings as it approaches full operational capacity [12] - U.S. Steel's earnings have also beaten the Zacks Consensus Estimate in three of the last four quarters, with a trailing four-quarter earnings surprise of roughly 20.4% [13]

Company Performance - Steel Dynamics (STLD) ended the latest trading session at $127.09, reflecting a +1.72% change from the previous day's close, outperforming the S&P 500's daily loss of 1.07% [1] - Over the past month, shares of Steel Dynamics have decreased by 8.02%, which is worse than the Basic Materials sector's loss of 0.56% and the S&P 500's loss of 7.03% [2] - The upcoming earnings disclosure is expected to show an EPS of $1.41, representing a 61.58% decline compared to the same quarter last year, with projected net sales of $4.17 billion, down 11.11% from the previous year [3] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $9.49 per share and revenue of $17.85 billion, indicating changes of -3.56% and +1.79%, respectively, compared to the previous year [4] Analyst Sentiment - Recent revisions to analyst forecasts for Steel Dynamics are important, as upward revisions indicate analysts' positive outlook on the company's business operations and profit generation capabilities [5] - The Zacks Rank system, which reflects these estimate changes, currently ranks Steel Dynamics at 3 (Hold), with a 5.41% increase in the Zacks Consensus EPS estimate over the last 30 days [6][7] Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 13.16, which is a premium compared to the industry's average Forward P/E of 12.19, and a PEG ratio of 0.92, below the industry average PEG ratio of 1.04 [8] Industry Context - The Steel - Producers industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 175, placing it in the bottom 31% of over 250 industries, indicating weaker performance compared to higher-ranked industries [9]