Financial Data and Key Metrics Changes - In 2025, the company achieved operating income of $1.5 billion and net income of $1.2 billion, equating to $7.99 per diluted share [16] - Cash flow from operations was $1.4 billion, with liquidity remaining strong at over $2.2 billion [17][21] - For Q4 2025, net income was $266 million, or $1.82 per diluted share, with revenue at $4.4 billion [17] Business Line Data and Key Metrics Changes - Steel operations generated operating income of $1.4 billion in 2025, down from $1.6 billion in the prior year, despite record steel shipments of 13.7 million tons [17][18] - The mills recycling operations saw operating income of $97 million, nearly 30% higher than 2024, while Q4 income declined due to lower pricing [18][25] - Steel fabrication platform earnings were $407 million for the year, lower than the previous year, but Q4 operating income was $91 million, indicating a solid demand for steel joists and deck [19][25] Market Data and Key Metrics Changes - The domestic steel industry operated at a production utilization rate of 77%, while the company's mills operated at 86%, showcasing a competitive advantage [26] - Long-product steel markets remained strong throughout 2025, with expectations for continued demand and pricing stability [28] - The automotive production estimates for 2026 are expected to remain similar to 2025, with dealer inventories declining further [28] Company Strategy and Development Direction - The company focuses on strategic organic investments in steel and aluminum products, aiming for differentiated product offerings and value creation for stakeholders [8][9] - The proposed acquisition of BlueScope is seen as a strategic move to unlock value in North American assets, despite the rejection of the offer by BlueScope's board [9][10] - The company emphasizes a disciplined capital allocation strategy, prioritizing high-return growth and maintaining investment-grade credit metrics [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the demand for diversified value-added steel products, supported by ongoing infrastructure spending and manufacturing onshoring [28] - The aluminum segment is expected to grow significantly, with a domestic supply deficit forecasted to increase, providing opportunities for the company [30] - The company remains committed to achieving a zero-incident safety environment and continues to prioritize safety culture [6] Other Important Information - The company issued $800 million in investment-grade unsecured notes to redeem existing notes and for general corporate purposes [22] - Capital investments for 2026 are projected to be around $600 million, with a focus on maintaining strong cash flow generation [22][23] - The company repurchased $900 million of common stock in 2025, reflecting confidence in future growth [22] Q&A Session Questions and Answers Question: Update on aluminum rolling mill utilization - The aluminum rolling mill is expected to reach 90% utilization by the end of 2026, with positive EBITDA anticipated to continue through the year [39][40] Question: Investment capacity and balance sheet comfort level - The company maintains a balance sheet with considerable capacity, aiming to remain under a 2x net leverage ratio while improving structural EBITDA [41][42] Question: Status of the four value-add lines and Sinton - The four value-add lines are operating well, and Sinton is expected to converge with other facilities in terms of operational capability [47][49]

Core Viewpoint - Steel Dynamics, Inc. (STLD) has shown strong performance over the past year, with a 50% increase in share value, attributed to the benefits of steel tariffs protecting the business [1] Company Performance - The company has gained 50% in share price over the last year, indicating robust market performance [1] - Initially, tariffs had a mixed impact on the business, but recent trends show increasing benefits from these tariffs [1] Industry Context - The steel industry is experiencing a favorable environment due to protective tariffs, which are contributing positively to the financial performance of companies like Steel Dynamics [1]

Presentation I n v e s t o r C a l l P r e s e n t a t i o n F o u r t h Q u a r t e r a n d F u l l Y e a r 2 0 2 5 January 26, 2026 Health and Safety Health and Safety Entrepreneurial Culture Customer Commitment Strategic Sustainable Growth Innovation Financial Strength z Investor 2022 Entrepreneurial Culture Customer Commitment Strategic Growth Innovation Financial Strength Forward-looking statements and Non-GAAP financial measures Forward-Looking Statements This presentation contains some predictive sta ...

Core Insights - Steel Dynamics, Inc. (STLD) reported Q4 2025 earnings of $1.82 per share, an increase from $1.36 year-over-year, surpassing the Zacks Consensus Estimate of $1.72 [1] - Net sales for the quarter reached $4,414 million, a 14% year-over-year increase, but fell short of the Zacks Consensus Estimate of $4,539.1 million [1] Segment Highlights - Steel operations net sales were $3,141.4 million, up approximately 18.7% year-over-year, with steel shipments of about 3.3 million tons, exceeding the consensus estimate of 3.29 million tons [1] - The average external product selling price for steel was $1,107 per ton, up from $1,011 year-over-year, but down from $1,119 in the previous quarter, beating the consensus estimate of $1,092 per ton [2] - Metal recycling operations reported net sales of $463 million, down around 4% year-over-year, with ferrous shipments of approximately 1.52 million gross tons, up roughly 7% year-over-year, surpassing the consensus of 1.44 million gross tons [3] - Steel fabrication operations had sales of about $347.3 million, down roughly 12.3% year-over-year, with shipments of 138,375 tons, down around 5.2% year-over-year, missing the consensus estimate of 142,000 tons [4] Financial Position - Steel Dynamics ended the quarter with cash and cash equivalents of $769.9 million, a 31% increase year-over-year, while long-term debt rose to $4,176.5 million, up roughly 49% [5] - Cash flow from operations was $272.7 million, down approximately 21.4% year-over-year [5] Outlook - The company anticipates improved trade conditions and a favorable interest rate environment to bolster steel and aluminum demand, with a growing interest in low-carbon, U.S.-made metals [6] - Progress is being made on the commissioning and start-up of the Columbus aluminum flat rolled mill and San Luis Potosí slab center, with expectations for strong long-term growth and value creation [6] Price Performance - Steel Dynamics shares have increased by 48.6% over the past year, compared to a 59.1% rise in its industry [7]

Core Insights - Steel Dynamics (STLD) reported revenue of $4.41 billion for Q4 2025, a 14% year-over-year increase, with EPS of $1.82 compared to $1.36 a year ago, indicating strong financial performance despite missing revenue estimates by 2.75% [1] Financial Performance - The reported revenue of $4.41 billion was below the Zacks Consensus Estimate of $4.54 billion, resulting in a revenue surprise of -2.75% [1] - The company achieved an EPS surprise of +5.66%, with the consensus EPS estimate being $1.72 [1] Key Metrics - Steel Dynamics' stock returned +3.3% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change, and currently holds a Zacks Rank 3 (Hold) [3] - Average external sales price for Steel was $1,107.00 per ton, exceeding the estimated $1,092.10 per ton [4] - Average sales price for Steel Fabrication was $2,509.00 per ton, slightly below the estimated $2,557.62 per ton [4] Shipments and Sales - External shipments of Steel totaled 2,837.13 KTon, below the average estimate of 2,939.28 KTon [4] - External net sales for Steel Fabrication were reported at $347.25 million, compared to the average estimate of $362.78 million, reflecting a year-over-year decline of 12.4% [4] - External net sales for Metals Recycling were $463.04 million, slightly below the average estimate of $471.84 million, with a year-over-year change of -4% [4] - External net sales for Steel reached $3.14 billion, compared to the estimated $3.21 billion, marking an 18.7% increase year-over-year [4] - External net sales for Other products were $304.64 million, below the average estimate of $317.61 million, with a year-over-year change of +5.9% [4] - External net sales for Aluminum were reported at $157.75 million, significantly lower than the average estimate of $234.23 million [4]

Financial Performance - The company achieved third quarter revenues of $4.3 billion, with steel shipments totaling 3.2 million tonnes and adjusted EBITDA of $557 million [1][7][8] - Net income for the third quarter was reported at $318 million, or $2.05 per diluted share, which reflects a decrease in revenue compared to the second quarter due to lower flat-rolled steel pricing [7][8] - Operating income for the third quarter was $395 million, a 29% decline from the previous quarter, primarily due to steel metal spread contraction [8] Operational Highlights - The Sinton team reached a 72% utilization rate in September, with periods exceeding 90% during the quarter, demonstrating the mill's capability [1][23] - The company successfully ramped up four new value-add flat-rolled steel coating lines, expected to contribute fully to earnings by 2025, adding 1.1 million tons of higher-margin product [2][12] - Safety performance improved significantly, with the lowest total recordable incident rate and lost time rates in company history, and 84% of locations reported no recordable injuries [5][6] Market Dynamics - The domestic steel industry operated at an estimated production utilization rate of 78%, while the company's steel mills operated at 86%, indicating a competitive advantage [21] - The company is experiencing steady underlying steel demand, although a surge in steel imports has put pressure on supply dynamics for certain products [22][24] - The company anticipates increased fixed asset investment and demand drivers for steel and steel fabrication products in 2025 due to moderating interest rates and public funding [11][24] Strategic Investments - Approximately $1.9 billion has been invested in strategic growth initiatives through September 2024, with expectations for an additional $350 million to $400 million in the fourth quarter [13][14] - The company has repurchased $970 million of common stock year-to-date 2024, representing 4.5% of outstanding shares, with a remaining $486 million available for further repurchases [14] - The company is committed to sustainability, with new greenhouse gas emissions intensity targets aligned with the Paris Agreement, and is on track to introduce biocarbon into steel production by the first quarter of 2025 [15][16][81] Future Outlook - The company expects capital investments in 2025 to be in the range of $700 million to $800 million, with a focus on high-return strategic growth [14] - The aluminum production investments are projected to be EBITDA positive in the second half of 2025, with plans to operate the rolling mill at approximately 75% capacity in 2026 [12][66] - The company is optimistic about steel demand and pricing dynamics as it approaches the end of 2024 and enters 2025, driven by ongoing infrastructure spending and manufacturing onshoring [24][40]

U.S. Stock Market - U.S. stocks traded higher, with the Dow Jones index gaining more than 100 points, up 0.33% to 49,259.65 [1] - The NASDAQ increased by 0.09% to 23,521.63, and the S&P 500 rose 0.26% to 6,933.84 [1] - Materials shares gained 0.8%, while health care stocks dipped by 0.2% [1] Company Earnings - Steel Dynamics Inc reported fourth-quarter earnings of $1.82 per share, missing the analyst consensus estimate of $1.95 per share [2] - The company also reported quarterly sales of $4.414 billion, which fell short of the analyst consensus estimate of $4.575 billion [2] Commodity Market - Oil prices decreased by 0.6% to $60.72, while gold prices increased by 1.8% to $5,068.50 [4] - Silver rose by 8.1% to $109.565, and copper increased by 0.5% to $5.9770 [4] Asian Markets - Asian markets closed mixed, with Japan's Nikkei falling 1.79%, Hong Kong's Hang Seng Index gaining 0.06%, and China's Shanghai Composite declining 0.09% [6] Stock Movements - Battalion Oil Corp shares surged 379% to $6.13 after switching gas processing partners and boosting production [8] - Brand Engagement Network Inc shares increased by 196% to $48.79 following a strategic partnership announcement [8] - Gaxos.ai Inc shares rose 76% to $1.97, while Mingteng International Corp shares dropped 36% to $2.16 [8] - CN ENERGY GROUP Inc shares fell 35% to $0.52 due to a Nasdaq delisting determination [8] - 60 Degrees Pharmaceuticals Inc shares decreased by 23% to $3.52 after a 10% drop on Friday [8] Economic Indicators - U.S. durable-goods orders rose 5.3% month-over-month in November, surpassing market estimates of a 3.7% increase [9]

Steel Dynamics Falls. Its Earnings Offer Hope for the Sector in 2026. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Steel Dynamics Falls on Earnings Beat. It Still Offers Hope for the Sector in 2026.By [Al Root]ShareResize---ReprintsIn th ...

Earnings Expectations - Steel Dynamics Inc. (NASDAQ:STLD) is expected to report quarterly earnings of $1.69 per share on revenue of $4.57 billion [1] - Nucor Corp. (NYSE:NUE) is anticipated to post quarterly earnings of $1.91 per share on revenue of $7.87 billion [1] - W R Berkley Corp. (NYSE:WRB) is projected to report quarterly earnings of $1.13 per share on revenue of $3.66 billion [1] - Sanmina Corp. (NASDAQ:SANM) is expected to report quarterly earnings of $2.13 per share on revenue of $3.08 billion [1] Recent Performance - Baker Hughes Co. (NASDAQ:BKR) reported adjusted earnings of 78 cents per share, exceeding market estimates of 67 cents per share, with quarterly sales of $7.386 billion, surpassing expectations of $7.068 billion [1] - Steel Dynamics shares rose 1.4% to close at $181.32 on Friday [1] - Nucor shares increased by 0.8% to close at $181.65 on Friday [1] - W R Berkley shares fell 0.6% to close at $67.12 on Friday [1] - Sanmina shares decreased by 0.9% to close at $177.83 on Friday [1] - Baker Hughes shares fell 1.2% to close at $53.80 on Friday [1]

Group 1 - Steel Dynamics, Inc. (NASDAQ:STLD) is recognized as an excellent company and a strong investment opportunity, particularly in the context of tariffs benefiting American companies [1][2] - The company is a major player in the steel and aluminum production industry, also involved in metal recycling, producing a variety of products including hot-rolled and coated steel, aluminum products, and managing scrap processing [2] - Since the mention of Steel Dynamics by Jim Cramer, the stock has appreciated nearly 41%, indicating strong market performance [3] Group 2 - The company is expected to benefit from President Trump's tariffs aimed at subsidized foreign competitors, particularly from Japan and China, which positions it favorably in the current market [2] - While Steel Dynamics shows potential, there are suggestions that certain AI stocks may offer greater upside potential with less downside risk, indicating a competitive investment landscape [3]