Company Overview - Steel Dynamics, Inc. is a leading steel producer and metal recycler in the United States, known for its diversified range of specialty products [11] - The company manufactures and markets steel products, processes and sells recycled ferrous and nonferrous metals, and fabricates and sells steel joist and decking products both domestically and internationally [11] Investment Ratings - Steel Dynamics is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a solid position but not a strong buy [12] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 12.31, which may appeal to value investors [12] Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates upwards for Steel Dynamics, with the Zacks Consensus Estimate increasing by $0.68 to $10.18 per share for fiscal 2025 [12] - The company has demonstrated an average earnings surprise of 3.4%, indicating a positive trend in earnings performance [12] Investment Consideration - With a solid Zacks Rank and favorable Value and VGM Style Scores, Steel Dynamics is recommended for investors' consideration [13]

Core Viewpoint - Steel Dynamics (STLD) shares have increased by approximately 7.9% since the last earnings report, which is underperforming compared to the S&P 500 [1] Group 1: Earnings Report and Market Reaction - The consensus estimate for Steel Dynamics has shifted by 5.01% over the past month, indicating that estimates have remained relatively stable [2] - The stock has received a poor Growth Score of F, while its Momentum Score is rated A, and it has a Value Score of B, placing it in the top 40% for this investment strategy [3] Group 2: Outlook and Ratings - Steel Dynamics holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]

Core Viewpoint - U.S. Steel and Cleveland Cliffs face significant challenges due to their reliance on traditional blast furnace methods for steel production, making them vulnerable during industry downturns, while Nucor and Steel Dynamics, utilizing electric arc mini-mills, are positioned as stronger competitors in the cyclical steel market [1][4][5]. Group 1: Company Challenges - U.S. Steel and Cleveland Cliffs produce primary steel using blast furnaces, which are large and costly to operate, requiring high utilization rates to be profitable [2]. - The cyclical nature of the steel industry leads to significant profit fluctuations for U.S. Steel and Cleveland Cliffs, making them difficult for long-term investors to hold [4]. Group 2: Competitive Advantages - Nucor and Steel Dynamics employ electric arc mini-mills, which are smaller, more flexible, and utilize scrap steel, allowing for better margin management throughout the steel cycle [5]. - Steel Dynamics has achieved 14 consecutive annual dividend increases, while Nucor boasts over 50, establishing it as a Dividend King [6]. Group 3: Investment Opportunities - Steel Dynamics is identified as a growth stock with potential for expansion, including plans to develop an aluminum business, and has seen its dividend grow at a 17% annualized rate over the past decade [7][8]. - Nucor is characterized as a conservative investment option with a stable dividend growth rate of around 4% over the past decade and a current yield of approximately 1.9% [10]. - Nucor's stock has declined by 40% from its 2024 highs, presenting a potential buying opportunity for investors looking for industry leaders during downturns [11].

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financial statements show net income declined to **$217.2 million**, with total assets at **$15.9 billion** and liabilities at **$7.1 billion** Consolidated Balance Sheets Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $6,216,705 | $5,431,338 | | **Total assets** | $15,930,428 | $14,935,233 | | **Total current liabilities** | $2,266,458 | $2,150,583 | | **Long-term debt** | $3,777,132 | $2,804,017 | | **Total liabilities** | $7,096,534 | $5,989,987 | | **Total equity** | $8,662,682 | $8,774,034 | - Total assets increased by approximately **$1.0 billion** from year-end 2024, primarily due to a **$597 million** increase in cash and equivalents and a **$205 million** increase in net property, plant, and equipment[9](index=9&type=chunk) - Total liabilities increased by approximately **$1.1 billion**, mainly driven by a **$973 million** increase in long-term debt[9](index=9&type=chunk) Consolidated Statements of Income Q1 2025 vs. Q1 2024 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total net sales | $4,369,195 | $4,694,003 | | Gross profit | $486,544 | $980,798 | | Operating income | $275,144 | $750,975 | | Net income attributable to Steel Dynamics, Inc. | $217,151 | $584,041 | | Diluted EPS | $1.44 | $3.67 | - Diluted earnings per share decreased significantly to **$1.44** in Q1 2025 from **$3.67** in Q1 2024, a **61% decline**[10](index=10&type=chunk) - Dividends declared per share increased to **$0.50** in Q1 2025 from **$0.46** in Q1 2024[10](index=10&type=chunk) Consolidated Statements of Cash Flows Q1 2025 vs. Q1 2024 Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $152,603 | $355,217 | | Net cash used in investing activities | ($178,759) | ($292,934) | | Net cash provided by (used in) financing activities | $623,295 | ($423,846) | - Cash from operating activities decreased by **57%** year-over-year, primarily due to lower net income and unfavorable changes in working capital, specifically accounts receivable[13](index=13&type=chunk) - Financing activities provided significant cash inflow due to the issuance of **$1.4 billion** in debt, which was partially offset by **$432.5 million** in debt repayments and **$250.1 million** in treasury stock purchases[13](index=13&type=chunk) Notes to Consolidated Financial Statements - The company operates through four reporting segments: steel operations, metals recycling operations, steel fabrication operations, and aluminum operations; segment reporting was recast in Q4 2024 to move an entity from metals recycling to the new aluminum segment[14](index=14&type=chunk)[43](index=43&type=chunk) - In March 2025, the company issued **$600.0 million** of **5.250%** notes due 2035 and **$400.0 million** of **5.750%** notes due 2055, generating net proceeds of **$972 million** for general corporate purposes[35](index=35&type=chunk) - The company repurchased **$250.1 million** of its common stock in Q1 2025 and declared dividends of **$74.7 million**[39](index=39&type=chunk) [Management's Discussion and Analysis (MD&A)](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **63%** decrease in Q1 2025 operating income primarily to metal spread compression - Consolidated operating income for Q1 2025 was **$275.1 million**, a **63% decrease** from **$751.0 million** in Q1 2024, primarily due to contracted metal spreads in steel and fabrication operations[59](index=59&type=chunk) - The company achieved **record quarterly steel shipments** of **3.5 million tons** in Q1 2025[58](index=58&type=chunk) Segment Operating Results Segment Operating Income (in thousands) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Steel Operations | $228,862 | $670,931 | (66)% | | Metals Recycling Operations | $25,710 | $12,752 | 102% | | Steel Fabrication Operations | $116,746 | $178,340 | (35)% | | Aluminum Operations | ($28,735) | ($7,555) | (280)% | - **Steel Operations:** Despite **record shipments** (up **8% YoY**), operating income fell **66%** due to a **17% decrease** in average selling prices, which outpaced the **7% decline** in scrap costs, resulting in a **22% metal spread compression**[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - **Metals Recycling:** Operating income **more than doubled** to **$25.7 million**, driven by expanded ferrous and nonferrous metal spreads and cost control initiatives[71](index=71&type=chunk) - **Steel Fabrication:** Operating income decreased **35%** as a result of a **6% decline** in volume and an **18% contraction** in metal spread; however, the order backlog remains **strong**, extending through **Q4 2025**[77](index=77&type=chunk)[78](index=78&type=chunk) - **Aluminum Operations:** The segment reported a **larger operating loss** due to increasing construction and start-up costs for its new flat rolled mill; commercial shipments are expected to begin in **mid-2025**[80](index=80&type=chunk) Liquidity and Capital Resources Liquidity Position as of March 31, 2025 (in thousands) | Component | Amount | | :--- | :--- | | Cash and equivalents | $1,186,917 | | Short-term and other investments | $262,943 | | Revolver availability | $1,190,678 | | **Total liquidity** | **$2,640,538** | - Total debt increased by **$965.1 million** during the quarter to **$4.2 billion** due to the issuance of new senior unsecured notes in March 2025[88](index=88&type=chunk) - The company invested **$305.5 million** in capital expenditures in Q1 2025, primarily for the aluminum and steel operations segments[92](index=92&type=chunk) - The quarterly cash dividend was increased by **9%** to **$0.50 per share** in Q1 2025[93](index=93&type=chunk) - The company repurchased **$250.1 million** of its common stock in Q1 2025; as of March 31, 2025, **$1.4 billion** remained available under the February 2025 share repurchase program[96](index=96&type=chunk) [Market Risk Disclosures](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risk from raw material and product price fluctuations using competitive pricing and financial hedges - The company is exposed to price fluctuations for raw materials such as metallic scrap, electricity, natural gas, and zinc[99](index=99&type=chunk) - To manage risk, the company enters into forward exchange-traded futures for nonferrous and ferrous metals to protect profit margins on fixed-price contracts[29](index=29&type=chunk)[101](index=101&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were **effective** as of March 31, 2025, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[102](index=102&type=chunk) - **No material changes** occurred in the company's internal control over financial reporting during the first quarter of 2025[103](index=103&type=chunk) [PART II. Other Information](index=32&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) Routine legal and regulatory matters are ongoing, with no expected material impact on the company's financial condition - The company states that **no ongoing litigation** is expected to have a **material impact** on its financial condition or results[104](index=104&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) **No material changes** to the company's previously disclosed risk factors were reported for the quarter - **No material changes** to risk factors were reported for the quarter[106](index=106&type=chunk) [Issuer Purchases of Equity Securities](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **$250.1 million** of common stock and authorized a new **$1.5 billion** share repurchase program Q1 2025 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 1 - 31 | 634,100 | $122.65 | | Feb 1 - 28 | 433,484 | $132.75 | | Mar 1 - 31 | 907,278 | $126.56 | | **Total** | **1,974,862** | **N/A** | - In February 2025, the board of directors authorized an additional share repurchase program of up to **$1.5 billion**[108](index=108&type=chunk)

Company Overview - Steel Dynamics (STLD) is one of the largest and most efficient steel producers in the United States, utilizing electric arc furnace technology [1] - The company was founded in 1993 and has since grown into a vertically integrated steel producer [1] Industry Insights - The company operates in the steel production industry, which is characterized by its reliance on advanced technologies such as electric arc furnaces [1] - Steel Dynamics has established a strong position in the market, indicating potential for continued growth and efficiency improvements [1]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Steel Dynamics (STLD) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Steel Dynamics currently has an aver ...

Financial Data and Key Metrics Changes - The company reported a net income of $217 million or $1.44 per diluted share, with adjusted EBITDA of $448 million for Q1 2025, representing a 13% increase in revenue compared to the previous quarter [16][26] - Operating income for Q1 2025 was $275 million, which is 16% higher than the previous quarter, driven by record steel shipments [16][17] - Cash flow from operations was $153 million, reduced by a profit-sharing distribution of $165 million, resulting in a net cash flow of $318 million for the quarter [26] Business Line Data and Key Metrics Changes - Steel operations generated operating income of $230 million in Q1 2025, with record shipments of 3.5 million tons [8][17] - Metals recycling operations achieved an operating income of $26 million, with improved ferrous metal spreads [21] - Steel fabrication operations reported an operating income of $117 million, which was lower than the previous quarter due to a 4% decline in realized pricing and seasonal shipment decreases [23] Market Data and Key Metrics Changes - The domestic steel industry operated at a utilization rate of approximately 75%, while the company's steel mills operated at 89% [39] - The company noted that ferrous scrap prices increased each month in Q1 2025 before moderating in April, with expectations for stable prices throughout the year [37] - The automotive production estimates for 2025 were revised lower, but the company maintained stable relationships with its automotive customer base [46] Company Strategy and Development Direction - The company is focused on transformational growth initiatives, including the ramp-up of new aluminum operations and the completion of value-added steel coating lines [17][25] - The aluminum growth strategy is expected to contribute positively to earnings, with a projected EBITDA of $650 million to $700 million from aluminum operations [61] - The company aims to leverage its core competencies in construction and operational know-how to drive efficiency and lower costs in both steel and aluminum operations [53][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding steel demand and pricing dynamics for the remainder of 2025, citing strong order activity and a stable customer base [48][105] - The company highlighted the importance of safety and a strong culture in driving operational performance [13][67] - Management acknowledged the challenges posed by tariffs and trade actions but emphasized the positive impact on their operations [74][75] Other Important Information - The company ended the quarter with strong liquidity of $2.6 billion and invested $306 million in capital expenditures [27] - The company has a disciplined capital allocation strategy prioritizing high-return growth while maintaining investment-grade credit metrics [28][29] - The company has increased its cash dividend by over 100% in the last five years and repurchased over 30% of its outstanding shares [64] Q&A Session Summary Question: Can you talk about your raw materials or metallics needs and exposure to imports? - Management discussed the benefits of recent tariff and trade actions, which have positively impacted the company, particularly regarding imports of coated steels [74][75] Question: What changed regarding the profitability of the Sinton facility? - Management noted that improved line utilization rates and market conditions allowed the Sinton facility to achieve positive EBITDA, which was unexpected earlier in the quarter [87][88] Question: What is the outlook for the fabrication business and order volumes? - Management indicated that they expect order volumes to improve in the second half of the year, supported by strong order activity and backlog [96][99] Question: How do you view downstream margins in the second quarter? - Management highlighted that while input costs may rise, increased volume in fabrication operations could lead to improved margins [130][131] Question: What is the company's strategy for capital returns and future growth? - Management emphasized a balanced cash allocation strategy, focusing on both shareholder returns and growth opportunities in aluminum and steel [120][121]

Financial Performance - First quarter 2025 net sales were $4.4 billion, with net income of $217 million, or $1.44 per diluted share, compared to $584 million, or $3.67 per diluted share in the prior year[3] - Net sales for the three months ended March 31, 2025, were $4,369,195, a decrease of 6.9% compared to $4,694,003 for the same period in 2024[23] - Gross profit for Q1 2025 was $486,544, down 50.5% from $980,798 in Q1 2024[23] - Operating income decreased to $275,144 in Q1 2025, a decline of 63.5% from $750,975 in Q1 2024[23] - Net income attributable to Steel Dynamics, Inc. was $217,151 for Q1 2025, down 62.9% from $584,041 in Q1 2024[23] - Basic earnings per share attributable to Steel Dynamics, Inc. stockholders decreased to $1.45 in Q1 2025, compared to $3.68 in Q1 2024[23] Operational Highlights - Operating income for steel operations increased to $230 million, a 39% increase from the sequential fourth quarter, driven by record shipments[6] - Record steel shipments reached 3.5 million tons in the first quarter 2025[7] - Adjusted EBITDA for the first quarter 2025 was $448 million, with cash flow from operations of $153 million, despite a $165 million retirement profit-sharing distribution[7] - The average external product selling price for steel operations decreased by $13 sequentially to $998 per ton, while the average ferrous scrap cost increased by $16 to $386 per ton[6] Liquidity and Capital Management - Strong liquidity of $2.6 billion was maintained as of March 31, 2025[11] - Share repurchases totaled $250 million, representing 1.3% of outstanding shares, with a 9% increase in cash dividends for the first quarter 2025[7] - Cash and equivalents increased to $1,186,917 as of March 31, 2025, up from $589,464 at the end of 2024[25] - Total assets rose to $15,930,428 as of March 31, 2025, compared to $14,935,233 at the end of 2024[25] - Total liabilities increased to $7,096,534 as of March 31, 2025, compared to $5,989,987 at the end of 2024[25] - Dividends declared per share increased to $0.50 in Q1 2025, up from $0.46 in Q1 2024[23] Future Outlook - The company expects to realize full run rate earnings potential from new value-added flat rolled steel coating lines in the second half of 2025[13] - The aluminum flat rolled products mill in Columbus, Mississippi successfully cast its first aluminum ingot in January 2025, with commercial shipments expected by mid-2025[14] - The company anticipates solid domestic steel consumption through 2025, supported by increased onshoring and public/private funding for fixed asset investments[12]

Steel Dynamics, Inc. (STLD) logged first-quarter 2025 earnings of $1.44 per share, down from $3.67 in the year-ago quarter. However, the bottom line topped the Zacks Consensus Estimate of $1.40.Net sales in the first quarter were down around 6.9% year over year to $4,369.2 million. It beat the Zacks Consensus Estimate of $4,146.2 million.The steel demand strengthened in the first quarter, with customer orders rebounding and backlogs growing steadily across the company’s steel and steel fabrication operation ...

Core Insights - Steel Dynamics reported revenue of $4.37 billion for the quarter ended March 2025, a decrease of 6.9% year-over-year, with EPS at $1.44 compared to $3.67 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.15 billion by 5.38%, and the EPS also surpassed the consensus estimate of $1.40 by 2.86% [1] Financial Performance - The average external sales price for steel was $998 per ton, lower than the estimated $1,013.61 per ton [4] - The average sales price for steel fabrication was $2,599 per ton, compared to the estimated $2,858.1 per ton [4] - External net sales for steel were $3.07 billion, down 8.9% year-over-year, exceeding the average estimate of $2.89 billion [4] - External net sales for steel fabrication were $352.31 million, representing a year-over-year decline of 21.2%, below the average estimate of $392.77 million [4] - External net sales for metals recycling were $534.90 million, a decrease of 6.1% year-over-year, surpassing the average estimate of $518.05 million [4] - External net sales for other segments were $348.40 million, reflecting a year-over-year increase of 12%, above the average estimate of $305.56 million [4] Market Performance - Steel Dynamics shares have returned -10.4% over the past month, compared to the Zacks S&P 500 composite's -8.9% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]