Financial Data and Key Metrics Changes - The second quarter 2025 net income was $299 million, or $2.01 per diluted share, with adjusted EBITDA of $533 million [13] - Revenue for the second quarter 2025 was $4.6 billion, exceeding first quarter results due to higher realized deal pricing [13] - Operating income for the second quarter was $383 million, a 39% increase from the first quarter, driven by steel metal spread expansion [14] Business Line Data and Key Metrics Changes - Steel operations generated operating income of $382 million in the second quarter, over 65% higher sequentially due to an increase in average realized pricing [14] - Metal recycling operations reported operating income of $21 million, $4 million lower than the first quarter due to lower realized ferrous pricing [15] - Steel fabrication achieved operating income of $93 million, lower than the first quarter due to increased steel substrate costs [16] Market Data and Key Metrics Changes - Domestic steel industry operated at an estimated production utilization rate of 77%, while the company's steel mills operated at a higher rate of 85% [28] - Coated flat rolled steel volume and pricing compressed during the quarter due to an inventory overhang related to imports [29] - North American automotive production estimates for 2025 were revised downward, but the company's specific automotive customer base remained stable [32] Company Strategy and Development Direction - The company is focused on sustainability and has set emissions intensity targets aligned with the Paris Agreement [21] - The aluminum operations are expected to ramp up production, with a goal of achieving monthly EBITDA positive results before the end of 2025 [17] - The company aims to leverage its position as the largest North American metals recycler to enhance its competitive advantage [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving increased profitability in the third quarter, driven by higher volume and value-added product mix [92] - The company anticipates a meaningful positive shift in financial performance for the Sinton facility for the remainder of the year [37] - Management remains optimistic about steel demand and pricing dynamics, supported by ongoing onshoring activities and infrastructure spending [35] Other Important Information - The company repurchased $200 million of its common stock in the second quarter, representing over 1% of outstanding shares [19] - The company has a liquidity position of $1.9 billion, including cash and short-term investments [18] - The first biocarbon production facility is expected to begin production in the coming months, potentially reducing greenhouse gas emissions by 35% [22] Q&A Session Summary Question: Insights on aluminum business and EBITDA profitability - Management confirmed that there is no material change in expectations for aluminum operations achieving EBITDA positivity in the second half of the year [55][58] Question: Sinton mill's EBITDA generation - Management did not disclose specific EBITDA figures for Sinton but indicated significant improvement compared to the first quarter [61][62] Question: Market environment for aluminum ramp-up - Management noted a positive market environment with a growing supply deficit for aluminum, which is beneficial for the company [65][66] Question: Tariff exposure and pig iron sourcing - Management clarified that their long products mills do not use pig iron and emphasized their ability to manage supply chain challenges effectively [73][75] Question: Benefits of biocarbon - Management explained that biocarbon will allow for a reduction in carbon footprint and could potentially replace a portion of anthracite usage in steelmaking [84][86]

Financial Performance - Steel Dynamics reported a net income of $299 million[12], with diluted earnings per share (EPS) of $2.01[12] - The company's adjusted EBITDA was $533 million, representing a 12% margin[12] - Steel Dynamics generated $302 million in cash flow from operations[12] - The company repurchased 1.1% of its outstanding shares, amounting to $200 million[12] - Net sales reached $4.6 billion[12] Operational Highlights - Steel average external sales price per ton was $1,134, a 14% sequential increase[16] - Total steel shipments amounted to 3,350 thousand tons[16] - Ferrous recycling shipments reached 1,597 thousand gross tons[16] - Nonferrous recycling shipments totaled 246 million pounds[16] Strategic Investments and Growth - The company is ramping up operations at its new Sinton, Texas flat roll steel mill, a $1.9 billion greenfield investment[34] - Steel Dynamics is investing $2.7 billion in a greenfield aluminum flat roll mill with a production capacity of 650,000 tonnes[34] - The company is investing approximately $300 million in a biocarbon production facility with a planned capacity of 228,000 metric tons[34] Sustainability - Steel Dynamics aims to reduce Scope 1 steelmaking GHG emissions by as much as 35% with its biocarbon investment[34, 80] - The company increased its use of renewable electrical energy to 14% within its steel mills[52]

Core Insights - Steel Dynamics, Inc. (STLD) reported second-quarter 2025 earnings of $2.01 per share, a decrease from $2.72 in the same quarter last year, missing the Zacks Consensus Estimate of $2.05 [1][10] - Net sales for the quarter were approximately $4,565.1 million, down about 1.5% year over year, also missing the Zacks Consensus Estimate of $4,627 million [1][10] Financial Performance - Steel operations net sales were $3,275.6 million, reflecting a year-over-year increase of around 4.6% [3] - Steel shipments totaled approximately 3.3 million tons, slightly below the estimate of 3.34 million tons [3] - The average external product selling price for steel was $1,134 per ton, down from $1,138 in the previous year but up from $998 in the prior quarter, exceeding the estimate of $1,061 per ton [3] - Metal recycling operations generated net sales of $522.7 million, up about 1.1% year over year, with ferrous shipments of around 1.59 million gross tons, a 5.7% increase year over year, though below the estimate of 1.78 million gross tons [4] - Steel fabrication operations reported sales of approximately $340.6 million, down roughly 28% year over year, with shipments of 135,347 tons, a decline of about 14.9% year over year, missing the estimate of 150,193 tons [5] Financial Position - The company ended the quarter with cash and cash equivalents of $458 million, a decrease of around 44.8% year over year [6] - Long-term debt rose to $3,779.6 million, an increase of roughly 70.8% from the previous year [6] - Cash flow from operations was $301.6 million, down about 21.2% year over year [6] Market Outlook - The company anticipates a mitigation of trade uncertainties and tax impacts, with hopes for an improved interest rate environment and a decline in unfairly traded imports, which could support pricing and demand [7] - The U.S. International Trade Commission's preliminary determinations on coated flat rolled steel are expected to enhance operating platforms, although final determinations are pending [7] - The aluminum teams are projected to increase volumes, with expected exit utilization rates of 40-50% in 2025 and 75% in 2026 [8] Stock Performance - Shares of Steel Dynamics have increased by 6.9% over the past year, contrasting with a 24.7% decline in its industry [9]

[Executive Summary & Performance Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Performance%20Highlights) Steel Dynamics achieved strong sequential improvement in Q2 2025 with increased net sales and net income, driven by expanded steel margins and strategic aluminum product shipments [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Steel Dynamics reported strong sequential improvement in Q2 2025, with net sales of $4.6 billion and net income of $299 million, or $2.01 per diluted share, driven by stabilized steel pricing and expanded margins Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------- | :-------- | :-------- | :-------- | | Net Sales | $4.6 billion | - | $4.63 billion | | Net Income | $299 million | $217 million | $428 million | | Diluted EPS | $2.01 | $1.44 | $2.72 | Q2 2025 Key Operating Metrics | Metric | Q2 2025 | | :----------------------- | :-------- | | Operating Income | $383 million | | Adjusted EBITDA | $533 million | | Cash Flow from Operations | $302 million | - The company shipped its first aluminum flat rolled product coils on June 16, 2025[7](index=7&type=chunk) - Maintained liquidity of **$1.9 billion** as of June 30, 2025, after repaying **$400 million** of senior notes and repurchasing **$200 million** of common stock[7](index=7&type=chunk) [CEO Commentary & Market Overview](index=1&type=section&id=CEO%20Commentary%20%26%20Market%20Overview) The CEO highlighted significant sequential improvement in consolidated operating income (39%) and adjusted EBITDA (19%) due to expanded steel margins and stronger long product shipments - Consolidated operating income improved **39 percent** sequentially, and adjusted EBITDA improved **19 percent**[4](index=4&type=chunk) - Uncertainty regarding trade policy continues to cause hesitancy in customer order patterns, despite healthy underlying demand factors such as manufacturing onshoring, infrastructure program funding, and increased regionalization of supply chains in the U.S.[5](index=5&type=chunk) - The company is firmly positioned for continued growth and long-term value creation, coupled with its expansion in value-added steel and now aluminum flat rolled products[5](index=5&type=chunk) [Segment Performance - Second Quarter 2025](index=1&type=section&id=Segment%20Performance%20-%20Second%20Quarter%202025) This section details the Q2 2025 operational and financial performance of Steel, Metals Recycling, and Steel Fabrication segments, highlighting key drivers and sequential changes [Steel Operations](index=1&type=section&id=Steel%20Operations) Steel operations' operating income surged 66% sequentially to $382 million in Q2 2025, primarily due to expanded metal spread as average realized selling prices increased significantly more than scrap costs Steel Operations Operating Income (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------- | :-------- | :-------- | :---------------- | | Operating Income | $382 million | $229.96 million | +66% | Steel Operations Pricing & Cost (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :-------------------------- | :-------- | :-------- | :---------------- | | Average External Selling Price | $1,134/ton | $998/ton | +$136/ton | | Average Ferrous Scrap Cost | $408/ton | $386/ton | +$22/ton | - The Sinton, Texas Flat Roll Division's access to oxygen was limited for over **65 days**, negatively impacting volume by an estimated **55,000 tons** in Q2 2025[6](index=6&type=chunk) [Metals Recycling Operations](index=2&type=section&id=Metals%20Recycling%20Operations) Metals recycling operations generated $21 million in operating income in Q2 2025, a $4 million sequential decrease, primarily due to lower realized ferrous scrap pricing, which more than offset record quarterly shipments Metals Recycling Operating Income (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------- | :-------- | :-------- | :---------------- | | Operating Income | $21 million | $25.71 million | -$4 million | - Lower realized ferrous scrap pricing more than offset record quarterly shipments[8](index=8&type=chunk) [Steel Fabrication Operations](index=2&type=section&id=Steel%20Fabrication%20Operations) Steel fabrication operations reported $93 million in operating income for Q2 2025, a sequential decline due to metal spread compression, with order backlog increasing 15% year-to-date and extending into 2026 Steel Fabrication Operating Income (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------- | :-------- | :-------- | :---------------- | | Operating Income | $93 million | $117 million | -$24 million | - Order backlog increased **15 percent** since the beginning of the year and now extends into 2026[9](index=9&type=chunk) - Profitability from steel fabrication operations is expected to improve in the sequential third quarter[9](index=9&type=chunk) [Financial Position & Cash Flow](index=2&type=section&id=Financial%20Position%20%26%20Cash%20Flow) Steel Dynamics generated significant cash flow from operations in Q2 2025, strategically allocating capital to investments, debt repayment, dividends, and share repurchases while maintaining strong liquidity [Cash Flow from Operations & Capital Allocation (Q2 2025)](index=2&type=section&id=Cash%20Flow%20from%20Operations%20%26%20Capital%20Allocation%20(Q2%202025)) In Q2 2025, Steel Dynamics generated $302 million in cash flow from operations, strategically allocating capital by investing $288 million, repaying $400 million in senior notes, distributing $75 million in dividends, and repurchasing $200 million of common stock Q2 2025 Cash Flow and Capital Allocation | Activity | Amount | | :-------------------------- | :----------- | | Cash Flow from Operations | $302 million | | Capital Investments | $288 million | | Senior Notes Repaid | $400 million | | Cash Dividends Paid | $75 million | | Common Stock Repurchases | $200 million | | Liquidity (as of June 30, 2025) | $1.9 billion | [Year-to-Date June 30, 2025 Comparison](index=2&type=section&id=Year-to-Date%20June%2030%2C%202025%20Comparison) This section compares Steel Dynamics' financial performance and capital allocation for the first half of 2025 against the prior year, noting changes in net income, sales, and operational metrics [Year-to-Date Financial Performance](index=2&type=section&id=Year-to-Date%20Financial%20Performance) For the first half of 2025, net income was $516 million on $8.9 billion in net sales, a significant decrease compared to $1.0 billion net income and $9.3 billion net sales in H1 2024, primarily due to lower realized pricing H1 2025 vs H1 2024 Key Financials | Metric | H1 2025 | H1 2024 | YoY Change | | :----------------- | :-------- | :-------- | :--------- | | Net Income | $516 million | $1.0 billion | -48.4% | | Net Sales | $8.9 billion | $9.3 billion | -4.3% | | Operating Income | $658 million | $1.31 billion | -49.8% | H1 2025 vs H1 2024 Steel Operations Pricing & Cost | Metric | H1 2025 | H1 2024 | YoY Change | | :-------------------------- | :-------- | :-------- | :--------- | | Average External Selling Price | $1,064/ton | $1,169/ton | -$105/ton | | Average Ferrous Scrap Cost | $397/ton | $403/ton | -$6/ton | [Year-to-Date Cash Flow & Capital Allocation](index=3&type=section&id=Year-to-Date%20Cash%20Flow%20%26%20Capital%20Allocation) For the first half of 2025, cash flow from operations totaled $454 million, with capital allocated to investments, senior note repayments, dividends, and share repurchases, maintaining $1.9 billion in liquidity H1 2025 Cash Flow and Capital Allocation | Activity | Amount | | :-------------------------- | :----------- | | Cash Flow from Operations | $454 million | | Capital Investments | $594 million | | Senior Notes Repaid | $400 million | | Cash Dividends Paid | $144 million | | Common Stock Repurchases | $450 million | | Liquidity (as of June 30, 2025) | $1.9 billion | [Outlook & Strategic Initiatives](index=3&type=section&id=Outlook%20%26%20Strategic%20Initiatives) The company anticipates robust domestic steel and aluminum consumption, supported by favorable trade policies and strategic expansion into value-added aluminum flat rolled products [Market Outlook](index=3&type=section&id=Market%20Outlook) Steel Dynamics anticipates strong domestic steel and aluminum consumption in the coming years, driven by the mitigation of trade and tax policy uncertainties and an improved interest rate environment - The company remains confident that market factors are in place to support strong domestic steel and aluminum product consumption in the coming years, as trade and tax policy uncertainty is mitigated and the interest rate environment improves[14](index=14&type=chunk) - The U.S. International Trade Commission's preliminary determinations on coated flat rolled steel are viewed as a significant positive development, with final determinations expected before the end of the third quarter 2025[15](index=15&type=chunk) [Aluminum Expansion & Diversification](index=3&type=section&id=Aluminum%20Expansion%20%26%20Diversification) The company successfully shipped its first aluminum flat rolled product coils in June 2025 and projects a utilization rate of 40-50% by the end of 2025 and 75% by the end of 2026, diversifying into counter-cyclical markets - Successfully produced and sold the first aluminum coils last month (June 2025)[16](index=16&type=chunk) Aluminum Mill Utilization Rate Projections | Period | Projected Utilization Rate | | :----- | :------------------------- | | End of 2025 | 40-50% | | End of 2026 | 75% | - Expanding and diversifying end markets by supplying aluminum flat rolled products with high recycled content to the counter-cyclical, sustainability-driven beverage can and packaging industry, as well as the automotive, industrial, and construction sectors[17](index=17&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides an overview of Steel Dynamics' business model, defines key financial metrics, and includes standard forward-looking statements and risk factor disclosures [About Steel Dynamics, Inc.](index=4&type=section&id=About%20Steel%20Dynamics%2C%20Inc.) Steel Dynamics is a leading industrial metals solutions company, utilizing a circular manufacturing model to produce lower-carbon-emission products from recycled scrap, and is diversifying into aluminum operations - Operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input[20](index=20&type=chunk) - One of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform[20](index=20&type=chunk) - Currently investing in aluminum operations to further diversify its product offerings, with plans to supply aluminum flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors[20](index=20&type=chunk) [Financial Metric Notes & Forward-Looking Statements](index=4&type=section&id=Financial%20Metric%20Notes%20%26%20Forward-Looking%20Statements) This section defines After-tax Return-on-Invested Capital (ROIC) and clarifies the use of non-GAAP financial measures like EBITDA and Adjusted EBITDA, emphasizing they supplement, not replace, GAAP results - After-tax ROIC is calculated as Net Income Attributable to Steel Dynamics, Inc. divided by (Quarterly Average Current Maturities of Long-term Debt + Long-term Debt + Total Equity)[21](index=21&type=chunk) - Non-GAAP financial measures (EBITDA and Adjusted EBITDA) provide additional meaningful information but should be viewed in addition to and not as an alternative for GAAP results[22](index=22&type=chunk) - The press release contains predictive statements about future events, subject to many risks and uncertainties, as detailed in the company's SEC filings[23](index=23&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents Steel Dynamics' complete consolidated statements of income, balance sheets, and cash flows for the specified periods, offering a comprehensive financial overview [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income provide a detailed overview of Steel Dynamics' financial performance for the three and six months ended June 30, 2025, and comparative periods, showing key figures such as net sales, gross profit, operating income, net income, and diluted earnings per share Consolidated Statements of Income (Selected Data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | Q1 2025 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Net sales | $4,565,123 | $4,632,634 | $8,934,318 | $9,326,637 | $4,369,195 | | Gross profit | $618,468 | $774,837 | $1,105,012 | $1,755,635 | $486,544 | | Operating income | $382,855 | $559,123 | $657,999 | $1,310,098 | $275,144 | | Net income attributable to Steel Dynamics, Inc. | $298,726 | $427,998 | $515,877 | $1,012,039 | $217,151 | | Diluted earnings per share | $2.01 | $2.72 | $3.44 | $6.39 | $1.44 | | Dividends declared per share | $0.50 | $0.46 | $1.00 | $0.92 | $0.50 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets (cash, receivables, inventories, property), liabilities (accounts payable, debt), and equity, reflecting changes over the period Consolidated Balance Sheets (Selected Data) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total current assets | $5,690,599 | $5,431,338 | | Total assets | $15,548,638 | $14,935,233 | | Total current liabilities | $1,819,081 | $2,150,583 | | Long-term debt | $3,779,559 | $2,804,017 | | Total liabilities | $6,704,588 | $5,989,987 | | Total equity | $8,702,824 | $8,774,034 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows illustrate the movement of cash for the three and six months ended June 30, 2025, and comparative periods, categorizing cash flows from operating, investing, and financing activities, and showing the overall change in cash and equivalents Consolidated Statements of Cash Flows (Selected Data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $301,611 | $382,561 | $454,214 | $737,778 | | Net cash used in investing activities | $(305,696) | $(209,586) | $(484,455) | $(502,520) | | Net cash used in financing activities | $(724,783) | $(382,350) | $(101,488) | $(806,196) | | Decrease in cash, cash equivalents, and restricted cash | $(728,868) | $(209,375) | $(131,729) | $(570,938) | | Cash, cash equivalents, and restricted cash at end of period | $463,281 | $835,526 | $463,281 | $835,526 | [Supplemental Segment Information](index=9&type=section&id=Supplemental%20Segment%20Information) This section provides detailed financial and operational data for Steel Dynamics' various segments, including net sales, operating income, and key production and shipment metrics [Segment Net Sales](index=9&type=section&id=Segment%20Net%20Sales) This section provides a detailed breakdown of external net sales across Steel, Steel Fabrication, Metals Recycling, and Aluminum segments for Q2 2025 and year-to-date, illustrating the revenue contribution from each business unit External Net Sales by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Steel | $3,275,551 | $3,132,232 | $6,342,567 | $6,498,469 | $3,067,016 | | Steel Fabrication | $340,648 | $472,832 | $692,955 | $920,011 | $352,307 | | Metals Recycling | $522,721 | $517,167 | $1,057,616 | $1,024,437 | $534,895 | | Aluminum | $65,632 | $69,265 | $132,208 | $131,468 | $66,576 | | Other | $360,571 | $441,138 | $708,972 | $752,252 | $348,401 | | Consolidated Net Sales | $4,565,123 | $4,632,634 | $8,934,318 | $9,326,637 | $4,369,195 | [Segment Operating Income (Loss)](index=9&type=section&id=Segment%20Operating%20Income%20(Loss)) This section details the operating income or loss for each segment, including Steel, Steel Fabrication, Metals Recycling, and Aluminum, along with non-cash adjustments and non-segment operations, contributing to the consolidated operating income Operating Income (Loss) by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :---------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Steel | $382,196 | $442,317 | $612,159 | $1,116,965 | $229,963 | | Steel Fabrication | $93,115 | $180,780 | $209,860 | $359,161 | $116,745 | | Metals Recycling | $21,290 | $26,746 | $47,000 | $43,405 | $25,710 | | Aluminum | $(40,627) | $(13,862) | $(69,362) | $(21,417) | $(28,735) | | Non-cash amortization of intangible assets | $(6,897) | $(7,645) | $(13,794) | $(15,309) | $(6,897) | | Profit sharing expense | $(30,706) | $(48,053) | $(53,401) | $(110,705) | $(22,695) | | Non-segment operations | $(35,516) | $(21,160) | $(74,463) | $(62,002) | $(38,947) | | Consolidated Operating Income | $382,855 | $559,123 | $657,999 | $1,310,098 | $275,144 | [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section reconciles net income to EBITDA and Adjusted EBITDA for Q2 2025 and year-to-date, detailing adjustments for income taxes, interest, depreciation, amortization, and non-cash items to offer a comprehensive view of the company's operational performance Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Net income | $301,191 | $431,690 | $518,870 | $1,019,190 | $217,679 | | Income taxes | $86,675 | $133,422 | $149,650 | $311,703 | $62,975 | | Net interest expense (income) | $7,025 | $(7,867) | $9,341 | $(22,194) | $2,316 | | Depreciation | $124,003 | $107,849 | $249,125 | $213,879 | $125,122 | | Amortization of intangible assets | $6,897 | $7,645 | $13,794 | $15,309 | $6,897 | | EBITDA | $525,791 | $672,739 | $940,780 | $1,537,887 | $414,989 | | Unrealized (gains) losses on derivatives and currency remeasurement | $(6,197) | $818 | $12,956 | $(529) | $19,153 | | Equity-based compensation | $13,819 | $12,855 | $28,000 | $27,680 | $14,181 | | Adjusted EBITDA | $533,413 | $686,412 | $981,736 | $1,565,038 | $448,323 | [Other Operating Information](index=9&type=section&id=Other%20Operating%20Information) This section offers detailed operational metrics for the Steel, Metals Recycling, and Steel Fabrication segments, including average sales prices, average ferrous costs, and various shipment and production volumes, providing granular insights into operational performance Steel Segment Operating Metrics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Average external sales price (Per ton) | $1,134 | $1,138 | $1,064 | $1,169 | $998 | | Average ferrous cost (Per ton melted) | $408 | $388 | $397 | $403 | $386 | | Flat Roll shipments | 1,952,228 | 1,943,583 | 4,071,415 | 3,936,888 | 2,119,187 | | Long Product shipments | 918,468 | 830,338 | 1,788,103 | 1,674,079 | 869,725 | | Total Shipments (Tons) | 3,349,798 | 3,203,200 | 6,831,337 | 6,458,794 | 3,481,539 | | External Shipments (Tons) | 2,888,916 | 2,753,117 | 5,960,651 | 5,556,686 | 3,071,735 | | Steel Mill Production (Tons) | 2,949,936 | 2,802,086 | 5,971,529 | 5,794,104 | 3,021,593 | Metals Recycling Segment Operating Metrics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Nonferrous shipments (000's of pounds) | 245,577 | 253,815 | 478,657 | 497,765 | 233,080 | | Ferrous shipments (Gross tons) | 1,596,583 | 1,509,924 | 3,049,015 | 2,967,713 | 1,452,432 | | External ferrous shipments (Gross tons) | 545,022 | 591,120 | 1,102,640 | 1,128,093 | 557,618 | Steel Fabrication Segment Operating Metrics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Average sales price (Per ton) | $2,517 | $2,978 | $2,558 | $3,055 | $2,599 | | Shipments (Tons) | 135,347 | 159,069 | 270,928 | 302,911 | 135,581 |

Group 1 - Steel Dynamics (NASDAQ: STLD) shares have gained 6% over the past year, but remain below post-election highs due to concerns about weaker market conditions offsetting benefits from steel tariffs [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - Steel Dynamics reported quarterly earnings of $2.01 per share, missing the Zacks Consensus Estimate of $2.05 per share, and down from $2.72 per share a year ago, indicating a -1.95% earnings surprise [1] - The company posted revenues of $4.57 billion for the quarter, missing the Zacks Consensus Estimate by 1.34% and down from $4.63 billion year-over-year [2] Financial Performance - Over the last four quarters, Steel Dynamics has surpassed consensus EPS estimates three times [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $3.04 on revenues of $4.67 billion, and for the current fiscal year, it is $9.74 on revenues of $18.26 billion [7] Stock Performance - Steel Dynamics shares have increased approximately 15.4% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Zacks Industry Rank places Steel - Producers in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Steel Dynamics' stock performance [5]

Core Insights - Steel Dynamics, Inc. reported second-quarter earnings of $2.01 per share, missing the analyst consensus estimate of $2.51 [1] - Quarterly revenue was $4.57 billion, below the analyst consensus estimate of $4.76 billion and down from $4.63 billion in the same period last year [1] - The company experienced a significant sequential improvement in consolidated operating income of 39% and adjusted EBITDA of 19% due to stabilized steel pricing at higher levels [2] Financial Performance - Steel shipments totaled 3.3 million tons [4] - Net sales were reported at $4.6 billion, with operating income of $383 million and net income of $299 million [4] - Adjusted EBITDA reached $533 million, and cash flow from operations was $302 million [4] - As of June 30, 2025, the company had liquidity of $1.9 billion after repaying $400 million of senior notes due June 2025 [4] Stock Performance - Steel Dynamics stock was down 4.13% at $128.98 in extended trading on Monday [3]

Core Viewpoint - Steel Dynamics (STLD) experienced a post-market drop of 4.81% following its second-quarter earnings report, which fell short of analyst expectations [1] Financial Performance - The company reported a second-quarter EPS of $2.01, matching the adjusted EPS but below the analyst forecast of $2.10 [1] - Net sales for the second quarter were $4.6 billion, which was below the expected $4.72 billion [1] Market Outlook - The company anticipates steady growth in aluminum coil sales [1] - Positive market momentum is expected to have a beneficial impact on the company's performance [1] - Preliminary estimates suggest a favorable outcome from the U.S. International Trade Commission (USITC) ruling, with a final decision on steel issues expected before the end of the third quarter [1]

Company Performance - Steel Dynamics (STLD) closed at $135.07, down 1.67% from the previous trading session, underperforming the S&P 500's loss of 0.33% [1] - The stock has increased by 4.19% over the past month, outperforming the Basic Materials sector's gain of 1.87% and the S&P 500's gain of 4.07% [1] Upcoming Earnings - The upcoming earnings report for Steel Dynamics is expected on July 21, 2025, with projected EPS of $2.04, reflecting a 25.00% decrease compared to the same quarter last year [2] - Revenue is anticipated to be $4.67 billion, indicating a 0.76% increase from the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at $9.67 per share, showing a decline of 1.73%, while revenue is expected to reach $18.28 billion, representing a growth of 4.22% from the previous year [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for Steel Dynamics suggest a shifting business landscape, with positive changes indicating analyst optimism regarding profitability [3] - The Zacks Rank system currently rates Steel Dynamics at 3 (Hold), with the consensus EPS estimate decreasing by 4.94% over the last 30 days [5] Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 14.21, which is higher than the industry's Forward P/E of 13.46 [6] - The company has a PEG ratio of 1.07, compared to the Steel - Producers industry's average PEG ratio of 1 [6] Industry Context - The Steel - Producers industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 149, placing it in the bottom 40% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating the competitive landscape within the industry [7]

Group 1: Stock Performance - Steel Dynamics (STLD) closed at $131.50, with a +2.35% increase from the previous day, outperforming the S&P 500's daily gain of 0.8% [1] - The stock has risen by 1.39% in the past month, lagging behind the Basic Materials sector's gain of 2.02% and the S&P 500's gain of 5.12% [1] Group 2: Earnings Estimates - Steel Dynamics is set to release earnings on July 21, 2025, with projected EPS of $2.12, indicating a 22.06% drop compared to the same quarter last year [2] - The consensus estimate for revenue is $4.67 billion, reflecting a 0.76% increase from the prior-year quarter [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $9.75 per share and revenue at $18.08 billion, showing changes of -0.91% and +3.08% respectively from the previous year [3] - Recent revisions in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] Group 4: Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 13.18, which is higher than the industry average of 10.47, suggesting it is trading at a premium [6] - The company holds a PEG ratio of 0.99, compared to the industry average PEG ratio of 0.91, indicating a similar growth trajectory [7] Group 5: Industry Ranking - The Steel - Producers industry is part of the Basic Materials sector and currently has a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]