PART I. Financial Information Financial Statements 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 equipment9 - Total liabilities increased by approximately $1.1 billion, mainly driven by a $973 million increase in long-term debt9 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% decline10 - Dividends declared per share increased to $0.50 in Q1 2025 from $0.46 in Q1 202410 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 receivable13 - 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 purchases13 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 segment1443 - 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 purposes35 - The company repurchased $250.1 million of its common stock in Q1 2025 and declared dividends of $74.7 million39 Management's Discussion and Analysis (MD&A) 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 operations59 - The company achieved record quarterly steel shipments of 3.5 million tons in Q1 202558 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 compression656667 - Metals Recycling: Operating income more than doubled to $25.7 million, driven by expanded ferrous and nonferrous metal spreads and cost control initiatives71 - 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 20257778 - 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-202580 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 202588 - The company invested $305.5 million in capital expenditures in Q1 2025, primarily for the aluminum and steel operations segments92 - The quarterly cash dividend was increased by 9% to $0.50 per share in Q1 202593 - 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 program96 Market Risk Disclosures 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 zinc99 - To manage risk, the company enters into forward exchange-traded futures for nonferrous and ferrous metals to protect profit margins on fixed-price contracts29101 Controls and Procedures 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, 2025102 - No material changes occurred in the company's internal control over financial reporting during the first quarter of 2025103 PART II. Other Information Legal Proceedings 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 results104 Risk Factors 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 quarter106 Issuer Purchases of Equity Securities 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 billion108
Steel Dynamics(STLD) - 2025 Q1 - Quarterly Report