Steel Dynamics(US:STLD)2026-01-27 17:01Financial Performance - Fourth quarter 2025 net sales were $4.4 billion, with net income of $266 million, or $1.82 per diluted share, compared to $404 million, or $2.74 per diluted share in the third quarter 2025[3]. - Annual 2025 net sales increased by 3.6% to $18.2 billion, while operating income declined by 24% to $1.5 billion compared to 2024, primarily due to lower realized pricing in steel operations[14]. - Net sales for Q4 2025 reached $4.41 billion, a 14% increase from $3.87 billion in Q4 2024[27]. - Gross profit for Q4 2025 was $529.3 million, up from $441.7 million in Q4 2024, reflecting a gross margin improvement[27]. - Operating income for the year ended December 31, 2025, was $1.48 billion, a decrease of 24% compared to $1.94 billion in 2024[27]. - Net income attributable to Steel Dynamics, Inc. for Q4 2025 was $266.0 million, compared to $207.3 million in Q4 2024, representing a 28% increase[27]. - Basic earnings per share for Q4 2025 were $1.83, up from $1.36 in Q4 2024, indicating a 35% increase[27]. - Consolidated net sales for Q4 2025 reached $4,414,048, a 14% increase from $3,872,138 in Q4 2024[33]. - The company reported a consolidated operating income of $310,230 for Q4 2025, up from $237,502 in Q4 2024, a 30% increase[33]. Operational Highlights - The company achieved record steel shipments of 13.7 million tons in 2025, supported by improved domestic trade actions and manufacturing onshoring[6]. - Fourth quarter 2025 operating income from steel operations was $322 million, a 35% decrease from the third quarter due to lower average realized selling values and seasonal demand[8]. - Total shipments for Q4 2025 were 3,304,134 tons, up from 3,020,316 tons in Q4 2024, representing a 9% increase[33]. - Steel mill production for Q4 2025 was 2,838,233 tons, compared to 2,663,444 tons in Q4 2024, an increase of 7%[33]. - Steel segment operating income improved to $322,337 in Q4 2025, compared to $164,989 in Q4 2024, reflecting a 95% increase[33]. - Steel fabrication segment shipments totaled 138,375 tons in Q4 2025, down from 145,901 tons in Q4 2024, a decrease of 5%[33]. - Nonferrous shipments in metals recycling were 195,003 thousand pounds in Q4 2025, down from 226,434 thousand pounds in Q4 2024, a decrease of 14%[33]. Cash Flow and Investments - Cash flow from operations for 2025 was $1.4 billion, with $948 million invested in organic growth and $901 million in share repurchases, representing over 4% of outstanding shares[15]. - Net cash provided by operating activities for the year was $1.45 billion, down from $1.84 billion in 2024[31]. - Dividends declared per share increased to $0.50 in Q4 2025 from $0.46 in Q4 2024, reflecting a commitment to returning value to shareholders[27]. Market Conditions and Future Outlook - Future outlook indicates improving market conditions and strong demand for steel and aluminum products, driven by customer optimism and lower-carbon production[16]. - The aluminum team is advancing with the commissioning of the Columbus, Mississippi aluminum flat-rolled products mill, enhancing production capabilities for automotive and industrial applications[17]. Cost and Pricing - The average external selling price for steel operations decreased by $15 to $1,089 per ton in 2025, while the average ferrous scrap cost per ton increased by $1 to $387 per ton[14]. - Average external sales price for steel per ton was $1,107 in Q4 2025, compared to $1,011 in Q4 2024, indicating a 9.5% increase[33]. Balance Sheet Highlights - Total assets increased to $16.41 billion in 2025 from $14.94 billion in 2024, marking an 9.8% growth[29]. - Current liabilities decreased slightly to $2.12 billion in 2025 from $2.15 billion in 2024[29]. - Long-term debt rose significantly to $4.18 billion in 2025, up from $2.80 billion in 2024, indicating increased leverage[29].