STLD Issues Q1 Guidance, Expects Higher Profits in Steel Operations

Core Insights - Steel Dynamics, Inc. (STLD) has provided earnings guidance for Q1 2025 in the range of $1.36 to$1.40 per share, compared to $1.36 in Q4 2024 and$3.67 in Q1 2024 [1] Group 1: Earnings and Operations - The company's steel operations are expected to be more profitable in Q1 2025 than in Q4 2024, driven by higher shipments that will offset some metal margin compression due to lagging contractual steel pricing [2] - Earnings from metals recycling operations in Q1 2025 are anticipated to be higher than in Q4 2024, supported by stronger realized prices and stable volumes for both ferrous and nonferrous materials [3] - Earnings from steel fabrication operations in Q1 2025 are expected to be lower than the previous quarter due to seasonally reduced shipments and a slight decline in realized prices, although order activity has improved [4] Group 2: Demand Drivers - Demand is being driven by sectors such as energy, non-residential building, automotive, and industrial, with increased domestic manufacturing investment and infrastructure programs expected to positively impact demand for various steel products [2][4] Group 3: Financial Actions - The board increased the Q1 2025 cash dividend by 9% to 50 cents per common share and authorized an additional $1.5 billion in share repurchases, following the exhaustion of the previous program [5] - As of March 12, 2025, STLD had repurchased$191 million, or 1%, of its common stock in Q1 [5] Group 4: Stock Performance - Shares of Steel Dynamics have declined by 10.8% over the past year, compared to a 17.7% decline in its industry [6]