Steel Dynamics' Earnings and Revenues Outpace Estimates in Q1

Core Viewpoint - Steel Dynamics, Inc. (STLD) reported a decline in earnings per share for the first quarter of 2025, but exceeded consensus estimates, indicating resilience despite challenging market conditions [1][2]. Financial Performance - Earnings per share for Q1 2025 were $1.44, down from $3.67 year-over-year, but above the Zacks Consensus Estimate of $1.40 [1]. - Net sales decreased by approximately 6.9% year-over-year to $4,369.2 million, surpassing the Zacks Consensus Estimate of $4,146.2 million [1]. - Steel operations net sales were $3,067 million, down around 8.9% year-over-year, with steel shipments of approximately 3.5 million tons, slightly above the estimate of 3.45 million tons [2]. - The average external product selling price for steel was $998 per ton, down from $1,201 per ton year-over-year and $1,011 per ton in the previous quarter, missing the estimate of $1,019 per ton [3]. - Metal recycling operations generated net sales of $534.9 million, up 5.4% year-over-year, with ferrous shipments stable at around 1.45 million gross tons, below the estimate of 1.49 million gross tons [4]. - Steel fabrication operations reported sales of approximately $352.3 million, down 21.2% year-over-year, with shipments of 135,581 tons, exceeding the estimate of 126,841 tons [5]. - Cash and cash equivalents at the end of the quarter were $1,186.9 million, up 14.1% year-over-year, while long-term debt increased by 44.6% to $3,777.1 million [6]. Industry Outlook - The company maintains a positive outlook on domestic steel demand, expecting it to remain strong through 2025 and beyond, supported by improved order activity and strengthening steel prices [7]. - Strong demand for U.S.-produced, lower-carbon steel products and reduced import levels are anticipated to support pricing and demand [8]. - The ongoing trend of onshoring manufacturing and expected investments in fixed assets are seen as key factors enhancing the competitiveness of the domestic steel industry [8]. - Recent preliminary determinations by the International Trade Commission on coated flat-rolled steel are expected to help curb unfair imports, benefiting STLD as the largest non-automotive flat-rolled steel coater in the U.S. [9]. Price Performance - Shares of Steel Dynamics have decreased by 9.6% over the past year, compared to a 39.9% decline in its industry [11].