STLD's Q2 Earnings and Revenues Miss Estimates Amid Trade Uncertainty

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]