Got a big closing bell. Jeffrey Gunlock as usual following the Fed share and then we're going to take you right up to those big earnings reports. Got some great guests, some shareholders.We'll cover all of that for you. Why it's final. >> FTA, you have to buy it when it's slightly dislocated as it is now.>> Okay, Carrie. >> Uh, next year just reported good quarter and now it's a data center play. >> Thank you very much, Liz Thomas.>> I think software gets chased into year end in this tech play. >> Joey Donu ...

Group 1 - The market is currently experiencing a dislocation, presenting potential buying opportunities for certain assets [1] - A company has reported a strong quarterly performance and is now positioned as a data center play, indicating a shift in its business focus [1] - There is an expectation that software stocks will see increased interest as the year-end approaches, suggesting a bullish sentiment in the tech sector [2] Group 2 - The upcoming Federal Reserve decision is a significant event that is influencing market sentiment and trading strategies [2]

Financial Performance - In Q3 2025, Steel Dynamics achieved record quarterly steel shipments of 3.6 million tons, a 14% increase compared to Q3 2024[64][70][73]. - Consolidated operating income for Q3 2025 increased by $112.3 million, or 28%, to $507.8 million, driven by expanded metal spreads in steel and metals recycling operations[65][75]. - Net income attributable to Steel Dynamics in Q3 2025 rose by $85.9 million, or 27%, to $403.7 million, consistent with increased operating income[65]. - For the first nine months of 2025, consolidated operating income decreased by $539.8 million, or 32%, to $1.2 billion, reflecting a decline in metal spreads despite higher shipment volumes[66][75]. Sales and Revenue - Steel operations accounted for 73% of consolidated net sales in Q3 2025, with net sales increasing by 21% to $3.65 billion compared to Q3 2024[67][69]. - The average selling price for steel operations increased by 6%, or $61 per ton, in Q3 2025 compared to Q3 2024, contributing to higher net sales[73]. - Metals recycling operations net sales increased by 10% to $1.13 billion in Q3 2025, benefiting from higher domestic steel industry demand[67]. - The aluminum operations segment reported a 26% increase in net sales to $104.4 million in Q3 2025, indicating growth in this area[67]. Operational Metrics - The metallic raw material cost per net ton consumed in steel mills increased by $14 per ton, or 4%, in Q3 2025 compared to the same period in 2024[74]. - Ferrous scrap shipments increased by 9% in Q3 2025 compared to Q3 2024, with external shipments totaling 538,020 gross tons[80]. - Nonferrous shipments decreased by 4% in Q3 2025, totaling 189,043 thousand pounds, while average selling prices for nonferrous metals increased by 3%[80]. - Metals recycling operations operating income surged by 414% to $31.5 million in Q3 2025 compared to Q3 2024, driven by increased metal spreads[80]. Segment Performance - Steel fabrication operations experienced a 16% decline in net sales in Q3 2025, totaling $378.3 million, reflecting a decrease in average selling prices[67]. - Steel fabrication operations net sales decreased by 16% in Q3 2025, with average selling prices down by $341 per ton, or 12%[86]. - Operating income for steel fabrication operations decreased by 35% to $107.0 million in Q3 2025, attributed to a 17% contraction in metal spread[87]. - Aluminum operations began producing and selling aluminum coils in Q2 2025, with expectations for steady volume increases as operations ramp up[89]. Expenses and Liquidity - Selling, general and administrative expenses increased by 20% to $200.8 million in Q3 2025, primarily due to payroll and benefits expenses[91]. - Total liquidity as of September 30, 2025, was $2.2 billion, including cash and equivalents of $770.4 million and revolver availability of $1.2 billion[102]. - Total outstanding debt increased by $551.4 million to $3.8 billion as of September 30, 2025, due to the issuance of senior unsecured notes[102]. - Working capital increased by 26% to $4.1 billion at September 30, 2025, driven by a $344.8 million increase in accounts receivable[106]. Shareholder Returns - The quarterly cash dividend was increased by 9% to $0.50 per share in Q1 2025, resulting in declared cash dividends of $221.7 million for the first nine months of 2025, compared to $214.6 million in the same period of 2024[108]. - Share repurchase program authorized for up to $1.5 billion, with $660.6 million repurchased in the first nine months of 2025, down from $917.0 million in 2024; $1.0 billion remains available under the program as of September 30, 2025[109]. Market Risks and Commitments - The company anticipates that cash flows from operations will be adequate for the next twelve months to meet debt service obligations and fund working capital requirements[110]. - The company is exposed to market risks related to price fluctuations of raw materials and product sales, implementing strategies to obtain competitive prices[111]. - Commitments with suppliers for raw materials include "take or pay" provisions for specified quantities, with some contracts extending up to 27 years for certain products[112]. - Fixed price contracts are in place for future delivery of nonferrous and ferrous metals, with the goal of protecting profit margins[113].

Group 1 - Steel Dynamics, Inc. (STLD) is experiencing significant activity in the options market, particularly with the Nov 21, 2025 $75.00 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Steel Dynamics currently holds a Zacks Rank 3 (Hold) in the Steel - Producers industry, which is in the bottom 30% of the Zacks Industry Rank, indicating a less favorable outlook [3] Group 2 - Over the past 60 days, earnings estimates for Steel Dynamics have seen mixed revisions, with one analyst increasing estimates while two have decreased them, resulting in a consensus estimate drop from $2.56 to $2.51 per share for the current quarter [3] - The high implied volatility may present trading opportunities, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Steel Dynamics, Inc. (STLD) reported third-quarter 2025 earnings of $2.74 per share, an increase from $2.05 in the same quarter last year, surpassing the Zacks Consensus Estimate of $2.66 [1][9] - Net sales for the quarter reached $4,828.2 million, reflecting an 11.2% year-over-year increase and exceeding the Zacks Consensus Estimate of $4,690.7 million [1][9] Financial Performance - The company achieved a sequential improvement in margins due to strong financial performance and operational milestones [2] - Steel operations net sales were $3,538.04 million, up approximately 21.3% year over year, with record steel shipments of about 3.6 million tons [3] - The average external product selling price for steel was $1,119 per ton, up from $1,059 in the previous year but down from $1,134 in the previous quarter [4] - Metal recycling operations generated net sales of $520.99 million, a 4.5% increase year over year, with ferrous shipments of around 1.59 million gross tons, up 8.8% [5] - Steel fabrication operations reported sales of approximately $377.7 million, down 15.56% year over year, with shipments of 151,563 tons, down 4.4% [6] Financial Position - At the end of the quarter, the company had cash and cash equivalents of $770.4 million, a decrease of 24.12% year over year, and long-term debt of $3,781 million, an increase of roughly 35% [7] - Cash flow from operations was $722.6 million, down about 5% year over year [7] Market Outlook - The company anticipates improving market conditions driven by greater trade stability, policy clarity, and a favorable interest rate environment, which are expected to enhance domestic demand for steel and aluminum products [8] - Management expects a reduction in unfairly traded imports, benefiting operations and market positioning [8] - The focus on low-carbon, U.S.-made steel and aluminum solutions is expected to strengthen the company's competitive advantage [9][10] Stock Performance - Shares of Steel Dynamics have increased by 12.8% over the past year, compared to an 11.8% rise in its industry [11]

Financial Data and Key Metrics Changes - The company achieved record steel shipments of 3,600,000 tons in Q3 2025, with revenues of $4,800,000,000 and adjusted EBITDA of $664,000,000, reflecting strong operational execution despite market headwinds [7][11] - Earnings per diluted share were reported at $2.74, with operating income from steel operations increasing by 30% sequentially to $498,000,000 [11][12] - Cash flow from operations was robust at $723,000,000, with liquidity exceeding $2,200,000,000 at the end of September [15][16] Business Line Data and Key Metrics Changes - Steel operations saw a significant increase in operating income driven by record shipments and metal spread expansion, with average scrap costs declining by $27 per ton [12][13] - The metals recycling operations reported operating income of $32,000,000, significantly higher than the previous quarter, supported by strong domestic steel demand [13][21] - Steel fabrication operations achieved operating income of $107,000,000, a 15% increase from the second quarter, with a backlog extending through 2026 [13][20] Market Data and Key Metrics Changes - The domestic steel industry operated at a production utilization rate of 78%, while the company's mills operated at a higher rate of 88%, reflecting strong demand and operational efficiency [23] - Coated flat rolled steel volume and pricing compressed due to an inventory overhang from imports, but prices are expected to improve as the market stabilizes [24][26] - The company anticipates that steel prices have bottomed out and will see upward movement in 2026, supported by recent trade rulings and tariffs [24][29] Company Strategy and Development Direction - The company is focused on transformational growth initiatives, including decarbonization efforts and expanding its aluminum operations, which are expected to achieve monthly EBITDA breakeven in Q4 2025 [15][18] - The strategic capital allocation prioritizes high-return growth opportunities while maintaining a strong dividend profile and share repurchase program [16][32] - The company aims to leverage its competitive advantages in metals recycling and aluminum to enhance earnings potential and market share [22][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding steel demand and pricing dynamics, citing ongoing onshoring activity and infrastructure spending as key drivers [29][44] - The company is well-positioned to benefit from favorable trade policies and a growing domestic manufacturing base, which is expected to support steel consumption [42][43] - Management highlighted the importance of safety and operational excellence as foundational to the company's success and future growth [10][45] Other Important Information - The company has repurchased $661,000,000 of its common stock in 2025, representing 3.4% of outstanding shares, while maintaining investment-grade ratings [15][16] - The aluminum operations are expected to contribute significantly to the company's earnings, with a projected through-cycle EBITDA contribution of over $1,400,000,000 from recent investments [44][107] Q&A Session Summary Question: Can you discuss the aluminum rolling mill and its impact on commercial activities? - Management noted that accelerated qualifications for can sheet products have opened doors for negotiating longer-term contracts, with expectations for a favorable product mix in 2026 [52][54] Question: What is the expected exit run rate for the aluminum operations? - Management confirmed expectations for EBITDA breakeven in Q4 2025, with ongoing certification processes impacting costs but not altering the overall positive outlook [58][59] Question: What are the capital allocation priorities for next year? - The company plans to maintain a balanced cash allocation strategy, with potential increases in dividends and continued share repurchases, while exploring organic growth opportunities [64][66] Question: How is the company positioned in the rail market? - Management indicated a commitment to the rail market, anticipating growth and improved product quality, while maintaining a stable mix in structural shipments [84][85] Question: What is the outlook for the flat rolled steel business? - Management expressed optimism for the Sinton facility, expecting improved performance as inventory overhang diminishes and market conditions stabilize [90][96]

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Financial Performance - Q3 2025 - Steel Dynamics reported a net income of $404 million[15] - The company's cash flow from operations reached $723 million[15] - Adjusted EBITDA was $664 million, representing a 14% margin[15] - Diluted earnings per share (EPS) amounted to $274[15] - Revenue was strong at $48 billion[15] - The company repurchased 11% of its outstanding shares for $210 million[15] - Return on Invested Capital (ROIC) was 15%[15] Operational Highlights - Q3 2025 - Steel shipments reached a record high[7,18] - The company announced the acquisition of the remaining 55% of New Process Steel[7] - Aluminum Dynamics operations continued to ramp up[7] - The company made its first shipments of biocarbon to the Columbus steel mill[7] Strategic Growth & Investments - The company is investing $19 billion in a new state-of-the-art Sinton, Texas flat roll steel mill, which started production in Q1 2022[43] - Steel Dynamics is investing $600 million in greenfield investments for four new flat roll steel finishing lines, which started in the first half of 2024[43] - The company is investing $25 billion in the undersupplied North American aluminum flat rolled products market, with first coils shipped in June 2025[43]

[Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) This section summarizes Steel Dynamics' strong Q3 2025 financial and operational performance and CEO commentary [Third Quarter 2025 Performance Highlights](index=1&type=section&id=1.1%20Third%20Quarter%202025%20Performance%20Highlights) Steel Dynamics reported strong third quarter 2025 financial results, with significant increases in net sales and net income compared to both the sequential and prior year quarters, alongside record steel shipments and successful advancements in aluminum and biocarbon production | Metric | Q3 2025 | Q2 2025 (Sequential) | Q3 2024 (Prior Year) | | :-------------------- | :------ | :------------------- | :------------------- | | Net Sales | $4.8 billion | - | - | | Net Income | $404 million | $299 million | $318 million | | Diluted EPS | $2.74 | $2.01 | $2.05 | - Achieved record steel shipments of **3.6 million tons**[5](index=5&type=chunk)[6](index=6&type=chunk) | Metric | Q3 2025 (in millions) | | :--------------------- | :-------------------- | | Adjusted EBITDA | $664 | | Cash Flow from Operations | $723 | | Liquidity | >$2,200 | | Share Repurchases | $210 (1.1% of shares) | - Successfully produced and qualified industrial, beverage can, and automotive quality flat rolled aluminum products[4](index=4&type=chunk)[6](index=6&type=chunk) - Successfully produced and consumed biocarbon material, providing a significantly lower-carbon supply chain for steel customers[4](index=4&type=chunk)[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) CEO Mark D. Millett highlighted exceptional Q3 performance, strong financial results, and operational milestones, emphasizing the success of aluminum and biocarbon initiatives, record steel shipments, and positive market demand drivers despite some customer inventory overhang - Consolidated third quarter 2025 operating income improved **33 percent** and adjusted EBITDA increased **24 percent** sequentially[3](index=3&type=chunk) - Achieved a three-year after-tax return-on-invested capital of **15 percent**, reflecting a high-return capital allocation strategy[3](index=3&type=chunk) - Aluminum and biocarbon teams are performing incredibly well, with products qualified by customers and first biocarbon successfully used as a carbon replacement[4](index=4&type=chunk) - Record quarterly steel shipments were achieved as imports declined and Sinton's performance improved, though some customer inventory overhang of value-added flat rolled products persists[5](index=5&type=chunk) - Encouraging demand drivers include manufacturing onshoring, infrastructure program funding, lower interest rates, and increasing regionalization of supply chains in the U.S[5](index=5&type=chunk) [Third Quarter 2025 Detailed Performance](index=2&type=section&id=Third%20Quarter%202025%20Detailed%20Performance) This section details the company's Q3 2025 performance across its steel, metals recycling, and fabrication operations, and its financial position [Steel Operations](index=2&type=section&id=2.1%20Steel%20Operations) Steel operations experienced a 30% sequential increase in operating income, driven by record shipments and metal spread expansion, as scrap costs declined more than steel selling values. Demand was strong across key sectors, but Q4 production may be impacted by scheduled maintenance - Operating income for steel operations was **$498 million**, **30% higher** than sequential second quarter results[7](index=7&type=chunk) - Increase in operating income was due to record steel shipments and metal spread expansion, as scrap raw material costs declined more than average realized steel selling values[7](index=7&type=chunk) | Metric | Q3 2025 | Sequential Change | | :-------------------------- | :----------- | :---------------- | | Average External Selling Price | $1,119 per ton | -$15 per ton | | Average Ferrous Scrap Cost | $381 per ton | -$27 per ton | - Demand was led by the energy, non-residential construction, automotive, and industrial sectors[7](index=7&type=chunk) - Normal maintenance outages are scheduled for Q4 2025 at Butler, Columbus, and Sinton Flat Roll Steel divisions, potentially reducing production by up to **85,000 tons**[8](index=8&type=chunk) [Metals Recycling Operations](index=2&type=section&id=2.2%20Metals%20Recycling%20Operations) Metals recycling operations saw a sequential increase in operating income, attributed to near-record ferrous scrap shipments and improved metal spread - Operating income from metals recycling operations was **$32 million**, **$10 million higher** than sequential earnings[8](index=8&type=chunk) - Improved performance was based on near-record ferrous scrap shipments and metal spread expansion[8](index=8&type=chunk) [Steel Fabrication Operations](index=2&type=section&id=2.3%20Steel%20Fabrication%20Operations) Steel fabrication operations reported higher operating income in Q3 2025, driven by a 12% increase in shipments. Order activity remained steady, maintaining a solid backlog extending through the first quarter of 2026, with future demand expected to be supported by domestic manufacturing and infrastructure programs - Operating income for steel fabrication operations was **$107 million**, higher than sequential second quarter results of **$93 million**[9](index=9&type=chunk) - The increase was due to a **twelve percent** increase in shipments[9](index=9&type=chunk) - Order activity remained steady, with the order backlog maintaining solid levels extending through the first quarter 2026, supported by stable pricing[9](index=9&type=chunk) - Demand was largely driven by the commercial, data center, manufacturing, warehouse, and healthcare sectors[9](index=9&type=chunk) [Financial Position and Capital Allocation (Q3)](index=2&type=section&id=2.4%20Financial%20Position%20and%20Capital%20Allocation%20(Q3)) The company generated substantial cash flow from operations in Q3 2025, which supported capital investments, dividend payments, and share repurchases, while maintaining robust liquidity | Metric (in millions) | Q3 2025 | | :------------------- | :------ | | Cash Flow from Operations | $723 | | Capital Investments | $166 | | Cash Dividends Paid | $74 | | Share Repurchases | $210 | | Liquidity (as of Sep 30, 2025) | $2,200 | - Share repurchases represented **1.1 percent** of outstanding shares[10](index=10&type=chunk) [Year-to-Date September 30, 2025 Comparison](index=2&type=section&id=Year-to-Date%20September%2030%2C%202025%20Comparison) This section compares the company's year-to-date financial and segment performance as of September 30, 2025, against the prior year, detailing capital allocation [Consolidated Financial Performance (YTD)](index=2&type=section&id=3.1%20Consolidated%20Financial%20Performance%20(YTD)) For the first nine months of 2025, net sales remained stable year-over-year, but net income and operating income saw declines, primarily due to lower realized pricing in the steel and steel fabrication segments | Metric (in millions, except per share) | YTD Sep 30, 2025 | YTD Sep 30, 2024 | YoY Change (%) | | :------------------------------------ | :--------------- | :--------------- | :------------- | | Net Sales | $13,800 | $13,700 | +0.7% | | Net Income | $920 | $1,300 | -29.2% | | Diluted EPS | $6.17 | $8.46 | -27.1% | - Operating income declined **32 percent** to **$1.2 billion** in the first nine months of 2025 compared to **$1.7 billion** in the same period of 2024[12](index=12&type=chunk) - Decreased earnings were primarily the result of lower realized pricing in the company's steel and steel fabrication operations[12](index=12&type=chunk) [Segment Performance (YTD)](index=3&type=section&id=3.2%20Segment%20Performance%20(YTD)) Year-to-date operating income for both steel and steel fabrication operations decreased significantly, reflecting lower average external selling prices for steel, while ferrous scrap costs remained stable | Segment Operating Income (in millions) | YTD Sep 30, 2025 | YTD Sep 30, 2024 | YoY Change (%) | | :------------------------------------ | :--------------- | :--------------- | :------------- | | Steel Operations | $1,100 | $1,400 | -21.4% | | Steel Fabrication Operations | $317 | $525 | -39.6% | | Metric (per ton) | YTD Sep 30, 2025 | YTD Sep 30, 2024 | YoY Change | | :-------------------------------- | :--------------- | :--------------- | :--------- | | Average External Steel Selling Price | $1,083 | $1,133 | -$50 | | Average Ferrous Scrap Cost | $391 | $391 | Stable | [Financial Position and Capital Allocation (YTD)](index=3&type=section&id=3.3%20Financial%20Position%20and%20Capital%20Allocation%20(YTD)) The company generated strong cash flow from operations year-to-date, enabling substantial capital investments, debt repayment, dividend distributions, and share repurchases, while maintaining consistent liquidity | Metric (in millions) | YTD Sep 30, 2025 | | :------------------- | :--------------- | | Cash Flow from Operations | $1,200 | | Capital Investments | $760 | | Senior Notes Repaid | $400 | | Cash Dividends Paid | $218 |