[Executive Summary & Performance Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Performance%20Highlights) Steel Dynamics achieved strong sequential improvement in Q2 2025 with increased net sales and net income, driven by expanded steel margins and strategic aluminum product shipments [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Steel Dynamics reported strong sequential improvement in Q2 2025, with net sales of $4.6 billion and net income of $299 million, or $2.01 per diluted share, driven by stabilized steel pricing and expanded margins Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------- | :-------- | :-------- | :-------- | | Net Sales | $4.6 billion | - | $4.63 billion | | Net Income | $299 million | $217 million | $428 million | | Diluted EPS | $2.01 | $1.44 | $2.72 | Q2 2025 Key Operating Metrics | Metric | Q2 2025 | | :----------------------- | :-------- | | Operating Income | $383 million | | Adjusted EBITDA | $533 million | | Cash Flow from Operations | $302 million | - The company shipped its first aluminum flat rolled product coils on June 16, 2025[7](index=7&type=chunk) - Maintained liquidity of **$1.9 billion** as of June 30, 2025, after repaying **$400 million** of senior notes and repurchasing **$200 million** of common stock[7](index=7&type=chunk) [CEO Commentary & Market Overview](index=1&type=section&id=CEO%20Commentary%20%26%20Market%20Overview) The CEO highlighted significant sequential improvement in consolidated operating income (39%) and adjusted EBITDA (19%) due to expanded steel margins and stronger long product shipments - Consolidated operating income improved **39 percent** sequentially, and adjusted EBITDA improved **19 percent**[4](index=4&type=chunk) - Uncertainty regarding trade policy continues to cause hesitancy in customer order patterns, despite healthy underlying demand factors such as manufacturing onshoring, infrastructure program funding, and increased regionalization of supply chains in the U.S.[5](index=5&type=chunk) - The company is firmly positioned for continued growth and long-term value creation, coupled with its expansion in value-added steel and now aluminum flat rolled products[5](index=5&type=chunk) [Segment Performance - Second Quarter 2025](index=1&type=section&id=Segment%20Performance%20-%20Second%20Quarter%202025) This section details the Q2 2025 operational and financial performance of Steel, Metals Recycling, and Steel Fabrication segments, highlighting key drivers and sequential changes [Steel Operations](index=1&type=section&id=Steel%20Operations) Steel operations' operating income surged 66% sequentially to $382 million in Q2 2025, primarily due to expanded metal spread as average realized selling prices increased significantly more than scrap costs Steel Operations Operating Income (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------- | :-------- | :-------- | :---------------- | | Operating Income | $382 million | $229.96 million | +66% | Steel Operations Pricing & Cost (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :-------------------------- | :-------- | :-------- | :---------------- | | Average External Selling Price | $1,134/ton | $998/ton | +$136/ton | | Average Ferrous Scrap Cost | $408/ton | $386/ton | +$22/ton | - The Sinton, Texas Flat Roll Division's access to oxygen was limited for over **65 days**, negatively impacting volume by an estimated **55,000 tons** in Q2 2025[6](index=6&type=chunk) [Metals Recycling Operations](index=2&type=section&id=Metals%20Recycling%20Operations) Metals recycling operations generated $21 million in operating income in Q2 2025, a $4 million sequential decrease, primarily due to lower realized ferrous scrap pricing, which more than offset record quarterly shipments Metals Recycling Operating Income (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------- | :-------- | :-------- | :---------------- | | Operating Income | $21 million | $25.71 million | -$4 million | - Lower realized ferrous scrap pricing more than offset record quarterly shipments[8](index=8&type=chunk) [Steel Fabrication Operations](index=2&type=section&id=Steel%20Fabrication%20Operations) Steel fabrication operations reported $93 million in operating income for Q2 2025, a sequential decline due to metal spread compression, with order backlog increasing 15% year-to-date and extending into 2026 Steel Fabrication Operating Income (Sequential Change) | Metric | Q2 2025 | Q1 2025 | Sequential Change | | :----------------- | :-------- | :-------- | :---------------- | | Operating Income | $93 million | $117 million | -$24 million | - Order backlog increased **15 percent** since the beginning of the year and now extends into 2026[9](index=9&type=chunk) - Profitability from steel fabrication operations is expected to improve in the sequential third quarter[9](index=9&type=chunk) [Financial Position & Cash Flow](index=2&type=section&id=Financial%20Position%20%26%20Cash%20Flow) Steel Dynamics generated significant cash flow from operations in Q2 2025, strategically allocating capital to investments, debt repayment, dividends, and share repurchases while maintaining strong liquidity [Cash Flow from Operations & Capital Allocation (Q2 2025)](index=2&type=section&id=Cash%20Flow%20from%20Operations%20%26%20Capital%20Allocation%20(Q2%202025)) In Q2 2025, Steel Dynamics generated $302 million in cash flow from operations, strategically allocating capital by investing $288 million, repaying $400 million in senior notes, distributing $75 million in dividends, and repurchasing $200 million of common stock Q2 2025 Cash Flow and Capital Allocation | Activity | Amount | | :-------------------------- | :----------- | | Cash Flow from Operations | $302 million | | Capital Investments | $288 million | | Senior Notes Repaid | $400 million | | Cash Dividends Paid | $75 million | | Common Stock Repurchases | $200 million | | Liquidity (as of June 30, 2025) | $1.9 billion | [Year-to-Date June 30, 2025 Comparison](index=2&type=section&id=Year-to-Date%20June%2030%2C%202025%20Comparison) This section compares Steel Dynamics' financial performance and capital allocation for the first half of 2025 against the prior year, noting changes in net income, sales, and operational metrics [Year-to-Date Financial Performance](index=2&type=section&id=Year-to-Date%20Financial%20Performance) For the first half of 2025, net income was $516 million on $8.9 billion in net sales, a significant decrease compared to $1.0 billion net income and $9.3 billion net sales in H1 2024, primarily due to lower realized pricing H1 2025 vs H1 2024 Key Financials | Metric | H1 2025 | H1 2024 | YoY Change | | :----------------- | :-------- | :-------- | :--------- | | Net Income | $516 million | $1.0 billion | -48.4% | | Net Sales | $8.9 billion | $9.3 billion | -4.3% | | Operating Income | $658 million | $1.31 billion | -49.8% | H1 2025 vs H1 2024 Steel Operations Pricing & Cost | Metric | H1 2025 | H1 2024 | YoY Change | | :-------------------------- | :-------- | :-------- | :--------- | | Average External Selling Price | $1,064/ton | $1,169/ton | -$105/ton | | Average Ferrous Scrap Cost | $397/ton | $403/ton | -$6/ton | [Year-to-Date Cash Flow & Capital Allocation](index=3&type=section&id=Year-to-Date%20Cash%20Flow%20%26%20Capital%20Allocation) For the first half of 2025, cash flow from operations totaled $454 million, with capital allocated to investments, senior note repayments, dividends, and share repurchases, maintaining $1.9 billion in liquidity H1 2025 Cash Flow and Capital Allocation | Activity | Amount | | :-------------------------- | :----------- | | Cash Flow from Operations | $454 million | | Capital Investments | $594 million | | Senior Notes Repaid | $400 million | | Cash Dividends Paid | $144 million | | Common Stock Repurchases | $450 million | | Liquidity (as of June 30, 2025) | $1.9 billion | [Outlook & Strategic Initiatives](index=3&type=section&id=Outlook%20%26%20Strategic%20Initiatives) The company anticipates robust domestic steel and aluminum consumption, supported by favorable trade policies and strategic expansion into value-added aluminum flat rolled products [Market Outlook](index=3&type=section&id=Market%20Outlook) Steel Dynamics anticipates strong domestic steel and aluminum consumption in the coming years, driven by the mitigation of trade and tax policy uncertainties and an improved interest rate environment - The company remains confident that market factors are in place to support strong domestic steel and aluminum product consumption in the coming years, as trade and tax policy uncertainty is mitigated and the interest rate environment improves[14](index=14&type=chunk) - The U.S. International Trade Commission's preliminary determinations on coated flat rolled steel are viewed as a significant positive development, with final determinations expected before the end of the third quarter 2025[15](index=15&type=chunk) [Aluminum Expansion & Diversification](index=3&type=section&id=Aluminum%20Expansion%20%26%20Diversification) The company successfully shipped its first aluminum flat rolled product coils in June 2025 and projects a utilization rate of 40-50% by the end of 2025 and 75% by the end of 2026, diversifying into counter-cyclical markets - Successfully produced and sold the first aluminum coils last month (June 2025)[16](index=16&type=chunk) Aluminum Mill Utilization Rate Projections | Period | Projected Utilization Rate | | :----- | :------------------------- | | End of 2025 | 40-50% | | End of 2026 | 75% | - Expanding and diversifying end markets by supplying aluminum flat rolled products with high recycled content to the counter-cyclical, sustainability-driven beverage can and packaging industry, as well as the automotive, industrial, and construction sectors[17](index=17&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides an overview of Steel Dynamics' business model, defines key financial metrics, and includes standard forward-looking statements and risk factor disclosures [About Steel Dynamics, Inc.](index=4&type=section&id=About%20Steel%20Dynamics%2C%20Inc.) Steel Dynamics is a leading industrial metals solutions company, utilizing a circular manufacturing model to produce lower-carbon-emission products from recycled scrap, and is diversifying into aluminum operations - Operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input[20](index=20&type=chunk) - One of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform[20](index=20&type=chunk) - Currently investing in aluminum operations to further diversify its product offerings, with plans to supply aluminum flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors[20](index=20&type=chunk) [Financial Metric Notes & Forward-Looking Statements](index=4&type=section&id=Financial%20Metric%20Notes%20%26%20Forward-Looking%20Statements) This section defines After-tax Return-on-Invested Capital (ROIC) and clarifies the use of non-GAAP financial measures like EBITDA and Adjusted EBITDA, emphasizing they supplement, not replace, GAAP results - After-tax ROIC is calculated as Net Income Attributable to Steel Dynamics, Inc. divided by (Quarterly Average Current Maturities of Long-term Debt + Long-term Debt + Total Equity)[21](index=21&type=chunk) - Non-GAAP financial measures (EBITDA and Adjusted EBITDA) provide additional meaningful information but should be viewed in addition to and not as an alternative for GAAP results[22](index=22&type=chunk) - The press release contains predictive statements about future events, subject to many risks and uncertainties, as detailed in the company's SEC filings[23](index=23&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents Steel Dynamics' complete consolidated statements of income, balance sheets, and cash flows for the specified periods, offering a comprehensive financial overview [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income provide a detailed overview of Steel Dynamics' financial performance for the three and six months ended June 30, 2025, and comparative periods, showing key figures such as net sales, gross profit, operating income, net income, and diluted earnings per share Consolidated Statements of Income (Selected Data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | Q1 2025 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Net sales | $4,565,123 | $4,632,634 | $8,934,318 | $9,326,637 | $4,369,195 | | Gross profit | $618,468 | $774,837 | $1,105,012 | $1,755,635 | $486,544 | | Operating income | $382,855 | $559,123 | $657,999 | $1,310,098 | $275,144 | | Net income attributable to Steel Dynamics, Inc. | $298,726 | $427,998 | $515,877 | $1,012,039 | $217,151 | | Diluted earnings per share | $2.01 | $2.72 | $3.44 | $6.39 | $1.44 | | Dividends declared per share | $0.50 | $0.46 | $1.00 | $0.92 | $0.50 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets (cash, receivables, inventories, property), liabilities (accounts payable, debt), and equity, reflecting changes over the period Consolidated Balance Sheets (Selected Data) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total current assets | $5,690,599 | $5,431,338 | | Total assets | $15,548,638 | $14,935,233 | | Total current liabilities | $1,819,081 | $2,150,583 | | Long-term debt | $3,779,559 | $2,804,017 | | Total liabilities | $6,704,588 | $5,989,987 | | Total equity | $8,702,824 | $8,774,034 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows illustrate the movement of cash for the three and six months ended June 30, 2025, and comparative periods, categorizing cash flows from operating, investing, and financing activities, and showing the overall change in cash and equivalents Consolidated Statements of Cash Flows (Selected Data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $301,611 | $382,561 | $454,214 | $737,778 | | Net cash used in investing activities | $(305,696) | $(209,586) | $(484,455) | $(502,520) | | Net cash used in financing activities | $(724,783) | $(382,350) | $(101,488) | $(806,196) | | Decrease in cash, cash equivalents, and restricted cash | $(728,868) | $(209,375) | $(131,729) | $(570,938) | | Cash, cash equivalents, and restricted cash at end of period | $463,281 | $835,526 | $463,281 | $835,526 | [Supplemental Segment Information](index=9&type=section&id=Supplemental%20Segment%20Information) This section provides detailed financial and operational data for Steel Dynamics' various segments, including net sales, operating income, and key production and shipment metrics [Segment Net Sales](index=9&type=section&id=Segment%20Net%20Sales) This section provides a detailed breakdown of external net sales across Steel, Steel Fabrication, Metals Recycling, and Aluminum segments for Q2 2025 and year-to-date, illustrating the revenue contribution from each business unit External Net Sales by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Steel | $3,275,551 | $3,132,232 | $6,342,567 | $6,498,469 | $3,067,016 | | Steel Fabrication | $340,648 | $472,832 | $692,955 | $920,011 | $352,307 | | Metals Recycling | $522,721 | $517,167 | $1,057,616 | $1,024,437 | $534,895 | | Aluminum | $65,632 | $69,265 | $132,208 | $131,468 | $66,576 | | Other | $360,571 | $441,138 | $708,972 | $752,252 | $348,401 | | Consolidated Net Sales | $4,565,123 | $4,632,634 | $8,934,318 | $9,326,637 | $4,369,195 | [Segment Operating Income (Loss)](index=9&type=section&id=Segment%20Operating%20Income%20(Loss)) This section details the operating income or loss for each segment, including Steel, Steel Fabrication, Metals Recycling, and Aluminum, along with non-cash adjustments and non-segment operations, contributing to the consolidated operating income Operating Income (Loss) by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :---------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Steel | $382,196 | $442,317 | $612,159 | $1,116,965 | $229,963 | | Steel Fabrication | $93,115 | $180,780 | $209,860 | $359,161 | $116,745 | | Metals Recycling | $21,290 | $26,746 | $47,000 | $43,405 | $25,710 | | Aluminum | $(40,627) | $(13,862) | $(69,362) | $(21,417) | $(28,735) | | Non-cash amortization of intangible assets | $(6,897) | $(7,645) | $(13,794) | $(15,309) | $(6,897) | | Profit sharing expense | $(30,706) | $(48,053) | $(53,401) | $(110,705) | $(22,695) | | Non-segment operations | $(35,516) | $(21,160) | $(74,463) | $(62,002) | $(38,947) | | Consolidated Operating Income | $382,855 | $559,123 | $657,999 | $1,310,098 | $275,144 | [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section reconciles net income to EBITDA and Adjusted EBITDA for Q2 2025 and year-to-date, detailing adjustments for income taxes, interest, depreciation, amortization, and non-cash items to offer a comprehensive view of the company's operational performance Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Net income | $301,191 | $431,690 | $518,870 | $1,019,190 | $217,679 | | Income taxes | $86,675 | $133,422 | $149,650 | $311,703 | $62,975 | | Net interest expense (income) | $7,025 | $(7,867) | $9,341 | $(22,194) | $2,316 | | Depreciation | $124,003 | $107,849 | $249,125 | $213,879 | $125,122 | | Amortization of intangible assets | $6,897 | $7,645 | $13,794 | $15,309 | $6,897 | | EBITDA | $525,791 | $672,739 | $940,780 | $1,537,887 | $414,989 | | Unrealized (gains) losses on derivatives and currency remeasurement | $(6,197) | $818 | $12,956 | $(529) | $19,153 | | Equity-based compensation | $13,819 | $12,855 | $28,000 | $27,680 | $14,181 | | Adjusted EBITDA | $533,413 | $686,412 | $981,736 | $1,565,038 | $448,323 | [Other Operating Information](index=9&type=section&id=Other%20Operating%20Information) This section offers detailed operational metrics for the Steel, Metals Recycling, and Steel Fabrication segments, including average sales prices, average ferrous costs, and various shipment and production volumes, providing granular insights into operational performance Steel Segment Operating Metrics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Average external sales price (Per ton) | $1,134 | $1,138 | $1,064 | $1,169 | $998 | | Average ferrous cost (Per ton melted) | $408 | $388 | $397 | $403 | $386 | | Flat Roll shipments | 1,952,228 | 1,943,583 | 4,071,415 | 3,936,888 | 2,119,187 | | Long Product shipments | 918,468 | 830,338 | 1,788,103 | 1,674,079 | 869,725 | | Total Shipments (Tons) | 3,349,798 | 3,203,200 | 6,831,337 | 6,458,794 | 3,481,539 | | External Shipments (Tons) | 2,888,916 | 2,753,117 | 5,960,651 | 5,556,686 | 3,071,735 | | Steel Mill Production (Tons) | 2,949,936 | 2,802,086 | 5,971,529 | 5,794,104 | 3,021,593 | Metals Recycling Segment Operating Metrics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Nonferrous shipments (000's of pounds) | 245,577 | 253,815 | 478,657 | 497,765 | 233,080 | | Ferrous shipments (Gross tons) | 1,596,583 | 1,509,924 | 3,049,015 | 2,967,713 | 1,452,432 | | External ferrous shipments (Gross tons) | 545,022 | 591,120 | 1,102,640 | 1,128,093 | 557,618 | Steel Fabrication Segment Operating Metrics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | 1Q 2025 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Average sales price (Per ton) | $2,517 | $2,978 | $2,558 | $3,055 | $2,599 | | Shipments (Tons) | 135,347 | 159,069 | 270,928 | 302,911 | 135,581 |

Group 1 - Steel Dynamics (NASDAQ: STLD) shares have gained 6% over the past year, but remain below post-election highs due to concerns about weaker market conditions offsetting benefits from steel tariffs [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - Steel Dynamics reported quarterly earnings of $2.01 per share, missing the Zacks Consensus Estimate of $2.05 per share, and down from $2.72 per share a year ago, indicating a -1.95% earnings surprise [1] - The company posted revenues of $4.57 billion for the quarter, missing the Zacks Consensus Estimate by 1.34% and down from $4.63 billion year-over-year [2] Financial Performance - Over the last four quarters, Steel Dynamics has surpassed consensus EPS estimates three times [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $3.04 on revenues of $4.67 billion, and for the current fiscal year, it is $9.74 on revenues of $18.26 billion [7] Stock Performance - Steel Dynamics shares have increased approximately 15.4% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Zacks Industry Rank places Steel - Producers in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Steel Dynamics' stock performance [5]

Core Insights - Steel Dynamics, Inc. reported second-quarter earnings of $2.01 per share, missing the analyst consensus estimate of $2.51 [1] - Quarterly revenue was $4.57 billion, below the analyst consensus estimate of $4.76 billion and down from $4.63 billion in the same period last year [1] - The company experienced a significant sequential improvement in consolidated operating income of 39% and adjusted EBITDA of 19% due to stabilized steel pricing at higher levels [2] Financial Performance - Steel shipments totaled 3.3 million tons [4] - Net sales were reported at $4.6 billion, with operating income of $383 million and net income of $299 million [4] - Adjusted EBITDA reached $533 million, and cash flow from operations was $302 million [4] - As of June 30, 2025, the company had liquidity of $1.9 billion after repaying $400 million of senior notes due June 2025 [4] Stock Performance - Steel Dynamics stock was down 4.13% at $128.98 in extended trading on Monday [3]

Market Performance - Regional bank ETFs fell by 3.51%, while bank sector ETFs decreased by 3.13% [1][3] - Biotechnology index ETFs and global airline industry ETFs saw declines of up to 2.15%, and financial sector ETFs dropped by 1.71% [1] - Energy and consumer discretionary ETFs experienced declines of up to 1.44%, whereas technology sector ETFs rose by 0.89% [1] Sector Analysis - In the S&P 500 materials sector, all constituent stocks faced significant losses, with Newmont Mining down 5.71%, Freeport down 3.31%, and Steel Dynamics down 3.27% [2] - The materials sector index decreased by 2.11%, while the financials sector index fell by 1.65% [4] - The technology sector index increased by 1.27%, indicating a positive performance relative to other sectors [4] ETF Specifics - The current price of the regional bank ETF is $61.37, with a year-to-date increase of 3.07% [3] - The biotechnology ETF is priced at $129.05, showing a year-to-date decline of 2.30% [3] - The semiconductor ETF rose to $290.80, reflecting a year-to-date increase of 20.08% [3]

Company Performance - Steel Dynamics (STLD) closed at $135.07, down 1.67% from the previous trading session, underperforming the S&P 500's loss of 0.33% [1] - The stock has increased by 4.19% over the past month, outperforming the Basic Materials sector's gain of 1.87% and the S&P 500's gain of 4.07% [1] Upcoming Earnings - The upcoming earnings report for Steel Dynamics is expected on July 21, 2025, with projected EPS of $2.04, reflecting a 25.00% decrease compared to the same quarter last year [2] - Revenue is anticipated to be $4.67 billion, indicating a 0.76% increase from the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at $9.67 per share, showing a decline of 1.73%, while revenue is expected to reach $18.28 billion, representing a growth of 4.22% from the previous year [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for Steel Dynamics suggest a shifting business landscape, with positive changes indicating analyst optimism regarding profitability [3] - The Zacks Rank system currently rates Steel Dynamics at 3 (Hold), with the consensus EPS estimate decreasing by 4.94% over the last 30 days [5] Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 14.21, which is higher than the industry's Forward P/E of 13.46 [6] - The company has a PEG ratio of 1.07, compared to the Steel - Producers industry's average PEG ratio of 1 [6] Industry Context - The Steel - Producers industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 149, placing it in the bottom 40% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating the competitive landscape within the industry [7]

Group 1: Stock Performance - Steel Dynamics (STLD) closed at $131.50, with a +2.35% increase from the previous day, outperforming the S&P 500's daily gain of 0.8% [1] - The stock has risen by 1.39% in the past month, lagging behind the Basic Materials sector's gain of 2.02% and the S&P 500's gain of 5.12% [1] Group 2: Earnings Estimates - Steel Dynamics is set to release earnings on July 21, 2025, with projected EPS of $2.12, indicating a 22.06% drop compared to the same quarter last year [2] - The consensus estimate for revenue is $4.67 billion, reflecting a 0.76% increase from the prior-year quarter [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $9.75 per share and revenue at $18.08 billion, showing changes of -0.91% and +3.08% respectively from the previous year [3] - Recent revisions in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] Group 4: Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 13.18, which is higher than the industry average of 10.47, suggesting it is trading at a premium [6] - The company holds a PEG ratio of 0.99, compared to the industry average PEG ratio of 0.91, indicating a similar growth trajectory [7] Group 5: Industry Ranking - The Steel - Producers industry is part of the Basic Materials sector and currently has a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - Steel Dynamics, Inc. (STLD) has provided earnings guidance for Q2 2025, estimating earnings per share (EPS) in the range of $2.00 to $2.04, an increase from $1.44 in Q1 2025 but a decrease from $2.72 in Q2 2024 [1][8] Group 1: Steel Operations - Profitability from steel operations is expected to be significantly higher than in Q1 2025, driven by wider metal spreads and an increase in average realized steel pricing, which is rising faster than scrap raw material costs [2] - Long product steel shipments have increased sequentially, while flat rolled volumes have slightly decreased due to inventory overhang from coated flat rolled steel imports [2] - The energy, non-residential building, automotive, and industrial sectors are continuing to drive demand for steel [2] - Steel division's pretax earnings are projected to be reduced by approximately $32 million in Q2 2025 due to a noncash write-off of consumable assets [2] Group 2: Metals Recycling Operations - Earnings from metals recycling operations are expected to remain stable sequentially in Q2 2025, with higher shipments compensating for lower realized pricing [3] Group 3: Steel Fabrication Operations - Earnings from steel fabrication operations are anticipated to decline in Q2 2025 compared to the previous quarter, attributed to consistent shipments and metal spread compression as raw material costs rise and average realized sales prices fall slightly [4] - The pace of order activity has increased, and the order backlog has strengthened, extending into 2025 with attractive pricing [4] - Demand is primarily driven by the commercial, data center, manufacturing, warehouse, and healthcare sectors [4] Group 4: Aluminum Operations - The aluminum team is successfully commissioning the Columbus, MS aluminum flat rolled products mill and the San Luis Potosi satellite recycled slab facility, with the first aluminum ingot cast in January 2025 in Mississippi and in March 2025 in Mexico [5] - The company expects to begin shipping material in mid-2025 [5] Group 5: Stock Performance - Shares of Steel Dynamics have decreased by 0.4% over the past year, contrasting with a 31.8% decline in its industry [5]

Earnings Performance - Commercial Metals (CMC) reported quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.85 per share, and down from $1.02 per share a year ago [1] - The earnings surprise was -12.94%, and the company has not surpassed consensus EPS estimates over the last four quarters [2] - The company posted revenues of $2.02 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.49%, but down from $2.08 billion year-over-year [3] Stock Performance - Commercial Metals shares have declined approximately 1.9% since the beginning of the year, while the S&P 500 has gained 1.5% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $2.09 billion, and for the current fiscal year, it is $3.02 on revenues of $7.76 billion [8] - The outlook for the Steel - Producers industry is positive, ranking in the top 34% of over 250 Zacks industries, suggesting potential for outperformance [9]

Core Viewpoint - Steel Dynamics, Inc. anticipates second quarter 2025 earnings per diluted share in the range of $2.00 to $2.04, a decrease from $2.72 in the same quarter last year and an increase from $1.44 in the first quarter of 2025 [1][2]. Group 1: Steel Operations - Profitability from steel operations is expected to be significantly stronger than the first quarter of 2025, driven by expanded metal spreads and increased average realized steel pricing [2]. - Long product steel shipments improved sequentially, while flat rolled volumes contracted modestly due to inventory overhang from coated flat rolled steel imports [2]. - Demand is primarily led by the energy, non-residential construction, automotive, and industrial sectors [2]. - Steel segment pretax earnings were reduced by approximately $32 million due to a noncash write-off of consumable assets [2]. Group 2: Metals Recycling Operations - Earnings from metals recycling operations are expected to remain steady sequentially, as stronger shipments offset lower realized pricing [3]. Group 3: Steel Fabrication Operations - Earnings from steel fabrication operations are expected to decline compared to the first quarter of 2025, due to steady shipments and metal spread compression from increased raw material costs [4]. - The pace of order activity increased, and the order backlog improved, supported by demand from commercial, data center, manufacturing, warehouse, and healthcare sectors [4]. - Domestic manufacturing investment and the U.S. infrastructure program are expected to positively impact demand for steel products [4]. Group 4: Aluminum Operations - The company is successfully commissioning its aluminum flat rolled products mill in Columbus, Mississippi, and a satellite recycled slab center in San Luis Potosi, Mexico [5]. - The first aluminum ingot was cast in January and March 2025, with shipping expected to begin mid-2025 [5]. Group 5: Stock Repurchase - As of June 11, 2025, the company repurchased $179 million, or one percent, of its common stock during the second quarter [6]. Group 6: Company Overview - Steel Dynamics is a leading industrial metals solutions company, operating with a circular manufacturing model and focusing on lower-carbon-emission products [7]. - The company is one of the largest domestic steel producers and metal recyclers in North America, with ongoing investments in aluminum operations to diversify its product offerings [7].