Stock Performance - Rheinmetall's share price has lost momentum, trading at €1,830, down from an all-time high of €2,000, indicating a potential bearish trend with a triple-top pattern formed [1][2] - The stock is expected to retreat to a neckline at €1,416, representing a 22% decline from the current level, with further downside potential towards €1,200 [3] Technical Analysis - The stock has formed a triple-top pattern at €2,000, which is a bearish reversal signal, suggesting that bullish sentiment is waning [2] - There is a possibility of an inverted head-and-shoulders pattern forming, which could lead to upside if the stock surpasses the all-time high of €2,005, potentially reaching a resistance level of €2,500 [4] Business Growth - Rheinmetall is experiencing significant growth, with a revenue backlog projected to reach €80 billion by year-end, up from €64 billion [9] - The company is collaborating with OHB to develop a military-grade satellite communications network to compete with Starlink, leveraging a €35 billion budget for military space technology from Berlin [6][7] Industry Context - The European Union has established a €150 billion defense fund, allowing member countries to invest in European-made defense equipment, with projections of up to €14 trillion in defense spending over the next decade [8] - Rheinmetall's sales increased by 20% in the first nine months to €7.5 billion, primarily driven by its defense sector, with operating results and cash flow also showing significant growth [10] Valuation Concerns - Despite the growth, Rheinmetall's stock is considered overvalued, with a price-to-earnings (PE) ratio between 95 and 100, significantly higher than competitors like BAE Systems, RTX, and Lockheed Martin [10]

Financial Data and Key Metrics Changes - In 2025, the company achieved operating income of $1.5 billion and net income of $1.2 billion, equating to $7.99 per diluted share [18] - Cash flow from operations was $1.4 billion, with liquidity remaining strong at over $2.2 billion [19] - For Q4 2025, net income was $266 million, or $1.82 per diluted share, with revenue at $4.4 billion and operating income at $310 million, lower than the previous quarter due to reduced pricing and volume [19][20] Business Line Data and Key Metrics Changes - Steel operations generated operating income of $1.4 billion in 2025, down from $1.6 billion in the prior year, despite record steel shipments of 13.7 million tons [20] - Operating income from mills recycling operations was $97 million, nearly 30% higher than 2024, while Q4 operating income declined by $13 million due to lower pricing and shipments [21] - Steel fabrication platform earnings were $407 million for the year, lower than the previous year, but Q4 saw operating income of $91 million with solid demand for steel joists and deck [22] Market Data and Key Metrics Changes - The domestic steel industry operated at a production utilization rate of 77%, while the company's mills operated at 86%, indicating a competitive advantage [29] - The automotive production estimates for 2026 are expected to remain similar to 2025, with dealer inventories declining further [30] - Non-residential construction is anticipated to benefit from ongoing onshoring activity and infrastructure spending [30] Company Strategy and Development Direction - The company focuses on strategic organic investments in steel and aluminum products, with a disciplined capital allocation strategy aimed at high-return growth [9][25] - The proposed acquisition of BlueScope is seen as a strategic move to unlock value in North American assets, although the offer was rejected by BlueScope's board [10][11] - The company emphasizes a commitment to maintaining investment-grade credit metrics while pursuing growth opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding demand for diversified value-added steel products, supported by stable demand and lower imports [30] - The company is excited about the operational and commercial progress in aluminum, with expectations of reaching 90% utilization by the end of 2026 [46] - Management highlighted the importance of maintaining a strong safety culture and operational execution as key drivers of success [8] Other Important Information - The company issued $800 million in investment-grade unsecured notes to redeem existing notes and for general corporate purposes [24] - Capital investments for 2026 are projected to be around $600 million, with a focus on high-return growth opportunities [24] - The company has a robust pipeline for growth investments, with a track record of delivering profitable growth [16] Q&A Session Summary Question: What is the expected utilization rate for the aluminum rolling mill by the end of 2026? - Management confirmed that the mill is expected to reach 90% utilization by the end of 2026, which is sooner than previously anticipated [46] Question: How should profitability be viewed over the next few quarters given the current aluminum environment? - Management expects the positive EBITDA profile to continue through the year, with improvements anticipated in the second half related to product mix optimization [47][48] Question: What is the company's comfort level regarding potential debt for acquisitions or investments? - Management indicated that the balance sheet has considerable capacity, with a commitment to remain under a 2x net leverage basis [53][54] Question: Can you provide an update on the Sinton facility and any impacts from recent outages? - Management reported a transformer failure at Sinton but confirmed that operations resumed shortly after and that there are no ongoing concerns [64] Question: How are energy costs being managed given recent fluctuations? - Management stated that energy costs represent about 10% of production costs, and they have unique contracts to mitigate impacts from fluctuations [88][89]

Financial Data and Key Metrics Changes - In 2025, the company achieved operating income of $1.5 billion and net income of $1.2 billion, equating to $7.99 per diluted share [18] - Cash flow from operations was $1.4 billion, with liquidity remaining strong at over $2.2 billion [19] - For Q4 2025, net income was $266 million, or $1.82 per diluted share, with revenue at $4.4 billion and operating income at $310 million, lower than the previous quarter due to lower pricing and volume [19][20] Business Line Data and Key Metrics Changes - Steel operations generated operating income of $1.4 billion in 2025, down from $1.6 billion in the prior year, despite record steel shipments of 13.7 million tons [20] - Operating income from mills recycling operations was $97 million, nearly 30% higher than 2024, while Q4 operating income declined by $13 million due to lower pricing and shipments [21] - Steel fabrication platform earnings were $407 million for the year, lower than the previous year, but Q4 operating income was $91 million, indicating a solid demand for steel joists and deck [22] Market Data and Key Metrics Changes - The domestic steel industry operated at an estimated production utilization rate of 77%, while the company's steel mills operated at 86%, indicating a competitive advantage [29] - The automotive production estimates for 2026 are expected to remain similar to 2025, with dealer inventories declining further [30] - Non-residential construction is anticipated to benefit from ongoing onshoring activity and infrastructure spending, contributing to demand for diversified value-added steel products [30] Company Strategy and Development Direction - The company focuses on strategic organic investments in steel and aluminum products, with a disciplined capital allocation strategy aimed at high-return growth [9][25] - The proposed acquisition of BlueScope is seen as a strategic move to unlock value in North American assets, although the offer was rejected by BlueScope's board [10][11] - The company emphasizes a commitment to maintaining investment-grade credit metrics while pursuing growth opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding demand for diversified value-added steel products, supported by stable demand and lower imports [30] - The company is excited about the operational and commercial progress in aluminum, with expectations of reaching 90% utilization by the end of 2026 [45] - The management highlighted a significant domestic supply deficit for aluminum sheet, which is expected to grow, providing a favorable market environment [33] Other Important Information - The company issued $800 million in investment-grade unsecured notes to redeem existing notes and for general corporate purposes [24] - In 2025, the company repurchased $900 million of its common stock, reflecting confidence in its capital foundation and cash flow generation capabilities [25] - The company has a robust pipeline for growth investments, with a projected future through-cycle EBITDA contribution of over $1.4 billion from recent projects [40] Q&A Session Summary Question: Update on aluminum rolling mill utilization - The aluminum rolling mill is expected to reach 90% utilization by the end of 2026, with positive EBITDA anticipated to continue through the year [45][46] Question: Investment capacity and balance sheet comfort level - The company maintains a balance sheet with considerable capacity, aiming to remain under a 2x net leverage ratio [51][52] Question: Status of Sinton facility and recent transformer incident - A transformer failure occurred at the Sinton facility, but operations resumed shortly after, with no ongoing concerns expected [61] Question: Impact of outages on shipment profile - The company had planned maintenance outages in Q4, but no significant outages are expected in Q1 [75] Question: Energy cost considerations - Energy costs are approximately 10% of production costs, and the company has unique contracts to manage fluctuations effectively [87]

Financial Data and Key Metrics Changes - In 2025, the company achieved operating income of $1.5 billion and net income of $1.2 billion, equating to $7.99 per diluted share [16] - Cash flow from operations was $1.4 billion, with liquidity remaining strong at over $2.2 billion [17][21] - For Q4 2025, net income was $266 million, or $1.82 per diluted share, with revenue at $4.4 billion [17] Business Line Data and Key Metrics Changes - Steel operations generated operating income of $1.4 billion in 2025, down from $1.6 billion in the prior year, despite record steel shipments of 13.7 million tons [17][18] - The mills recycling operations saw operating income of $97 million, nearly 30% higher than 2024, while Q4 income declined due to lower pricing [18][25] - Steel fabrication platform earnings were $407 million for the year, lower than the previous year, but Q4 operating income was $91 million, indicating a solid demand for steel joists and deck [19][25] Market Data and Key Metrics Changes - The domestic steel industry operated at a production utilization rate of 77%, while the company's mills operated at 86%, showcasing a competitive advantage [26] - Long-product steel markets remained strong throughout 2025, with expectations for continued demand and pricing stability [28] - The automotive production estimates for 2026 are expected to remain similar to 2025, with dealer inventories declining further [28] Company Strategy and Development Direction - The company focuses on strategic organic investments in steel and aluminum products, aiming for differentiated product offerings and value creation for stakeholders [8][9] - The proposed acquisition of BlueScope is seen as a strategic move to unlock value in North American assets, despite the rejection of the offer by BlueScope's board [9][10] - The company emphasizes a disciplined capital allocation strategy, prioritizing high-return growth and maintaining investment-grade credit metrics [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the demand for diversified value-added steel products, supported by ongoing infrastructure spending and manufacturing onshoring [28] - The aluminum segment is expected to grow significantly, with a domestic supply deficit forecasted to increase, providing opportunities for the company [30] - The company remains committed to achieving a zero-incident safety environment and continues to prioritize safety culture [6] Other Important Information - The company issued $800 million in investment-grade unsecured notes to redeem existing notes and for general corporate purposes [22] - Capital investments for 2026 are projected to be around $600 million, with a focus on maintaining strong cash flow generation [22][23] - The company repurchased $900 million of common stock in 2025, reflecting confidence in future growth [22] Q&A Session Questions and Answers Question: Update on aluminum rolling mill utilization - The aluminum rolling mill is expected to reach 90% utilization by the end of 2026, with positive EBITDA anticipated to continue through the year [39][40] Question: Investment capacity and balance sheet comfort level - The company maintains a balance sheet with considerable capacity, aiming to remain under a 2x net leverage ratio while improving structural EBITDA [41][42] Question: Status of the four value-add lines and Sinton - The four value-add lines are operating well, and Sinton is expected to converge with other facilities in terms of operational capability [47][49]

Core Viewpoint - Steel Dynamics, Inc. (STLD) has shown strong performance over the past year, with a 50% increase in share value, attributed to the benefits of steel tariffs protecting the business [1] Company Performance - The company has gained 50% in share price over the last year, indicating robust market performance [1] - Initially, tariffs had a mixed impact on the business, but recent trends show increasing benefits from these tariffs [1] Industry Context - The steel industry is experiencing a favorable environment due to protective tariffs, which are contributing positively to the financial performance of companies like Steel Dynamics [1]

Presentation I n v e s t o r C a l l P r e s e n t a t i o n F o u r t h Q u a r t e r a n d F u l l Y e a r 2 0 2 5 January 26, 2026 Health and Safety Health and Safety Entrepreneurial Culture Customer Commitment Strategic Sustainable Growth Innovation Financial Strength z Investor 2022 Entrepreneurial Culture Customer Commitment Strategic Growth Innovation Financial Strength Forward-looking statements and Non-GAAP financial measures Forward-Looking Statements This presentation contains some predictive sta ...

Core Insights - Steel Dynamics, Inc. (STLD) reported Q4 2025 earnings of $1.82 per share, an increase from $1.36 year-over-year, surpassing the Zacks Consensus Estimate of $1.72 [1] - Net sales for the quarter reached $4,414 million, a 14% year-over-year increase, but fell short of the Zacks Consensus Estimate of $4,539.1 million [1] Segment Highlights - Steel operations net sales were $3,141.4 million, up approximately 18.7% year-over-year, with steel shipments of about 3.3 million tons, exceeding the consensus estimate of 3.29 million tons [1] - The average external product selling price for steel was $1,107 per ton, up from $1,011 year-over-year, but down from $1,119 in the previous quarter, beating the consensus estimate of $1,092 per ton [2] - Metal recycling operations reported net sales of $463 million, down around 4% year-over-year, with ferrous shipments of approximately 1.52 million gross tons, up roughly 7% year-over-year, surpassing the consensus of 1.44 million gross tons [3] - Steel fabrication operations had sales of about $347.3 million, down roughly 12.3% year-over-year, with shipments of 138,375 tons, down around 5.2% year-over-year, missing the consensus estimate of 142,000 tons [4] Financial Position - Steel Dynamics ended the quarter with cash and cash equivalents of $769.9 million, a 31% increase year-over-year, while long-term debt rose to $4,176.5 million, up roughly 49% [5] - Cash flow from operations was $272.7 million, down approximately 21.4% year-over-year [5] Outlook - The company anticipates improved trade conditions and a favorable interest rate environment to bolster steel and aluminum demand, with a growing interest in low-carbon, U.S.-made metals [6] - Progress is being made on the commissioning and start-up of the Columbus aluminum flat rolled mill and San Luis Potosí slab center, with expectations for strong long-term growth and value creation [6] Price Performance - Steel Dynamics shares have increased by 48.6% over the past year, compared to a 59.1% rise in its industry [7]

Core Insights - Steel Dynamics (STLD) reported revenue of $4.41 billion for Q4 2025, a 14% year-over-year increase, with EPS of $1.82 compared to $1.36 a year ago, indicating strong financial performance despite missing revenue estimates by 2.75% [1] Financial Performance - The reported revenue of $4.41 billion was below the Zacks Consensus Estimate of $4.54 billion, resulting in a revenue surprise of -2.75% [1] - The company achieved an EPS surprise of +5.66%, with the consensus EPS estimate being $1.72 [1] Key Metrics - Steel Dynamics' stock returned +3.3% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change, and currently holds a Zacks Rank 3 (Hold) [3] - Average external sales price for Steel was $1,107.00 per ton, exceeding the estimated $1,092.10 per ton [4] - Average sales price for Steel Fabrication was $2,509.00 per ton, slightly below the estimated $2,557.62 per ton [4] Shipments and Sales - External shipments of Steel totaled 2,837.13 KTon, below the average estimate of 2,939.28 KTon [4] - External net sales for Steel Fabrication were reported at $347.25 million, compared to the average estimate of $362.78 million, reflecting a year-over-year decline of 12.4% [4] - External net sales for Metals Recycling were $463.04 million, slightly below the average estimate of $471.84 million, with a year-over-year change of -4% [4] - External net sales for Steel reached $3.14 billion, compared to the estimated $3.21 billion, marking an 18.7% increase year-over-year [4] - External net sales for Other products were $304.64 million, below the average estimate of $317.61 million, with a year-over-year change of +5.9% [4] - External net sales for Aluminum were reported at $157.75 million, significantly lower than the average estimate of $234.23 million [4]

U.S. Stock Market - U.S. stocks traded higher, with the Dow Jones index gaining more than 100 points, up 0.33% to 49,259.65 [1] - The NASDAQ increased by 0.09% to 23,521.63, and the S&P 500 rose 0.26% to 6,933.84 [1] - Materials shares gained 0.8%, while health care stocks dipped by 0.2% [1] Company Earnings - Steel Dynamics Inc reported fourth-quarter earnings of $1.82 per share, missing the analyst consensus estimate of $1.95 per share [2] - The company also reported quarterly sales of $4.414 billion, which fell short of the analyst consensus estimate of $4.575 billion [2] Commodity Market - Oil prices decreased by 0.6% to $60.72, while gold prices increased by 1.8% to $5,068.50 [4] - Silver rose by 8.1% to $109.565, and copper increased by 0.5% to $5.9770 [4] Asian Markets - Asian markets closed mixed, with Japan's Nikkei falling 1.79%, Hong Kong's Hang Seng Index gaining 0.06%, and China's Shanghai Composite declining 0.09% [6] Stock Movements - Battalion Oil Corp shares surged 379% to $6.13 after switching gas processing partners and boosting production [8] - Brand Engagement Network Inc shares increased by 196% to $48.79 following a strategic partnership announcement [8] - Gaxos.ai Inc shares rose 76% to $1.97, while Mingteng International Corp shares dropped 36% to $2.16 [8] - CN ENERGY GROUP Inc shares fell 35% to $0.52 due to a Nasdaq delisting determination [8] - 60 Degrees Pharmaceuticals Inc shares decreased by 23% to $3.52 after a 10% drop on Friday [8] Economic Indicators - U.S. durable-goods orders rose 5.3% month-over-month in November, surpassing market estimates of a 3.7% increase [9]

Earnings Expectations - Steel Dynamics Inc. (NASDAQ:STLD) is expected to report quarterly earnings of $1.69 per share on revenue of $4.57 billion [1] - Nucor Corp. (NYSE:NUE) is anticipated to post quarterly earnings of $1.91 per share on revenue of $7.87 billion [1] - W R Berkley Corp. (NYSE:WRB) is projected to report quarterly earnings of $1.13 per share on revenue of $3.66 billion [1] - Sanmina Corp. (NASDAQ:SANM) is expected to report quarterly earnings of $2.13 per share on revenue of $3.08 billion [1] Recent Performance - Baker Hughes Co. (NASDAQ:BKR) reported adjusted earnings of 78 cents per share, exceeding market estimates of 67 cents per share, with quarterly sales of $7.386 billion, surpassing expectations of $7.068 billion [1] - Steel Dynamics shares rose 1.4% to close at $181.32 on Friday [1] - Nucor shares increased by 0.8% to close at $181.65 on Friday [1] - W R Berkley shares fell 0.6% to close at $67.12 on Friday [1] - Sanmina shares decreased by 0.9% to close at $177.83 on Friday [1] - Baker Hughes shares fell 1.2% to close at $53.80 on Friday [1]