It has been about a month since the last earnings report for Steel Dynamics (STLD) . Shares have added about 0.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Steel Dynamics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.Steel Dynamics’ Q3 Earnings Beat Estimates on ...

Accessibility StatementSkip Navigation FORT WAYNE, Ind., Nov. 11, 2025 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced the appointment of Matt Bell as the company's head of its metals recycling platform effective today. Also from this source Steel Dynamics Announces Fourth Quarter 2025 Cash Dividend Matt Bell, Vice President Metals Recycling Matt Bell will assume responsibility and oversight for the company's metals recycling platform as the Vice President of Metals Recycling and the ...

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]

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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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