Steel Dynamics Sees Q2 Rebound From Q1 But Still Trails Street Forecast

Steel Dynamics Inc. (NASDAQ:STLD) on Wednesday announced guidance for second-quarter 2025 earnings, projecting between $2.00 and $2.04 per share. The outlook falls short of the $2.64 consensus estimate but improves on the prior quarter’s $1.44. It also remains below the $2.72 reported in the same period a year ago.

The company anticipates improved profitability from its core steel operations, driven by wider metal spreads and average steel prices rising faster than raw material costs. However, pretax earnings for the segment were reduced by about $32 million due to a noncash write-off of consumable assets.

Also Read: Steel Stocks Slide On Potential US-Mexico Tariff Deal: Report

Steel fabrication earnings are expected to decline quarter-over-quarter due to compressed margins despite stable shipment volumes and rising input costs. Still, the order backlog improved and extends through 2025, supported by manufacturing investment and U.S. infrastructure initiatives.

The company expects steady performance in its metals recycling segment as stronger volumes offset lower pricing.

Also Read: Steel Dynamics Reports Q1 Earnings: Revenue Beat, Demand Drives ‘Solid’ Steel Consumption Forecast

Commissioning of Steel Dynamics’ new aluminum facilities in Mississippi and Mexico remains on track. First casting milestones were completed earlier this year, and initial shipments are expected by mid-2025.

As of June 11, the company had repurchased $179 million of its common stock, roughly 1% of shares outstanding.

Related ETFs: SPDR S&P Metals and Mining ETF (NYSE:XME), VanEck Steel ETF (NYSE:SLX)

Price Action: STLD shares are trading lower by 2.44% at $129.91 premarket at the last check Wednesday.

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