Steel Dynamics Reports First Quarter 2025 Results

, /PRNewswire/ -- First Quarter 2025 Performance Highlights: Record steel shipments of 3.5 million tons Net sales of $4.4 billion, operating income of $275 million, and net income of $217 million Adjusted EBITDA of $448 million and cash flow from operations of $153 million, which was reduced by the annual companywide retirement profit-sharing distribution of $165 million in the quarter Strong liquidity of $2.6 billion as of March 31, 2025 Share repurchases of $250 million of the company's common stock, representing 1.3 percent of its outstanding shares First quarter 2025 cash dividend increase of 9 percent Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced first quarter 2025 financial results. The company reported first quarter 2025 net sales of $4.4 billion and net income of $217 million, or $1.44 per diluted share. Comparatively, the company's sequential fourth quarter 2024 net income was $207 million, or $1.36 per diluted share and prior year first quarter net income was $584 million, or $3.67 per diluted share. "The teams executed well, achieving a solid first quarter 2025 performance, increasing sequential operating income 16 percent and adjusted EBITDA 21 percent," said Mark D. Millett, Chairman and Chief Executive Officer. "The improvement in earnings was driven by record steel shipments and supported by solid results from our metals recycling and steel fabrication operations. Our three-year after-tax return-on-invested capital of 20 percent is a testament to our ongoing high-return capital allocation execution. Across the company, our teams had a solid performance, while keeping each other safe. "Underlying steel demand improved in the first quarter as customer orders rebounded and backlogs increased throughout the quarter at our steel and steel fabrication operations. Steel prices improved throughout the quarter from the lows seen in the second half of 2024 as trade actions have seen imports decline from recent highs. We should see the benefit from these higher steel prices in the coming months, as lagging flat rolled steel contracts roll. In combination with our ongoing value-added flat rolled steel and aluminum expansion initiatives, there are firm drivers in place for our continued growth." First Quarter 2025 Comments First quarter 2025 operating income for the company's steel operations was $230 million, or 39 percent higher than sequential fourth quarter results, due to record shipments more than offsetting metal spread compression, as lagging contractual flat rolled steel pricing in the quarter did not reflect recent price improvements, which will be realized in the coming months. The first quarter 2025 average external product selling price for the company's steel operations decreased $13 sequentially to $998 per ton. The average ferrous scrap cost per ton melted at the company's steel mills increased $16 sequentially to $386 per ton. The energy, non-residential construction, automotive, and industrial sectors led steel demand in the quarter. Flat rolled steel pricing has rebounded from recent lows and steel producer lead times have extended. The company's Sinton Texas Flat Roll Division operated at an 86 percent rate of capacity for the full quarter and often times at production levels in excess of 90 percent. Value-added product quality and cost efficiency initiatives have been successful and are ongoing, providing a clear path to significantly higher escalating profitability in the coming quarters. Sinton was EBITDA positive for the first quarter 2025. Compared to the sequential fourth quarter, first quarter 2025 operating income from the company's metals recycling operations increased to $26 million, based on stronger realized ferrous scrap pricing and modestly higher shipments across the platform. The company's steel fabrication operations achieved operating income of $117 million in the first quarter 2025, below sequential results due to seasonally lower shipments combined with metal spread compression related to lower realized pricing. The pace of order activity increased during the first quarter, improving the order backlog which extends into the fourth quarter 2025, with attractive pricing levels. Improved demand was supported largely by the commercial, data center, manufacturing, warehouse, and healthcare sectors. Further, the accelerated announcements related to meaningful domestic investments in manufacturing and increased onshoring, coupled with the U.S. infrastructure program, are expected to positively impact demand for not only steel joist and deck products, but also for flat rolled and long product steel. On March 12, 2025, the company issued $1.0 billion in unsecured notes, comprised of $600 million of 5.250% notes due 2035 and $400 million of 5.750% notes due 2055. The net proceeds from the notes will be used for general corporate purposes, which may include repayment of the company's $400 million 2.400% senior notes due June 2025. Based on the company's differentiated business model and highly variable cost structure, the company generated cash flow from operations of $153 million during the quarter, even after funding the companywide retirement profit-sharing distribution of $165 million. The company also invested $306 million in capital investments, paid cash dividends of $70 million, and repurchased $250 million of its outstanding common stock, representing 1.3 percent of its outstanding shares, while maintaining strong liquidity of $2.6 billion as of March 31, 2025. Outlook "We remain constructive that market conditions are in place for domestic steel consumption to be solid through 2025 and into the following years," said Millett. "Order entry activity improved across our businesses and steel pricing firmed in the first quarter 2025. However, we have seen some uncertainty from certain customers related to recent trade actions. Overall, we believe demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing and demand. The continued onshoring of manufacturing businesses, combined with the expectation of fixed asset investment to be derived from public and private funding should competitively position the domestic steel industry. We also expect the recent International Trade Commission's preliminary determinations related to coated flat rolled steel to reduce the amount of unfairly traded imports of these products into the United States, which could have a significant positive impact for us, as we are the largest non-automotive flat rolled steel coater in the United States. We believe these broader dynamics will benefit all of our operating platforms. "Our four new value-added flat rolled steel coating lines continue to increase utilization and we expect to realize full run rate earnings potential in the second half 2025. Value-added product investments such as these enhance our differentiated supply-chain capabilities, while also increasing our higher-margin product offerings, which already represent over 65 percent of our steel revenues. "The aluminum team is continuing with successful commissioning of the company's Columbus, Mississippi aluminum flat rolled products mill, along with the San Luis Potosi, Mexico satellite recycled slab center. The Mississippi team successfully cast its first aluminum ingot in January 2025 and the Mexico team in March 2025. Construction is near completion on the hot and cold mills. The finishing equipment installation for the automotive treatment and can sheet coating lines are also on schedule. The company continues to expect to ship commercial aluminum flat rolled coils mid-2025. "We have intentionally grown with our customers' needs, providing efficient sustainable supply-chain solutions for the highest quality products. Thus far, this has primarily been achieved within the steel industry — however, a significant number of our flat rolled steel customers are also consumers and processors of aluminum flat rolled products. We are pleased to further diversify our end markets with plans to supply aluminum flat rolled products with high recycled content to the countercyclical sustainable beverage can and packaging industry, in addition to the automotive, industrial, and construction sectors. We believe our unique performance-based operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective, highly profitable flat rolled steel mills, positions us exceptionally well to execute this strategic opportunity and to deliver strong long-term value creation. Our customers and our people are also incredibly excited for this growth opportunity. "Our commitment is to the health and safety of our teams, families, and communities, while meeting the current and future needs of our customers. Our culture and business model continues to positively differentiate our performance from the rest of the industry. We continue to focus on delivering superior value to our team members, customers, and shareholders," concluded Millett. Conference Call and Webcast Steel Dynamics, Inc. will hold a conference call to discuss first quarter 2025 operating and financial results on Wednesday, April 23, 2025, at 11:00 a.m. Eastern Daylight Time. You may access the call and find dial-in information on the Investors section of the company's website at www.steeldynamics.com. A replay of the call will be available on our website until 11:59 p.m. Eastern Daylight Time on April 30, 2025. About Steel Dynamics, Inc. Steel Dynamics is a leading industrial metals solutions company, with facilities located throughout the United States, and in Mexico. The company operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input. Steel Dynamics is one of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform. The company is also 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. Steel Dynamics is committed to operating with the highest integrity and to being the safest, most efficient producer of high-quality, broadly diversified, value-added metal products. Note Regarding Financial Metrics The company believes that after-tax return-on-invested capital (After-tax ROIC) provides an indication of the effectiveness of the company's invested capital and is calculated as follows: After-tax ROIC = Net Income Attributable to Steel Dynamics, Inc. (Quarterly Average Current Maturities of Long-term Debt + Long-term Debt + Total Equity) Note Regarding Non-GAAP Financial Measures The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that the non-GAAP financial measures EBITDA and Adjusted EBITDA provide additional meaningful information regarding the company's performance and financial strength. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the company's reported results prepared in accordance with GAAP. In addition, not all companies use identical calculations for EBITDA or Adjusted EBITDA; therefore, EBITDA and Adjusted EBITDA included in this release may not be comparable to similarly titled measures of other companies. Forward-Looking Statements This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations; (8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) our ability to retain, develop, and attract key personnel; (14) litigation and legal compliance; (15) unexpected equipment downtime or shutdowns; (16) governmental agencies may refuse to grant or renew some of our licenses and permits; (17) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (18) the impacts of impairment charges. More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings." Steel Dynamics, Inc. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(in thousands, except per share data) Three Months Ended Three Months March 31, Ended 2025 2024 Dec. 31, 2024 Net sales $ 4,369,195 $ 4,694,003 $ 3,872,138 Costs of goods sold 3,882,651 3,713,205 3,430,404 Gross profit 486,544 980,798 441,734 Selling, general and administrative expenses 181,808 159,507 176,904 Profit sharing 22,695 62,652 19,755 Amortization of intangible assets 6,897 7,664 7,573 Operating income 275,144 750,975 237,502 Interest expense, net of capitalized interest 12,131 11,978 14,579 Other (income) expense, net (17,641) (26,784) (21,040) Income before income taxes 280,654 765,781 243,963 Income tax expense 62,975 178,281 34,091 Net income 217,679 587,500 209,872 Net income attributable to noncontrolling interests (528) (3,459) (2,579) Net income attributable to Steel Dynamics, Inc. $ 217,151 $ 584,041 $ 207,293 Basic earnings per share attributable to Steel Dynamics, Inc. stockholders $ 1.45 $ 3.68 $ 1.36 Weighted average common shares outstanding 150,262 158,666 152,096 Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive $ 1.44 $ 3.67 $ 1.36 Weighted average common shares and share equivalents outstanding 150,809 159,354 152,801 Dividends declared per share $ 0.50 $ 0.46 $ 0.46 Steel Dynamics, Inc. CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, Assets 2025 2024 (unaudited) Current assets Cash and equivalents $ 1,186,917 $ 589,464 Short-term investments 19,636 147,811 Accounts receivable, net 1,720,801 1,417,199 Inventories 3,099,054 3,113,733 Other current assets 190,297 163,131 Total current assets 6,216,705 5,431,338 Property, plant and equipment, net 8,322,652 8,117,988 Intangible assets, net 220,336 227,234 Goodwill 477,471 477,471 Other assets 693,264 681,202 Total assets $ 15,930,428 $ 14,935,233 Liabilities and Equity Current liabilities Accounts payable $ 1,257,686 $ 979,912 Income taxes payable 43,249 3,783 Accrued expenses 546,576 739,898 Current maturities of long-term debt 418,947 426,990 Total current liabilities 2,266,458 2,150,583 Long-term debt 3,777,132 2,804,017 Deferred income taxes 918,435 902,186 Other liabilities 134,509 133,201 Total liabilities 7,096,534 5,989,987 Commitments and contingencies Redeemable noncontrolling interests 171,212 171,212 Equity Common stock 652 652 Treasury stock, at cost (7,334,595) (7,094,266) Additional paid-in capital 1,218,235 1,229,819 Retained earnings 14,940,418 14,798,082 Total Steel Dynamics, Inc. equity 8,824,710 8,934,287 Noncontrolling interests (162,028) (160,253) Total equity 8,662,682 8,774,034 Total liabilities and equity $ 15,930,428 $ 14,935,233 Steel Dynamics, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Three Months Ended March 31, 2025 2024 Operating activities: Net income $ 217,679 $ 587,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 133,756 115,252 Equity-based compensation 17,040 15,612 Deferred income taxes 16,249 (21,024) Other adjustments (4,195) 18,705 Changes in certain assets and liabilities: Accounts receivable (303,602) (130,753) Inventories 13,810 (133,025) Other assets (32,115) (12,176) Accounts payable 248,600 29,499 Income taxes receivable/payable 42,815 165,664 Accrued expenses (197,434) (280,037) Net cash provided by operating activities 152,603 355,217 Investing activities: Purchases of property, plant and equipment (305,506) (374,310) Purchases of short-term investments (10,000) (205,873) Proceeds from maturities of short-term investments 137,811 272,994 Other investing activities (1,064) 14,255 Net cash used in investing activities (178,759) (292,934) Financing activities: Issuance of current and long-term debt 1,405,943 379,268 Repayment of current and long-term debt (432,527) (413,939) Dividends paid (69,514) (68,008) Purchase of treasury stock (250,138) (298,059) Other financing activities (30,469) (23,108) Net cash provided by (used in) financing activities 623,295 (423,846) Increase (decrease) in cash, cash equivalents, and restricted cash 597,139 (361,563) Cash, cash equivalents, and restricted cash at beginning of period 595,010 1,406,464 Cash, cash equivalents, and restricted cash at end of period $ 1,192,149 $ 1,044,901 Supplemental disclosure information: Cash paid for interest $ 28,477 $ 9,327 Cash paid for income taxes, net $ 3,717 $ 28,390 Steel Dynamics, Inc. SUPPLEMENTAL INFORMATION (UNAUDITED) (dollars in thousands) First Quarter 2025 2024 Q4 2024 External Net Sales Steel $ 3,067,016 $ 3,366,237 $ 2,645,994 Steel Fabrication 352,307 447,179 396,226 Metals Recycling 534,895 507,270 482,081 Aluminum 66,576 62,203 60,099 Other 348,401 311,114 287,738 Consolidated Net Sales $ 4,369,195 $ 4,694,003 $ 3,872,138 Operating Income (Loss) Steel $ 229,963 $ 674,648 $ 164,989 Steel Fabrication 116,745 178,381 142,189 Metals Recycling 25,710 16,659 23,361 Aluminum (28,735) (7,555) (28,896) 343,683 862,133 301,643 Non-cash amortization of intangible assets (6,897) (7,664) (7,573) Profit sharing expense (22,695) (62,652) (19,755) Non-segment operations (38,947) (40,842) (36,813) Consolidated Operating Income $ 275,144 $ 750,975 $ 237,502 Adjusted EBITDA Net income $ 217,679 $ 587,500 $ 209,872 Income taxes 62,975 178,281 34,090 Net interest expense (income) 2,316 (14,327) (3,481) Depreciation 125,122 106,030 116,147 Amortization of intangible assets 6,897 7,664 7,573 EBITDA 414,989 865,148 364,201 Non-cash adjustments Unrealized (gains) losses on derivatives and currency remeasurement 19,153 (1,347) (17,703) Equity-based compensation 14,181 14,825 25,121 Adjusted EBITDA $ 448,323 $ 878,626 $ 371,619 Other Operating Information Steel Average external sales price (Per ton) $ 998 $ 1,201 $ 1,011 Average ferrous cost (Per ton melted) $ 386 $ 417 $ 370 Flat Roll shipments Butler, Columbus, and Sinton 2,119,187 1,993,305 1,841,745 Steel Processing divisions * 492,627 418,547 460,162 Long Product shipments Structural and Rail Division 437,398 440,921 362,650 Engineered Bar Products Division 191,658 191,373 151,239 Roanoke Bar Division 144,186 124,920 123,133 Steel of West Virginia 96,483 86,528 81,387 Total Shipments (Tons) 3,481,539 3,255,594 3,020,316 External Shipments (Tons) 3,071,735 2,803,569 2,617,914 Steel Mill Production (Tons) 3,021,593 2,992,018 2,663,444 Metals Recycling Nonferrous shipments (000's of pounds) 233,080 243,950 226,434 Ferrous shipments (Gross tons) 1,452,432 1,457,789 1,421,021 External ferrous shipments (Gross tons) 557,618 536,973 529,335 Steel Fabrication Average sales price (Per ton) $ 2,599 $ 3,141 $ 2,718 Shipments (Tons) 135,581 143,842 145,901 Beginning the fourth quarter 2024, results from an entity previously included in Metals Recycling are presented within Aluminum. All prior periods presented have been recast to reflect the change. * Includes Heartland, The Techs and United Steel Supply operations SOURCE Steel Dynamics, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Steel Dynamics Reports First Quarter 2025 Results

FAQ

Why Bullish?

How important is it?

Why Long Term?

Related Companies

Related News