Steel Dynamics Reports Third Quarter 2025 Results

, /PRNewswire/ -- Third Quarter 2025 Performance Highlights: Successful production and qualification of industrial, beverage can, and automotive quality flat rolled aluminum products Successful production and consumption of biocarbon material Record steel shipments of 3.6 million tons Net sales of $4.8 billion, operating income of $508 million, and net income of $404 million Adjusted EBITDA of $664 million and cash flow from operations of $723 million Liquidity of over $2.2 billion Share repurchases of $210 million of the company's common stock, representing 1.1 percent of its outstanding shares Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced third quarter 2025 financial results. The company reported third quarter 2025 net sales of $4.8 billion and net income of $404 million, or $2.74 per diluted share. Comparatively, the company's sequential second quarter 2025 net income was $299 million, or $2.01 per diluted share and prior year third quarter net income was $318 million, or $2.05 per diluted share. "Our teams performed exceptionally well in the third quarter, achieving strong financial performance and hitting several operating milestones, while continuing to prioritize the safety and well-being of one another," said Mark D. Millett, Chairman and Chief Executive Officer. "Consolidated third quarter 2025 operating income improved 33 percent and adjusted EBITDA increased 24 percent sequentially. Our three-year after-tax return-on-invested capital of 15 percent is a testament to our ongoing high-return capital allocation strategy. We are growing, returning significant capital to shareholders, while also maintaining strong returns as compared to best-in-class domestic manufacturers. "The aluminum and biocarbon teams are both doing incredibly well," continued Millett. "We have produced finished aluminum flat rolled products for the industrial and beverage can sectors and hot band for the automotive sector, which have been qualified by several customers much sooner than anticipated. We sincerely thank those customers who have helped us. There is still much to be done, and the team has great momentum to continue to commission and ramp operations. Additionally, the SDI Biocarbon Solutions team produced their first biocarbon, which was successfully used as a carbon replacement at our Columbus Flat Roll Steel Division, providing a significantly lower-carbon supply chain for our steel customers. The team plans to continue to refine operations and increase production throughout the rest of the year. "We also achieved record quarterly steel shipments, as imports declined from the elevated levels seen earlier in the year and Sinton's performance improved," said Millett. "However, we continue to observe some customer inventory overhang of value-added flat rolled products that were imported earlier this year. We have seen some order hesitancy from flat rolled steel customers due to domestic trade actions, despite numerous encouraging demand drivers — such as manufacturing onshoring, infrastructure program funding, lower interest rates, and the increasing regionalization of supply chains in the U.S. As it relates to long product steel demand and pricing, structural steel and railroad rail have remained very strong. Looking ahead, we expect to benefit from stronger demand across our platforms, including aluminum flat rolled products, as we move into 2026." Third Quarter 2025 Comments Third quarter 2025 operating income for the company's steel operations was $498 million, or 30 percent higher than sequential second quarter results, due to record steel shipments and metal spread expansion, as scrap raw material costs declined more than average realized steel selling values. The third quarter 2025 average external product selling price for the company's steel operations decreased $15 sequentially to $1,119 per ton. The average ferrous scrap cost per ton melted at the company's steel mills decreased $27 per ton sequentially to $381 per ton. Average realized flat rolled steel pricing declined in the quarter based on lagging priced contracts, while long product steel prices increased as demand for structural and rail products was strong. The energy, non-residential construction, automotive, and industrial sectors led steel demand in the quarter. The steel teams have scheduled normal maintenance outages at the company's Butler, Columbus, and Sinton Flat Roll Steel divisions during the fourth quarter 2025, which could reduce production by as much as 85,000 tons of flat rolled steel in the quarter. Third quarter 2025 operating income from the company's metals recycling operations was $32 million, or $10 million higher than sequential earnings, based on near-record ferrous scrap shipments and metal spread expansion. The company's steel fabrication operations generated operating income of $107 million in the third quarter 2025, higher than sequential second quarter results of $93 million, due to a twelve percent increase in shipments. Order activity remained steady in the quarter, with the order backlog maintaining solid levels extending through the first quarter 2026, supported by stable pricing. Demand was largely driven by the commercial, data center, manufacturing, warehouse, and healthcare sectors. Looking ahead, the pace of domestic manufacturing investment, increased domestic onshoring activity, and momentum from the U.S. infrastructure program are expected to further support demand — not only for steel joist and deck products, but also for flat rolled and long product steel. Based on the company's differentiated business model and highly variable cost structure, the company generated cash flow from operations of $723 million during the quarter. The company also invested $166 million in capital investments, paid cash dividends of $74 million, and repurchased $210 million of its outstanding common stock, representing 1.1 percent of its outstanding shares, while maintaining liquidity of $2.2 billion as of September 30, 2025. Year-to-Date September 30, 2025 Comparison For the nine-months ended September 30, 2025, net income was $920 million, or $6.17 per diluted share, with net sales of $13.8 billion, as compared to net income of $1.3 billion, or $8.46 per diluted share, with net sales of $13.7 billion for the same period in 2024. For the first nine-months of 2025 net sales were steady at $13.8 billion, and operating income declined 32 percent to $1.2 billion, when compared to the same period in 2024. Decreased earnings were the result of lower realized pricing in the company's steel and steel fabrication operations during the period. For the first nine-months of 2025 operating income from the company's steel operations was $1.1 billion, compared to $1.4 billion for the same prior year period. The average nine-months 2025 external selling price for the company's steel operations decreased $50 to $1,083 per ton compared to the same prior year period, and the average ferrous scrap cost per ton melted at the company's steel mills was stable at $391 per ton. For the first nine-months of 2025 operating income from the company's steel fabrication operations was $317 million, compared to $525 million in the prior year period. Based on the company's differentiated business model and highly variable cost structure, the company achieved cash flow from operations of $1.2 billion in the first nine-months of 2025. The company also invested $760 million in capital investments, repaid $400 million of its senior notes, paid cash dividends of $218 million, and repurchased $661 million of its outstanding common stock, representing 3.4 percent of its outstanding shares, while maintaining liquidity of $2.2 billion. Outlook "We anticipate that improving market conditions, including increased trade stability and a more favorable interest rate environment, will contribute to strong domestic demand for steel and aluminum products," continued Millett. "Additionally, discussions with our customers reinforce the increasing importance of low-carbon, U.S.-made steel and aluminum — positioning our businesses for a long-term competitive advantage. We expect a favorable market environment to take shape as unfair trade practices diminish, policy clarity improves, and U.S. manufacturing continues to expand — driving stronger demand. "We view the U.S. International Trade Commission's final determinations on coated flat rolled steel as a significant positive development. As the largest non-automotive flat-rolled steel coater in the United States, we view a reduction in unfairly traded imports as a significant tailwind for our operations and market positioning. We anticipate that these broader market dynamics will positively influence performance across our operating platforms. "The aluminum team is continuing with the successful commissioning and startup of the company's Columbus, Mississippi aluminum flat rolled products mill and San Luis Potosi satellite recycled slab center. The cast houses and hot strip mill are operating extremely well and performing above expectations, and commissioning is ongoing in other areas of the facility. The teams successfully produced finished products for the industrial and beverage can sectors, receiving product qualification from several customers. They also produced and received qualification for aluminum hot band for use in automotive applications. We continue commissioning of the cold mill and other downstream lines, including the CASH line. It is an extremely exciting time for all of us. There is still much to be done, yet much has also been accomplished. "Our growth strategy has been deliberately aligned with the changing needs of our customers, emphasizing sustainable, efficient supply chain solutions and top-tier product quality — primarily within the steel industry. However, with many of our steel customers also consuming aluminum flat-rolled products, we are expanding into this adjacent market — offering high recycled-content aluminum solutions to meet growing demand — serving the counter-cyclical, sustainability-driven beverage can and packaging industry, as well as the automotive, industrial, and construction sectors. With a performance-based operating culture and deep expertise in developing and managing cost-efficient, high-margin flat-rolled steel mills, we are uniquely positioned to execute this strategic initiative. We view this expansion as a significant opportunity for long-term value creation — one that is generating strong enthusiasm among both our customers and our teams. "We remain firmly committed to the health and safety of our teams, their families, and the communities we serve, while meeting the evolving needs of our customers. Our culture and performance-driven business model continue to positively differentiate our company. We remain focused 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 third quarter 2025 operating and financial results on Tuesday, October 21, 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 October 28, 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 Nine Months Ended Three Months September 30, September 30, Ended 2025 2024 2025 2024 June 30, 2025 Net sales $ 4,828,215 $ 4,341,615 $ 13,762,533 $ 13,668,252 $ 4,565,123 Costs of goods sold 4,070,335 3,736,398 11,899,641 11,307,400 3,946,655 Gross profit 757,880 605,217 1,862,892 2,360,852 618,468 Selling, general and administrative expenses 200,844 167,692 580,662 487,215 198,010 Profit sharing 42,389 34,444 95,790 145,149 30,706 Amortization of intangible assets 6,890 7,644 20,684 22,953 6,897 Operating income 507,757 395,437 1,165,756 1,705,535 382,855 Interest expense, net of capitalized interest 13,573 17,071 43,085 41,768 17,381 Other (income) expense, net (19,662) (29,659) (59,695) (75,151) (22,392) Income before income taxes 513,846 408,025 1,182,366 1,738,918 387,866 Income tax expense 109,920 87,131 259,570 398,834 86,675 Net income 403,926 320,894 922,796 1,340,084 301,191 Net income attributable to noncontrolling interests (241) (3,092) (3,234) (10,243) (2,465) Net income attributable to Steel Dynamics, Inc. $ 403,685 $ 317,802 $ 919,562 $ 1,329,841 $ 298,726 Basic earnings per share attributable to Steel Dynamics, Inc. stockholders $ 2.75 $ 2.06 $ 6.19 $ 8.50 $ 2.01 Weighted average common shares outstanding 146,947 154,061 148,532 156,528 148,387 Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive $ 2.74 $ 2.05 $ 6.17 $ 8.46 $ 2.01 Weighted average common shares and share equivalents outstanding 147,600 154,810 149,123 157,248 148,960 Dividends declared per share $ 0.50 $ 0.46 $ 1.50 $ 1.38 $ 0.50 Steel Dynamics, Inc. CONSOLIDATED BALANCE SHEETS (in thousands) September 30, December 31, Assets 2025 2024 (unaudited) Current assets Cash and equivalents $ 770,356 $ 589,464 Short-term investments - 147,811 Accounts receivable, net 1,761,961 1,417,199 Inventories 3,195,660 3,113,733 Other current assets 351,428 163,131 Total current assets 6,079,405 5,431,338 Property, plant and equipment, net 8,493,550 8,117,988 Intangible assets, net 206,549 227,234 Goodwill 477,471 477,471 Other assets 708,055 681,202 Total assets $ 15,965,030 $ 14,935,233 Liabilities and Equity Current liabilities Accounts payable $ 1,214,765 $ 979,912 Income taxes payable 3,088 3,783 Accrued expenses 737,444 739,898 Current maturities of long-term debt 1,429 426,990 Total current liabilities 1,956,726 2,150,583 Long-term debt 3,781,026 2,804,017 Deferred income taxes 1,105,134 902,186 Other liabilities 151,819 133,201 Total liabilities 6,994,705 5,989,987 Commitments and contingencies Redeemable noncontrolling interests 141,226 171,212 Equity Common stock 652 652 Treasury stock, at cost (7,743,046) (7,094,266) Additional paid-in capital 1,243,261 1,229,819 Retained earnings 15,495,603 14,798,082 Accumulated other comprehensive loss (1,328) - Total Steel Dynamics, Inc. equity 8,995,142 8,934,287 Noncontrolling interests (166,043) (160,253) Total equity 8,829,099 8,774,034 Total liabilities and equity $ 15,965,030 $ 14,935,233 Steel Dynamics, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) ( in thousands ) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Operating activities: Net income $ 403,926 $ 320,894 $ 922,796 $ 1,340,084 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 138,487 121,052 405,108 353,357 Equity-based compensation 14,238 12,828 45,341 41,453 Deferred income taxes 147,570 14,832 202,948 (1,615) Other adjustments (7,986) (10,523) (13,071) 1,779 Changes in certain assets and liabilities: Accounts receivable (60,985) 210,435 (344,762) 43,350 Inventories 64,501 28,169 (85,106) (151,501) Other assets (34,551) (11,851) (58,877) (22,054) Accounts payable (4,817) (13,852) 238,516 (11,604) Income taxes receivable/payable (65,070) (12,971) (104,965) 7,017 Accrued expenses 127,295 100,840 (31,106) (102,635) Net cash provided by operating activities 722,608 759,853 1,176,822 1,497,631 Investing activities: Purchases of property, plant and equipment (165,692) (621,355) (759,529) (1,414,831) Purchases of short-term investments - (430,826) (39,571) (699,879) Proceeds from maturities of short-term investments 39,571 204,543 186,996 775,851 Other investing activities 5,593 (4,357) 7,121 (15,656) Net cash used in investing activities (120,528) (851,995) (604,983) (1,354,515) Financing activities: Issuance of current and long-term debt 407,965 1,185,657 2,298,186 2,145,538 Repayment of current and long-term debt (408,291) (527,977) (1,743,423) (1,531,969) Dividends paid (73,894) (71,584) (218,098) (212,216) Purchase of treasury stock (210,388) (309,901) (660,574) (917,024) Other financing activities (5,056) 1,177 (67,243) (13,153) Net cash provided by (used in) financing activities (289,664) 277,372 (391,152) (528,824) Increase (decrease) in cash, cash equivalents, and restricted cash 312,416 185,230 180,687 (385,708) Cash, cash equivalents, and restricted cash at beginning of period 463,281 835,526 595,010 1,406,464 Cash, cash equivalents, and restricted cash at end of period $ 775,697 $ 1,020,756 $ 775,697 $ 1,020,756 Supplemental disclosure information: Cash paid for interest $ 25,645 $ 9,102 $ 88,859 $ 59,466 Cash paid for income taxes, net $ 22,192 $ 81,742 $ 150,662 $ 383,455 Steel Dynamics, Inc. SUPPLEMENTAL INFORMATION (UNAUDITED) ( dollars in thousands ) Third Quarter YTD 2025 2024 2025 2024 1Q 2025 2Q 2025 External Net Sales Steel $ 3,538,044 $ 2,917,021 $ 9,880,611 $ 9,415,490 $ 3,067,016 $ 3,275,551 Steel Fabrication 377,683 447,265 1,070,638 1,367,276 352,307 340,648 Metals Recycling 520,986 498,616 1,578,602 1,523,053 534,895 522,721 Aluminum 71,139 66,980 203,347 198,448 66,576 65,632 Other 320,363 411,733 1,029,335 1,163,985 348,401 360,571 Consolidated Net Sales $ 4,828,215 $ 4,341,615 $ 13,762,533 $ 13,668,252 $ 4,369,195 $ 4,565,123 Operating Income (Loss) Steel $ 497,894 $ 304,950 $ 1,110,053 $ 1,421,915 $ 229,963 $ 382,196 Steel Fabrication 107,020 165,634 316,880 524,795 116,745 93,115 Metals Recycling 31,533 10,041 78,533 53,446 25,710 21,290 Aluminum (56,510) (22,018) (125,872) (43,435) (28,735) (40,627) 579,937 458,607 1,379,594 1,956,721 343,683 455,974 Non-cash amortization of intangible assets (6,890) (7,644) (20,684) (22,953) (6,897) (6,897) Profit sharing expense (42,389) (34,444) (95,790) (145,149) (22,695) (30,706) Non-segment operations (22,901) (21,082) (97,364) (83,084) (38,947) (35,516) Consolidated Operating Income $ 507,757 $ 395,437 $ 1,165,756 $ 1,705,535 $ 275,144 $ 382,855 Adjusted EBITDA Net income $ 403,926 $ 320,894 $ 922,796 $ 1,340,084 $ 217,679 $ 301,191 Income taxes 109,920 87,131 259,570 398,834 62,975 86,675 Net interest expense (income) 6,769 (8,063) 16,110 (30,257) 2,316 7,025 Depreciation 129,833 111,558 378,958 325,437 125,122 124,003 Amortization of intangible assets 6,890 7,644 20,684 22,953 6,897 6,897 EBITDA 657,338 519,164 1,598,118 2,057,051 414,989 525,791 Non-cash adjustments Unrealized (gains) losses on derivatives and currency remeasurement (7,814) 25,114 5,142 24,585 19,153 (6,197) Equity-based compensation 14,246 12,823 42,246 40,503 14,181 13,819 Adjusted EBITDA $ 663,770 $ 557,101 $ 1,645,506 $ 2,122,139 $ 448,323 $ 533,413 Other Operating Information Steel Average external sales price (Per ton) $ 1,119 $ 1,059 $ 1,083 $ 1,133 $ 998 $ 1,134 Average ferrous cost (Per ton melted) $ 381 $ 367 $ 391 $ 391 $ 386 $ 408 Flat Roll shipments Butler, Columbus, and Sinton 2,141,350 1,924,098 6,212,765 5,860,986 2,119,187 1,952,228 Steel Processing divisions * 543,700 471,441 1,515,429 1,319,267 492,627 479,102 Long Product shipments Structural and Rail Division 490,413 397,047 1,396,638 1,263,263 437,398 468,827 Engineered Bar Products Division 177,882 176,131 560,152 563,270 191,658 190,612 Roanoke Bar Division 157,989 138,096 454,003 393,125 144,186 151,828 Steel of West Virginia 101,996 74,564 305,680 240,260 96,483 107,201 Total Shipments (Tons) 3,613,330 3,181,377 10,444,667 9,640,171 3,481,539 3,349,798 External Shipments (Tons) 3,162,805 2,754,853 9,123,456 8,311,539 3,071,735 2,888,916 Steel Mill Production (Tons) 3,067,792 2,785,128 9,039,321 8,579,232 3,021,593 2,949,936 Metals Recycling Nonferrous shipments (000's of pounds) 242,842 241,292 721,499 739,057 233,080 245,577 Ferrous shipments (Gross tons) 1,590,153 1,461,810 4,639,168 4,429,523 1,452,432 1,596,583 External ferrous shipments (Gross tons) 538,020 537,082 1,640,660 1,665,175 557,618 545,022 Steel Fabrication Average sales price (Per ton) $ 2,495 $ 2,836 $ 2,536 $ 2,980 $ 2,599 $ 2,517 Shipments (Tons) 151,563 158,595 422,492 461,506 135,581 135,347 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 Third Quarter 2025 Results

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