Steel Dynamics foresees ‘significantly stronger’ profitability in Q2

The company says metal spreads increased as average realized steel pricing grew more than scrap costs.

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Carsten Reisinger | stock.adobe.com

Steel Dynamics Inc., an electric arc furnace steelmaker headquartered in Fort Wayne, Indiana, has provided second quarter 2025 earnings guidance ranging from $2 to $2.04 per diluted share, which is nearly 39 percent higher than the company’s sequential first quarter 2025 earnings of $1.44 per diluted share. However, SDI’s 2024 second quarter earnings were $2.72 per diluted share, or 36 percent higher than what the company is projecting for the second quarter of 2025.

RELATED: Steel Dynamics cites favorable conditions in Q1

SDI says it expects profitability for its steel operations in the second quarter of this year to be “significantly stronger” than its sequential first-quarter results as metal spreads expanded given that average realized steel pricing increased more than scrap costs. Long-product steel shipments improved sequentially in the quarter, with flat-rolled volumes contracting modestly primarily because of the inventory overhang from coated flat-rolled steel imports, according to the company, which adds that the energy, nonresidential construction, automotive and industrial sectors continue to lead demand. Steel segment pretax earnings were reduced in the second quarter by approximately $32 million, however, resulting from a noncash write-off of consumable assets.

Second-quarter 2025 earnings from SDI’s metals recycling operations, which operate under OmniSource Corp., are expected to be steady sequentially based on stronger shipments offsetting lower realized pricing, the company says.

Earnings for SDI's steel fabrication operations in the second quarter are expected to be lower than sequential first-quarter results based on steady shipments combined with metal spread compression as steel raw material costs increased and the average realized sales price modestly declined. The pace of order activity increased in the quarter, and the order backlog improved, extending through 2025, with SDI noting attractive related pricing levels. Demand was supported largely by the commercial, data center, manufacturing, warehouse and health care sectors. Further, the company says accelerated announcements for meaningful domestic manufacturing investments and onshoring coupled with the U.S. infrastructure program are expected to positively affect demand for steel joist and deck products and flat-rolled and long-product steel.

SDI says its aluminum team continues commissioning the Aluminum Dynamics flat-rolled mill in Columbus, Mississippi, and its San Luis Potosi satellite recycled slab center in Mexico. The team cast its first aluminum ingot in Mississippi in January and in Mexico in March and expects to begin shipping material midyear.

As of June 11, 2025, SDI had repurchased $179 million, or 1 percent, of its common stock during the second quarter.

The company plans to release its second-quarter 2025 earnings after the markets close Monday, July 21.

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