Workflow
Steel Dynamics Provides First Quarter 2025 Earnings Guidance
STLDSteel Dynamics(STLD) Prnewswire·2025-03-17 20:30

Core Viewpoint - Steel Dynamics, Inc. anticipates first quarter 2025 earnings guidance between 1.36and1.36 and 1.40 per diluted share, a decrease from 3.67perdilutedshareinthesamequarterlastyear[1]Group1:EarningsGuidanceandPerformance−Thecompany′ssteeloperationsareexpectedtoshowstrongerprofitabilityinQ12025comparedtoQ42024,drivenbyincreasedshipmentsthatoffsetsomemetalmargincompression[2]−EarningsfrommetalsrecyclingoperationsareprojectedtobehigherthanQ42024resultsduetostrongerrealizedpricingandstablevolumesforferrousandnonferrousmaterials[3]−EarningsfromsteelfabricationoperationsareexpectedtodeclinecomparedtoQ42024,attributedtoseasonallylowershipmentsandalessthanfivepercentdecreaseinrealizedpricing[4]Group2:DemandandProduction−Demandisbeingledbytheenergy,non−residentialconstruction,automotive,andindustrialsectors,withtheSintonTexasFlatRollDivisionoperatingatover90percentproductionlevels[2]−Theorderbacklogforsteelfabricationhasimproved,extendingintoQ32025,supportedbyincreasedorderactivityprimarilyfromcommercial,datacenter,manufacturing,warehouse,andhealthcaresectors[4]Group3:CapitalManagement−TheboardofdirectorsincreasedtheQ12025cashdividendbyninepercentto3.67 per diluted share in the same quarter last year [1] Group 1: Earnings Guidance and Performance - The company's steel operations are expected to show stronger profitability in Q1 2025 compared to Q4 2024, driven by increased shipments that offset some metal margin compression [2] - Earnings from metals recycling operations are projected to be higher than Q4 2024 results due to stronger realized pricing and stable volumes for ferrous and nonferrous materials [3] - Earnings from steel fabrication operations are expected to decline compared to Q4 2024, attributed to seasonally lower shipments and a less than five percent decrease in realized pricing [4] Group 2: Demand and Production - Demand is being led by the energy, non-residential construction, automotive, and industrial sectors, with the Sinton Texas Flat Roll Division operating at over 90 percent production levels [2] - The order backlog for steel fabrication has improved, extending into Q3 2025, supported by increased order activity primarily from commercial, data center, manufacturing, warehouse, and healthcare sectors [4] Group 3: Capital Management - The board of directors increased the Q1 2025 cash dividend by nine percent to 0.50 per common share and authorized an additional 1.5billionforsharerepurchases,followingtheexhaustionofthepreviousprogram[6]−AsofMarch12,2025,thecompanyrepurchased1.5 billion for share repurchases, following the exhaustion of the previous program [6] - As of March 12, 2025, the company repurchased 191 million, or one percent, of its common stock during the first quarter [6] Group 4: Future Developments - The company is progressing with the commissioning of its Columbus, Mississippi aluminum flat rolled products mill and expects to begin shipping material by mid-2025 [5]