Steel Dynamics 2025 Q1 Earnings Net Income Drops 62.9%

Steel Dynamics (STLD) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The results revealed a 62.9% decrease in net income to $217.68 million compared to $587.50 million in 2024 Q1. The company missed expectations, with its EPS declining to $1.45 from $3.68 in the previous year. Despite the revenue miss, Steel Dynamics maintains a strategic focus on growth in lower-carbon emission products and circular manufacturing. The company has announced plans to expand aluminum operations, anticipating further advancements in sustainable sectors.

Revenue
Steel Dynamics reported a total revenue of $4.37 billion in Q1 2025, a decline of 6.9% from $4.69 billion in the same quarter of 2024. The steel segment generated $3.07 billion, while the steel fabrication sector contributed $352.31 million. Metals recycling added $534.89 million, and the aluminum segment produced $66.58 million. Other segments accounted for $348.40 million of the revenue.

Earnings/Net Income
Steel Dynamics' EPS fell 60.6% to $1.45 in Q1 2025 from $3.68 in the previous year. The company's net income decreased to $217.68 million from $587.50 million in Q1 2024, reflecting a challenging quarter with significant declines in profitability.

Price Action
The stock price of Steel Dynamics increased by 0.32% during the latest trading day, rose 2.56% over the past week, and has surged 11.32% month-to-date.

Post Earnings Price Action Review
A post-earnings strategy of purchasing Steel Dynamics stock after a revenue miss and holding for 30 days yielded a 463.00% return, outperforming a benchmark return of 95.08%. The strategy experienced a maximum drawdown of -32.38% but demonstrated a positive Sharpe ratio of 1.01, indicating good risk-adjusted returns. With a CAGR of 41.56% and volatility of 41.04%, the strategy carried moderate risk. This backtest underscores the strategy's effectiveness in leveraging revenue misses for gains, though it necessitates careful evaluation of broader market conditions to ensure its suitability.

CEO Commentary
Mark D. Millett, Founder, Chairman, and Chief Executive Officer, acknowledged Glenn Pushis's contributions, particularly in constructing the Sinton Texas flat rolled steel mill, and wished him success in the titanium industry. Millett expressed confidence in Miguel Alvarez's leadership of the aluminum platform, citing his past successes in enhancing service, efficiency, and supply chain solutions.

Guidance
Steel Dynamics is focused on expanding its aluminum operations, targeting high recycled content products for the beverage can, automotive, and industrial sectors. The company anticipates growth through investments in lower-carbon products and a circular manufacturing model. A new senior leader for the metals recycling platform is expected to be announced soon.

Additional News
Steel Dynamics recently announced significant operational leadership transitions. Glenn Pushis, Senior Vice President of Special Projects, will retire on October 1, 2025, to become CEO of McBride Capital Partners "Project Aero." He will continue consulting for Steel Dynamics during the commissioning of new facilities. Miguel Alvarez will take over as Senior Vice President of the Aluminum Group, effective October 1, 2025. The company also declared a second quarter cash dividend of $0.50 per common share, payable on or about July 11, 2025. These changes reflect Steel Dynamics' commitment to strategic leadership and shareholder returns.