Steel Dynamics 2025 Q2 Earnings Misses Targets as Net Income Declines 30%

Steel Dynamics (STLD) reported its fiscal 2025 Q2 earnings on Jul 21st, 2025. The company disclosed a decline in both revenue and earnings compared to the previous year. Steel Dynamics reported quarterly earnings of $2.01 per share, which missed the analyst consensus estimate of $2.51. Quarterly revenue came in at $4.57 billion, missing the analyst consensus estimate of $4.76 billion and down from $4.63 billion in the same period last year. Looking ahead, Steel Dynamics projects Q3 earnings per diluted share in the range of $2.00 to $2.04, with expectations for improved profitability despite ongoing market challenges.

Revenue

Steel Dynamics' Q2 2025 revenue decreased by 1.5% to $4.57 billion from $4.63 billion in the previous year. The steel segment contributed $3.28 billion, while steel fabrication added $340.65 million. Metals recycling brought in $522.72 million, and the aluminum segment generated $65.63 million. Other revenues amounted to $360.57 million, collectively forming the consolidated net sales of $4.57 billion.

Earnings/Net Income

Steel Dynamics experienced a 26.4% decline in earnings per share (EPS) to $2.01 in Q2 2025 from $2.73 in Q2 2024. Consequently, net income decreased by 30.2% to $301.19 million from $431.69 million in the previous year. The decline in EPS reflects weaker financial performance compared to last year.

Price Action

The stock price of Steel Dynamics edged up by 0.73% during the latest trading day, increased by 0.98% over the most recent full trading week, and rose by 1.03% month-to-date.

Post-Earnings Price Action Review

Investors who purchased Steel Dynamics (STLD) shares following a revenue increase quarter-over-quarter and held for 30 days saw significant returns over the past three years. This strategy delivered a total return of 399.84%, considerably outperforming the benchmark return of 88.72%. The excess return of 311.12% highlights the strategy's effectiveness compared to a passive approach. The strategy demonstrated a compound annual growth rate (CAGR) of 38.18% and a maximum drawdown of 0.00%, indicating robust risk-adjusted returns and minimal downside risk. The Sharpe ratio of 0.94 and volatility of 40.67% further underscore the strategy's strong performance metrics.

CEO Commentary

Mark D. Millett, Chairman and CEO, noted sequential improvements in operating income due to expanded margins and stronger shipments. Despite uncertainties in trade policy affecting orders, he expressed confidence that stabilized trade agreements would unleash pent-up demand, fostering continued growth. Millett highlighted the successful commissioning of aluminum operations and alignment with customer needs as key strategic initiatives.

Guidance

Steel Dynamics projects Q2 2025 earnings per diluted share between $2.00 and $2.04. The company anticipates increased earnings from Q1 2025’s $1.44, despite a decrease from Q2 2024’s $2.72. Expecting strong steel operations profitability from expanded metal spreads, the firm foresees slight contractions in flat-rolled volumes due to import pressures, alongside $288 million in capital investments and $179 million allocated for stock repurchases in Q2.

Additional News

Steel Dynamics recently received the Volkswagen Group Award for Sustainability, recognizing its proactive sustainability efforts. Additionally, the company announced its achievement of Global Steel Climate Council product certification, validating the eco-friendly credentials of its steel mills. Furthermore, Mark D. Millett, Steel Dynamics' CEO, was honored with the Harbor Aluminum's Gene Greenberg 2025 World's Aluminum Executive of the Year Award, highlighting his leadership in the aluminum sector. These accolades underscore the company's commitment to sustainability and innovation in the metals industry.