Steel Dynamics Q2 Earnings Outlook Misses Estimates Amid Industry Recovery

Steel Dynamics (STLD) projected its Q2 2025 earnings per share to range from $2.00 to $2.04, which is an improvement from $1.44 in Q1 2025 but falls short of both the $2.57 analyst consensus and the $2.72 reported in Q2 2024. The company expects stronger profitability from its steel operations due to expanded metal spreads, with average steel prices rising faster than scrap raw material costs, though steel fabrication earnings are anticipated to decline due to compressed margins and rising input costs. Metals recycling earnings should remain steady as increased shipment volumes offset lower pricing. Steel Dynamics' Q2 pretax earnings were reduced by about $32 million because of a noncash write-off of consumable assets. The firm continues commissioning its aluminum facilities in Mississippi and Mexico, expecting initial shipments by mid-2025. Despite the lowered earnings guidance causing a share price dip, year-to-date gains remain around 15%, supported by increased order activity and a backlog extending through 2025, with demand led by sectors such as energy, construction, and manufacturing.