Steel Dynamics Reports Q2 Earnings Drop Amid Raw Material Cost Pressures

Steel Dynamics reported a decline in its second-quarter 2025 earnings and revenue, with net income falling to $298.73 million and revenue slightly down to $4.57 billion, both missing Wall Street expectations amid rising raw material costs and trade policy uncertainty. CEO Mark Millett highlighted that trade policy uncertainty continues to dampen customer ordering patterns, though underlying demand remains healthy, and he expressed optimism that stabilized trade agreements will unlock strong pent-up demand. Despite the softer financial results, the company repurchased nearly 2 million shares for about $254 million, signaling a strong commitment to shareholder returns amid industry cyclicality. The company also faces risks from inventory overhang in coated flat rolled products due to imports and potential execution challenges with new facility integrations. Steel Dynamics forecasts growth to $21.4 billion in revenue and $2.4 billion in earnings by 2028, assuming steady expansion and operational improvements. After these results, Steel Dynamics’ shares showed mixed performance, with a modest rally noted following the earnings release.